Advice on Pay Day Loan Collections - The Bills.com Blog

Can the company threaten that they are going to send you to jail. That they will be coming to pick you up from work immediately and sent to jail? I just got this phone call and it scared me completely. Thank you

They cannot do that. That is considered to be harassment. You should keep all records for this event, including that collection agency details, phone number, the representative you spoke to as well as a record of the number of times you receive these calls. Once you have all the information, you can report this incident to the FTC. The FTC website has more information on what a creditor can or cannot do. I encourage you to read more about your rights at the FTC website by visiting: http://www.ftc.gov/bcp/conline/pubs/credit/fdc.shtm

If I put a stop on a particular payday loan company from withdrawing anymore funds from my bank account, would this be considered a criminal bad check issue? I'm in Texas and they didn't get a post dated check, just electronically withdrawing each time. I am willing to pay them back, I'm just at a point right now where I can't do it.

No, it's not the same as writing a bad cheque. If they kept trying to take the money out and the withdrawal was being rejected due to insufficient funds, then THAT's the same as writing a bad cheque. Putting a stop on it, though, is the same as putting a stop on a cheque -- you've requested that it not be paid out. If you are in a position right now where you cannot make payments on your loan, you need to talk to the payday loan company ASAP. Those companies can often be real sharks about getting their money back, and the minute they see you've put a stop on their AFT (automated funds withdrawal), they'll come after you pretty quick.

I live in Maryland and took out several payday loans online in order to avoid eviction and utility cut off. I was expecting a settlement to pay them off. The settlement did not come through. It will be several months before it does come through and now I am stuck with these loans. Will the lender negotiate at all with my inablitity to repay every 2 weeks? Should I default on the loans and then deal with the collection agency?

I have a similar situation,yes they did repeatedly try to withdraw and money wasn't there. I guess it would be considered a bad check,however the money wasn't there because either them or an affiliate company felt the need to withdraw 149.99 and 24.99 unannounced and because of that alot of checks bounced and finally the bank said the safest route was tio close"that" account. I haven't recieved anything in the mail however they have opted to contact my parents in FLA and harass them saying that was the primary address I gave...I know for a fact it wasn't because it wouldn't make much sense to have a bank account here in upstate ny and give a physical address in Fla.The clerk of course threatened me with jail as early as tommorrow and said they have been sending letters to meandmy parents but either has recieved any.I want to payback but couldn't take the chance of leaving the account open. In the mean time they called my job in which I am laid off until March. I offered a payment plan but it was refused no supposedly or maybe factually they are gonna send it to a local judge tommorrow. Any advice? thanks. rb

I cannot say for sure if the lender will agree or not, but you should definitely keep making whatever payments you can afford at this time. If you stop and let it go to collections you would have given them the right to go to court, trust me, you don't want to deal with the collection agents, they will not be sympathetic to your cause at all. Try and find an alternative source to help you through this time till your settlement comes through.

Even if they do go to court, they will have to send you a summons in writing to appear for a hearing, they just cannot approach a judge and ask for a conviction against you. You still have the oppurtunity to present your case before the judge. Depending on your financial situation, the judge will decide on a payment plan.

thanks it already is in collections... but in doing some investigating did the collection agency break a federal law by discussing every aspect of the debt with my father who lives in Fla?

maybe they violated fdcpa. check out www.ftc.gov and search for fdcpa violations. they are not supposed to discuss your private matter with a third party. You can always go see an attorney and see if they will take the case to sue the creditor / collector and try to get the debt settled.

My ex husband took out a payday loan 3 years ago and now i got a call that i have to pay for this loan otherwise the sheriff is going to come to my job asking for me. When we took out this loan we were married but then we got divorced and he didnt pay for it. What should i do?

I don't think that they can hold you responsible for that debt, unless you signed as a co-signor on the loan. Moreover, bill collectors tend to be really aggressive on the phone and say whatever it takes to get a payment from you. You should not believe everything they say. The smart thing to do is to get a credit report to see if this debt showing on your credit. Even if it is, you need to explain to them that you have since divorced your ex-husband and cannot be held liable for debts that are in his name.

Hi, i have a qestion. i took out a payday loan over the internet. now this loan wasnt like most loans ive gotten, instead of me making a check and having them submitt it on my next pay day they would deduct $90.00 from every pay check til i was able to pay for the loan in full plus the $90.00 fee. Well i did this back in june, i kept paying them and paying them. During this time that i was paying them 9$90.00 every pay check they came around 2 times one was to offer me another loan for $100.00, then 3 months later th offered me to pay off my first loan for $300.00 and give me a loan of $400.00. At that time i was starting my bad financial bind so i went a head and took the loans, but now i would have to pay $120.00 every pay check for the loan of $400.00 and $30.00 for the loan of $100.00. My finanacial situation got worse and i was forced to close out my acct in January, which makes it 6 months that i was paying them $90.00 per pay check. Once i defaulted they started calling me and e-mailing me like crazy. Iexplained to them all my situation and they said they would work w/me and they would still keep calling me like crazy. I was not able to keep my arraingments w/them. So the representative kept calling me to my employment and i told him several times not to call me at work and the last time i spoke to him he told me he would keep calling me to work regardless because that law doesnt pertain to payday loans. At that point i was very upset and decided to do some research on the web and i ran into a case form the California Dept of Corporations where that company where i got the loan from and its affiliates were found guilty of violating some finance codes, one code involved them not having a license from the state of california to make payday loans and also because of there fees. i was soooo stunned. i couldnt believe it, and i called the California dept of corp and they told me this company still doesnt have a license and they were doing this to several othe people, so he askd that i mail in a complaint to them regarding this matter. So after all this i told you i guess my question is, do i have a legal case on them for this? Or what do you think i should do?

If the California Department of Corporations has confirmed that the company cannot do business there, then I guess you could send in a formal compaint letter detailing everything that happened to you. Also, take a look at the state information page available on http://www.paydayloaninfo.org/state_detail.cfm?id=CA.

i just need to ask you this and i hope you can help me. i got a call from this company and telling me that i made a payday loan over the internet and i need to pay this. i asked them what company is this and they told me that it us national bank and i owe them this amount. so i asked him the name of the company that deposited the money so i can check it with my bank statement but they refuse to give me a name and they keept telling me that its us national...but wont give me any name. so pissed off cause they keep on calling at my work and harrassed me or they keep on calling at my in-laws and harrassing her that she can also go to jail for that. can i go to jail for not paying them because i want to make sure that i owe them that money? or can they take it to court. pls. advice. thanks

They CAN NOT take you to jail over payday loans, unless some sort of gross fraud and illegal activity was involved. I would suggest sending them a Cease & Desist form (telling them to stop calling you per the Fair Debt Collections Practices Act) and if it really is not legitimate you can always report it to the BBB and to the state Attorney General where you live. It IS illegal (a violation of FDCPA) to threaten you or your spouse with jail for collection of a debt.

About 4 years ago I got into a financial bind and took a couple of payday loans out (robbed Peter to pay Paul) I thought I paid them all off in payments but one came out of the woodwork that was for 300.00 and the collection agency has harassed me constantly saying there is going to be a warrant for my arrest if I do not come up with $468.00 by tomorrow he said I owe $1336.00 for a 300.00 loan because of interest now I do not mind paying back the loan I do owe it but can they charge me that much interest? I am a older woman living on SSDI and I just cannot take this kind of treatment. Thank You for your time

I owe like twelve payday loans and only two do i pay which is still hard. i found a company that would only pay the internet payday loans. i only get paid twic amonth and need to move so it is hard to come up with the money to pay for them to take care of some of them. Were can i get help to resolve this now? Is it going to cosst me an arm and a leg? I need help asap. i have contacted most of them saying having finicial problems but can not hold them off for every. Most have put in for collections. help hurry. Thanks Daniel Evans

You may be in luck in regard to your difficulty in repaying 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 at http://www.paydayloaninfo.org 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.

I have received three calls today alone regarding a payday loan that I took in May '05. I closed the account back then and thought that all checks had cleared. Now I am being harassed by this pay day loan company. I told them that I am willing to pay them back the money and that I would be happy to discuss this with them but that they cannot call me at work. The gentleman that I spoke with was very rude and continued to call me at work today. I continued to tell him NOT to call me at work, that my employer does not allow these types of phone calls and that I would lose my job if it continued. I gave him an alternate number to reach me but he said that wouldn't work because he only works during the time that I work. So, we agreed on an installment arrangement and I asked him where to send the first installment. He said that they do not accept money being sent to them and that I have to open a bank account, since I don't currently have one, so that they can withdraw the money. He barely spoke any English so it was difficult to understand him. He told me that I have to call him back within 5 business days with the account number or they are going to call my employer and garnish my wages by 50% of my net income. I told him that he can't garnish my wages without a court judgment. He said that is true and then he said that isn't true. He wasn't making any sense. I asked him for an address so I could send a letter telling them to stop calling me a work. He said that they have offices all over the world and he didn't have a PO Box or Street address that he could only give me a city and state. So, my questions are: 1. Do I open the account and call him with the number? 2. Can he garnish my wages without a court judgment? Any help would be greatly appreciated. I am just concerned that if I open an account that they will continue to take money out well after this debt is paid. It doesn't make sense to me that I can't just send a money order - that way I would have a record of the debt payments.

1. Please do not open a bank account. This is not a current loan, therefore you have the right to send in other forms of payments. 2. NO, nobody can garnish your wages without a court ordered judgment. You will need to do some investigation on your part. Best thing would be to get your credit reports, you can get one from each of the 3 bureaus by visiting www.annualcreditreport.com. Once you get the report, if the said account is indeed showing up on your report, it will also mention the contact information. Once you have the contact information, you can send them a cease communication notice asking them to stop calling at your place of employment.

You know I received a call from a man saying that I owe money to US National Bank, I did some research and there is no bank by that name. When I asked how much I owed all he kept on giving me is my social security number and my old bank number...What the phishy thing is, is that me told me that money was deposited in my old checking account in May 23,2006, well guess what I closed that account in April 11, 2006...So why wait two years later to contact me and tell me that I owe someone money that I never got....Because the account was closed...when I told this man this he was shocked...he said that he will be contacting me with the right deposit date...he even said that i was being charged with 3 counts of felony....what should i do...

First of, get you credit report from each of the three bureaus. You can do so for free at www.annualcreditreport.com. Once you have your reports, you can check to see all the accounts that are showing as negative. Don't worry about the debt collectors threats for now, they always try to intimidate you with these threats. If you are prepared with your documentation, there is nothing they can do.

Hi, I have a question I got a payday loan and I haven't be able to pay them. So now I went to pay my loan off but somehow it has already been to court. Also I did not receive a simon for court because it was sent to the wrong address.Even they sent my settlement offer to the wrong address. So now the are trying to garnish my check. What can I do to stop this garnishment?

Your best bet is to contact them again and try to negotiate a settlement payment on it. Apparently the court thought that the creditor did their part by sending you the summons, this is because it is usually the debtor's reponsibilty to keep the creditor aware of their current address. The court would have seen whatever the address was, on the contract that you signed, and as long as the summons was sent to that address and no response was recieved, it went ahead and passed a default judgment against you. Once a court orders a judgment, there is very little you can do about it. I strongly suggest that you get an opinion from a qualified attorney as I am not a qualified legal professional.

I had a company contact me last month stating I owed them 6000.00 for outstanding payday advance loans I took out in 2006. So I paid them because they threatened me with being arrested and I was scared. The said they would send me documentation in the mail however, I haven't received anything showing the debt was paid. Now I try to call the company and it says the phone number has been disconnected. Now today I had another company call me saying I owe for a payday loan from 2006 and if I don't pay them $3000.00 by today they are going to have me arrested? Can they do that? Can I be arrested for this? Thanks for your help.

The answer is "NO". Debt is a civil matter and you cannot get arrested for it. YOu should have done your homework and checked on your credit report to see if the said loans were showing up there. Also, whenever you make payments, you need to put everything in writing so that it does not come back to haunt you like it has now. Do not be scared and ask for the company to send you a debt validation letter. Once you know for sure that you took this loan, ask for the payment terms to be put in writing. When you do make the payment, make sure to write a check to the company and do not give them a direct debit authorization to your account. That way, you will have a record of your payment being made.

I filed chapter 7 and my question is...... Can the payday loan still try to withdrawl the money from my bank account? Can i send them a letter to contact only my bk attorney and not to call my job and anyother references? Do i put a stop payment on the check? The pay day loan have to follow the laws like the CFA,FTC, Attorney Genereal for my state in az and the Az dept. of financial institution... Right?

You are right, you have to inform them in writing that you have filed for bankruptcy protection. Thay also cannot harass you on the phone, if they continue to do so, you can complain to the FTC (www.ftc.gov). I would be wise to put a stop payment on your checks or else they will keep depositing them. My advise is to change your bank account all together.

hi, i had a payday loan that i was paying intrest on till i fell on hard times. now they are calling my neighbours to leave messages. is that legal in texas? please help.

They will call you every day. They will call your references every day. They will call your place of work every day. The only way to get them to stop calling your job and/or your references is to CONTACT THEM IN WRITING, CERTIFIED, RETURN RECEIPT REQUESTED and tell them to quit calling anywhere except your home.

i took out a couple of payday loans and couldn't pay them back and now they are threatning to garnish my wages. i'm the only one who works and i cannot afford to have my wages garnished and they won't accept a payment plan. i live in ohio. what are my options please?

They may have the right to garnish your wages if the company has gained a judgment against you in small claims court. Only a court order can facilitate the garnishment of the wages, regardless of what state you live in. Have you received any notice to appear in a court? If so, I suggest you contact a lawyer. Unfortunately, payday loans are legal in Ohio, you check for more information here: http://www.paydayloaninfo.org/state_detail.cfm?id=OH

A friend of mine called me all frantic last night. She said that she changed the spelling of her name and used a made up SSN # to get a payday loan which she started to pay back but has now stopped. She is afraid of fraud but cannot pay the loan. What can happen to her? I told her not to get those loans but she had not choice.

I recommend that she pay off the loan as quickly as possible, worse than not paying the loan is the act of fraud that will cause her more harm and the only way she can stop it from further complications is to pay the loan and get it over with, even if she would need to borrow the money from someone else.

I really worried right now I now owed 8 payday advance with the highest amount is $255.00 (original amount) and lowest is $100.00 I can't pay back them since my salary is only $500.00 a month but when i asked for a loan, i changed the amount I received from paystub double and I not giving out the correct phone number for ref. if i was sued, was I be sued for fraud? and if I was arrested, how many years I have to go to jail? well, I just want to make sure, I rather die than go to jail so please be honest give me answer well, i don't even have money to file bankruptcy

That depends on whether that particular creditor decides to file a case of fraud against you. I find that unlikely considering the amount involved. I do not know what state you live in so I cannot give you the specifics of the legal recourses available to the creditor in your case.

Follow-up my earlier post: I living in California. There is certain creditor (Check n Cash) threaten me that they will coming over not only my home but my work place to get money Is it legal for them to come over my home or my work place? and there is another threaten me they will report my debt to DMV - Will my driver license be revoked because of that report? please tell me and thanks for your answer

They cannot come to your workplace. They can only file a suit in court to recover their monies. They cannot report it to the DMV, these are just some of the collection tactics that they use to scare you into making a payment. You should read up about your rights as a debtor, at the FTC's website at http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm

I am trying to work out an arrangement on my payday loans....but they refuse. They want me to pay the fee & return check charge, rewrite them a new check & start over as new..... as they call it. I explained to them that my account was closed. And That is the only way they will except payment!!!!

Don't do it, they are trying to roll you over into a new loan. This cycle will never end this way. You will have to find a way to come to a full payment settlement agreement and finish it off for good.

The short term financial assistance that payday lenders offer, often are one of the fastest and safest ways out of a sticky financial situation if used responsibly. Unfortunately, people of somewhat political importance don’t see it this way, probably because they have never been in a situation that would require a little help from the payday loan industry. These bipartisan efforts to outlaw the entire industry just go to show how detached they are from real Americans. Get educated on the facts today and exercise your right to financial freedom.

Thank you for the information. We welcome all data points.

I applied and got a loan from an online place called CashnetUsa back in may of this year. Well, I had completely forgotten I had it. I did shut change my account because I was getting weird charges from different online places (movies, bookclubs, etc...) This last Friday, my aunt got a call from a man who said he was an investigator out of New York and was calling about 2 pending complaints against me. I called him back today and found out the complaints were from Cashnet. He said they had tried contacting me through email. I, however, don't check my email because of constant spam from doing online surveys. It an 800 number called, i didn't answer, thinking it was a telemarketer. The investigator said he was calling to try and resolve the matter before it went to the courts. He said his job was to keep it out of the courts. He said the company was going to take action to sue me from Fraud and non-payment. He said I owed 900 and something, but said if I could pay 498.40 by the end of this month, it would all stop. Court proceedings, everything and I wouldn't owe anything. I am not disputing the loan, I completely forgot I had it until this investigator called. I do want to pay it off, in fact I gave him a payment today over the phone as he said he needed something other than verbal agreement for the company. I do want to pay the remaining balance, but I am not getting my bonus at work like I thought I was. What would happen if he doesn't want to work with payments with me? If this goes to court, what will happen? Is he just a collection agency? I am in Colorado and this Cashnet is in Illinois. What will happen in the court proceedings? What can I do about this?

The practical answer is that it is extremely unlikely that he would sue you over a mere $450 dollars (his legal costs would exceed what is owed). He also is not supposed to threaten law suit unless an attorney has reviewed the case (see FDCPA Laws). Theoretically, he would have to sue you in Colorado (your home state) and then win a judgment. Next, he would have to apply that judgment. Most likely he is just a collector trying to scare you (which it did) and get you to pay. You should offer a reduced balance settlement or a payment plan to him.

I took out a payday loan of a$200.00 I was unable to make $75.00 extension fee for 2 times since the loan. I have paid the $200.00 and they charge me another $100.00 so far the have colected $300.00 on a $200.00 loan and they are still saying I have to pay another $400.00 because if not they can garnish my paycheck. Is this leagl because I have paid the $200.00 plus another $100.00. Again my loan was for $200.00. Thanks, JOyce

Garnishment of wages requires a court ordered judgment and is rare in case of payday loans, the collector is using scare tactics to make you pay. There is only so many times a payday loan can be rolled over. You should read more about laws regarding these loans at www.paydayloaninfo.org.

I got a call from tri financial. the guy threaten to pursue letigation in my state of texas. he was calling on behalf of cashnet usa. I took out a payday loan and he is threatening to take me to court. can he do this.

If the creditor wishes to, then they can file a claim in court. If they do proceed with it, they will need to send you a summons to appear in court. Even if a case is filed, you can still explain your situation in court and buy more time. I have usually found that as payday loans tend to be be very small, the creditors only use it as a threat, and very rarely do they file an actual suit in court.

I took out a online payday loan 3 years ago and because of hards time was not able to repay it. They have harassed me at work for years telling me that they were going to have me arrested at work and come after my company for charges over 10,000 because I used my company e-mail address when I reveived the money. My original loan amount was only for $300. In November of 2008 I got a call again and they threatened to come after my work so I wired $750 to them and they said they would mark my account as paid and I would receive paper in the mail. I never received any papers in the mail and now I got a phone call at work asking for my supervisor and my company address. Can they really come after the company I work for?

All these are empty threats, you should not have made the previous payment without an agreement in writing. Anything that they say they will do, has to go through the courts, I doubt that they will do that for a $300 debt.

I live in NY sate. I currently have an"investigator"calling me to repay more than $480 on a $200 internet payday loan in 2007. I was unable to pay it back due to an accident and a devastating health issue I had right after I borrowed it. I no longer work. Now this investigator says she is going to take legal action against me for bad check and internet fraud. I know this is a collector. Can I be arrested for fraud? Also,I think charging 280.00 for a 200 dollar loan is over my state usary limit. I am on SSD due to my illness and no longer have any assets to sell to repay this loan. I told them this but they don't care.Say they will still have me arrested if it isn't paid in full by the end of the week!

These are only threats, you cannot be arrested.

I have an "investigator" calling me from DC Capital and the Department of Check services. Things dont add up. They use different names when they call and I can tell it the same person. They also say I will have a judgement filed against me in court in my county. I told them I would pay this payday loan back that i got off the internet. But they wont accept a payment plan or for me to mail them installments, i said i would do so if they would notify me in writing. They want me to moneygram them. What are my options and what should I tell him when i call him back.

They can't just get a judgment without following the proper procedures (which costs a lot of money and resources). Just keep insisting on what you can afford, and do not give them your bank account information at any cost. Insist that you want to send the payments by mail only and make sure to get everything in writing.

i have a paydayloan and agengy keep on calling and harrasing me at work.they that they will bring this in court they can do that or im going to jail thanx

No you cannot go to jail, please be clear of that. If they are threatening you that way, try to record the conversation and then tell them that you will report them to the FTC. You can read more at http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm

I filed chapter 7 officially on the 21st....i had 2 payday loans of buyback 352.50 due the day before my case actually got filed, but i had included these payday loans and stopped payment on them. well now today i find out the one place typed up a whole new 'check' with a fake number and had it withdrawn from my account!! I am so pissed, and my lawyer said they will give the money back, so i hope so, i won't know more till monday. All i know is these checkplaces are so hard to get away from and i am just sick over this. by the way right before i filed i had already paid off 3 other payday loans, and i just didn't have the money for these 2 remaining ones, thats why i included them in my bankruptcy...

Your lawyer is correct. First of all, any disbursements right before a bankruptcy can be clawed back by the trustee and redistributed... but more importantly this sounds like fraud of illegal behavior. Good thing you have an attorney on your side. Good Luck Peggy!

I need some direction. We live in Texas and my husband and I we have 8 outstanding payday loans (all storefront loans and all based on bank checks we provided in return for the cash) and we are barely surviving paying interest on them. The company names we owe are Ace Cash Express, Advance America, Check N Go, Cash America Pawn, Cash Zone, and EZ Money. It is a vicious cycle and we cannot get out of them no matter how hard we try. I searched the internet last night and found several companies that state they can consolidate the loans and we can be "out of them" within 6 months by making payment arrangements. The company names that are promising this debt relief are Pay One Assistance, Consolidated Credit Counseling, and Progressive Debt Relief. My brief conversation with one of the reps revealed that all they need is the name of the companies we owe, the total amount owed, and they will communicate with the lenders and take care of the debt. From my understanding, we would pay them directly and they "negotiate" with the lender. The rep further indicated that their company would allow "breathing room" by extending payments beyond our regular paydays so that we could catch up on the other bills we are neglecting. I am concerned by all the comments I am reading online on this post and the concern over a sign posted at one of the establishments stating that they report "hot checks" to the district attorney. I am really worried and don't want to jump into something that sounds too good to be true and end up in a worse situation than where we are now. The last thing I need is to be faced with criminal charges. Worse, I don't want to be faced with not knowing all the facts that will catch up to us if we neglect to pay on our obligations to pay the lenders on time. Any input or assistance out there? Help!

As far as I know, it is very difficult to negotiate with payday loan companies. I would think twice before spending more money on another firm's services if you are not sure they can do the job. You can read this post for some tips on how to deal with payday loans: http://www.bills.com/blog/payday-loan-trouble/

I live in pennsylvania payday lender is calling my work place and telling me they will garnish my wages if I don't call them. Can they do that?

First, learn more about your rights as a consumer of payday loans in your state. There are eight states whose payday loan regulating statute requires 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, 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. Next, learn more about the Fair Debt Collections Practices Act (FDCPA). This sets the rules creditors must follow when collecting debt. To learn more about the FDCPA and your rights as a consumer, visit the Federal Trade Commission FDCPA Web page. Finally, you can send the creditor a cease and desist letter ordering them to stop contacting you at work, which is illegal under the FDCPA if you tell the creditor to stop. Go to the Debt Self-Help Center to see a sample letter.

I have a company calling me stating they are a law firm, wanting me to pay back 1250 for a 500 loan. i have made payday loans before but am unaware of one i have not paid off. He will not give me a company name or account number he states if is nation wide. He attempted to force me into writing a letter of content to pay the full amount in one week or he would have me extridicted to jail. Is this possible. I told him i was williing to pay the loan if i owed it, but i needed to do it in payments, he refused.

Let me get this straight. A stranger calls and says you owe a debt you are unaware of. He refuses to tell you the company name. He refuses to tell you the company's address. He can't tell you the account number. He will not accept a payment plan. And yet you believe him when he tells you that if you won't pay he will have you sent to jail? Let me tell you, there may be someone going to jail here, and it is not you. The next time he calls, INSIST on getting his name, the company's name, the address, and the account information. Then send him a cease-and-desist and a debt dispute letter, which are available on the Bills.com Debt Do It Yourself page.

I took out an installment loan with National Quick Cash. I was unable to keep up with the payments so it is now with a collection agency, in Las Vegas. The collection company has been calling indicating that if the amount is paid in full, they will garnish my wages and file criminal charges (Ntl Quick Cash deposited the post dated checks when I could not keep up with the monthly payments). I live in Illinois. Can this company do this? They've been very rude and scary. They were indicating that I would lose my job because of this. Please advise. HELP!!!

Debt collectors, sadly, will prey on consumer's lack of knowledge about their rights during collections calls. No one has been arrested or imprisoned for debt in the United States since the 1800s. Do not believe legal advice from collections agents. The information is usually incomplete, wrong, and self-serving.

I got a call monday frpm a wierd number from a guy named john. He said he was from a law office and that i am having a complaint submitted on me from a 300 dollar payday loan and that i was being charged with 3 charges of check fraud and not paying a debt or something in that nature. I ran into some hard times and the account i gave them closed after i took the loan out. He also told me i should have someone ready to bail me out of jail and have an attorny ready. What should i do

Randall, your situation is a common one. As I wrote above, you need to arm yourself with knowledge so that you can take control of the situation. First, learn more about your rights as a consumer of payday loans in your state. There are eight states whose payday loan regulating statute requires 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, 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. Next, learn more about the Fair Debt Collections Practices Act (FDCPA). This sets the rules creditors must follow when collecting debt. To learn more about the FDCPA and your rights as a consumer, visit the Federal Trade Commission FDCPA Web page. Finally, if the creditor is calling you at work, you can send the creditor a cease and desist letter ordering them to stop contacting you at work, which is illegal under the FDCPA if you tell the creditor to stop. Go to the Debt Self-Help Center to see a sample letter.

Recently, I received a call from someone collecting on a payday loan that I had, the lady said I needed to pay the full amount of 547.50. I explained to the lady that I only get paid once during the month and that money is needed to pay my bills for the entire month before I see another check. I told the lady that I could pay something on the balance and set up payments, and give her the amount I had availaible, she said that I couldn't just decide what I wanted to pay, either I was going to pay the amount that they told me or she would notate it as a refusal to pay and iniate court proceedings. Can they infact do that, and also what should be my next step as I did offer to pay them? Is there a payday loan consolidation company that I can be referred to. Also I live in NC now and payday loans is outlawed here, I got them when I was a resident of Virginia but do to loosing my job, I could not pay at that time. I need help please.

You are not alone with this predicament. First, contact the bar association in your county, and ask them if there is a legal aid organization in your county for people with a limited income. Make an appointment with a paralegal or attorney at the legal aid organization and ask them if NC or Virginia law applies in your situation. My guess -- note that word choice -- is that because you were a VA resident at the time the loan was made, VA's rules apply. The interesting parts of that question is, would you be haled into a VA court, or would the NC court make judgment on an NC resident for a loan that would be illegal under NC laws. My guess -- again note my word choice -- is the later of the two. An attorney licensed in NC with experience in consumer law will provide you an authoritative answer. Second, remember that YOU are in the driver's seat here. You have the money they want, and you can chose to negotiate a payment plan that fits your budget. I suggest you read the Bills.com article Debt Negotiation and Settlement Advice to arm yourself with negotiation tips and tactics. Third, learn more about VA and NC consumer law on the Consumer Federation of America's Payday Loan Consumer Information Web site. Fourth, I am not aware of any debt resolution company that handles payday loans. Finally, if the creditor will not negotiate with you on a payment plan, I suggest you create one yourself. Set aside a consistent amount each pay period for several months until you have some capital to work with. Then contact the creditor and suggest they settle for a lump sum today for 40 cents on a dollar. See how they react, and then negotiate a higher amount from there. Get their approval in writing before you send the settlement check.

I live in Texas. I have a payday loan with a company for $540. I have been paying them consistently over the last couple of months however, I have fell on hard times and have not been able to pay them this last month. I have kept in contact with them repeatedly about my situation and let them know I am unable to pay them but I am not avoiding the issue. Once I am able to pay I will make sure they receive their funds. The company files with the county I guess as theft by check. I am a little worried because I do not want a theft charge on my background check and have intentions of paying it. I spoke with the collector and he was rude and told me I was giving them the run around. I have moved from Houston Texas but have drove back to make payments twice and for the next 2-3 months they directly took it out of my account. What rights do I have? Or is it inevitable that I will have a theft charge on me? I am really worried...what can I do?

No one has gone to jail for debt since the Civil War, and for the payday loan collection agent to suggest you face criminal charges with a "theft by check" charge is a lie. See the Consumer Federation of America's payday loan page for state-by-state information for consumer rights regarding payday loans. The Texas state information shows the limits payday loan providers must adhere to. In earlier replies above, I discuss tactics for freeing oneself from the payday loan trap.

Hi I live in florida an i have been receving calls from a man in regards to a payday loan taking out in 2008. He stated that i needed to pay 940.00 today or there will be fraud charges filed against me and a summons would be issued. What can I do about the harrassing call

I urge you to re-read the article above and also see the Bills.com resources Collections Advice and Advice If You're Being Harassed by Collection Agent.

I have 2 payday loan companies that I can not pay at this time. They keep calling me at work I have asked them to stop but they refuse. I have sent them a cease and desist letter but they say it doesn't pertain to them. In one day I got 9 calls from them at work, so I know it was wrong but I filed bankruptcy back in 2003 so I just changed the dates just so they would quit calling me which that didn't help either stating they never rcd the fax/email which I have confirmation that they both went thru so then on friday I get a call from a guy saying he was over the "fraud dept" and he knows I altered the documents and since it came from my work fax he could get me for wire fraud. After I worked out a arrangement I received to more calls from the same company at work. Can he really get me for wire fraud?

Generally speaking, it is not wise to heed the legal advice of collections agents. The legal advice they provide is usually incomplete or wrong, and is always self-serving. A district attorney or federal prosecutor would decide if you would be charged with wire fraud, not a collection agent for a payday loan company. If your intention of was to just make the payday loan collection agent stop calling you at work, then what you did was wrong but in my humble opinion does not rise to the level of committing wire fraud. On the other hand, if your intention was to dupe the collection agent into thinking the payday loan was discharged in a bankruptcy, that's a different story and may be considered fraud.

Here's some tough love you did not ask for but I think you need: You filed for bankruptcy in 2003 and now have two payday loans that you are behind on. This patten indicates to me something is wrong here -- you need to get your spending in line with your earnings, and find ways to boost your earnings. Make a budget and stick to it. If you have a limited education, remedy that and make yourself more attractive to employers who will pay you a higher wage. And promise yourself that you will never make a payday loan again.