Payday loan scams are a big trend for rip-off artists these days. Because of the overall economy, more and more consumers are taking out cash advance loans in order to make unexpected expenses. Some consumers only take out a payday loan once or twice a year. They repay their loans on time. But many more consumers are repeat borrowers, taking out several short term loans each year. And that’s what a new breed of scammers are betting on.

How Payday Loan Scams Work

Scam artists either pay-off payday lender employees or hack into the company’s secure network. With access to names, phone numbers, addresses, places of employment and even some financial information, the scammers contact previous borrowers. Payday loan scams are carried out by people pretending to be from a legitimate company, a fake collection agency, a fake law firm or impersonating a state official. The people perpetrating these payday loan scams tell consumers they owe money for a loan. Because the scammers have such much information, the claims seem believable.  Victims of payday loan scams are then taken for hundreds of dollars.

Stopping Payday Loan Harassment

If a consumer receives a call from someone claiming to be collecting an old payday loan debt, they should ask for verification of the debt. To avoid being a victim of payday loan scams, consumers should immediately contact the lender the person claims they are collecting for.

Consumers skeptical they might be targets of payday loan scams should also do the following:

  1. Ask for written verification of the debt on the original lender’s letterhead
  2. Contact all three credit bureaus and get a copy of their credit reports
  3. Report suspicious collections calls to state consumer protect agencies
  4. Never provide banking or credit card information over the phone or through email correspondence

Stopping Payday Loan Harassment: For consumers who do have legitimate debts, stopping payday loan harassment is only a phone call away. Rather than suffering in  a never ending cycle of payday loan debt, borrowers can find relief by contacting a payday loan consolidation company. Companies who offer these services deal with the lender on the borrower’s behalf.


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  1. Payday Loan Telephone Collection Scams