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Advice on Payday Loan Collectors - The Bills.com Blog
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Advice on Payday Loan Collectors
Wednesday, Jun 18, 2008
Question: Hey Bill wanted to ask you about the role of collectors of the payday loan company?
Answer: 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 .
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
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 http://www.bills.com/collection-laws/.
Bills.com offers a wealth of information about payday loans on our Payday Loan Information page .
I can also point you to the Free Bills.com Financial Planning and Budget Guide , which can help you manage your finances and learn about budgeting and prudent financial management.
I hope this information helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog/
Bills.com offers a wealth of information about payday loans on our Payday Loan Information page .
I can also point you to the Free Bills.com Financial Planning and Budget Guide , which can help you manage your finances and learn about budgeting and prudent financial management.
I hope this information helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog/
Also, make sure to get a free financial health check-up with Bills IQ!
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Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!
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