It’s pretty scary when a $300 payday loan turns into an investigation by the Federal Crimes Bureau.
Not only was the recipient of the letter below being “investigated for crimes”, his Social Security number would be suspended, and a court case initiated against him immediately.
At great cost and embarrassment.
Unless, of course, he sent the writer money.
The writer assures him that it will go so much better for him if he just pays up.
Except, while the debt referenced may be real, the collector is not.
This is a scam.
How collection scam works
The scammer here got possession of enough information about a real debt to construct a scary threat. If my friend who got this letter didn’t send them money, “before his legal file is downloaded inside the courthouse”, all kinds of ugly things would happen.
And it managed to scare my friend, because he does have an unpaid pay day loan.
Because the debt referenced is real, it’s easy to conclude that the rest of this parade of horribles is real as well.
The fake collector plays on guilt about not paying a real debt; on ignorance about how collection law works; and on fear of being exposed to friends and associates as a “bad person”.
Signature features of scam
Let’s look at each of the ways the scammer shaded the truth in the collection letter. [Read more…]