If you drive around town, it seems that there is a payday loan outlet on just about every street and a lot of people avail themselves of those services, but there is a scam working the area that does not have anything to do with those payday loan outlets, but with people trying to scam people who have taken out loans.

The crooks behind this scam are calling people and telling them that they have defaulted on their loans and they have to either pay up right away or they will be arrested. They, of course, are preying mostly on the elderly as is usually the case with these scams and the Better Business Bureau would love to catch them.

The people who are making the calls don't claim to be with a particular payday loan company. According to reports the crooks are telling people that they represent a "law enforcement agency" and proceed to try to get information such as bank account numbers and credit card information.

According to the official release from the Better Business Bureau:

Consumers who receive such calls should not provide or confirm any information and should ask the collector for official documentation to prove the debt. The Fair Debt Collection Practices Act (FDCPA) prohibits legitimate debt collectors from using abusive, unfair, or deceptive practices to collect from consumers.

Another important fact you should know about anyone who calls to collect any kind of debt is that you can't be arrested for failing to pay any kind of loan. In fact, the person collecting the debt is the one breaking the law if they try and threaten you with arrest.

As usual, the BBB advises not to give anyone your personal information of any kind on the phone. A legit company wouldn't expect you to.