Payday Loan Scam 03 Oct 12

The McLeod County Sheriff’s Office has recently received reports of a telephone collection scam related to delinquient Payday Loans.

Authorities say it’s a nationwide scam in which a caller claims the victim owes money on a Payday Loan they have either paid off or have never had.

Callers pose as police, lawyers, representatives of the FBI, or representatives of the Attorney General’s Office, and claim to be collecting a debt. Oftentimes, the callers tell the victim that there are warrants for their arrst and demand payment either by credit card or by prepaid card they instruct the victim to get. The callers are often very demanding and belligerent and will harass victims at home and work. Many callers have a strong Indian accent and they try to bully the victim until they gain compliance.

The Sheriff’s Office says debt collection companies operating in Minnesota must be licensed in Minnesota and may not harass, swear at you, theaten harm, call continuously, or threaten to have you arrested.

If you are contacted by such an operation, you should report it to law enforcement immediately.