FTC Stops Fake Payday Loan Scam» Print This Page
Two days ago, the Federal Trade Commission (FTC) announced that it had obtained a federal court order against a fake payday loan operator and 2 of his companies. The defendants were John Williams from Norcross, Georgia; his 2 affected companies were Williams, Scott & Associates, LLC and WSA, LLC. Click here to read the FTC press release.
The FTC alleged that the defendants used numerous false threats to coerce consumers all over the country into paying for alleged payday loans, including:
- False threats that they were affiliated with federal and state agencies
- False threats that they were affiliated with law enforcement
- False threats that they were a law firm
- False threats of imminent arrest and imprisonment
- False threats of revoking consumers’ drivers licenses
The defendants were also accused of revealing the alleged debts to families, friends and co-workers, using profanity, making prohibited phone calls, failing to provide proper debt collection notices, and even making unauthorized withdrawals from consumers’ bank accounts. Apparently, this occurred even though the consumers didn’t actually owe any of the money, but had only submitted on online form for a potential payday loan. This type of conduct violates the Fair Debt Collection Practices Act (FDCPA) and other laws, and is nothing but a payday loan scam.
If you have suffered this type of conduct, whether from Williams, Scott & Associates, LLC, from WSA, LLC, or from any other debt collector, you have important rights to protect you. Contact us by phone, fax, mail or by submitting a convenient online form by email, and we’ll be happy to provide you a free consultation about your legal rights and remedies. You are also welcome to review the numerous articles on this website, such as Can I Sue a Debt Collector? and Debt Collection Abuse and Harassment.Share This