I did an internet search on payday loans companies because I only needed $200 to pay some bills until payday. I ended up finding a company with a pretty low fee, so I signed the contract and applied for a loan. I received the money the next day.
A few days later, I noticed a deposit of $250 in my checking acct. From CMG Group LLC. I tried to contact the company to find out why they deposited this in my account and they stated that I signed an agreement online. I received no emails or contract from them, so I had no idea what their fee was and why they did this. Then I looked them up online and found nothing but complaint after complaint that were almost exactly what happened to me.
Some people were saying that they kept taking fees out, even after the amount was paid off, so I panicked and went to my bank to close my account. I tried contacting the same number again so I could find a way to give back the money, but their office was always "closed." Then I received an email from someone stating that my account was sent to collections. I tried to email back to inquire about a payment address where I could send the $250 back, but my email was sent back to me.
The next thing I know, a company contacts me stating that if I don't pay $500 they will send a warrant out for my arrest for me to be prosecuted in court and they called my place of employment too. After making payment arrangements with this company, I found out that CMG Group is a group of lawyers who gets these from people looking for Payday loans. They get the info from a 3rd party and they know ways to get around the law.
After 30 days, if they don't get payment or someone closes their account, they bid these off to other companies for money. These other companies are not collection agencies, they are law firms looking to prosecute. This is exactly what I was told. The person I spoke with even admitted that they get 1,000s of these a day and that yes, the majority of them are scams.
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