North Dakota Attorney General Wayne Stenehjem warned state residents Friday to be on alert for conmen posing as collectors of payday loans or other debts.
The scam is similar to one he warned about a few months ago, but the conmen appear to have escalated their threats. One Bismarck victim lost $2,500, he said, after the caller said there is a warrant for her arrest.
The attorney general's Consumer Protection Division answers calls daily about such threatening calls, he said. Most of the callers said they had filled out an online payday loan application but never completed the process or had paid off the loan months or years ago.
Usually the conmen will have personal information about their would-be victims such as social security number and work place, Stenehjem said. Consumers should be careful about where they submit such information, he said, because not all websites offering loans are legitimate.
Parrell Grossman, director of the Consumer Protection Division, said consumers should always ask debt collectors for written documentation of the debt, which is required by federal law, and contact the original creditor to confirm if the debt has been paid or has been sold to a third party to collect.
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Federal law also forbids debt collectors from making threats of arrest or using obscene language.
