Payday loan scams, fake debt collection trigger troubles for consumers

Never, ever underestimate how low scammers will go to get you to hand over cash.

A Utica man ended up being hounded by fake debt collectors who claimed he owed money from a small loan taken out almost 10 years ago, according to the Better Business Bureau Serving Eastern Michigan.

The man was told that he needed to pay something quickly or else someone would show up soon at his home to serve legal papers. He feared the worst, paid $500 and agreed to pay another $100 weekly.

But it was a scam. He was never served any paperwork and the debt wasn’t on his credit report.

People are short on cash and vulnerable

Scammers know to go where the money is — or apparently isn’t — as they’ve built up several strategies to steal cash from people who have been struggling financially. Consumers are warned to watch out for scams related to debt collection of old payday loans, finding a short-term loan online, phony texts about qualifying for a loan and debt relief scams.