How to Recognize a Payday Loan Scam

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Small, short-term loans of less than $500 are known as payday loans. Payday loans can be repaid as soon as you get your next salary, whether it’s from your job, social security, or any other source of money. It is possible to get a payday loan through a payday loan business or an internet lender.

Because of the ease of applying for a payday loan online rather than in person, it is a common choice for many consumers. An online payday loan can be obtained by searching for a lender and filling out an application on the internet. Visit legit lender’s website at https://bridgepayday.com/.

To illustrate, suppose the following: Having a tight budget, you go online in search of a short-term loan to help you back on your feet. You apply for the loan on a legitimate-looking website. In order to deposit the approved loan amount and a deposit as a proof of trust, you receive an email stating that you have been approved. A payday loan fraud on the internet has taken advantage of you.

The First Scam: Counterfeit Payments

These con artists transfer your money via Western Union, MoneyGram, Green Dot MoneyPak, or a Wal-Mart-to-Wal-Mart transfer, and then deposit fake cheques into your account. A check or ACH credit takes a few days to bounce. If you fall victim to one of these scams, your money will most likely be gone forever.

Even if you fill out an online application with your personal information, a payday loan website is likely to defraud you even if you never actually take out a loan. Based on the personal information you provided, we will most likely sell your personal information to a third party who may or may not use it maliciously. Identity theft can also play a role.

If this occurs, phone calls may begin with the caller inquiring if they are speaking to the correct person (your name). They may request your address, birth date, and/or social security number under the guise of validating an account. Many people assume that if a caller already has this much personal information, the call is legitimate.

But be cautious! Scammers are now aware that your personal information was verified over the phone and is correct. Scammers impersonating debt collectors will then begin calling you, threatening legal action unless you pay up.

The second scam is Payday Loan Debt Collection.

A call from a debt collector is never pleasant, but receiving one from a phony collector is even worse. Fear or intimidation will be used by these con artists to get you to hand over your money right away. They may claim to be a police officer, a judge, or an attorney and work for a law firm or the government. If you don’t pay right away, they’ll most likely arrest you.

You should be aware, as a precaution, that this type of scam extends beyond payday loans. In addition to internet loan scams, these charlatans frequently appear to be collecting other types of debt from unsuspecting consumers, such as student loans.

These scumbags will rant and scream at you, using filthy language and slurs. If you don’t pay the loan, they may tell you that the police will be there in an hour to arrest you. If you don’t pay the bill, they may threaten to withhold your wages or fire you from your job.

Don’t you think this could happen to you?

If you suspect you’ve been a victim of a scam, the first thing you should do is cut off all contact with the caller. Never accept a call from a debt collector, no matter who answers the phone. If possible, mobile phone users can prevent the number from calling them again. If you don’t want to, don’t answer any more calls from that number. To avoid scammers leaving voicemails, delete them and do not pick up the phone.

Relax, even if you’re facing jail time or losing your job. Debt collectors have no legal authority to enforce either of those threats, legal or not. There are no longer debtor’s prisons; you cannot be arrested for not repaying a payday loan. They can’t even garnish your wages: a legal debt collector can only garnish your wages if a court-mandated process is followed.

Inform Us About the Scam!

Fill out a report as soon as you receive the call or hear the message on the phone. People who believe they are being targeted by debt collector scammers should contact the Consumer Financial Protection Bureau (CFPB) as soon as possible.

You can also report these types of scams to the Federal Trade Commission (FTC) and your state Attorney General’s office.

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