SPARTANBURG, S.C., Sept. 18, 2018 /PRNewswire/ -- Advance
America, a national provider of small-dollar loans and other
financial services, has recently become aware of a scam targeting
consumers in Louisiana. Reports
indicate scammers, posing as Advance America representatives, are
contacting local residents offering approval for personal loans in
exchange for payment through gift card codes. These scam artists
are in no way affiliated with the company, as Advance America would
never require payment before the loan approval process.
Scams like this typically take the form of contacting residents
claiming that they will quickly be approved for a loan as long as
the respondent is willing to wire money as a "processing fee" or
"good faith deposit." In other cases, scammers seek to collect on
"unpaid" small-dollar loan debt, often threatening arrest or legal
action or demanding personal financial information over the
phone.
"Scammers often use the reputation of a legitimate, respected
business to con victims out of their money," said Patrick O'Shaughnessy, president and CEO of
Advance America. "Legitimate short-term lenders such as Advance
America are highly regulated at both the state and federal level
and will never use the kind of fraudulent and illegal tactics
employed by scam artists."
Advance America urges consumers to identify the warning signs of
financial fraud and follow these tips for avoiding small-dollar
loan and debt collection scams. If individuals suspect being
scammed, they should report it immediately to local law enforcement
and to the lender that the scammer claims to
represent. Advance America customers can call
888-310-4238.
Learn the signs of a scam
Federal law strictly regulates how real bill collectors and loan
agents can do business. The federal Fair Debt Collection Practices
Act (FDCPA) specifically prohibits debt collectors from being
abusive, unfair or deceptive in trying to collect a debt. The law
specifically says debt collectors cannot threaten consumers with
arrest or jail time if they don't pay their bill. If someone claims
you will face criminal prosecution unless you immediately wire them
money, it's almost certainly a scam.
Scammers may also claim that you have been pre-approved for a
loan, and then require you to purchase a prepaid debit card or wire
money as a "processing fee" or "good faith deposit." Others may
really be identity thieves out to get your personal or financial
information.
How to Avoid Scams:
In addition to understanding how lenders and bill collectors can
operate, consumers should also take steps to protect themselves,
including:
- Never give personal information such as your Social Security
number or bank account information online or over the phone without
verifying that you are working with a legitimate lender or bill
collector. Verify company licenses when applying for a loan online.
Legitimate lenders will display their licenses on their websites to
verify they are fully licensed in your state and comply with state
and federal laws.
- Be suspicious of any email with urgent requests for personal
financial information. If an email makes upsetting or exciting
false statements, it's likely a scam.
- Never wire money or provide prepaid debit card information to a
lender claiming you have been pre-approved for a loan and must make
an initial payment as a "show of good faith." Legitimate lenders do
not offer approvals prior to application and do not require good
faith deposits.
- Keep anti-virus, anti-malware, and spam email protection
software up to date on all your computing devices.
- Maintain a record of all outstanding debt, and include lender
contact information.
- Regularly check your bank, credit and debit card statements to
ensure there are no unauthorized transactions. Likewise, check your
credit report (using Equifax, Experian, or TransUnion) every four
months on a rotating basis; credit reports are often one of the
first places where signs of identity theft or fraud will
appear.
- If someone approaches you claiming you owe them a debt, demand
they provide written proof of the debt as the law requires -
especially if it's for a charge you don't recognize.
About Advance America Cash Advance
Founded in 1997,
Advance America, Cash Advance Centers, Inc. is the country's
leading provider of non-bank financial services, with approximately
2,100 centers across the country. The Company is a founding member
of the Community Financial Services Association of America (CFSA),
whose mission is to promote laws that provide substantive consumer
protections and to encourage responsible industry practices.
Advance America is a wholly owned subsidiary of Grupo Elektra, one
of the largest Latin American providers of banking services,
consumer finance and specialty retailing. Please visit
www.AdvanceAmerica.net for more information.
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SOURCE Advance America Cash Advance