PORTLAND, Maine — The payday lender Advance America issued a warning to Maine residents about a phone scam apparently using the company’s name.
The lender does not operate in Maine, but said that scammers have called Maine residents in recent weeks claiming that they have been pre-approved for an Advance America loan that requires a “processing fee” or “good-faith deposit,” which can be made with a prepaid debit card or wire transfer.
Similar calls have been reported across the country, the company said.
In some cases, the caller has threatened legal action on alleged unpaid loan debt, according to the company.
Doug Dunbar, spokesman for Maine’s Department of Professional and Financial Regulation, said the bureau has also been contacted by at least one person who said she received such a call from someone claiming to be from Advance America.
Dunbar said the company’s warning includes valid tips for avoiding such scams, such as never giving out personal information over the phone without verifying the legitimacy of the call and being suspicious of any urgent requests for financial information. The company said customers should demand written proof of any debt.
The company also said talk of “pre-approved” loan applications or good-faith deposits are red flags, as legitimate lenders do not pre-approve customers or require such deposits.
Maine’s attorney general issued a warning about that type of debt collection effort Friday, saying that there are a variety of other scams that seek to extract payment from someone using a prepaid debit card or a wire transfer.
“This is how you know you are getting scammed. Hang up the phone immediately,” Mills said in a news release.
Dunbar said customers with questions can call the state’s consumer protection bureau at 1-800-332-8529 and the Attorney General’s Consumer Protection Division also handles complaints of that nature at 1-800-436-2131.