The Better Business Bureau last week issued a nationwide alert to consumers to warn them about phony debt collectors that are calling consumers, claiming that they defaulted on a “payday” loan, and threatening to arrest them immediately if they don’t pay.

The nonprofit agency said the scammers claim to be lawyers with the “Financial Accountability Association” or the “Federal Legislation of Unsecured Loans,” and possess a “disconcerting amount of personal information about their potential victims.”

No such organization or law exists, but the agency is concerned not only that consumers may fall victim to such tactics and pay up, but also that it may indicate a massive data breach has already taken place.

“Thousands of people may have had their personal information compromised, and given the scammers’ tactics, it appears that those who have previously used payday loan services could be particularly at risk,” said David P. Polino, president of the Better Business Bureau of Upstate New York, which serves a 50-county region from its Buffalo headquarters.

Payday lending refers to short-term loans, usually for about 10 to 14 days, based on the value of an upcoming paycheck or post-dated check written by the borrower. Lenders usually charge a flat rate for the two weeks, but that translates into an annual percentage rate of several hundred percent, drawing the ire of consumer activists and others nationwide.

The industry is essentially illegal in New York state, where a cap on interest rates for non-bank loans effectively makes the business unprofitable, and has deterred

the nation’s largest payday providers from setting up shop here physically. However, such loans are still provided in many states around the country, and can be obtained online or by phone as well.

According to the BBB, the perpetrators of the current scam accuse the victims of defaulting on a payday loan, and say they are being sued. If the victim doesn’t pay as much as $1,000 immediately by wire transfer, credit card or electronic funds transfer, the scammer says, he or she will be arrested and extradited to California within an hour to stand trial.

The scammers already often have the victims’ Social Security numbers, old bank account numbers, or driver’s license numbers, as well as home addresses, employer information and even the names of personal friends and professional references.

Consumers who receive such calls should not provide or confirm any information and should ask the collector for official documentation to prove the debt. If a consumer believes the call is a scam or the caller is simply abusive or threatening, report it to the BBB or the Federal Trade Commission, respectively.