Scam Alert: Beware of Fake Debt Collection Calls

The Federal Trade Commission has received permission from US Federal Court to shut down a debt collection scam that the FTC alleges “collected phantom payday loan “debts” that consumers did not owe. Consumers received millions of collection calls from India, and that since January 2010 the operation took in more than $5 million from victims, according to the FTC.”

The FTC has a webpage dedicated to helping consumers figure out if the calls they are receiving are in fact a scam.  Please go to the FTC’s website and become educated on this issue.

The Negative Impact of A 36% Cap

A letter published by Christopher Donegan in the Kansas City Star last week outlined what could happen to an area that caps short-term loans at 36%:

“Some would say that a 36 percent cap sounds fair. Right now, banks will not or cannot take on the risk associated with the alternative loan industry, even if they charged 36 percent.”

“If Missourians cannot qualify for a traditional loan and do not have the option of taking out a non-existent alternative loan, consider the consequences. Landlords, utility companies, assistance agencies and churches will all feel the economic effects.”