Consumers across the country report that they're getting telephone calls from people trying to collect on loans the consumers never received or on loans they did receive but for amounts they do not owe. Others are receiving calls from people seeking to recover on loans consumers received but where the creditors never authorized the callers to collect for them. So what's the story?

The Federal Trade Commission (FTC), the nation's consumer protection agency, is warning consumers to be on the alert for scam artists posing as debt collectors. It may be hard to tell the difference between a legitimate debt collector and a fake one. Sometimes a fake collector may even have some of your personal information, like a bank account number. A caller may be a fake debt collector if he:

is seeking payment on a debt for a loan you do not recognize;
refuses to give you a mailing address or phone number;
asks you for personal financial or sensitive information; or
exerts high pressure to try to scare you into paying, such as threatening to have you arrested or to report you to a law enforcement agency.

If you think that a caller may be a fake debt collector:
Ask the caller for his name, company, street address, and telephone number. Tell the caller that you refuse to discuss any debt until you get a written "validation notice." The notice must include the amount of the debt, the name of the creditor you owe, and your rights under the federal Fair Debt Collection Practices Act.
If a caller refuses to give you all of this information, do not pay! Paying a fake debt collector will not always make them go away. They may make up another debt to try to get more money from you.

Stop speaking with the caller. If you have the caller's address, send a letter demanding that the caller stop contacting you, and keep a copy for your files. By law, real debt collectors must stop calling you if you ask them to in writing.

Do not give the caller personal financial or other sensitive information. Never give out or confirm personal financial or other sensitive information like your bank account, credit card, or Social Security number unless you know whom you're dealing with. Scam artists, like fake debt collectors, can use your information to commit identity theft ? charging your existing credit cards, opening new credit card, checking, or savings accounts, writing fraudulent checks, or taking out loans in your name.

Contact your creditor. If the debt is legitimate ? but you think the collector may not be ? contact your creditor about the calls. Share the information you have about the suspicious calls and find out who, if anyone, the creditor has authorized to collect the debt.

Report the call. Contact the FTC and your state Attorney General's office with information about suspicious callers. Many states have their own debt collection laws in addition to the federal FDCPA. Your Attorney General's office can help you determine your rights under your state's law.>

http://www.ftc.gov/bcp/edu/pubs/consumer/alerts/alt076.shtm

yeah right stephanie l you are one of the people that works for the scamers what do you think we are all stupid that we wouldnt see through you NICE TRY!!! you work for them you and the rest of the people you work with should all be placed in jail for stealing i am reporting you to the BBB and  my states A.G

I dont do payday loans and never have. Did have someone I thought was my friend steal my debit card and money from my account. Maybe they took payday loan in my name.Not sure how they would of got around the photo ID... Im sure you would have to provide that. I dont know but, I have Not had anymore phone calls from this number..nor do I live in New York.

i got a phone call from them as well , i paid i got a letter that i paid my loan in full and it is now off my credit report. all these people are are debt collectors..its not a scam . as far as it being a residence when you look them up i asked an attorney about that ( cause i to was scared at first that it was a scam) he said a lot of times when someone is going into business and complete paper work if they dont have an office or place of business yet they can use another address..

Andrew M. Cuomo - Governor
Governor Cuomo Announces Department of Financial Services Notifies Debt Collectors Not to Seek Collection on Illegal Payday Loans

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Albany, NY (February 22, 2013)

Governor Andrew M. Cuomo today announced that the New York State Department of Financial Services has sent letters to all debt collectors in New York stating that it is illegal to attempt to collect a debt on a payday loan since such loans are illegal in New York. Payday loans are short-term loans, typically an advance on a paycheck, with extremely high interest rates that violate New York?s criminal usury law, which limits interest to 25 percent. Considering the fees on an annual basis, the interest rate can be as high as 400 percent.

?Today?s notification will remind debt collectors in the state that such practices are illegal in New York,? Governor Cuomo said. ?Studies clearly show that payday loans are not a solution for people with low incomes, but rather a high cost debt trap. That?s why they are illegal in New York, and the State will continue to protect consumers from these misleading loans.?

Superintendent of Financial Services Benjamin M. Lawsky said, ?All debt collectors in New York should know that it is illegal to try to collect payday loan debts. We will aggressively enforce the law to protect all New Yorkers and especially low income individuals who are all too often abused by unscrupulous lenders and debt collectors.?

Lenders attempt to skirt New York?s prohibition on payday lending by offering loans over the Internet, hoping to avoid prosecution. However, Internet payday lending is just as unlawful as payday lending made in person in New York. No matter what method is used to make the loan, usurious and illegal payday loans are not valid debts and cannot lawfully be collected on. Superintendent Lawsky?s letter makes that point clear to the debt collection industry.

The letter states, ?Debt collectors should take note that attempts to collect on debts that are void or unenforceable violate state and federal law. The Department of Financial Services will continue to monitor lenders and debt collectors to protect consumers from usurious lending, including payday lending, through aggressive enforcement of law violations.?

Beth Finkel, State Director for AARP in New York, said, ?AARP commends Superintendent Lawsky's actions enforcing New York's strong laws and protecting state residents. Payday loans are predatory in nature and create a cycle of debt for many New Yorkers. These kinds of loans are illegal in New York and should be kept that way.?

Linda Levy, CEO, Lower East Side People?s Federal Credit Union/PCEI, Inc., said, ?After 27 years of making affordable small dollar loans, we applaud this reminder that pay day loans are illegal in the state of New York, and must remain so in order to protect all New Yorkers from the downward spiral of high interest rate debt.?

Robert A. Martin, Associate Director, District Council 37 Municipal Employees Legal Services, said, ?Payday loans trap working people into an unending cycle of payments at usurious rates that violate New York law. The DFS letter sends a strong statement to debt collectors that they may not collect on these illegal loans against the residents of our state.?

Russ Haven, NYPIRG Legislative Counsel, said, ?Governor Cuomo is standing up for working people by warning debt collectors off trying to collect illegal 'payday' loans from New Yorkers. The governor and the Department of Financial Services are preventing an 'end run' around the state's usury laws and protecting New Yorkers from the predatory financial products that trap consumers in a vicious debt cycle and impoverish communities. These loans, with their sky high interest rates and fees, undermine economic recovery and are antithetical to the calls for raising the minimum wage in New York.?

Carolyn E. Coffey, Supervising Attorney, MFY Legal Services, Inc., said, ?We applaud DFS for sending a strong message to debt collectors who try to collect on illegal payday loans and abuse our working poor clients.?

Susan Shin, a staff attorney with NEDAP in New York City, said, ?Superintendent Lawsky's letter sends a strong message to both debt collectors and payday lenders that their unlawful practices won?t be tolerated in New York State. Not only is debt collection on payday loans unlawful in New York, but we've seen debt collectors engaging in especially outrageous attempts to collect on payday loans against low income New Yorkers, fraudulently claiming they will arrest or press criminal charges against them.?

Kristin Brown Lilley, Director of Policy Advocacy, Empire Justice Center, said, ?While it may be impossible to stop predatory lenders from reaching into NY through the internet and other means, the Department of Financial Services? letter affirms that every payday loan with an interest rate over our 25% cap is indeed illegal in New York State. Empire Justice applauds Superintendent Lawsky for sending a strong message that crooks cannot collect on these illegal debts.?

February 22, 2013

Re: Letter to all debt collectors operating in the State of New York:

This notice is to remind all persons and entities collecting debts in New York that they should not seek to collect on illegal, usurious loans made in New York, including payday loans. This includes illegal, usurious payday loans made in New York over the Internet and via phone and mail. In New York, under General Obligations Law § 5-501 and Banking Law § 14-1(1), loans or forbearances under $250,000, made by non-bank lenders or New York chartered- banks, with an interest rate of 16 percent per annum or greater, constitute civil usury and are illegal. Further, under New York Penal Law §§ 190.40-42, loans made in New York with an interest rate of 25 percent per annum or greater constitute criminal usury.

Payday loans are illegal in New York under both civil and criminal usury statutes. Payday loans are short-term loans, typically an advance on a future paycheck or other income source. When the fees are annualized, the interest rates are extremely high, often as high as 400%, and hence these loans are usurious.

Subject to the provisions of General Obligations Law § 5-511, loans offered in New York by New York-chartered banks or non-bank lenders, with an interest rate above the statutory maximums, including payday loans, are void and unenforceable. Debt collectors should take note that attempts to collect on debts that are void or unenforceable violate state and federal law. The Department of Financial Services will continue to monitor lenders and debt collectors to protect consumers from usurious lending, including payday lending, through aggressive enforcement of law violations.

Very truly yours,



Benjamin M. Lawsky
Superintendent of Financial Services
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We need to find out who owns the company and sue them maybe that will work

I would Love to report these people if anyone could tell us how to do that.
Going to the police station and making a report is fine but, it won't do anything to stop them.
As for the attorney general of Mo, I've filed complaints before where I had paperwork to back up my claim...and nothing ever came of it. I got a letter almost year after the fact saying there was inconclusive information but they were keeping an eye out.
Plus these people change their names and phone number so much you would have very hard time connecting them on any charges, if its possible.
But, I'm glad there was forum like this to help the people they have called figure out the scam it is.
:)

same thing with me they scared me too then I read all these post and I checked out the address with google maps you can see its some persons house I am going to look in to reporting them.
there has to be something done about these scammers

I have been getting these calls for 3 days now, from someone who calls herself "Sarah Green".
The first day: said she was local courier and she needed my signature on documents.
That she would be by my place of residence within the hour. If I wanted to I could call this 855-826-8576 and speak with the filing creditor. Also, that I should consider myself informed.
Hmmmm, waited and waited and waited. Guess what, no one showed.
The 2nd day: same person. Said they were unable to reach me and would be trying again today sometime in next few hours. She followed almost to the T, word for word what she said the first time.
3rd time, this morning: again same person, same message.only that she attempted twice now to obtain my signature. She would  one laylast time at my residence then would be going to my place of employment. Oh, and she wished me "good luck"!
I forgot to add that she did say I needed to have PHOTO ID available when she showed up for the signatures.

I was home all day long the first day, the 2nd day, and will be home all day today. Pretty sure I should not hold my breath waiting for her to show.
I was worried for like 5 min after the first voicemail I listened to. I have debt & bill collectors calling me, things are hard right now. Sure I'm not alone there. But, I did my research and realized it is a scam!!
Don't know about every one else but I have to go to work and put up with ALOT of crap to make the peanuts I do. I certainly don't have any to give away just so someone can line their wallets with my money.
They can get a job and work their butt off and make little to nothing like the rest of us.

Mike Suttner called said he had some documents that need signing for a friend of mine. Can be signed at place of residence or work. Call 855-826-8576 with a case number. All very vague - no company mentioned

Got a message from a person named SARAH GREEN she said she was sending someone in any hour to bring some document for mr to sign and to consider me served  the call came in unknown but she left a # to call back and it was 855 826 8576  she said to call this number to speak to them and gave me any access #

no one is going to show up at your house they are full of $@#& google the address i did its someones house they are a scam

I got a message for an ex boyfriend (haven't seen in 6 years).  This is weird because my ex doesn't even have my home number.  How did they get my number and what do they want?  They said they were stopping by in an hour because there were documents that needed signing.

Same deal trying to collect on a debt discharged in bankruptcy gave me the 855-826-8576 number.  seems shady.

Same thing just happened to me two minutes ago, today is a wednesday. Same as Rhonda and Rebecca. I'm not calling this number back. I pretended to be someone else to get more info he basically said the same thing to me as he did to you guys.

My experience was the same as Rebecca.  I got the call from courier, Mike Futner (sp??) and he wanted to make sure that I was expecting him before he brought a package to my home.  He "needed a signature".  If I wondered where the package was from, I could call 855-826-8576 -my case number was 306861 U.M.S.  He was very evasive and said I had until Friday.  Today is Wednesday 4-3-13.  I felt uneasy about the whole thing and said, "it sounds Creepy!"  He got defensive and said, haven't you ever heard of UPS or Fed Ex, I said of course, but are you with them? No, private Courier...
Anyway, did not call that number, as it felt "wrong".  Is it a scam???

got a call from a Private Courier as a "courtesy" about documents to be delivered to me.  I asked several questions, including the addresses, he kept hesitating to answer and gave me 2 addresses of previous employers from over 10 years ago.  Told me I could call UMF at this phone number to find out what it was.  said he would be delivering the papers to my house at 3 pm on friday (called me on a wednesday), he said he did not work for a courier service, but this company contacted him to deliver this package because he ran an ad for work.

same deal here, asked for someone I never heard of

NOTICE OF FORMATION OF Upstate Mediation Services LLC.
Articles of Organization filed with the Secretary of State of NY (SSNY) on 10/30/2012. Office location: Erie County. SSNY has been designated as agent upon whom process against it may be served. The Post Office address to which the SSNY shall mail a copy of any process against the LLC served upon him is Upstate Mediation Services LLC, 265 East Hazelton Avenue, Kenmore, NY 14217. Purpose of LLC: To engage in any lawful act or activity.

Scam threatening message to mail or deliver a document

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