Legal office warns of pay day loan scams Published June 15, 2011 By Capt. Craig Dunham Legal office KEESLER AIR FORCE BASE, Miss. -- Mississippi residents are the targets of a pay day loan collection scam that has swept across the country. In the scam, an individual calls the home claiming to be an attorney with a fake law firm or government agency. The caller then explains they are in the process of suing the victim for not paying a pay day loan the victim, or one of their family members like a son or daughter, has taken out. If money is not immediately sent, the caller threatens the victim saying he will be arrested and sent to jail. "This isn't a new scam," said Capt. David Cromwell, an assistant staff judge advocate with the base legal office. "It started back in 2009 with phony bill collectors calling, but the scam artists are trying a new angle and they are very persistent." People are duped by the caller because the scammers use official sounding law firm names and they know a lot of personal information about the victims, like their social security numbers, driver's license numbers and old bank account numbers. They sometimes even refer to the victim's employer or personal friends. "People get nervous when someone claiming to be a lawyer calls, so they're more likely to stay on the phone to get more information," said Captain Cromwell. "That's exactly what the scam artist wants." If the victim won't or doesn't send the money, the phone calls keep coming. Even if the family wants to pay, the caller will insist they can only accept credit card or bank account information. Once given that information, the scam artist then begins to access the victim's account and take their money. "One individual I recently helped wanted to pay because they were unsure if their son owed money and they would rather send the money than face jail time," said Captain Cromwell. "The person only came in to see me for legal assistance after the caller said they wouldn't accept a money order or check. Then they began to call every hour harassing the family." Captain Cromwell warned, however, that no law allows you to be arrested for failing to pay a loan, even a pay day loan. In fact, there's a law making it unlawful for bill collectors to threaten you with arrest. The Fair Debt Collection Practices Act prohibits bill collectors from threatening to have you arrested if you don't pay your debt, repeatedly calling to harass or annoy you, threatening you with violence or harm, falsely claiming to be an attorney, or falsely claiming you committed a crime. The law also requires creditors to send you a written "validation notice" telling you how much money you owe within five days after they first contact you. This notice also must include the name of the creditor to whom you owe the money, and how to proceed if you don't think you owe the money. "If you feel you are the target of a scam, ask for the loan information in writing, refuse to verify any bank account, credit card, or other personal information over the phone, and contact the Attorney General's Office of Consumer Protection for Mississippi," said Captain Cromwell. "You can also check your credit report for free each year at https://www.annualcreditreport.com to ensure you do not owe any money and are not the victim of identity theft." For more information, visit the base legal office or call 376-8601.