BBB Warns of Cash Advance Collection Scams

The Better Business Bureau says people need to watch out for a new twist on debt collection scams.

According to Better Business Bureau Spokesperson Dottie Callina, a new scam they are seeing around involves agencies trying to collect on cash advances people have received.

“Now what is happening is that debt collection agencies are calling people and telling them that they are collecting payment for a cash advance,” said Callina. “It is usually an automated call and the recording prompts you to speak to an agent.”

Callina said do not speak to an agent.

“What happens is the agent request you pay the debt immediately,” said Callina. “They will ask you to pay it with a pre-paid debit card or a wire transfer.”

She said that is a red flag because legitimate collection agencies will take other forms of payment, not only those.

She said in many cases these alleged cash advances do not exist.

However, even if it is legit, people need to know their rights.

She said if it is a legitimate company, ask for their name and address to verify the company is who it said it is and ask for a proof of debt.

Also, Callina said never give out personal financial inforamtion over the phone and if someone thinks they were a victim of a scam, put a freeze on their credit report and check it.