What’s worse than a payday loan? a fake payday loan.  There is a breed of bottom-feeder collection agencies now that are no longer satisfied collecting on stale credit cards and predatory payday loans, some are now making up debts out of thin air.  I recently received a call from a lady who (three days before Christmas) was called by a company called Westgate Arbitration.  The “investigator” who called her allegedly said that she was under investigation for passing a bad check and she was subject to arrest.  The check allegedly related to a payday loan by a company called SGQ.




I did some checking on these companies. Based on information on the web, allegations of this type are not new to either Westgate Arbitration or SGQ.   Although the company was not named in the broadcast, it appears that Westgate Arbitration was caught on camera systematically teaching its collectors to lie by Inside Edition.  There are multiple reports of SGQ trying to collect on made-up payday loans through a number of collection agencies.



If you get calls from someone identifying himself or herself as an “investigator”, “special agent” or such, and they say you owe money for a bad check or any type of commercial account, you should immediately become suspicious.  It is likely that they are collectors from a fringe, thuggish brand of collection agency. They will tell you anything to get money from you.  Real agents don’t call on such things.  Real agents don’t ask you to wire money or give bank or credit card info over the phone.  If you get these calls,  You should immediately contact the Consumer Finance Protection Bureau and talk to a consumer lawyer affilliated with the National Association of Consumer Advocates (NACA). Using this link, you can find an experienced consumer lawyer in your area.