Common Payday Loan Scams

A payday loan, which is also often referred to as a payday advance, is a type of short-term, small and unsecured loan that will not have to be linked to your payday in any way. However, while there are a number of reputable payday loan services, there are others that are not. In fact, when you fill out an application online for a payday loan you may make yourself liable for the latest phone collection scam that is related to the payday loan. This is due to the fact that your information is being sold to third parties.

About this Payday Loan Scam

This scam involves a person calling a person and making the claim that they are delinquent on their payday loan and that they have to pay off the loan immediately in order to avoid serious legal consequences. In many cases, the caller will pose as a type of authority, such as the FBI, a law firm or the Federal Legislative Department. These scam artists will likely claim to be collecting debts for certain companies, including U.S. Cash Net, U.S. Cash Advance, United Cash Advance or some other Internet service offering check chasing.

According to the Fair Debt Collection Practices Act, there are certain things that debt collectors are not allowed to legally do. The Act will not allow collectors to call before 8 a.m. or after 9 p.m., calling continuously, threatening a person with legal action, using profane or abusive language or communicating with any third party about the debt. The bad news is that since these scam artists are already breaking the law, they do not have any interest in following the guidelines of the Act. This means they will contact the person’s cell phone, home phone and even their place of employment to try and get them to make a payment.

The Importance of Protecting Yourself

If you have the suspicion that you have been targeted by any type of loan scam, or other type of collection scan, there are a number of steps that you need to take. If you do have an actual loan, that you are currently repaying, it is a good idea to contact the actual lender and never provide any personal information to the person on the phone.

Payday Loan Reviews offers more insight and information to some of the most common scams circulating. Staying up to date will ensure that you protect yourself from these types of scams.