Payday loans, while not the ideal solution when facing financial difficulties, can be an option when there is a temporary shortage of on-hand cash. If you choose to proceed with payday loan, do so cautiously, and keep in mind that you may become a target of particular scams.
The scammers usually pose as a debt collectors, so if you have fallen behind on payments, you might be more inclined to believe them when they call. These companies are often based oversees, but not always, so don’t rely on this fact alone to gauge the authenticity of the collection company.
These are the steps you should take to protect yourself:
- Verify the debt before paying any collection agency. Unfortunately, they can easily gain access to personal information that they may use to make you believe that you owe them money. They may even reference a credit account that you had at one point and claim that it was never paid it off, thus resulting in a delinquent account with added fees.Request a written validation notice; if they are legitimate they will be able to provide it to you within five days. The notice must include the name of the creditor with the outstanding debt, the exact amount you owe, and how to dispute it if the information is inaccurate. You have the right to this information under the Fair Debt Collection Practices Act; do not allow them to tell you otherwise.
- Research the debt collector to confirm that they are who they claim to be. The phone number you see on your caller ID might be false, since there is technology available that can alter what appears on the phone when they call. When talking to them on the phone, simply ask for the name of the company, the physical address, and main phone number.Use the information gathered to look them up online. Remember that if they are legitimate, you have their phone number and can always return their call at another time when you’re better informed. However, if you don’t find any information online or if you find negative reports, such as Better Business Bureau complaints, then you’ll have saved yourself.
- Listen attentively to what they say without reacting. Scammers know that being overly aggressive will often catch people off guard, so they will probably try that. Also, it is illegal for them to provide any information to your relatives or coworkers, so if they are doing so, it is definitely a red flag. They may also be urging you to make the payment through a prepaid card or wire transfer because these are untraceable forms of payment.
Alertness and knowledge are both helpful tools that protect you from fraud, so we hope that sharing this information with you will be of assistance. The Graham Legal team specializes in Miami foreclosure law, if you need representation or guidance, let’s schedule an appointment.