For Immediate Release - August 3, 2009 – Better Business Bureau is issuing a national alert today about phony debt collectors that are calling consumers nationwide and claiming that they have defaulted on a payday loan and will be arrested if they don’t pay immediately. Claiming to be lawyers, the scammers say they are with the “Financial Accountability Association” or the “Federal Legislation of Unsecured Loans” and are equipped with a disconcerting amount of personal information about their potential victims.
“Because the scammers have so much information about potential victims, BBB is concerned that this may be the result of a data breach,” said David Weiss, BBB president. “Thousands of people may have had their personal information compromised, and given the scammers’ tactics, it appears that those who have previously used payday loan services could be particularly at risk.”
According to reports received by BBB and posted online, the scammers accuse the victim of defaulting on a payday loan and claim they are being sued. The phony debt collector threatens that, if the victim doesn’t pay as much as $1,000 immediately via wire or by providing bank account or credit card numbers, he or she will be arrested and extradited to California within the hour to stand trial. The scammers often have the victim’s Social Security, old bank account numbers or driver’s license numbers as well as home addresses, employer information and even the names of personal friends and professional references.
A Sheffield Lake consumer told BBB last week, “Around 2p.m. today my sister received a telephone call from Alex Raynes in regards to my debt with national cash advance. He advised her that I put her down as a personal reference and they wanted to file charges on me in regards to the debt. He went ahead and explained to her that the charges included breech of contract and theft of services. I called Mr. Raynes and explained to him that I received the message from my sister. I explained that I spoken with someone in regards to this debt on 06/29/09 and asked if he could mail me all the information concerning this debt. Mr. Raynes cut me off and said he did mail to me. I explained that I did not receive it. I asked for his company name and a physical address of the company. He refused to give the information.”
BBB offers the following advice to consumers if they receive a suspicious telephone call about an outstanding debt:
According to complaints online, phone numbers that the scammers are calling from include: 949-468-5107, 415-200-0274, 415-200-0274, 213-784-5745, 408-715-1614 and many others.
About BBB
BBB, the leader in advancing marketplace trust, is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. Businesses that earn BBB accreditation contractually agree and adhere to the organization’s high standards of ethical business behavior. BBB provides objective advice, free business BBB Reliability ReportsTM and charity BBB Wise Giving ReportsTM, and educational information on topics affecting marketplace trust. To further promote trust, BBB also offers complaint and dispute resolution support for consumers and businesses when there is difference in viewpoints. The first BBB was founded in 1912. Today, 125 BBBs serve communities across the U.S. and Canada, evaluating and monitoring more than four million local and national businesses and charities. Please visit www.cleveland.bbb.org for more information about BBB.