Janice Clemente, Investigations Manager

The Better Business Bureau is warning consumers and businesses about a phony debt collector claiming to be collecting for US Cash Advance, a payday lending company located in Florence, KY. The scammers say they are the “Federal Legislation of Unsecured Loans”, the “Financial Infraction Division” or the “Federal Legal Department”. US Cash Advance has informed the BBB that the collection calls consumers are receiving are fraudulent and US Cash Advance is not in anyway associated with the scammers attempting to collect these purported debts.

According to reports received by BBB, the scammers accuse the victim of defaulting on a payday loan and claim they are being sued. The phony debt collector threatens that, if the victim doesn’t pay as much as $1,000 immediately via wire or by providing bank account or credit card numbers, he or she will be arrested. The scammers often have the victim’s Social Security number, bank account numbers, employer information and even the names of personal friends and professional references. Business owners have reported to us that these scammers harass their human resources staff with so many collection calls that they are unable to conduct normal business.

BBB has received over 130 inquiries and 3 complaints since September of 2009. We offer the following advice to consumers if they receive a suspicious telephone call about an outstanding debt:

· Ask the debt collector to provide official documentation which substantiates the debt.

· Do not provide or confirm any bank account, credit card or other personal information over the phone until you have confirmed the legitimacy of the call.

· File a complaint with the Federal Trade Commission online if the caller is abusive, uses threats or otherwise violates federal telemarketing laws.