Washington State Department of Financial Institutions

Consumer Alert:
US Cash Lending

Extortion Scam Related to Delinquent Payday Loan

November 15, 2013

It has been reported to the Washington State Department of Financial Institutions (DFI) that a consumer was recently contacted after going online and providing his personal information to a non-licensed payday lender. Afterwards, the consumer was contacted by a person who identified himself as an attorney for entity by the name of US Cash Lending. This individual indicated he was attempting to collect on a delinquent debt and threatened to have the consumer arrested if he did not obtain a cash card and send to him in the next 30 minutes.

The consumer indicated he then was transferred to a lady who spoke very broken English. The consumer indicated that this person again informed the consumer he had to obtain and send $1,156.33 on a cash card or they would have him arrested and refused to provide any documentation on the debt until payment was made. The consumer indicated after he refused to make this payment, the person hung up on him.

The consumer indicated this entity did not provide an address, but provided the following phone number allegedly tied to the company: (720) 358-8035.

US Cash Lending is not licensed by the Washington State of Department of Financial Institutions as a payday lender, or by the Washington State Department of Revenue Business Licensing Service as a collections agent. Washington residents are advised that state law provides in RCW 31.45.105(1)(d) and (3) that a small loan made by an unlicensed entity to a person physically located in Washington is uncollectible and unenforceable in Washington State.

The FBI has previously issued a national press release regarding extortion scams related to delinquent payday loans.

See: FBI Warning: Payday Loan Extortion Scams

Verify Licenses

DFI strongly recommends that consumers deal only with those lenders that are properly licensed to conduct business. Consumers can determine whether lenders are properly licensed using the “Verify a License” feature on DFI’s website at www.dfi.wa.gov.

Report Fraud

Washington State residents, if you are suspicious of unlicensed activity by a payday lender please contact the Washington State Department of Financial Institutions at 1-877-RING-DFI (746-4334), or online at www.dfi.wa.gov.

If you live in another state, find your state regulator.

If you feel you have been the victim of a loan scam please contact the Federal Trade Commission at 1-877-FTC-HELP (382-4357) or online at www.ftc.gov; or contact the Consumer Financial Protection Bureau (855) 411-CFPB or online at www.consumerfinance.gov. Because the scammers have access to bank account information and social security numbers, victims should consider themselves victims of identity theft and take appropriate precautions. The Federal Trade Commission has information for victims of identity theft available online at www.ftc.gov.

If you feel you have been the victim of a loan scam involving the Internet please contact the Internet Crime Complaint Center online at www.ic3.gov.

If you feel you have been the victim of a loan scam and are concerned about your personal financial information, contact your banking institution, and the three major credit bureaus.

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