On August 23, the Attorney General for the State of Minnesota (Minnesota AG) announced the filing of a lawsuit against a debt collection company operating call centers in Jamaica based on its alleged unlicensed calls attempting to collect on fake payday loans, or “phantom” debts. According to the Minnesota AG, state residents reported that the company attempted to harass them into paying off fake payday loans that they had never taken out. The company purportedly threatened to file lawsuits, have the persons arrested, and send the sheriff to their home. The company also allegedly failed to inform the “borrowers” of their legal right to dispute the debt and refused to verify the debt when asked, in violation of Minnesota state law.
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