We recieved an email stating account would be given to collection agency. No contact info on the form and a noreply email address. Next my husbands employer is notified and threatened with a suit, when I called they tried to intimidate me over the phone. I requested documentation from this company as to what I was paying on then was told that "God Help" me they were sending an investigator to my house to arrest us both on bank fraud charges. We have a few loans out and have been working with them all to make arrangements to pay but this company seems unwilling to work with us. They have broken the 3rd party disclosure law at least six times. What can I do, I am willing to pay what I owe but want to know what I am paying for. Do we have any rights???
2007-07-07 04:44:36 · 6 answers · asked by Bubbasmom 1 in Business & Finance ➔ Credit
Payday loans are at extremely high interest rates, and if the terms were longer, they would be illegal to make in the first place, but of course, I'm sure you know that now.
The reason they contacted your husban'ds employer, is possibly to garnish his wages, and you may or may not have signed something to allow them to do that.
They can't have you arrested, and if an "investigator" shows up to your house, call the real police. You can't go to jail for a debt, and the contract you signed with them, is all the proof they need...so they don't need an "investigator".
The only way it would be fraud, is if you agreed to have your checking account debited, and then you closed the account--I have no idea if you did this or not, but I just wanted to let you know.
I would call the consumer protection division in your state and file a complaint with them. I would also check with your state to see if it's legal for you to record a conversation with them as evidence of them communicating threats that they have no legal authority to carry out.
Meanwhile...go to the LOCATION that you got the payday loan from, and find out what your balance is, and find out where the payments go, and start sending checks, certified mail, and keep track of every receipt, every cancelled check, etc, until it is paid off.
If you can, try to pay this one off FIRST since I would wager it has the highest rate of interest on it...do you know that some payday loans are as high as 300% interest? They call it a fee, but it still works out the same.
When you get this settled, don't borrow from loan sharks again...b/c that is exactly what payday and short-term title loan companies are.
2007-07-07 06:17:41 · answer #1 · answered by Expert8675309 7 · 1⤊ 0⤋
Here is a copy of the Federal Fair Debt Collection Practices Act linked below.
If you feel this has been violated (payday lenders are bottom feeders and violate this junk all the time), try calling the Federal Trade Commission.
While you're going through this trying to get on track, go to the library and get a copy of Dave Ramsey's, Total Money Makeover, and then listen to his radio show online for free. There might be some good information in there to help while you're getting out of your debt mess. We were in trouble with debt a few years back but got on his program (it didn't cost us anything but the price of his book which you can borrow from the library). We were able to get everything paid off in 17 months (the average is about 2 years, I think) with no additional loans, no bankruptcies, charge-offs, settlements, etc. Guess what? We sleep at night now!
Give it a whirl. It can't hurt. Good luck with those scummy loan people. This will get better if you tackle it all head on.
2007-07-07 04:56:01 · answer #2 · answered by moneywise 3 · 1⤊ 0⤋
If it is the original lender that is harrassing you, the FDCPA that the others mentioned will "not" help. The FDCPA governs collection agencies and not original creditors.
(and I don't know why one person mentioned the FCRA since that is the Fair Credit Reporting Act and has nothing to do with your question)
The only way it would fall under the FDCPA is if your states statutes place original creditors in the same light as collectors OR if your state has it's own laws against original creditor abuse.
Quit speaking to them on the phone, send everything by certified mail.
If you plan on suing for harrassement, you might see if you can get a notorized affidavit from your husbands employer for the abusive threats that were made.
File complaints with the BBB, FTC and your AG.
If the abuse continues and you have written proof (or taped if your state allows it), you might take all of the information to an attorney for a consult.
Many atty's will give a free first consult, just be sure and ask if they will when you call for an appointment.
Also, be sure to find an atty that is well versed in consumer credit laws.
2007-07-07 11:02:10 · answer #3 · answered by echo 7 · 0⤊ 0⤋
About 8 months ago I got a payday loan for school with no issues at.Not sure what you guys are talking about paying it back in two weeks.I just checked the site the OP is talking about and you get a year to pay it back.
2016-04-01 01:52:13 · answer #4 · answered by ? 4 · 0⤊ 0⤋
These people have violated the Fair Debt Collection Practices Act(FDCPA) in so many ways it is impossible to count.
Read the following link from the Federal Trade Commission on what rights the FDCPA gives you and what you can do. You may be able to take them to court and sue them for $1000 per violation
2007-07-07 04:52:17 · answer #5 · answered by OC1999 7 · 1⤊ 0⤋
Try to take help from some debt consolidation company . Yes Debt consolidation company will help you. But don't go to everyone they are horrible. Try to find out some who is BBB registered and registered by US chamber of commerce, they are safe and nonprofit organisation. If you find one fill their online form they will contact with you within 24 hours.
To know more you can visit
http://www.debtconsolidationmanagement.blogspot.com
2007-07-07 12:31:14 · answer #6 · answered by Pamella A 2 · 0⤊ 0⤋
its a collection tactic..
read up on the FCRA
Tell them that under the FCRA ( fair credit reporting act) They MUST first prove the debt IN WRITING within 30 days, if they dont or they ignore it, after 30 days you no longer owe the debt. They MUST stop collection efforts until they prove the debt IN WRITING.
Let them sue, because if they dont do what I just said, you'll win the case because they violated the FCRA.
Below is a WONDERFUL site for dealing with the jerks...
MAKE A PAPER TRAIL... keep EVERY DOCUMENTATION YOU CREATE!!
2007-07-07 04:51:52 · answer #7 · answered by I Can Count To Potato 7 · 1⤊ 1⤋
either this is a scam or you borrowed from a loan shark
2007-07-07 04:48:36 · answer #8 · answered by angela c 3 · 0⤊ 2⤋