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Banking department warns of debt collection scam

Banking department warns of debt collection scam

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The Nebraska Department of Banking and Finance is warning Nebraska residents to beware of a currently popular debt-collection scam in which individuals call people to demand payment of an old payday loan and then threaten them with possible arrest or court action if they do not immediately send payment.

The Department said many people have called to report threatening phone calls from a fraudulent debt collection scam. Those calling have gained access to personally identifiable information, including Social Security numbers and old addresses, and are using this information to attempt collection on an alleged old payday loan debt.

The scammers use different company names as the source of the old payday loan debt and for the collection company they represent but avoid using the same company name in separate calls to avoid identification. The scammers often require some type of electronic payment by credit card, debit card, prepaid money card or automatic clearing house in order to complete the transaction quickly.

Under the Nebraska Fair Debt Collection Practices Act and the Federal Fair Debt Collection Practices Act, Nebraskans have rights that protect them from harassment or abuse in connection with the collection of the debt, nor can debt collectors make false or misleading statements.

To report fraud, visit: http://www.ndbf.ne.gov/consumers/complaint.shtml

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Business editor/reporter

Matt Olberding is a Lincoln native and University of Nebraska-Lincoln graduate who has been covering business for the Journal Star since 2005.

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