Online Threat Alerts (OTA) - Alerting you to scams and frauds.
Scamming - Fraud
Online users who have received so-called "Debt Settlement Division Inc" emails like the one below, which claim that they have been given a chance to settle Federal Collection debt outside of court, should delete the email messages and not follow the instructions in them. This is because the email messages are fraudulent, and are being sent by scammers to trick the recipients into sending them money believing that they will be sued for money owed and their credit history tarnished.
From: Federal Loan LLC <federalcollection.org@gmail.com>Date: Mon, Apr 23, 2018 at 11:34 AMSubject: Payment ReminderGood Morning Shawn Brooks ,The Amount Due on your name $490.00 your due date to payment was April 20th, 2018, you're already late for the payment.If you do not pay your payment till today then as per the penalty clause we'll charge you $5.00 per day.As per the Laws of Fair Practice of Debt Collection Service, we have the authority under section 28-B Column. We can charge you $5.00 penalty on a day if you skipped your payment from the specific date that we agreed on. Ex. if you late for two days then we will charge you $10.00 extra for your payment. In Case of Emergency, you inform us before about your payment and re-schedule of your payment NO CHARGE will cost to you.And if you didn't show up on your payment dates then, its consideration as a violation of the law and without sending any notice we will take action in your case.Thanks and RegardsDebt Settlement Division Inc.
From: Federal Loan LLC <federalcollection.org@gmail.com>
Date: Mon, Apr 23, 2018 at 11:34 AM
Subject: Payment Reminder
Good Morning Shawn Brooks ,
The Amount Due on your name $490.00 your due date to payment was April 20th, 2018, you're already late for the payment.
If you do not pay your payment till today then as per the penalty clause we'll charge you $5.00 per day.
As per the Laws of Fair Practice of Debt Collection Service, we have the authority under section 28-B Column. We can charge you $5.00 penalty on a day if you skipped your payment from the specific date that we agreed on. Ex. if you late for two days then we will charge you $10.00 extra for your payment. In Case of Emergency, you inform us before about your payment and re-schedule of your payment NO CHARGE will cost to you.
And if you didn't show up on your payment dates then, its consideration as a violation of the law and without sending any notice we will take action in your case.
Thanks and Regards
Debt Settlement Division Inc.
9
"From: Debt Settlement Attorney Date: Wed, Aug 19, 2020 at 8:30 AM Subject: Settlement Letter To: National Debt Settlement Agency Due Amount: $1235.67 Customer ID: #3546531 Case File Number #: ONS-55/B37/219 Please take this notice that your account is due with an outstanding amount of $1235.67. We have to take legal action if you ignore this email. If we don't get any response from your side, we shall have no alternative but to take action through the local County Courthouse to recover the amount due together with court costs and legal fees including all taxes which cost approximately $5825.35. So we are providing you a minimum settlement of $850.00, if you just make a payment by today then we will close this account as paid off in full with zero balance or you can make payment arrangement with us for the total outstanding balance. Thank You. Debt Settlement Division." Another scam.
"From: CASH ADVANCE SERVICES Date: August 11, 2020 at 11:14:28 AM CDT Subject: WAGE GARNISHMENT Current Creditor: Credit Repair Groups. Notice Issued On August 2020 Amount Outstanding: $1260.60 (higher than the actual amount owed) Settlement Amount: $850.43 (Outside the courthouse) Dear Debtor, It has come to our attention that your account is now SERIOUS OVERDUE and this letter is a final demand for payment. We have, as of yet, received no payment towards this account or contact explaining the failure to make payments. If there is a reason why these payments have been withheld we would be obliged if you could contact us in order to either explain the reason or come to some form of payment arrangement. If we do not hear from you within the next 72 hours then we will have no alternative but to commence with further debt collection procedures. This will include instructing out Federal Trade Commission, Credit Bureaus, and Employer, etc. Court proceedings will be issued within 14 days from the date of this letter if the account has not been settled. You will be prosecuted for Following Allegations; • Bank Fraud • Violation of Federal Law of Debt and Banking • Intentional Theft by Deception" Here is another scam.
Earlier today, I received a letter from someone calling himself Jerry Adams, who supposedly works for a company called Federal Collection Agency. In the emails, he claimed to represent a debtor from which (or whom) I supposedly borrowed $500. He offered to settle the claim for $480 on a one-time payment. When I asked for specific information as to the date(s) when I incurred this debt and the name of the specific company, I was not given any information save a supposed copy of the company's federal license. Am I imagining it, or is this an attempt at a scam?Sincerely, Susan D.
I just recieved an email from Federal collections LLC, stating the same thing as article above. Gave me a case number and said I would be getting a warrant for my arrest in the mail in the next 24 hours. said I had to appear in court in Annapolis on the 31st of May. State a pay loan had been taken out in my name and ss number. If I didn't appear, a judge would hear charges against me. What should I do, is the real.
I got the same email, this is fraud right?"Legal Charges-Section 19(A), Clause 21(US).Case Format- Fair Debt Collection Act 811 (FC/SC)Due Amount- $1290.25Hereby we inform that your arrest warrant is released from here and you will receive it with court summons very soon. Now you are obliged to come as a defendant to District Court of Appeals on April 26th, 2019, at 11:00 a.m. for the hearing of your case of defaulting on a LOAN, CASE #ONS-01147791-SC.Last Date to File Lawsuit- April 19th, 2019.Total Cost of the Lawsuit-$4590.00Legal Charges-Section 19(A), Clause 21(US).Case Format- Fair Debt Collection(FC/SC)This is to notify you and requires your immediate attention.We have received this case file from Major Credit Bureau regarding Payday Loan. There is pending loan amount showing in your name and ssn. The initial loan amount which you took it goes up to $1290.25(Due to late fine fees and rate of interest).If necessary you have a right to obtain a lawyer for your protection. You are kindly asked to have an identity document with you. Personal appearance is compulsory. Please bring all documents and witnesses relating to this case with you to Court on your hearing date.Case information and courthouse address will be sent to your mailing address in next 48 hours.Note: If you do not attend the hearing the judge may hear the case in your absence.If you want to resolve this matter without a lawsuit and further damaging your credit rating, you must reply now and send the PAYMENT within 5 days of the date of this letter; either pay settlement amount at once till Friday or email us and work out arrangements for payment with it($1290.25). Thanks and RegardsDebt Settlement Agency"
Yes, it is a scam.
Received this scam:"Date: Apr 3, 2019, at 1:19 PMFrom: Debt Collection & Legal Dept. - legal.settlement.cashadvance@gmail.comLegal Charges-Section 19(A), Clause 21(US).Case Format- Fair Debt Collection Act 811 (FC/SC)Due Amount- $1235.67Hereby we inform that your arrest warrant is released from here and you will receive it with court summons very soon. Now you are obliged to come as a defendant to District Court of Appeals on April 12th, 2019, at 11:00 a.m. for the hearing of your case of defaulting on a LOAN, CASE #ONS-01147791-SC.Last Date to File Lawsuit- April 5th, 2019.Cost of the Lawsuit-$4590.00Legal Charges-Section 19(A), Clause 21(US).Case Format- Fair Debt Collection(FC/SC)This is to notify you and requires your immediate attention.We have received this case file from Major Credit Bureau regarding Payday Loan. There is pending loan amount showing in your name and ssn. The initial loan amount which you took it goes up to $1235.67(Due to late fine fees and rate of interest).If necessary you have a right to obtain a lawyer for your protection. You are kindly asked to have an identity document with you. Personal appearance is compulsory. Please bring all documents and witnesses relating to this case with you to Court on your hearing date.Case information and courthouse address will be sent to your mailing address in next 24 hours.Note: If you do not attend the hearing the judge may hear the case in your absence.If you want to resolve this matter without a lawsuit and further damaging your credit rating, you must reply now and send the PAYMENT within 5 days of the date of this letter; either pay settlement amount at once till Friday or email us and work out arrangements for payment with it($1235.67). Thanks and RegardsDebt settlement Division"
I received the same email:"Due Amount: $850.00 Customer ID: #95041725Case File Number #: CA-152/A26/17932 Urgent Attention: Please rectify this matter immediately.Despite my previous reminders, the above invoice for $850.00 remains unpaid. As such, we would appreciate you making this payment by today in order to take care of this matter completely.This letter is to notify you that we have received a Summons of Garnishment on your wages. This means that someone you owe money to has been awarded a judgment by the court for payment of the debt. The court has ordered us your employer to deduct 25-30% percent of your disposable earnings and make payment to the court on your behalf.Why am I receiving this notice?The United States, or a State Debt support enforcement agency, certifying its right to garnish your Federal benefits shall attach or include with a garnishment order the following Notice; Garnish wages owed to a Debtor after the Small Claims Court has made an order that you owe money. On January 25th 2019, we received a garnishment order from a court to [freeze/remove] funds in your account. The amount of the garnishment order was for $850.00. We are sending you this notice to let you know what we have done in response to the garnishment order. You can contact your creditor for the settlement amount.I regret to advise that unless payment is received by this invoice will be pa**ed over to a courthouse/lawyer. This could seriously affect your credit rating so I urge you to contact us immediately to make payment or arrange an alternative before this date.Please reach out to us immediately if you want to take advantage of legit settlement or set up payment arrangement.Best Regards,Debt Settlement Division Inc."
This is the letter that I received via email and every time I call the number that is listed, it says no one is available. It doesn't say who the creditor is, they can have my FEDERAL benefits since I don't work for a federal government, grammar errors, this is the first notice and only notice I've gotten and what court finalized this without contacting me?"Debt Settlement Agency To:National Debt Settlement Division.Oct 3 at 9:49 AMDue Amount: $850.00 Customer ID: #95041725Case File Number #: CA-152/A26/17932 Urgent Attention: Please rectify this matter immediately. Despite my previous reminders, the above invoice for $850.00 remains unpaid. As such, we would appreciate you making this payment by today in order to take care of this matter completely. This letter is to notify you that we have received a Summons of Garnishment on your wages. This means that someone you owe money to has been awarded a judgment by the court for payment of the debt. The court has ordered us your employer to deduct 25-30% percent of your disposable earnings and make payment to the court on your behalf. Why am I receiving this notice? The United States, or a State Debt support enforcement agency, certifying its right to garnish your Federal benefits shall attach or include with a garnishment order the following Notice; Garnish wages owed to a Debtor after the Small Claims Court has made an order that you owe money. On September 24th 2018, we received a garnishment order from a court to [freeze/remove] funds in your account. The amount of the garnishment order was for $850.00. We are sending you this notice to let you know what we have done in response to the garnishment order. You can contact your creditor for the settlement amount.I regret to advise that unless payment is received by this invoice will be passed over to a courthouse/lawyer. This could seriously affect your credit rating so I urge you to contact us immediately to make payment or arrange an alternative before this date. Please reach out to us immediately if you want to take advantage of legit settlement or set up payment arrangement.Best Regards,Debt Settlement Division Inc.Phone: 1(813)-438-6823"
