FTC Shuts Down Companies Over Debt Collectors Scam - 8 News NOW

FTC Shuts Down Companies Over Debt Collectors Scam

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LAS VEGAS - Alleged debt collection companies are calling unsuspecting people, telling them they owe money and threatening jail time if the people don't pay.

The threat has been brazenly thrown around for months, but beware. It may not be legitimate.

In February, several alleged debt collection companies started contacting consumers who previously received or inquired about online payday loans.

The debt collector callers falsely threatened to arrest the person if they didn't make a payment on an alleged delinquent loan.

According to the Federal Trade Commission, the callers somehow obtained customer information from these payday loan websites.

The callers would demand $300 to $2,000 dollars in cash. They targeted several southern Nevadans, according to calls made to 8 on Your Side. The FTC shut down several of these companies this week. Their assets are being handed over to the FTC and will be used for customer refunds. If you've been targeted, contact the FTC.

If a debt collector calls you, you need to make sure it's a legitimate call before you pay. Don't ever confirm financial details to strangers. Always get the debt collector's name, the company's name and contact information. A legitimate debt collector must send you written proof that you owe the money and the specifics of the debt. Following those simple steps can decrease the likelihood you will get scammed.

If you have faced this problem contact 8 on Your Side at 650-1907 or email us.

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