Contact 6 issues payday loan scam alert

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MILWAUKEE -- For people who need a little extra cash, payday loans are tempting, but FOX6's Contact 6 says beware! Besides the high interest rates, some FOX6 viewers tell Contact 6 there's a hidden danger.

After an injury at work, Tanya Gammon soon found herself searching the internet for a payday loan. She had never taken out a loan before, and took out a $250 loan. A week later, Gammon got a call from a guy named Dexter Brown, who called himself a first state's attorney. Brown told Gammon she was in a lot of trouble for not paying an internet loan - a loan with fees totaling more than $8,000!

"I did not take out this loan. He said, 'Are you Tanya Gammon?' I said 'yes.' He said 'Is your birthday this?' I said 'yes.' 'Is your social security number this?' 'Is your bank number this?' I said, 'How did you get all this information?'" Gammon said.

It's not the first time Contact 6 has heard a story like this. Other Contact 6 viewers who have applied for online loans have been later called by scammers, who have tons of information about them. The scammers use this information to try to scare you into sending money you don't owe. "He told me I made three major felonies - check fraud, money laundering and something else, and he was going to subpoena me and arrest me in two days at my job if I did not pay the money," one Contact 6 viewer said.

The scare tactics didn't work on Goodman. She got in touch with Contact 6 to share her story, to protect others.

The FBI says this is a common scam, and you should try to reduce how much personal information you share online. Also, if someone calls you or writes you saying you have an outstanding bill for anything, they must validate their claim by showing you the paperwork. Ask for that, and the scammers will most likely disappear.

CLICK HERE to file a complaint with FOX6's Contact 6.