Date Posted: 
Tuesday, February 2, 2016

The Washington State Department of Financial Institutions (DFI) warns consumers to verify the license of any lender they consider doing business with. If consumers are contacted by debt collectors, consumers should verify that the debt being collected is a debt that the consumer actually owes. DFI urges consumers to verify the debt before making payment arrangements or giving out nonpublic personal information.

DFI has received a report of what appears to be a payday loan debt collection scam. The consumer reported receiving a call from someone stating that they were at her house attempting to serve her with legal papers. The caller gave the consumer Klein Financial Group’s phone number and a case number.

Klein Financial Group threatened legal action against the consumer for failing to repay a payday loan. The company also had access to the consumer’s personal information. The consumer indicated that no such payday loan debt exists. The phone number associated with Klein Financial Group is 855-371-0389.

Klein Financial Group is not licensed by DFI. This company is also not registered with the Washington Secretary of State, does not have a license to do business in Washington State, and is not a licensed collection agency with the Washington State Department of Licensing.

Verify License

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 the DFI’s website at www.dfi.wa.gov.

Payday Loan Debt Collection Laws

Collection activities are subject to the federal Fair Debt Collection Practices Act. Therefore, if you have questions regarding debt collection laws please contact the Federal Trade Commission at 1-877-FTC HELP, or online at www.ftc.gov.

Debt collectors cannot state or imply that failure to pay a debt is a crime. They cannot call before 8:00 a.m. or after 9:00 p.m. They cannot harass or abuse consumers, or contact consumers' places of employment.

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.