Charlotte’s Action 9 is reporting that a Lincoln County woman said she applied for a payday loan online but canceled it. Now, collectors have been calling demanding repayment. Elizabeth Ingle said what she did online led to a series of threatening phone calls that have left her in tears. Click on the image below to watch the full story.

So what happens if you experience a collection scam? CFSA released a statement earlier this year about rogue debt collectors. Here’s a snapshot from what our Board Chair D. Lynn DeVault said:

“It is simply wrong to pursue criminal complaints against consumers who have defaulted on personal debt,” said D. Lynn DeVault, board chair of the CFSA. “Lenders should be working with their customers to figure out a solution. Our members offer borrowers an extended payment plan at no extra cost to the borrower and adhere to CFSA Best Practices which prohibit any criminal recourse.”

CFSA’s Best Practices state, “A member will not threaten or pursue criminal action against a customer as a result of the customer’s check being returned unpaid or the customer’s account not being paid.”

If you have consumers that are being called by someone claiming they have defaulted on a loan and will face criminal prosecution, please have them file a complaint with the Federal Trade Commission.

Here’s more information for consumers on what they can do during the call:

• Ask the caller to provide official documentation verifying the debt.
• Don’t provide or confirm any bank account, credit card, social security number, or other personal information over the phone.
• File a complaint with the FTC.