Consumers Harmed by Scam That Collected Millions in Phantom Payday Loan Debts Get Refunds

Consumers Harmed by Scam That Collected Millions in Phantom Payday Loan Debts Get Refunds
Image: Pixabay
April 6, 2016

The Federal Trade Commission (FTC) is mailing 1,701 checks totaling more than $596,000 to consumers who lost money to a fraudulent debt collection scheme that processed payments for payday loan debts they did not owe.

In September 2015, a federal court banned Kirit Patel, Broadway Global Master Inc. and In-Arabia Solutions Inc. from the debt collection business.

Approximately 63 percent of consumers' total loss is being returned. Affected consumers will receive refund checks in the average amount of $350.39. The checks should be deposited or cashed within 60 days of the mailing date.

Remember, the FTC never requires consumers to pay money or to provide personal information before refund checks can be cashed. If someone says otherwise, it's probably a scam!

Consumers who receive refund checks and have questions can contact the FTC's refund administrator, Analytics, at (844) 449-3587.

Learn more about the FTC's refund program.