State Attorney General Warns of Debt Collection Scam

South Dakota Attorney General Marty Jackley is warning consumers about a debt collection scam in which debt collectors are impersonating law enforcement officers in effort to collect money.

The scam artists most often claim they are attempting to collect a debt related to a payday loan obtained over the internet. Many of the consumers who have been contacted have never obtained a payday loan or the loan has been paid in full. The callers have most recently identified themselves as “Criminal Investigations.”

The fraudsters call the victim’s home, cell phone, and place of employment, according to a press release from Jackley’s office. They refuse to provide to the consumers any details of the alleged payday loans and become abusive when questioned. The callers threaten with legal actions, arrests, and in some cases physical violence if they refuse to pay.

“These collection calls are an attempt to obtain payment by instilling fear in the victims,” said Jackley. “Do not follow the instruction of the caller.”

Jackley said that if South Dakota residents receive calls of this nature, they should:

• Contact their banking institutions;
• Ask the caller to send the loan information in writing;
• Refuse to verify any bank account, credit card or other personal information over the phone;
• Contact the three major credit bureaus and request an alert be put on file;
• Contact local law enforcement agencies if there is immediate danger.