Better Business Bureau has warned about a new telephone scheme targeting payday loan customers in US. Scammers are calling payday loan customers, both with payday loan debts and defaults and those without it, falsely claiming to be as collectors of a certain payday lender, in order to fraud customers and collect unlawful payments.

Many of these callers claim to be financial lawyers and are member of Financial Accountability Association  or Federal Legislation of Unsecured Loans. Their aim is to collect payment from customers but they are also collecting other information such as social security numbers, drivers’ license numbers, bank account numbers, and other private information for them to use for fraudulent purposes.

Solomon Finance, who is a payday lender, experienced this the hard way. Man of their customers called and complained that why they were being threaten by lawyers and collection companies but the truth is that Solomon Finance has an in house legal department and does not work other collection companies or legal firms.

Investigation this issue and after finding an Scam Alert on Lawyer.com, Solomon Finance advised its customers that they should not respond with these collectors and contact their local authorities whenever they received these calls.

How To Deal With These Scammers:

- Do not be scared of their scare tactics. Some threaten to hurt your credit, garnish your wages, and even have you arrest. Only a direct lender can report you to credit bureaus or garnish your wages and only if after you as a payday loan customer fail to pay their payments on time. Even in that case they often give you a courtesy call and warn you before they take any actions. In many States, they can’t even garnish your wages. As for being arrest, NO LAW ALLOWS YOU TO BE ARREST for debt.

- Do not give them any personal information but do take as much information as possible so you can pass on to authorities. Ask for their mailing address, phone number, etc.  Once you have those information, CALL THE POLICE.

-  If you have an open payday loan, contact your payday lender and let them know of potential scam going on their behalf so they can do their end and look into.

- If you get a call from your payday lender for late payment and you do indeed have late payment, tell them that you will call them back then hang up and call them back. That way you insure that you are calling your actual payday lender not some third party.



AboutPaydayLoan.com - Millions of hard-working Americans will soon be facing some drastic changes to their already limited finance options soon if a new proposed financial reform bill is passed.  Although many hard working families already find it tough to find finance when they are in a bind, the new financial protection bill is already being criticized for potentially eliminating jobs and consumer credit options during our economic crisis.

Senator Chris Dodd’s proposed financial reform bill is the government’s response to the recent subprime mortgage crash and the following economic crisis, but some argue that the aim of the bill misses the mark entirely.  It seems that financial giants such as Freddie Mac and Fannie Mae who are allegedly responsible for creating our economic situation have escaped any reforms at all, while those offering small consumer loans and finance options will apparently be paying penance for an economic situation which they did nothing to create.

Although the timing may prove to be a little too late, mainstream media outlets including the Wall Street Journal and USA Today are beginning to speak out and urge our Senators to vote against the financial reform bill in its current form.   One of the most common objections to this bill, is that it seeks to oversee and regulate small consumer financial products which are already regulated and fully disclose the financial terms.  For example, American families often times finance dental procedures for themselves and their children, and it is not uncommon to seek the some type of financial assistance to help cover expensive dental procedures.  Many dental offices offer finance options “in-house”, but if Dodd’s bill is approved that may soon change.

Another small consumer finance group that stands to face even more regulation under the new bill would be Payday loan lenders
such as paydayloanjr.com or Extra Cash Net USA offer customers a quick finance option when banks and credit unions do not.  Although direct lenders will face new regulations, sites that generate payday loan leads will still remain unregulated, since they do not directly lend money, and simply act as a “middle-man” between the borrower and lender.  Unfortunately for hard working families who need quick cash advance loan until their next payday the new financial protection bill aims to place even tougher regulations on the payday lending industry, even though these lenders are regulated by strict State laws currently.

Hopefully this recent outcry from the mainstream media will reach the ears of hard-working Americans and our Senators, to avoid a needless “over-regulation” which may in fact harm our economy and create more job losses.  After all, we don’t need more regulation for products that already follow strict guidelines, and aren’t the cause of our economic crisis.  Perhaps our Senators should consider regulating those responsible and protecting Americans from harmful mortgages and derivatives.