Watch Out For Loan Servicing Scams

You may have received a loan payment notice from a company you don’t recognize or you know you haven’t taken a loan from. That doesn’t necessarily mean it’s a scam, but it could be. Loan servicing is a real thing, whereby lenders outsource their payment collection to a loan servicing company. In addition, lenders can and do sell their loans to other companies, or companies could merge or get bought out. These are all legitimate reasons you could get a notice from an unfamiliar company.

Unfortunately, scammers are aware of all these methods, and attempt to convince you that what’s happening is legitimate. So, if you notice any deviation, you should always check to make sure it’s real. If the lender’s policy changes or the company is sold, you should receive a letter notifying you of this before any new collections occur. Beware that this process could be disrupted by improper transfer of records or collection dates coinciding closely with the change. Make sure to communicate directly with your lender, not the company that is collecting, until you are sure that it’s legitimate.

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