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Payday lender gets what’s due… from the FTC

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Have you ever been contacted by a lender who says you owe them money, but you’re pretty darn sure you don’t? You’re not the only one.

According to the FTC, some payday lenders bought consumer financial information from third parties. Using that financial information, they created fake loan agreements, deposited money into people’s accounts, and made unauthorized withdrawals, all in violation of federal law.

What’s more, the lenders lied about the total cost of the loans — not only to consumers who had never asked for the loans in the first place, but also to some who may have authorized the loans. According to the FTC, the lenders told the consumers that their total payments on their loan would be the principal plus a onetime finance charge. Instead, the lenders withdrew biweekly automatic payments that didn’t go toward the principal. So, unless the consumers contested or paid down the loans, they were making interest-only payments indefinitely.

The lenders’ ill-gotten gain? A cool $49 million over 10 months, according to the FTC’s review of bank records.

None of this sits well with the FTC, which asked a federal district court to stop the practices and to preserve the possibility of providing refunds to the consumers.

Before you decide to take out a short-term loan, consider all your alternatives, and use extreme caution when you share personal information online.

Blog Topics: 
Money & Credit


Got a call from Compliant Contact Services. And as all other comments they say i have two loans from 2010. They can't or won't give all info I need. Besides, I filed A chap 7 in 2011. They insist these loans were not included. Of course they offered a settlement. And if not then they would file fraud documents.

Talking about some crazy scammers, they calling my church, family members, home and job. 502-272-9695 they are out of control. When i talk to them conversation got heated and the gentleman hung up on me.

i get phone call all the time about a warrant for me about a loan i never paid at first i was scared then when i started goggle the number i found out they were scams.

I received a email from katherine grainger from speedy cash they want me to pay by tax-pay voucher(reload it pak) does anyone know if this is a scam or not

If you owe money on a loan, contact the lender and ask about your account. If you owe money, talk to the lender about how to make payments. If you owe money, ask the lender if they are using another company to help collect debts. Find out if the person who called you is really working for your lender.

I have been contacted so many times, I ignore them but have filed complaints against them with the FTC, Attorney General and I just filed a police report. I was told the Cutter group is the one filing against me. This is crap. How can we get removed from their databases. I hate that I ever used a payday loan in the past, but I know for a fact I don't owe anything. They have been paid in full. They are so bad that they even called my sister and my parents trying to reach me. It is a scam and I want them to stop. It really stresses me out. What can be done? I see these articles but no one addresses what is going to be done to stop these lenders from offering these loans nor to they stop the scammers. I contacted my local news and they want me to tell my story in an interview. People need to be warned that Payday loans are not a good thing.

I have been getting these calls daily. I finally decided to answer and was told i owed money for a pay day loan from 2010, its 2016. Lets get real, if i actually owed money from 2010 I would know it. So I requested the manager, Edward was his name, he was very rude. I asked the name of the company, the address, phone number, license number...anything. The MANAGER hung up on me. Sooo I called him back, he wasnt very happy. They told me all the information i need is on a website and they had nothing for me. The phone number is 1-866-667-9132. Beware. OH...Every time I called back, you could hear them sign in the phone before speaking.

I just paid $430 to Impact Solutions. They claim to be a mediation company, the last step before legal action is taken. They did not threaten. The girl Melissa Summers is very good actually. I really believed it, except I never took out a loan the year she claims I went delinquent. She said for security purposes they aren't allowed to provide their address. She pleaded with me to just pay the amount without any paperwork to prove who I owe it to. Claiming that their client already sent it to the wrong address. An address I had over 6 years ago. These companies keep calling once in awhile. When will it end? And do I have any recourse if I paid them?

If you sent money to a fake debt collector, she might call you again. Or, she might sell your contact information to another scam company. This FTC article tells more about dealing with a fake debt collector.

Jones27, Impact Solutions is not a legitimate collection agency. They seem nice at first, but the more you grill them, the more they show your true colors. If you receive another call from ANY company claiming to be the final step before legal action is taken, please ask them the following (and make sure you are in front of a computer so you can look up the information to verify they are giving you correct info):

1. The name of the county and court where they are sending the paperwork (preferably have them provide a fax number)

2. The exact date you took out your loan (and know your state's statute of limitations)

3. Their address and phone number. Don't fall for the BS that they do not give it out for their safety. I have dealt with legitimate debt collectors who always willingly provide an address and phone number.

4. Ask for their website, or Google the name they are providing.

Just a fair warning, "Impact Solutions" called me from (215) 649-7135 today and from the same number claiming to be "T&S Solutions" on Thursday and Friday. I asked why they are calling me from the same number using a different name, and the woman claimed they changed their name due to the level of harassment they were receiving. LOL!

Years ago I was doing payday loans and had to just stop cause it got to the point i could not pay them and still eat. Last week a lady calls me and tells me that she has to issue a warrant for my arrest for one felony and two misdeamor charges for a payday loan, I was scared so i tryed to borrow the money was told to talk to my bank so i did and got it settled with them.

Today a man called saying he was a detitive and wanted to know if i was home cause he has a warrant for me, i told him i cleared it with my bank and we hung up. Seconds later she called and said it is not with my bank but with the payday loan bank and she was call the sherriff's department back to have me arrested. I am still so scared even though everyone has told me that i can not be arrested for this i am still not sure. I live in one state and she is calling from a state I never lived in. Can they really do this

Sometimes fake debt collectors call people who don't have debts, or who already paid off their debt.

If you settled your debt with the lender, and a debt collector calls, you could ask your lender if it hired the debt collector who called. If your lender did not hire the debt collector, he could be a fake. This FTC article tells more about fake debt collectors and how to respond to them.

Someone who threatens you and tries to scare you into sending money could be a fake. A legitimate debt collector is not allowed to harass you or make false statements .

I have received several calls this week from Canyon Creek Management, who want to serve me papers for something associated to a bank account I no longer have. They are slick/vague about what the issue is, and when pressed, get very belligerent. Especially when I told them to buzz off (yeah, not really the word I used) and finally told them if they called again I would report them to the CFPB.

I received a call from 215-649-7135 from "T&S Solutions," claiming to be a mediator and the last step at resolution before arbitration. I asked for clarification on the plaintiff, who was "Kingston Financial," a pay day loan company, attempting to collect a debt from 2009. I fully admit to taking out a pay day loan in 2009, which I paid back and have proof of payment. The person initially sounded legit and became agitated when I asked if I could have contact information to send my proof of payment, then started rambling off random dates of other loans I supposedly took out (nerp, never happened), then told me that if I wanted to keep this matter out of arbitration, I had to pay $500 immediately.

I asked her how I would only owe $1,200 on a $300 loan that was over 7 years late (with interest, etc), so she said she misread the information and that I owe $12,000. LOL! I was feeling a bit like an a-hole and decided to screw with her a bit, so I then asked her to which county she was sending the paperwork, you know, to make sure it got to the right place. She fumbled and then said, "Well, YOUR county. I cannot give you that information because it is not relevant to this matter. Just pay the $500 or I will hang up and you will face the court. I will add a transcript of this call to the paperwork so they know you are difficult."

I told her where to shove her paperwork and hung up. Just received a call from the SAME number, but now they're called "Impact Solutions." Beware, they are a third party company who purchased lists of names from various pay day loan companies either going out of business or in some other financial strain. By the way, pay day loan companies are quickly becoming a thing of the past, and under various predatory lending laws, most, if not all outstanding debt is being forgiven under the law :):)

I was contacted by a Aaron Stone (855) 276-8202 claiming to be a 3rd party collection agency. They claimed the company called Access Holdings LLC had deposited money into a closed account I once had. I did not give them any new information; however they said for a small fee I could get out collections. I contacted my bank got my old records and as I knew; no deposit was ever made. This man claimed I would be sued, legal allegations were going to be made but would all go away if I paid them. DO NOT FALL FOR THIS SCAM!!!

I was literally just posting about this company and then saw you had mentioned it. I am having the same issue but they are reporting to my credit score. Are they reporting on yours? They have been pretty rude and the bank account attached to the alleged loan was closed almost 2 years before the alleged loan was taken out. I just don't know what to do about my credit report :( was the third party company called Midwest recovery system?

searching for an attorney that knows about payday loan fraud.a

I've received a call from phone number 214-396-7236, which stated that the call came from Dallas, TX. I returned the call and was transferred to Kelly Hendrisks from Federal Law Office Financial Regulation/Department of Fraud Investigation at 440-730-4244. I found out that she is located in Ohio. She stated that I did a Pay Day Loan in 2011 from Greenwood and that I should have received paper work, which I never had from any one. She stated that if I don't pay $560.03 by 1 p.m. today that they were going to file charges of bank/check fraud. I never opened a pay day loan in 2011. I then received an email from a Michelle Collins to pay the $560.03 but instead showed the amount of $595. The email had a company named National Litigation Group. I called my husband, who in turned called Kelly Hendrisks back. He stated that she was very rude etc to him and hanged up on him. I checked with my bank and they found nothing on Greenwood or any amount being deposited from a pay day loan company in 2011. I then checked my credit report. There isn't any pay day loan showing up on my account. Today, I did call the Attorney General of Mass and told them my story. They taken all my information and told me that it is a scam. I then contacted the Federal Trade Commission. I gave them my story and they created a claim on the three company names mentioned in this blog. They too told me it is a scam. While I was still on the phone with the Federal Trade Commission, Kelly Hendrisks left me a voice message stating that I need to take care of this and that my husband was rude and threaten to her. I didn't call back. I then contacted the Consumer Finance and gave them my story. They too started a claim. They also stated that it is a scam. The Consumer Finance stated that no government will contact a consumer via phone, email, etc. for payment. They will always contact by certified mail with return receipt on it.

Aug. 2011 a company by the name of Longboat Group/Cutter Group deposited $400 in my bank account without my knowledge or permission. They then proceeded to withdraw $75 every other week as a loan refinance fee for a total of 7 withdraws totaling $525. When I contacted them to discuss what was happening to my account and how I didn’t authorize this loan or withdraws they wouldn’t work with me. I had to shut down my account to stop them from taking my money. Over the course of the next four years I’d get collection agency’s calling and trying to collect $812 on this fraudulent account. Tuesday May 26, 2015 I received a voicemail from a Mrs. Garcia with an unknown phone number. She stated she was an independent processor from Jefferson County Courts and was trying to serve me with court documents. If I didn't reply or couldn't be reached to be served with the paperwork I would be charged with direct refusal to comply. She left the number 1-832-342-9218 if I had questions. When I called this number on Wednesday May 27th, 2015 it went to a voicemail of someone by the name of Robert Coleman. After calling twice and leaving a voicemail I received a call from a Jefferson County Court number (that is no longer in use) 303-271-6215 with a person on the other end stating they were the police/sheriff trying to serve me papers and demanding my work address. When I refused to give work location they told me to call the "investigator" to set up a time and place to be served. I was given the phone number 1-832-460-6692. The person who answered stated that I owed $812 (to a company called BMG Financial who is somehow connected to the Longboat/Cutter Group but was being collected by ARS Management) and if it went to court it would be over $2,100 and if I opted to be served with paperwork instead of paying the $812 I was threatened the person who would serve me would immediately arrest me with charges of malicious intent and felony bank fraud. When I agreed to pay they made me believe I was being transferred to a Jefferson County court clerk and paying the courts. The next day I noticed my payment wasn't to Jefferson County Courts or to ARS Management the collection agency, but to a company called All Care Services, Inc. located at 5764 Fisk Rd., Lockport, NY 14094 phone: 716-628-2143. I had to have my lawyer contact them get my money back after a strongly worded letter that pointed out all the FDCA laws they broke. They were suppose to remove the fraudulent debt from my credit record. Well today(3-1-2017) I was contacted again by another agency supposedly a third party collecting on behalf of Cutter Group from the numbers 1-855-205-0489 and 1-866-288-9858. This needs to stop! Its been over 5years! Cant the FTC shut them down???

Please report this to the FTC at The information you give goes into a secure database that the FTC and other law enforcement agencies use for investigations. The comments you put here on the blog don't go into the law enforcement database.

I have been receiving emails stating that I owe money to Cash Advance Inc, but when I replied to them they threatened me with arrest and garnishment. But the company refused to give me the information on the "loan" company I apparently took a loan out with. What else can I do to protect myself and keep them from contacting me?

The emails might be from a fake debt collector. Read about what to do if a fake debt collector contacts you.

A legitimate debt collector must send you a written “validation notice” telling you how much money you owe, within five days after they first contact you. Read more about your debt collection rights.

They are still at it. Different numbers and names. They called today and left message. I've been receiving these calls on a payday loan. They keep stating that I had a payday loan supposedly in 2011. I contacted my bank and they told me that nothing was deposited or withdrew from my bank from the name of the creditor that they gave me. I then checked my credit score. If I did take out a payday loan wouldn't it show up on my credit score. Nothing on my credit score for a payday loan. The first call was asking for me to verify information. I didn't do it. They hanged up. Sometime this year, I received a call from a litigator stating I need to pay $590 or I was going to be arrested for bank & check fraud. I've already filed complaints with the Attorney General in Massachusetts, Federal Trade Commission and the something Consumer. The numbers 844-600-4818 to speak with Mrs. Weaver case #266316 to call this number 800-563-8240. The message gave me this name called the "Asset Recovery Division" and when I called the 800 number received this company name of Consumer Billing Alternative. I'm getting tired of these calls and I've been blocking them like crazy. Anything else I should do. I've blocked all numbers.

Receiving robo calls that leave a voicemail about my payday loan. i don't have one. i called payday to say I suspect fraud and they confirmed i don't have a loan with them.

so i get a check today as a refund for the ridiculous interest they charged me. Is this in reference to the over 4 million dollars they gotta ay consumers back

One day, I was in a stressing out my life situation where I was in a position beyond my control to apply for an personal loan... So I go online and did some research on loan companies that works with people with bad credit... so I found a website called LendingUSA, i submitted an online application realizing there was scams going around, and used false information but my phone number was real as I listed it for a reason but address etc was falsified. About an hour and half later, i get this phone call from a gentleman name Nick Screwdge which had an accent of an Indian,Yes I said Nick Screwdge so anyways he wanted to follow up on my application and finally said that i was approved for $25,000.00 which I thought was funny because number one, I LIED ON MY APPLICATION AND SOCIAL SECURITY NUMBER WAS OFF BUT MIXED TOGETHER, AND STATED i was employed by Chase Bank (I previously called the main corporate office prior to use the name Chase due to the fact that it was going to be used for an investigation against this so-called loan company) and so Nick said to me that I needed to go to a Chase Bank and open an Chase Premier Checking Account which is why I stated Chase Bank as mu employer on the application knowing that i would be required to have an checking account... so I told him that I would have to go to the bank since they do NOT take Chase Liquid accounts so he said okay when can you go to the bank and how fast can you get to the bank? Well well well, sounded like he was in a hurry after all, I had informed him maybe about twenty minutes. He replied okay well i will hold on the phone and wait for you.... I just hung up on him and I went to the bank and explained the situation to the branch manager and she looked at me and just out loud she said oooooh my gawwwwwd seriously? People just turned heads at each other laughing out loud, sure I was sooo embarrassed about the way she went saying it like Alicia Silverstone style, so account was opened and He called me about an hour later, along with the County Sheriffs Department on the line eavesdropping during the call and at the same time, the call was being traced. The call was traced in a condominium complex in Merced, CA and next thing you know, the Merced County Sheriff's Department is being dispatched to that location and nails him and he was caught red-handed... whoohooo whatcha gonna do? whatcha gonna do when come for you. LOL Good Job Merced County Sheriff's.

hi last Friday apply for personal loan was 5000 dollars.this customer manager he say tell me I was approve so he need me account routing for deposit money.
he put 600 hundred dollar n tell me get that money n westen union to tennesse .n he say the min you delivery monet you 5000 dollars wwill e n u account.
well the ank call me n say will going to closed you account s will see something wrong somebody closed me account for is why me credit is fair. I will never have credit.

the same lending usa that is loan name ohhhh call manager dan willis

What about online "payday" loans? Are these things considered collateral check fraud ?
There is an agency who called and aid that they would take further action due to collateral check fraud. She gave me a total but would not break down the amount. I asked to be mailed information about the debt. They offered to email.... I told them to MAIL it. She said I had until 2 pm Monday to respond. The indication is that they would sue me..... I still have yet to receive the email... and I doubt they will mail it. She said they made excessive attempts to collect and I was deemed to be evasive and used some other strong word.

I had purchased a small freezer from Sears 5 years ago. The fan stopped working 11.5 months after purchase and I lost all the meat in the freezer. A repair man from Sears came out and banged on the fan and it started to work again, I paid by check for 1 hour of labor. A week later after I replaced the meat in the freezer, it happened again, the fan stopped working and Sears send the same repair man. He replaced the fan and I paid him again by check. I received a bill from Sears for the total of the two checks I paid to have the repair man look at and repair the freezer. I called Sears and they said they never received the checks so I owned them the money. Guess what after 4 years I am told by the 3 different collection agencies that I own Sears the money. And they put it on my credit report. I provided a copy of the checks back when this all started to Sears and the 1st collection agency; I didn't feel I had to provide it again and again and again. Now I cannot find the dame copies of the checks and would have to pay my bank to locate them in archive's. My husband has been battling cancer all this time and I don't have extra $$ to repay a bill I already paid. Any suggestions?

Read about your rights when dealing with debt collectors. You are entitled to get certain information from debt collectors.

Within the first 5 days after they contact you, a collector must send you a written “validation notice” telling you how much money you owe. The notice must include the name of the creditor you owe money to, and what to do if you think you don’t owe the money.

If you send the debt collector a letter stating that you don’t owe any or all of the money, or asking for verification of the debt, that collector must stop contacting you. You have to send that letter within 30 days after you receive the validation notice. But a collector can begin contacting you again if it sends you written verification of the debt, like a copy of a bill for the amount you owe.

You also have a right to dispute an error that you see on your credit report. You can order a free copy of your credit report. You can tell a credit reporting company that you think certain information is not accurate. The credit reporting company must investigate the item. Read more about disputing errors on credit reports.


You could contact the Attorney General's office in your state. Find your state Attorney General on this page, and then find your Attorney General's consumer help contacts.

You could also look online for the agency that regulates banks and lenders in your state. Ask about how the payments and interest are being calculated.

You might find a credit counselor at a local credit union, military base or U.S. Cooperative Extension Service. A credit counselor can help you plan how to manage your debt.


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