If you receive a phone call from a person claiming to be collecting on an old payday loan, there’s a good chance it may be a scam.
Decatur Police Chief Joedy Pennington said companies known as Riverside Financial and Asset Recovery Associates have called residents in Newton County recently. Pennington himself has been contacted by this company, and he wants residents to be ready if they get a similar type call.
According to a press release from the Washington State Department of Financial Institutions, a consumer received a phone call from the company calling about an alleged debt. The company referenced a case number and a phone number to Asset Recovery Associates, which then contacted the consumer to collect funds with Riverside Financial.
The customer never obtained a loan from the said companies. The customer also referenced the phone number 855-599-7663.
“This is a 100 percent scam,” Pennington said. “This company claims to be a mediator for a payday loan company. When they called me, I asked them where they were licensed with. They put me on hold and eventually hung up. If a company calls you and asks you for your social security number over the phone, don’t ever give it to them.”
Pennington recommended that residents only deal with those lenders who are properly licensed to conduct business.
Payday loan companies are subject to the Fair Debt Collection Practices Act and the Federal Trade Commission. Debt collectors cannot claim that failure to pay a debt is a crime. They cannot call before 8 a.m. or after 9 p.m. and cannot harass or abuse consumers or contact consumers’ place of employment.
To report a loan scam, call your local law enforcement and log on to www.ftc.gov or call 1-877-FTC-HELP.
