Payday loan scam surfaces in Ohio

loan warning in OhioPhony debt collectors are harassing Ohioans for repayment of payday loans consumers never borrowed, the Ohio Attorney General is warning. The collectors pretend to be from the legitimate Kentucky-based company, U.S. Cash Advance.

"They're very aggressive debt collectors," said Kim Kowalski, spokeswoman for the Ohio Attorney General's office. "They're using harassing tactics including calling them repeatedly at work and insisting that they wire the money."

One consumer complained that although she never did any business with U.S. Cash Advance, a representative claiming to be from the company called her 25 times at work in one day demanding $300. Others complained of demands to wire $2,100.

The Better Business Bureau reports that the real U.S. Cash Advance does not issue loans over $450 and their collectors will not contact consumers over the phone or request payment by wire transfer.

The standard debt collection procedure follows that after consumers are contacted by phone, they should receive a written validation letter in the mail within five days of the call. The letter should detail the exact amount owed. Kowalkski advises consumers "to send a written request and get a certified response" if they have not received one already.

The Federal Trade Commission 's summary of the Fair Debt Collection Practices Act outlines these rights.

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