Phony Debt Collection Scam

The Department of Business Oversight (DBO) has been notified that an entity claiming to be a collection agency has been calling members of the public attempting to collect on purported payday loan and other debts. Law enforcement and regulatory agencies in West Virginia and Michigan have issued consumer warnings about a potential scam operated from the phone number used by the alleged debt collection firm. The number is 745-535-8550.

In one case, the alleged debt collector called a man and threatened to sue him unless he repaid a payday loan he purportedly received from B4Payday, a lender licensed by the DBO. In fact, the man had never received a payday loan from B4Payday and did not owe the lender any money.

Debt collectors are not licensed by the State. They must, however, comply with state and federal laws that require fair treatment of consumers and prohibit unfair business practices. California consumers can file a complaint against a debt collector with the state Attorney General’s Office at http://ag.ca.gov/contact/complaint_form.php?cmplt=CL.