Broadway Global Master Inc., aka BGM Inc; In-Arabia Solutions Inc. Payday Loan Ripoff: FTC HALTS PHANTOM DEBT COLLECTION OPERATION Scammers Collected Millions in Fake Payday Loan Debts Ripoff Report...Warning to Consumers: callers posing as law enforcement with threats of arrest. NEVER send money via a pre-paid debit card, MoneyGram, Western Union or Bank Wire! Nationwide

~Ripoff Report Consumer Advocate…Alice in Ripoff Land

The FTC has banned another fraudulent debt collection operation that bilked $5.2 million from cash strapped victims. The FTC settled a 3 year case filed against Kirit Patel, and his two companies, operating out of India - Broadway Global Master Inc. and In-Arabia Solutions Inc. that illegally processed payments for payday loan debts.   

Because these consumers had previously applied for payday loans online, the victims actually believed that they really owed this money. The callers posed as law enforcement officers and already had the victim’s personal info including social security and bank account numbers. Victims were instructed to send money via a pre-paid debit card, MoneyGram or Western Union. Once victims made payments, the harassments continued.

These fake debt collectors made 2.7 million calls to at least 600,000 phone numbers nationwide. The callers used obscene language and threatened to arrest or sue the victim, if they didn’t pay up.  They also threatened that they would tell the victim’s employers and family members about the supposed debt and even followed through on their threats.

These schemes are referred to as phantom debt.  The victim can be targeted in different ways. The victim may receive a fake, but official looking letter, actually signed by a judge, claiming they owe a past debt. They may get an urgent email or text message. These criminals often pose as attorneys, court officials, banks, credit card companies, utility companies, debt collectors and even the IRS. The caller ID is often spoofed to make it look like the call is coming from a legitimate source.

TIPS:

Verify that you actually owe a past debt - and if so - always negotiate the amount owed.

In most states, even if you did owe a debt, but that debt is more than 7 years old, you wouldn’t have to pay the debt.

Ignore or research unsolicited unknown contacts, no matter how official they seem.

Letters may have misspelled words, use poor grammar or mismatched fonts.

Never click on enticing links or attachments in emails unless you are sure they’re legitimate.

Know that a legitimate company would never threaten you and demand immediate payment.