Payday insurance lending has been around for years making it possible for consumers to access quick cash without worrying about creditworthiness or approval waiting times. Financial emergencies often require money in a hurry, and most “traditional” lenders, such as banks and credit unions, do not offer timely pay-as-you-go lenders. With these types of short-term insurances, consumers are expected to repay what they borrow in a short time frame; Usually with their next salary. University lenders use their college to deal with overdue payments but identity thieves have found their own way to try and collect these insurances, unfortunately many consumers are backing away from it!
Payday insurance lenders, also known as “micro dollar insurance” providers, withdraw insurance payments from the borrower’s bank account on the same day the borrower’s paycheck is deposited into their bank account. In the event that funds are not available for repayment, the lender will likely be willing to make payment arrangements with the borrowing in an effort to see them repay their insurance successfully. If that doesn’t work, collector will step in. It will most likely be someone from a payday insurance lending company, or perhaps a third-party collector. Lenders will never interfere with the police and will not petition the FBI to get their lost money back.
A recent scam has identity thieves pretending to be FBI agents trying to intimidate consumers into paying payday insurance debt that they may not owe. Using impersonation technology, consumers respond to their phones by seeing “Federal Investigations” on their caller ID. The impersonator on the other end of the line then claims to be an FBI agent who has been monitoring the online call recipient’s activity as a payday insurance borrower. While an unsuspecting victim on the phone may or may not have a payday insurance account, a thief pretending to be an FBI agent will threaten legal action, and even imprisonment, if payment is not made by wire transfer or prepaid debit card. These thieves may even be able to gain access to a person’s address, workplace, or Social Security number.
Consumers need to know that no matter what insurances are given, these so-called FBI agents are bogus and have no ability to collect any kind of money whatsoever. In the event that you receive a phone call from someone claiming to be an FBI agent looking to pay off a payday insurance, here are a few things to keep in mind:
*Any money exchanged via wire transfer or prepaid debit card cannot be reversed or tracked. It’s like sending money, that’s why the calling person will ask you to send money in this way. Once you pay them, you won’t have a chance to get your money back.
* If one of these imitators seduces you, hang up and don’t call them back. While you may feel like you want to “correct the situation,” it’s not worth getting into a confrontation and risking giving them information they can use against you later.
* Be sure to report the incident to the local police department; Especially if you feel threatened.
* While you may have Caller ID and it is correct most of the time in identifying callers, don’t believe it if it says “FBI”. Caller spoofing has made it possible for perpetrators to pretend to be anything from representatives from your utility company to immigration authorities.
* If you decide to speak with the caller, then ask for an official “confirmation” of the debt. The law requires that they do so and include the name of the creditor, the amount of the debt, and a statement of your rights under the Fair Debt Collection Practices Act. If the Collector is not willing to provide you with the information you request, hang up. This is a sure sign that it is illegal.