You've heard of fake cops, fake deputies, but now there are fake attorney general investigators calling people with payday loans and scaring them into paying up.
Ida McGowan of Houston needed a payday loan for a good reason.
"Paying off bills and things like that," he said.
McGowan says the interest was steep and will not be getting another one.
"I would not suggest it to anyone because it is a hassle," he said.
While McGowan walked into a pay day loan location, the state attorney general is warning people about scam involving online small loan applications. Someone claiming to be the with AG's office is calling payday loan applicants, demanding money and threatening to issue an arrest warrant if they don't deliver.
About 200 victims have come forward so far, and each has recently apply online for a small loan.
"More than likely what happened was there information was sold somehow to somebody," said Monica Russo with the Houston Better Business Bureau.
Russo says for many victims, the threat of jail time is enough to get them to send money to complete strangers. The AG scammers ask victims to load a prepaid debit card with cash and use it to pay off the loan.
"Any time you get an unsolicited cal demanding payment and they want it in the form of a wire transfer or prepaid money card, it is a huge red flag," Russo said.
So far, victims have sent thousands of dollars to the scammer but the Texas Attorney General's Office wants you to know it will not call you about this sort of things. If you get a call, report it.
