Payday loan scammers pretend to be government officials

Payday loan store
Payday loan store

Callers posing as California government officials demanding payment for fictitious payday loans have generated a flurry of complaints to a consumer protection agenciy across the country in Massachusetts.

Barbara Anthony, undersecretary of the Massachusetts Office of Consumer Affairs and Business Regulation, posted a warning about the scam on her department's blog, prompting targets of the scam to call there to complain.

In the scam, the caller claims to be from the California Department of Consumer Affairs -- sometimes claiming to be a lawyer -- and tells the victim he or she owes money on an old payday loan. Then comes the threat: Pay up you'll be subpoenaed. All big warning signs, Anthony says.