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, read the Bills.com Fair Debt Collections Practices Act page. 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.
Eight states 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.
Bills.com also offers more information on the Payday Loan Information page, and has answered reader questions about payday loans in California, Florida, Illinois, Massachusetts, Missouri, New York, Texas, and Virginia.
If you do not repay a payday loan, the payday loan company has several legal remedies, including wage garnishment, levy, and lien. See the Bills.com resource Collections Advice to learn more about the rights of creditors and debtors.
I wish you the best of luck in repaying these payday loans. I hope this information helps you Find. Learn. Save.
Best,
Bill
Beverly Hills, CA | January 24, 2011
January 24, 2011
- Validate the debt. The collection agent is legally required to furnish you with a validation notice. You should send a written request to the debt collector, requesting verification of the debt.
- Look online to see if the name of the collection agency shows up connected with suspicious or illegal activity. If they do, report what you are experiencing to the Office of the Attorney General in your state as well as making a complaint to the BBB.
- Know your rights. Debt collectors are required to follow the provisions of the Fair Debt Collections Practices Act (FDCPA). To learn more about the FDCPA and your rights as a consumer, visit the FTC's Fair Debt Collection Practices Act Web page. Request that the debt collector cease and desist from contacting you.
Oil City, PA | February 15, 2011
February 15, 2011
- If I felt that someone who was trying to scam me had my Social Security Number, I would be concerned that I could be a victim of identity theft.
- If I were receiving harassing phone calls, I would want to know my rights under the Fair Debt Collections Practices Act. If a debt collector is behaving illegally by violating the FDCPA, a person could sue the debt collector. To learn more about the FDCPA and your rights as a consumer, visit the Bills.com Fair Debt Collection Practices Act page.
December 15, 2009
December 14, 2009
Strawberry Lodge, CA | September 25, 2011
September 25, 2011
Don't answer calls from this predator and don't pay a penny.
Strawberry Lodge, CA | September 26, 2011
October 17, 2009
January 08, 2009
January 08, 2009
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