June 18, 2010

By: Michelle Grinberg, Esq.

Rhode Island consumers are being warned by their Attorney General about a collection scam involving collectors who call consumers claiming they owe a debt related to a payday loan.  They threaten these innocent consumers with arrest for fraud and/or stating that a lawsuit is being filed against them.  This tactic is used to scare such consumers into immediately wiring money or providing bank account information in order to satisfy a debt which was never owed or previously paid off.

Unfortunately, Rhode Island consumers are not the only ones being targeted by such unscrupulous collection scams.  Our office receives phone calls from consumers all over the United States who have been contacted by similar individuals claiming that they are investigating them for fraud or they have the authority to arrest them.  In most instances, these individuals use “spoofed” or unknown numbers that are difficult to trace or are located outside the country.  They refuse to give out the name or address of their purported company.  Consequently, pursuing these unscrupulous and fraudulent “collectors” can prove difficult or impossible.  Nevertheless, consumers should beware of such scams and make sure not to disclose their personal or banking information out of fear of these fictitious claims.