Warning issued over bogus payday loan debt collector calls

If a debt collector calls and threatens to sue or have you thrown in jail unless you immediately authorize a payment from a bank account, hang up because it's a scam, says Illinois Attorney General Lisa Madigan.

Madigan has issued a consumer alert warning people to be on the lookout for scammers posing as payday loan debt collectors. They call and threaten either a lawsuit or even arrest unless a payment is made. The state has seen a rise in consumer complaints of these bogus collection calls in recent weeks. In most cases, the callers already have some personal information about the consumer, including a place of employment and Social Security number. They also say they have the consumer's bank account number on file and ask to confirm the number.