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Information on remedies for cash call loan default - The Bills.com Blog
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Information on remedies for cash call loan default
Wednesday, Nov 7, 2007
Question: My question is I have a loan with a company called Cash Call that I am behind on two months actually and I have tried to call and make arrangements with them and they are not willing to work with me. What is the minimum amount of money I could send them to where they could not garnish my wages? I did contact a lawyer and wanted to file bankruptcy and I did previously in 2000 they said because it has not been 7 years I would have to wait until next May 08. I am not denying the fact that I owe the money I am just in a bad situation and want to try and just deal with there harassment until next may. If you could please let me know what I will need to do I would appreciate it.
Answer: These small loans, often called "cash advance loans," "check advance loans," or "deferred deposit check loans" are a frequent pitfall for consumers. A fee anywhere from $15-$30 per $100 borrowed is charged for an average loan of $300. With rates so high and the term of the loan so short, there's no wonder that a very high percentage of these loans are rolled over by the borrower again and again so that the accumulated fees equal an effective annualized interest rate of 390% to 780% APR depending on the number of times the principal is rolled over.If you default on your payday loans, the lender can take the same action as any other unsecured creditor to enforce a defaulted debt. Generally, their collection efforts will start with telephone calls and dunning letters demanding that you pay the balance of the loan. If the payday loan company refers your accounts to a collection agency, you can usually stop the telephone calls by sending a cease communication demand letter, commonly called a cease and desist notice, to the collection agency.
A federal law called the Fair Debt Collections Practices Act (FDCPA) states that third party collectors must stop calling you if you notify them in writing to do so. Several states, such as California and Texas, extend many of the regulations in the FDCPA to cover original creditors as well. To find out more about debt collection laws in your state, visit the Privacy Rights Clearinghouse web site.
If the creditor or collection agency cannot coerce you to pay through standard collection tactics, such as threatening phone calls, the creditor may decide to file a lawsuit against you to obtain a judgment against you for the balance of the debt. If the lender sues and obtains a judgment against you, it can then take steps to enforce the judgment as allowed by your state law. The most common methods of enforcing a judgment are wage garnishment, bank account levies, and property liens. To find out what actions a creditor can take to enforce a judgment in your state, I encourage your visit the BCS Alliance web site.
Luckily, the majority of creditors do not frequently sue debtors to collect debts; a lawsuit is a worst case scenario, which you will probably not experience.
You may be in luck in regard to your inability to repay these loans. There are eight states whose payday loan regulating statutes require lenders to set up an installment repayment plan if an account reaches the maximum number of rollovers allowed by law and the debtor
If the creditor or collection agency cannot coerce you to pay through standard collection tactics, such as threatening phone calls, the creditor may decide to file a lawsuit against you to obtain a judgment against you for the balance of the debt. If the lender sues and obtains a judgment against you, it can then take steps to enforce the judgment as allowed by your state law. The most common methods of enforcing a judgment are wage garnishment, bank account levies, and property liens. To find out what actions a creditor can take to enforce a judgment in your state, I encourage your visit the BCS Alliance web site.
Luckily, the majority of creditors do not frequently sue debtors to collect debts; a lawsuit is a worst case scenario, which you will probably not experience.
You may be in luck in regard to your inability to repay these loans. There are eight states whose payday loan regulating statutes require lenders to set up an installment repayment plan if an account reaches the maximum number of rollovers allowed by law and the debtor
declares that he/she is unable to pay the balance due. Check out the payday loan information from the Consumer Federation of America on payday loan, where you will be able to read all about these loans and the various state attempts to regulate them. Follow the "state information" link to find out the specific regulations for payday lenders in your state, and if you live in one of the eight states requiring installment payments. If your state does require repayment plans, and the lender still won't accept payments, call your state regulator of payday loans, usually an assistant Attorney General, and complain. You should get the results you want after the Attorney General's office becomes involved.
If you are not in one of those states, you may want to consider simply making payments to the lender of whatever you can afford to pay down the balance of the loan over time. In most states, the rollover limit will soon be reached, and the interest rate the lender can charge will be capped by state law. If the lender will not accept your payments, simply put what you can afford aside each month until you have enough money to either pay off the loan or to offer a settlement. Read up on the regulations in your state to find the best strategy for your situation.
Hopefully, one of the strategies I have discussed above will help you resolve these payday loans, and help you Find. Learn. Save.
Best of luck,
Bill
www.bills.com
If you are not in one of those states, you may want to consider simply making payments to the lender of whatever you can afford to pay down the balance of the loan over time. In most states, the rollover limit will soon be reached, and the interest rate the lender can charge will be capped by state law. If the lender will not accept your payments, simply put what you can afford aside each month until you have enough money to either pay off the loan or to offer a settlement. Read up on the regulations in your state to find the best strategy for your situation.
Hopefully, one of the strategies I have discussed above will help you resolve these payday loans, and help you Find. Learn. Save.
Best of luck,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
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1. Posted by jennifer on Saturday 17th November 2007 20:59
cash call is not a payday loan. it is a similar very high interest unsecured loan for high risk consumers. payments are made by ach withdrawal.
2. Posted by jennifer on Saturday 17th November 2007 21:02
CASHCALL is NOT a payday loan lender. It is a very high interest rate, unsecured loan made to high risk clientel. When the loans default the collectors become treatening and harrass.
3. Posted by Maria on Saturday 24th November 2007 20:33
Exhaust all your options before borrowing from this company. They are ruthless, rude and dehumanizing. They went as far as to ask me "How do you sleep at night knowing you have a debt you cannont repay. I was told that maybe I should consider ponning some of my belongings and that when I told them I was attempting to borrow the money I was told "I don't believe you!" I too offered to send a partial payment because of some financial problems and was denied as a partial payment was not an option. They treatened me and told me that "They will get there money back one way or another." I was even told by a collector that all she had to say to me was "Good luck!" They will harrass you everyday Sunday through Saturday twice a day. The funny thing is my payment is only 15 days late. Please be very careful and do everything that you can to stay away from what some people refer to as a "Legalized Loan Shark!
4. Posted by Kelly Lewis on Monday 10th December 2007 18:46
Does Cash Call ever turn over the debt to an outside collection agency to collection? What recourse will they take for non-payment ? Does Cash Call ever turn over unpaid debt to a Collection Agency ? What other recourse does Cash Call take for uncollected debt?
5. Posted by Nathen on Tuesday 11th December 2007 08:56
If you default on your payday loans, the lender can take the same action as any other unsecured creditor to enforce a defaulted debt. Generally, their collection efforts will start with telephone calls and dunning letters demanding that you pay the balance of the loan. If they cannot collect it themselves, then it is their dicretion to then transfer the debt to a collection agency. If the creditor or collection agency cannot coerce you to pay through standard collection tactics, such as repeated phone calls, the creditor may decide to file a lawsuit against you to obtain a judgment against you for the balance of the debt. If the lender sues and obtains a judgment against you, it can then take steps to enforce the judgment as allowed by your state law. The most common methods of enforcing a judgment are wage garnishment, bank account levies, and property liens. To find out what actions a creditor can take to enforce a judgment in your state, please visit the BCS Alliance website at http://www.bcsalliance.com/y_debt_statelaws_garnishments.html
6. Posted by Cory on Thursday 24th January 2008 14:04
Cash Call is great company to borrower from as long as you keep the loan short term. I've received three $10,000 loans from Cash Call within the past two years. All three loans were paid in full within four months. Short term is the key here.
7. Posted by Nathan on Thursday 24th January 2008 15:39
That is absolutely right, these loans should be used only for short term needs and that too in extreme emergencies.
8. Posted by Joesph on Monday 3rd March 2008 11:23
I too had problems with CashCall once I was late with a payment. The harassment got bad, and I was in financial hardship. There was little I could do, so instead of filing for bankruptcy I decided to do some research into debt settlement. I came across a company and they have helped me with the harassing collection calls and negotiating to pay off all my unsecured debts. Definitely an option I would suggest others look into if you are in a bad spot like I was.
9. Posted by Stephen McDaniel on Thursday 5th June 2008 20:48
I did a loan through cash call when I got a loan through them. The payments were subtracted from my bank account every month so I dont understand why payments would be late. It was easy and I paid it back early when I was back on my feet. I guess them collections people only call u if you skip town. But that's why its called a loan I think because you have to pay it back. Them other people dont sound like they want to pay it back.
10. Posted by Linda Thornton on Monday 9th June 2008 07:17
I am about to get a loan for $1,000 from cash call, and I plan to pay it back withn 6 months what is your thought
11. Posted by Bill on Monday 9th June 2008 08:32
These loans carry a really high interest rate. If you have done your research about the rates and payment terms and are certain to keep up with the schedule, you could go ahead for the loan. Before you do sign for it, have you checked at your local banks and/or credit unions for their rates? You will likely get a lower rate at those places. If you have not done so, I highly suggest that you do, so at least then you would have looked at all of your options.
12. Posted by Debbie S. on Monday 6th October 2008 09:50
Is is legal for Cash Call to charge 70% interest. I thought their were state limits on interest rates.
13. Posted by parker on Monday 6th October 2008 09:59
There are state limits, but federal pre-emption allows many lenders to get around them. Cash call (or any organization) can get a bank charter or partner with a bank to offer loans to consumers. The Office of the Comptroller of the Currency and the FDIC oversee banks, which grants pre-emption from state usury caps and lending laws.
14. Posted by Rick on Wednesday 30th September 2009 13:41
I had a $5,000.00 Cash Call loan around 1 1/2 yr ago. I started to pay as agreed then I ran into financial hardship and had to stop making payments for a while. Of course, it was the same old process when I stop making payments. Finally, I got a letter in the mail from Cash Call willing to settle for a lesser amount. I agreed and strated to pay them $245.00 for 6 mnths interest free and I have now finished paying them off. What I suggest you do is call them and try to reach a settlement with them, and have them break your payment into 6 mnths or so, interest free. Whatever you do, don't say that you can't pay them. Alway say that you want to and are willing to pay, but you need some assistance on their part. If they agree which I am more than sure they will, be sure to have something sent you in writing pertaining to the settlement. I hope this advice helps. Good luck.
15. Posted by Bill on Wednesday 30th September 2009 15:16
Rick: Excellent negotiation suggestion. I'm glad you freed yourself from that debt.
16. Posted by jennifer on Sunday 29th November 2009 10:17
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