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Attorney General's Office Warning of New Scam
The Illinois Attorney General's office is warning of a scam that has generated complaints recently.

The scammers call people up, tell them they owe money on an unpaid payday loan, and threaten to have them arrested if they don't pay, but they can settle the matter by authorizing a bank debit over the phone. Some victims reported to the Attorney General's office that they have paid hundreds of dollars before realizing they have been scammed.

Robyn Ziegler of the Attorney General's office says the scammers are slick, and the targets are sometimes confused, having taken out payday loans in the past, usually from an online lender, but paid off the loans long ago. In at least one instance, the consumer reportedly filled out an online payday loan application but never completed the process.

Ziegler says an effort is under way to identify the offenders, but they haven't been found yet. The calls appear to originate from outside the United States .

The Attorney General's office says anyone who encounters such a call should hang up and report the incident to the Attorney General's office.

(Illinois Radio Network)
08 26 10 by Newsroom
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