BBB Warns About Debt Collection Scam

On Aug. 5, the Better Business Bureau issued a warning advising consumers of a nationwide phony debt collection scam.

The scammers in question call and claim that the victim has defaulted on a payday loan and will be arrested if they do not immediately pay. The scammers identify themselves as lawyers with “Financial Accountability Association” or the “Federal Legislation of Unsecured Loans.”  The scammers claim the person must pay up to $1,000 by wire transfer or provide credit card or bank account numbers. If not, the caller falsely asserts the person will face arrest and extradition to California within one hour.

The scammers have a tremendous amount of personal information on each victim, which BBB suspects comes from a significant data breach. The excess of personal data can make the scam more convincing.  The information can include Social Security numbers, old bank account numbers, home address, employer information, names of personal friends and professional references.

The BBB asks that you do the following if you receive a suspicious phone call about an outstanding debt.

• Ask the debt collector to provide official documentation which substantiates the debt.
• Confirm the legitimacy of the call before providing any bank account, credit card or other personal information over the phone.
• File a complaint with the Federal Trade Commission online, makes abusive comments, or breaks existing telemarketing or debt collection laws.
• Make an online BBB complaint.
 
Online complaints indicate, the scammers called from phone numbers: 949-468-5107, 415-200-0274, 415-200-0274, 213-784-5745, 408-715-1614 and many others.

For more information, please contact Alison Southwick with the BBB at 703-247-9376.