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Advice About Harassment by a Payday Loan Company - The Bills.com Blog
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Advice About Harassment by a Payday Loan Company
Tuesday, Apr 29, 2008
Question: I have had to revoke a payday loans authorization due to fraudulent ACH debits. I notified them 3 days prior to the restriction on my account. I have been receiving threatening calls, emails saying I am digging my own hole, I am not a man, my family, friends and co-workers are next I have committed fraud, I have been involved in illicit activity. "Cash-Advance.US John Michael and Mr. Edward legal department". I have asked them to fax over a copy of the loan and a means to pay it. They have refused. I have paid 270.00 on a 300.00 loan I wanted to pay it of via money gram and no longer let them have access to my account due to fraud--cant prove it came from the same company. No time have I ignored them. I received this loan via phone and not over the net. I have never electronically signed any documents. I have found them to be unlocatable via bbb.org. I have made complaints with the ftc.gov, the Al and Utah States Attorneys office and I am still receiving threatening emails and calls. All my payments have been on time and never returned.
Answer: This payday lender may be violating federal and state law by calling and e-mailing you and threatening you in the manner that you describe. These statements sound like empty threats more than anything given the fact that you have been prompt with your payments as well.You may actually have cause for a lawsuit against this creditor for damages due to its actions. I encourage you to consult with a qualified consumer rights attorney to discuss your rights relating to this creditor's actions in trying to collect this debt. For more information about your rights under federal law (the Fair Debt Collections Practices Act), you should
visit the website of the Federal Trade Commission . See "Advice If You're Being Harassed by a Collection Agent " to learn what actions you can take if you believe a collection agent is violating the FDCPA.
You can get out of the payday loan trap if you are a resident of one of the 12 states where this type of loan is illegal once the effective rate passes the usury cap in that state. Usury laws dictate the maximum interest that many lenders may legally charge. If the payday lenders follow their normal business model the loan will most assuredly pass the limit very early. New York State even has a criminal statute that sanctions the lender if the rate exceeds 25%. If you are in one of those states, the loan may be void, and you may be only liable for the principal amount borrowed.
In addition, 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. Such a repayment plan may help you in paying off these loans. You can find a summary of your state's pay day loan statutes at paydayloaninfo.org , a Web site developed by the Consumer Federation of America. If you go to the same site and click on consumer help, you will find a comprehensive discussion of the best strategies of how to cope with and get out of the payday
You can get out of the payday loan trap if you are a resident of one of the 12 states where this type of loan is illegal once the effective rate passes the usury cap in that state. Usury laws dictate the maximum interest that many lenders may legally charge. If the payday lenders follow their normal business model the loan will most assuredly pass the limit very early. New York State even has a criminal statute that sanctions the lender if the rate exceeds 25%. If you are in one of those states, the loan may be void, and you may be only liable for the principal amount borrowed.
In addition, 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. Such a repayment plan may help you in paying off these loans. You can find a summary of your state's pay day loan statutes at paydayloaninfo.org , a Web site developed by the Consumer Federation of America. If you go to the same site and click on consumer help, you will find a comprehensive discussion of the best strategies of how to cope with and get out of the payday
loan trap.
If you do not live in one of the states whose payday loan regulations favor consumers, the best solution would be for you to borrow the funds needed to repay these loans from a conventional lender or a family member or friend. Converting your payday loans to a conventional loan should allow you to repay the loans within a reasonable time frame and at a reasonable interest rate. If you cannot borrow the funds to repay the payday loans, you may want to make a payment each month to pay down the balances.
In some states, the interest on the loans will prevent you from effectively repaying the debts in monthly installments; if you find that to be the case, you should contact the payday lender to try to work out repayment terms that will work with your budget. Whether or not the lender will negotiate a repayment plan depends on the lender and your state's law regarding payday loans. I encourage you to contact the lender to explain your situation and request assistance in repaying these debts.
Hopefully, one of these options will work out for you so these loans do not go into default. Bills.com offers a wealth of information about payday loans on our Payday Loan Information page.
I wish you the best of luck in repaying these payday loans. I hope this information helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog
If you do not live in one of the states whose payday loan regulations favor consumers, the best solution would be for you to borrow the funds needed to repay these loans from a conventional lender or a family member or friend. Converting your payday loans to a conventional loan should allow you to repay the loans within a reasonable time frame and at a reasonable interest rate. If you cannot borrow the funds to repay the payday loans, you may want to make a payment each month to pay down the balances.
In some states, the interest on the loans will prevent you from effectively repaying the debts in monthly installments; if you find that to be the case, you should contact the payday lender to try to work out repayment terms that will work with your budget. Whether or not the lender will negotiate a repayment plan depends on the lender and your state's law regarding payday loans. I encourage you to contact the lender to explain your situation and request assistance in repaying these debts.
Hopefully, one of these options will work out for you so these loans do not go into default. Bills.com offers a wealth of information about payday loans on our Payday Loan Information page.
I wish you the best of luck in repaying these payday loans. I hope this information helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog
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1. Posted by rena on Thursday 8th January 2009 10:39
i live in pennsylvania and it says payday loans prohibited,i have been getting threatening emails and calls from cash-advance.us.
2. Posted by Bill on Thursday 8th January 2009 10:51
If you did not apply for that loan, then you should report the calls to the FTC. If you applied for the loan on the internet, then it does not matter if you live in PA, as the company that disbursed the loan is probably doing business elsewhere and PA law does not apply.
3. Posted by Tucsocom on Saturday 17th October 2009 20:29
I have had this same problem and after researching, checking with the county attorney, legal aid etc, I have found a way out of this legally, and in fact, I am now suing them for $1,000.00 for harrassment and threatening.