Pay Day Loan Collections

I am having financial problems and I asked the payday loan company not to call my job. What should I do?

I have several payday loans I cannot repay right now. The payday loan collector threatened me with arrest, and said they will call my job and have me fired. They also threaten civil legal action. What can I do?

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Bill's Answer
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Highlights


  • Avoid pay day loans if at all possible.
  • Make every effort to repay a pay day loan as agreed, or you will face severe financial penalties.
  • Knowing your rights under the FDCPA to protect yourself from debt collector harassment.

Handling a payday loan is difficult. The biggest challenge is to take charge of the situation and create a solid repayment game-plan, especially since the payday loan cycle is so expensive. My answer discusses what a payday loan is and why you should avoid them, your rights as a consumer, tactics a payday lender will use in collections, and strategies for freeing yourself from the payday loan trap.

What is a Payday Loan?

These small loans, also 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. The borrower often gives the lender a post-dated check, which the lender later uses to electronically transfer a payment or the entire balance of the loan from the borrowers account.

An especially insidious practice is to withdraw a partial payment from the account as a “customer service.” This partial payment becomes a perpetual installment that continues despite the borrowers’ best efforts to halt it.

With rates so high and the term of the loan so short there is 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 400% to 1,460% APR depending on the number of times the principal is rolled.

One slightly light-hearted fact regarding payday loans: Wikipedia.org, the leading online encyclopedia, list payday lending under Loan Shark, stating that “if the defining characteristics of loan sharking are high interest rates and a credit product that traps debtors, then the label certainly applies."

The Federal Trade Commission offers a great Web page regarding payday loan alternatives.

Payday Loans and Consumer Rights

A payday lender may attempt to collect the balance itself. If the borrower defaults, the payday lender may sell the debt to a collection agent, which we discuss later.

If the payday lender (or collection agency, for that matter) cannot convince you to pay through standard collection tactics, such as phone calls and letters, the payday lender may decide to file a lawsuit against you to obtain a judgment 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 in civil court. The most common methods of enforcing a judgment are wage garnishment, bank account levies, and property liens.

Note that not on this list of enforcement actions are calling your employer, contacting your neighbors, or getting a warrant for your arrest. Failing to repay a debt is a civil matter and not criminal. A common threat many payday lenders use is arrest for check fraud: This is a groundless threat unless the payday lender has evidence to prove the borrower never intended to repay the payday loan. Proving that is very difficult. Remember, no one has been arrested or imprisoned for debt in the United States since the Civil War.

To learn more about debt collection laws in your state, see the Bills.com debt collection laws page.

If the payday loan company sells an account to a collection agent, the borrower may be obligated to pay the balance to the collection agent.

A federal law called the Fair Debt Collection Practices Act (FDCPA) states that a third party collection agent must stop calling you if you notify them in writing to do so. Several states, such as California, New York, and Texas, extend many of the regulations in the FDCPA to cover original creditors as well. 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.

If the payday loan company sells the account to a collection agent, the debtor can stop the telephone calls by sending a cease communication demand letter, commonly called a cease and desist notice, to the collection agent. (See the Bills.com debt self-help center for sample cease-and-desist letters.)

How Can I Handle Payday Loan Collections?

Many payday loan collectors use intimidation to strike fear into borrowers. Just because a person is in debt does not mean that person loses their rights as a consumer.

As mentioned above, many payday lenders require borrowers to provide their checking account numbers so that payments can be withdrawn from the borrowers’ accounts automatically using the Automated Clearing House (ACH). In instances where the borrower accounts lack sufficient funds, the payday lender will continue to attempt withdrawals. This may create overdraft charges for the borrower, and if done often enough, the bank may close the borrower’s account.

One common tactic to deal with payday lenders who repeatedly withdraw funds from a borrower’s account is for the borrower to close the account and reopen another at the same bank. This is effective unless the bank links all transactions from the old account to the new one. If that happens, when the payday lender makes a withdrawal, the bank simply reaches into the new account to remove the funds. The lesson here is to make sure the bank does not allow electronic withdrawals from the old account to be transferred automatically to the new account.

Once the account is closed, the borrower can create and negotiate a repayment plan with the lender. There are eight states whose payday loan regulating statutes 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.

Learn more about the payday loan laws in your state, including each state's attempts to regulate them. You state may require a repayment plan. If your state does, and your lender will not accept a payment plan, call your state’s 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, consider simply making payments to the lender anyway 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 until you have enough money to either payoff the loan or to offer a settlement.

Read the regulations in your state to find the best strategy for your situation. To learn more about tactics and strategies for dealing with creditors, read the Bills.com article Debt Negotiation and Settlement Advice.

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.

See also the free Bills.com Financial Planning and Budget Guide, which can help you manage your finances and help you learn about budgeting and prudent financial management.

I hope this information helps you Find. Learn. Save.

Best,

Bill

Bills.com

261 Comments

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  • 35x35
    Apr, 2013
    Julie
    I live in Washington state. I received a phone call this morning from a gentlemen claiming to be from a collections company. "Richard" told me that he was collecting a debt from a payday company and the "good news" was that his supervisor was allowing him to take a debt of $485 down to $189 if I paid today. When I inquired about when the debt was incurred, he said 12/05. If I didn't pay it he would take it to court for wage garnishment on the 11th of this month. I asked about the statute of limitations and he said it was 10 years. Told him it wasn't me. Can they really do the garnishment? Thank you for your help, Julie
    0 Votes

    • 35x35
      Apr, 2013
      Bill
      Three assignments for you:
      1. The next time the collection agent calls, gather contact information about the collection agent, including his or her name, the employer's name and address, and whatever information he or she has about the debt, and then validate the debt. Follow the instructions on the hyperlink I just mentioned to learn how.
      2. Learn more about what power your state statute of limitations has and does not have. In most states, the expiration of a statute of limitations will not prevent a plaintiff from filing a lawsuit.
      3. You mentioned the collection agent said he planned to "take you to court" on the 11th of this month. Ask him which court he filed the lawsuit in. If the action has been filed, double-check with the court to make sure what you're being told isn't a line of baloney. If the collection agent says he has not filed the action, then you need not worry about filing an answer to the lawsuit.

      You mentioned you reside in Washington. The Washington statute of limitations for a written contract, which is what I assume applies to payday loans in Washington, is 6 years. The statute of limitations for judgments is 10 years. Therefore, the collection agent either misinformed you about Washington law, or the collection agent has a judgment against you. Ask him if he has a judgment. If so, then ask him which court awarded the judgment, the date, and so on, and consult with a Washington lawyer immediately about filing a motion to quash the judgment.

      Why a motion a vacate the judgment? You seem surprised by the collection agent's call. If you were a defendant in a lawsuit, you would have received a written notice of the lawsuit in the form of a summons. If the plaintiff (the party filing a civil suit) followed your state's civil procedure laws correctly, you would have received notice of the action. Failure to give a defendant notice of a lawsuit is grounds for throwing-out a judgment.

      0 Votes

  • 35x35
    Mar, 2013
    Bianca
    I live in Ohio and I have four different payday loans they are in default. I am in contact with them and I am trying to pay it off offering them $50 a month but they do not want to accept it. I cannot afford to pay more. What should I do? I was told I can apply for bankruptcy and include these payday loans but I really prefer not to. Please can anyone give me some advice?
    0 Votes

  • 35x35
    Jan, 2013
    deanna
    I got a payday loan about a year ago, and the account was closed. I was not really thinking about the loan when I closed the account. It was not my intention to deceive anyone. I was getting a divorce and leaving an abusive marriage and just wanted to get out of town. Can they charge me with theft-by-deception as they claim?
    0 Votes

    • 35x35
      Jan, 2013
      Bill
      Let us assume for a moment the payday lender is highly motivated to see you charged with a crime. The steps would be as follows:
      1. The lender would file a complaint with the local police or the district attorney
      2. If the police department or DA think the case is worth their time, either will assign the case to an investigator.
      3. The police or DA investigator will bring the evidence it finds to the DA
      4. The DA may or may not decide to file charges in a local state court based on the evidence.

      The details for each jurisdiction vary, but the general procedure is the same. A DA or state attorney general brings charges against a criminal defendant. A creditor, such as a payday lender, does not bring criminal charges against a consumer.

      A creditor, such as a payday lender, may bring a civil complaint against a consumer. The most likely legal theory it would use in a civil case would not be theft, but breach of contract.

      0 Votes

  • 35x35
    Oct, 2012
    Ashley
    Hello, I didn't see any information regarding this, I might have missed it...but a relative used my Social Security number to access a payday loan, and now the debt collectors are calling me. I did pay one of the loans, but now found out that there is another. They keep calling me saying they are going to get someone to come and "serve" me. I tried explaining that it was not me that took out the loan, it was the relative. But they are still demanding payment and are constantly threatening. Is it possible for them to send someone to serve me, or take me to court? How can I prove it wasn't me, or get information to try and tell them that I did not take out the loan. I shouldn't have even paid the first one, but I did. The second loan is much too much to have to pay for for something I did not even borrow. Any advice or links to look through?
    0 Votes

    • 35x35
      Oct, 2012
      Bill
      Go talk to your (highly irresponsible) relative. If s/he doesn't make good, explain that you may have no choice but to reveal the fraudulent activity, if you are sued and at risk of a garnishment.
      0 Votes

    • 35x35
      Oct, 2012
      Ashley
      unfortunately, he is in jail for bounced checks. Thank you.
      0 Votes

    • 35x35
      Oct, 2012
      Bill
      In that case, you do not risk harming this relative's feelings by following this steps found in the Bills.com identity theft article. Follow the link just mentioned to learn how you can document the identity theft, then share this information with creditors who pursue you for debts you did not incur.

      As a matter of law, there is no correlation between an unscrupulous person using a victim's Social Security number and the victim having legal liability for a debt. A Social Security number is a piece of identification, and the law does not look at it as the equivalent of a signature or promise to pay. Therefore, just because an unscrupulous person uses an unwitting victim's Social Security number when applying for a loan does not mean the victim is obligated to pay the debt.

      Here, the collection agent has browbeat you into thinking you have liability for the debt, which is not the case.
      0 Votes

  • 35x35
    Feb, 2012
    Jean
    I had a process server call me at work today. He refused to tell me who he was calling for or what the summons was about. He kept asking to speak to my superior. At that moment I was the highest level he could reach. I was not being rude and told him sold. But he refused to listened. The only way I found out what company was because he left a message on voicemail at home for someone else. I called the company and they were able to find the case. Told me they were not responsible for him but would notify his superior. I did pay what they said only with the condition that once I found the document that it was paid. I would receive my refund. But who can I complain to regarding this process server?
    0 Votes

    • 35x35
      Feb, 2012
      Bill
      Contact the attorney general's office in your state.
      0 Votes

  • 35x35
    Feb, 2012
    lacrystal
    I'm actually closing my bank account. If I do that and not pay off my loan, which I am unable to at the moment, what is the worst that can happen?
    0 Votes

    • 35x35
      Feb, 2012
      Bill
      What can happen depends on the laws of your state. You should check with the authority that governs payday loans in your state. Start by contacting the Attorney General's office in your state.
      0 Votes

  • 35x35
    Feb, 2012
    Evelyn
    I was contacted by a collector called Nationwide for a Payday loan. They said it was for a payday loan from 2007. I do recall taking out a loan from back then, but I was advised to close my account and disregard them, because i was being scammed. They kept taking out my money from my account, but I felt that the balance was never going down or away. So I closed my bank account. I live in PA. This NationWide told me yesterday that they were taking me to court. I have been on alert and looking through the dockets in Municipal and Court of common pleas and there is nothing yet filed against me. First I got a call from a servicer guy, he asked me to contact the Nationwide people. The servicer said that he had an envelope that he needed to serve me with and that he needed to know what I was going to do with the debt. This is totally crazy and I do not know what else to do.
    0 Votes

    • 35x35
      Feb, 2012
      Bill
      Process servers get paid for completing one task — serving a summons on a defendant personally. They are a lot like pizza delivery drivers, and it is a successful delivery that counts. Process servers are not paid when they fail to serve a summons. Therefore, I think it highly likely that the "server" who telephoned you was a collector working for a collection agent who wanted to frighten you into calling the collection agent so that you would avoid a lawsuit. Many other Bills.com readers report this series of events, which is illegal under the FDCPA. If the "server" telephones you again, gather every scrap of information you can about him or her, including name, street address, employer, telephone number, and so on. A legitimate process server will have no hesitation to tell you which company he or she works for. A scam artist or person who knows he or she is violating the FDCPA will end the call quickly. If you are able to gather any information about the caller, bring it to a local lawyer who has experience litigating consumer law issues. He or she will discuss your case against the bogus servicer, and whether you should file an action against the scam artist for violating the FDCPA.
      0 Votes

    • 35x35
      Feb, 2012
      Tasha
      The same thing happened to me today. Nationwide called me about a payday loan from 2007. They were very mean and rude. They even called my sister, grandmother and several people at my job to tell them that I was being charged with fraud. I immediately called them back to setup payment arrangments. After I hung up I felt weird about the call and tried to call them back. But I could not get through. I tried over 5 times and each time either the phone kept ringing or it got disconnected. I started to feel like I was being scammed so I called the pay day company directly and was informed that they had given my account to a collection agency but NOT Nationwide. I immediately began to google the company and found nothing but scam alerts. SO I called my credit union and had my card de-activated. I don't understand what is going on. These people are embarrassing me at work, scaring my family and seemingly are not legit. What can I do to get them out of my life?
      0 Votes

  • 35x35
    Feb, 2012
    Danny
    I was contacted today about a payday loan that i got in arizona i now live in north carolina and they are taking me to civil court, the debt is at least 3 years old or more. what if anything can they do to me now that i'm living in north carolina?
    4 Votes

    • 35x35
      Feb, 2012
      Bill
      Please see the Bills.com resource North Carolina Collection Laws to learn more about your rights and liabilities as a North Carolina resident.
      0 Votes

  • 35x35
    Feb, 2012
    Jeremy
    I had a payday loan company call me at work and tell me that he was a locator and I was being accused of check fraud. He gave me a phone number and I called them and they told me that I needed to pay back a loan. First I wasn't even aware that the loan went threw because I didn't sign a E-Signature. But they told me they would take me to court if I didn't pay it back asap. I asked if I could pay just half because if I paid the whole thing back at once I wouldn't have any money for food or anything and they told me I had to pay the whole thing unless I wanted to go to court. I can't afford to go to court. But everyone I have talked to said that I don't have to pay the whole thing at once, I have every intention of paying them back I don't steal but I don't know how I will take care of my family if I have to use my whole check on this bill. I really need help. Open to any suggestions.
    0 Votes

    • 35x35
      Feb, 2012
      Bill
      First, contact the attorney general's office in your state to learn your rights when repaying a payday loan. Some states require payday lenders to accept a payment plan. If you are not in one of those states, negotiate a settlement where you pay an amount you and the lender agree to over several weeks or months. The demand that you repay the entire amount due is an unreasonable and harsh negotiating position.
      0 Votes

  • 35x35
    Jan, 2012
    Misty
    I have taken out multiple payday loans (like 9 of them) when i was expecting a sum of money, but that didn't go through due to a family emergency. I have not paid anything on any of the loans, nor can i afford to. Can i get arrested for fraud for not paying them?
    7 Votes

    • 35x35
      Jan, 2012
      Bill
      Defaulting on a loan is not in a criminal offense, assuming no fraudulent activity took place. The creditor can take legal action and seek a court judgment which can lead to wage garnishments, bank levies, and liens on your personal property. For more valuable information I recommend that you read the Bills.com article unable to pay payday loan.
      0 Votes

  • 35x35
    Jan, 2012
    Steven
    I recently did a online advance with check n go...I am going through a divorce and ended up not having the money to repay so i put a stop payment with my bank so it wouldn't push my acct negative and accrue old fees...now the collection company is calling saying they are going to have me arrested for fraud and to call back before they send the case to california my state the collector was calling from texas...in my situation can they have me arrested? Or they just trying to have me call to setup payments?
    0 Votes

    • 35x35
      Jan, 2012
      Bill
      Avoid payday loans. Generally payday borrowers are in a weak financial position and the payday loan only digs them deeper in a hole. Defaulting on a payday loan is not a criminal offense. Therefore, you cannot be put in jail. The collector must act in accordance with the law, which does not include threats and harassment. I recommend that you read the Bills.com article 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.
      0 Votes

  • 35x35
    Jan, 2012
    susan
    i had taken out a payday loan on the internet, and it was paid off August 15 2011 and now someone is calling me and saying I'm involved in a check fraud and i have one day to pay back 3000 to them and when i contacted the loan company they gave me my pay off. but also said i still owed 192.00, and gave me a number to call and they have no record of this.
    0 Votes

    • 35x35
      Jan, 2012
      Bill
      It strongly appears that the collection agency that told you that you owe $3,000 and was making exaggerated claims.

      Do you have any proof that you paid off the debt?It sounds like you do, if you know the exact date you paid it. If the people to whom you were referred by the lender have no record of the $192 mentioned by the lender, that is a good thing. Perhaps you should check your credit report, to see what it shows about this debt. Keep the proof of payment somewhere safe, so you can supply it if this issue pops up again.
      0 Votes

  • 35x35
    Jan, 2012
    Eric
    I have been receiving phone calls from a guy claiming to be a state process server in Louisiana. He said that I defrauded a Pay Day Loan company here by closing my bank account. He claims I had taken the loan out in 2009 and I need to get in and pay it or I will be served papers for "attempt to defraud a company" which he said is a felony charge. I don't remember ever doing business with this company. I did have a bank account that I closed, I switched banks, and I did have some pay day loans, all of which I thought I had paid off. What should I do?
    0 Votes

    • 35x35
      Jan, 2012
      Bill
      I recommend exercising a healthy dose of skepticism. It is quite possible that you are receiving calls from a scam debt collector.

      If you receive something in writing, validate the debt. Until you know that the debt is legitimate, don't pay a penny.
      0 Votes

  • 35x35
    Dec, 2011
    Alyce
    I live in North Carolina and I took out a pay day loan and I paid it off plus $270 interest since I see that it is illegal to do pay day loans here I was wondering if I could get the money back? Also if I took out another pay day loan am I obligated to pay it back?
    0 Votes

    • 35x35
      Dec, 2011
      Bill
      Payday loan prohibitions are tricky because the local payday lender may circumvent state law by partnering with a federally chartered bank, which funds the loan. Consult with a local lawyer who has consumer law experience to learn if you have a legal reason to file a lawsuit against the lender you borrowed from. Also, ask him or her your hypothetical question about a new payday loan.
      0 Votes

  • 35x35
    Nov, 2011
    Courtney
    I am working to resolve my payday loan issues. Are loan companies regulated by the state in which I reside or the state in which they do business?
    0 Votes

    • 35x35
      Nov, 2011
      Bill
      Both state laws apply, and perhaps federal laws as well depending on the circumstances. You include no details about the lender in your message, so answering your question with any certainty is impossible.

      If the lender has a presence in your state, such as storefronts or other places where a consumer can walk into to get a loan, then local state laws may apply. However, if you traveled to another state to get the loan, then that state's laws apply even though you reside elsewhere.

      Federal laws may apply if the lender is using a federally chartered bank to fund and transact the loan. In this type of situation, local payday lenders partner with banks located in deregulated states. The banks deliver loans via electronic funds transfer and claim the local storefront is brokering loans for the bank that is exporting its home state interest rates and other terms to the local state. This is called rent-a-bank lending.
      0 Votes

    • 35x35
      Dec, 2011
      Courtney
      Thank you for your response. It's taken me a while to get back with some information on this. I've tried to do some researching on my own. I live in Wisconsin. All of the loans I have are internet based. Ameriloan, United Cash Loans, My Cash Now, and MyPaydayLoan. From what I can tell, all of them are breaking Wisconsin law in how they are doing business with me. When I fell past due on one of them, they processed the payment FIVE different times to my bank before I could get a freeze placed and is trying to charge me with a $150 NSF fee. If I'm understanding what I'm reading about my state laws, this is not legal. However, I'm not sure that I'm understanding everything correctly. My bank has agreed to place a freeze so no further ACH transactions can be processed and I'm attempting to work with the Loan companies, but they are not being overly cooperative. Suggestions? Are these loan companies even legal in my state? One of them has been charging me interest rates for nearly two years now. If I understand what I'm reading about the state laws, that's not legal either. Can you shed some light.
      0 Votes

    • 35x35
      Dec, 2011
      Bill
      Payday lending is regulated in Wisconsin. See 2009 Wisconsin Act 405. Contact the Wisconsin Division of Banking. Under 405, a payday lender may not lend to a borrower with outstanding aggregate debt of more than $1,500 or 35% of the borrower’s gross monthly income, whichever is less. The maximum interest rate is 2.75% per month, and the maximum electronic fund transfer service charge is $15.

      You need more help than I can provide. If you cannot afford a lawyer, see the Wisconsin State Law Library Legal Assistance page for a list of organizations that provide no-cost legal services to low- and no-income people in Wisconsin. Contact the organization that is nearest and most appropriate for you. Make an appointment with that organization, and bring all of the documents you have regarding your payday loans to that meeting. The lawyer you meet will advise you accordingly.
      0 Votes

  • 35x35
    Nov, 2011
    Amber
    I recently received a phone call from a person in Cali(I live in FL) about how I am delinquent on a pay day loan. Yes I have multiple loans out but all have been paid on time and he kept talking over me about how I applied online, which I did and rec'd many phone calls, emails, texts literally right after I hit send. I declined most of the offers and unsubscribed all the emails I would receive. I did accept one loan of $400 from American Web Loans, even spoke to a rep and will make my 1st payment next week. My other loans have been paid (I have 3 payments left on one & about 10-12 left on the other and have never had any issues with them. This guy threatened me with a federal lawsuit & how they would send me a certified letter to my office and that I would be fired b/c this is a federal offense. I want to believe this is all BS but it does make me nervous that any of this would be legit. I welcome any advise anyone has to clear this up. I have bank statements stating the loans have been paid on & that I haven't been delinquent on those and other than this most recent loan b/c I just rec'd it and will make my 1st payment next week. HELP!
    0 Votes

    • 35x35
      Nov, 2011
      Bill
      It sounds like threats are being made to get you to panic into paying. How would you get fired because a letter arrives at your office? If you receive any paperwork, validate the debt. Don't pay on any debt that you did not take out. Contact your state's Attorney General, to make a complaint about the firm that is threatening you.

      Separately, try to find a way off the payday loan cycle. It is expensive and can lead to aggressive collections and insanely high interest rates, if you ever miss a payment.
      0 Votes

  • 35x35
    Oct, 2011
    Kina
    Hello. I have found the information listed on your website to be the most helpful, however I am wondering about my situation. I was searching for an online loan and on a lot of the sites, you fill out your information and then it is dispatched to hundreds of lenders. I received hundreds of emails and texts and phone calls regarding my search, however one particular place that I did not sign up for deposited money into my account. I never signed any paperwork, I never spoke to these people. I happen to check my account and I thought it was for the one company I did authorize a loan with but it wasn't. Unfortunately, my account was already in the negative so the money wasn't even used by me. It looked like my bank returned the money but they continue to claim they didn't get it. All I know is that I didn't use it. My account continued to be in the negative. They have taken 2 finance charges from me and in turn has caused the finance charges for the one I did authorize to be returned. Now, I am getting threatening calls from a "Mr. Jackson" telling me that my information is going to the authorities for check fraud. Instead of listening to what I am saying. He keeps reading my information to me and I am trying to explain to him that him reading it does not matter because my information was sent to several hundred lenders. So he is not reading anything special since it went to several hundred other companies. I never physically went to the website to apply for a loan with this company. I got hundreds and hundreds and hundreds of emails with the same information but only authorized one loan. Now he is telling me that I have 2 hours to send him $532 on a CC. But it doesn't matter if he gave me 2 hours, 2 days or 2 months, I don't have that money and don't feel like I owe it since I never authorized this transaction in the first place. What should I do? My hours have been cut drastically at work so I don't even work full time anymore. My account has continued to be overdrawn and I see no end in sight.
    1 Votes

    • 35x35
      Oct, 2011
      Bill
      Your message serves as a strong warning to anyone who would consider applying for a loan online from an unknown lender or lenders. Your tale is not the first I have heard with these circumstances — a person completes an online loan form, never receives a loan, but later endures collections calls and ACH withdrawals from aggressive collections agents.

      File a complaint with your state attorney general and the Federal Trade Commission. You may not receive immediate relief from your attorney general or the FTC, but if enough people alert these two authorities to these scammers, one or the other will launch an investigation that may curb the abuses.
      1 Votes

  • 35x35
    Oct, 2011
    Michael
    Hello Bill, I am reading the column about Payday Loans and I know a little but need to know more. I live in the state of Ohio and I know that any check in the amount of $500 or over is considered a felony. I went to an online payday loan place and received a loan for $500. After about a month of paying on the loan and interest I lost my job but I still kept in contact with the company. About middle of August a Collection agancy calls me and offered to set up payments. The first payment was $48, and the second was $100 and this was off a balance of $632. My unemployment has stopped and of course I have five weeks until the extension kicks in. Well came time for my rhird payment and of course on the card Unemployment gives you for benefits it didn't go through, so the guy calls me and I tell him the situation and he says he has to send my account over to the legal department. Well this guy calls and started harrassing me saying that thing they are gonna take me to court and get atleast $2900. dollars from me and this is how his Attorneys survive. I did let him know that I was not trying to get out of paying, it's just that I am waiting for benefit payments myself. I have tried looking for information to find out if they can come after me for that whole amount or even if they had the right to come after me since I stayed in contact with them and I was paying on it until my benefits stopped. I am a single parent and I can not risk going to jail or having a criminal offense that will prevent me from getting employment.
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      Failure to repay a loan, whether it be a payday loan, credit card debt, medical bill, or deficiency balance, has not been a criminal act in this country since the Civil War. A collection agent telling a consumer that failure to repay a loan is a crime does not make this false statement truthful. Please review the original answer above for more on this issue, and for ideas on how you can resolve a delinquent payday loan.

      Regarding the threat of a civil action against you, tell the collection agent you welcome the opportunity to plead your case to a judge, and ask the collection agent if a judge will have more sympathy for a consumer struggling to repay a loan or a lender that wants $2,900 compensation for a defaulted $500 loan.
      0 Votes

  • 35x35
    Oct, 2011
    Ann
    I took out a payday loan for $500.00 from Ace Cash Express in 04, I postdated a check. Right now I cant remember all the details. But I do remember the Atty General offices closed down the payday loan co's for a short period of time, the payday loan co sent my postdated ck to the bank before the due date which caused me to go into overdraft. I did borrow the money with full intentions of repaying the debt. Health issues came along & I did honestly forget about this. An attys office from New York called a ex sister in law of mine told her they were looking for me that there was a warrant for my arrest for check fraud & I needed to contact them immediately. She got in touch with me stated what they had said told me to call them, I did the woman who I spoke to at first said I needed to pay the sum of $1326.71 for the returned check & interest then there would also be atty fees of $1500.00 on top of that if I didnt pay that amount by end of this month they would file with Indiana courts and prosecute me for check fraud. I told her I do not work due to medical reasons that I couldnt pay that amt by end of month. She then connected me with a para legal there he told me I had to come to some type of agreement today or by wednesday of next wk they would petition the courts for check fraud. He asked me for bank info I told him no that the acct was my husbands then he told me to go open a acct myself I told him I couldnt he then told me to get a Walmart prepaid card to make pymts of 72.71 a month till balance was paid in full. Is it legal for them to call someone else tell them that they are looking for me that theres a warrant on me for check fraud doesnt that come into play with the Privacy Law Act?? And are they allowed to charge me for 7 yrs interest? Please reply to me I am on limited time here to get back in touch with them or they are going to start court proceedings? I do not have the money to hire a atty or Credit counselor. We are a very fixed income my husband is disabled as well on social security Thank you very much!
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      Review the original answer above for a longer discussion of the issues I mention here:
      1. The talk about an arrest warrant is baloney. I doubt any district attorney will give a payday lender the time of day.
      2. The deadline they gave you is also manufactured and designed to give you a sense of urgency to resolve the debt. The collection agent waited 7 years to resolve the debt, and now wants money by next Wednesday or else? Again, baloney.
      3. A creditor may contact your acquaintances in an effort to learn how to contact you. It may not disclose the amount of the debt, or other facts about the collection account. In my opinion, it violated the Fair Debt Collection Practices Act when it crossed the line to go beyond asking your relative how to reach you.
      4. The creditor may charge interest. However, about $1,000 interest on a $500 loan over 7 years is excessive.
      5. The $1,500 legal fees the collector expects you to pay is another slice of baloney, and a big one, too.

      My advice? Do not pay the collection agent anything, even a "good faith" payment of a penny, without first consulting with a lawyer in your state who has experience in civil litigation or consumer law. Paying the collection agent something will restart the statute of limitations on the debt, which is in the collection agent's interest, and not yours.

      If you cannot afford a lawyer, call your county bar association and ask for the names of the organizations that provide no-cost legal services to people in your area who have no or low income. Make an appointment with one of the organizations, and bring all of the documents you have regarding the debt to your meeting. Include your notes from your recent telephone conversations with the collection agent. The lawyer you meet will advise you accordingly.

      0 Votes

  • 35x35
    Oct, 2011
    Tim
    I have a loan through Integrity Advance Payday Loans. I made the mistake of not looking up the legitamacy of the company before hand after doing so now I've found they aren't even a legal lender. I do not wish to not pay the loan off as I would rather be free and clear of it the legitament way. I have paid 6 payments of $120 (for refiancing) on a $400 loan. I was able to gather the money to pay the total of $400 + the $120 to pay it off under there agreement. However, this is when it became a problem. I called the phone number and followed the prompts. Everytime I called I recieved "we are currently experiencing high call volume". I would wait and eventually would just get a answering machine. I left messages with my intent to pay off all of the loan. However, I never recieved any type of response. I even went to there website and under the contacts page all the offered was a site messaging. So I sent several messages this way. First stating my want to repay, then eventually telling them without a response I would block all payments to there company. I called my bank and told them the issue. They blocked the payment of $120 even though I had asked them to pay the full amount. They emailed me to tell me I am defaulted. I now found a way to talk an online chat representative who then told me they can't see my account and I need to call the number. Guess what....an answering machine. They are telling me they are going to now charge me $120 + $33 for returned payment. This is obscene. I can't get a hold of them to even pay it off or even any type of arrangement. I know this has to be illegal. I'm blocking all payments and hoping they try actually calling me. Is there anything else I can do to protect myself or even resolve this?
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      Readers? I welcome your suggestions for resolving this situation. My only thought is to continue to block all ACH transactions, and wait for the lender to contact you by mail so that you at least have a mailing address for the company.
      0 Votes

    • 35x35
      Oct, 2011
      JASON
      I have a comment on stopping all ACH payments. I advised my bank to do the same as I had a similar situation occur last year. MTE (ameriloan) sent in a fake check with my account information after I had put a hold on all ACH transactions. guess what?! It was cleared by the bank. I had a credit union and they were sympathetic to the PDL scam cycle and refunded the fees(over 400.00) back to my checking acct., and advised that I close my checking account and reopen with another bank. I did, and think its the only way the tricksters can be avoided.
      0 Votes

  • 35x35
    Oct, 2011
    Angelik
    I got a payday loan for $300 and i was making payment to pay them back and i fell behind in payments and now they are calling me saying i will be arrested if i don't pay them asap. I told them i am currently in the process of bankruptcy and they said the payday loans is not covered under that. So what am I suppose to do.
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      Failure to repay a loan is a civil matter and is not a criminal offense, unless the lender can prove the borrower never intended to repay the loan. (This would be a case of criminal fraud.) The fact that you started to repay the loan would tell a district attorney you had intended to repay the loan.

      No law prohibits the discharge of a payday loan in bankruptcy. I discourage readers from believing legal advice offered by collection agents.
      0 Votes

    • 35x35
      Oct, 2011
      angie
      That is absolutely not true. My husband and I both filed bankruptcy a few years back and believe me the lawyer was more than happy to include those debts in the filing for us.
      0 Votes

  • 35x35
    Oct, 2011
    Amanda
    I have researched and found several posts in regards to stopping ACHs taken out by payday loans and found the letters and information of what you would send to stop these debits. I have already secured my bank account and sent out letters to all the payday lenders. I have settled with most except for one Action Payday I took out a $400 loan and I have already paid back $180 in interest. They stated that I owed $460 and would settle for $400 paid by cashier check. My question is should I go ahead and settle or be adamant in only paying the remaining $220? Thanks.
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      If it is not clear on this page, it should be on other Bills.com pages that I have no love for payday lenders, and in particular, their aggressive and inflexible collections practices

      You borrowed $400, repaid $180, which leaves a balance of $220. You propose to pay the lender $220, which will make the lender whole exclusive of any interest. The lender countered with $400, which would give the lender a $180 profit on a $400 loan, which would be reasonable for a five year term, but is stunning for several months.

      Your only tool to resolve this situation is your negotiating skills. Offer to meet them in the middle — about $300.
      1 Votes

    • 35x35
      Oct, 2011
      Amanda
      Thanks for you reply they accepted my offer of $300, thanks thanks thanks.
      0 Votes

    • 35x35
      Oct, 2011
      Bill
      Happy to have helped out Amanda. Congrats on bring free of payday loans! If you want to, please "Plus+1" us on google and/or like us on Facebook... that would be a nice return that we'd be thankful for. Have a good one.
      1 Votes

  • 35x35
    Oct, 2011
    tadaisha
    I owe a payday loan company from back in 2004 and they sold it to a company called MLA Holdings LLC..and which they now have attorney's calling my phone harassing me even though I made a payment last month. Im not currently working at the moment and they know that..the original debt amount is $300 and now its $500 due to collection fees..I paid $100 last month so I took the balance down...I told them today that I can make a partial payment in which they threaten to prosecute me with "check fraud" and tell me that they can not work with me. What should I do?..I feel bullied and my rights being violated as a consumer.
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      You may have erred in making a payment, if the last payment was as far back as 2004. You have have brought a debt that had passed its statute of limitations back to life.

      Contact the state agency that regulates payday lenders, to find out if the collection agency is violating debt collection laws. Start by contacting your state's Office of the Attorney General's Consumer Protection Department. It may be the case that if you were threatened illegally to repay an expired debt that you can avoid paying it.
      0 Votes

  • 35x35
    Sep, 2011
    Rose
    I took out a payday loan with Apply Advance America and was not able to make a payment until now, but they told me that they sold my account to DMP along with the number. When I called these people, they told me that my account have not been updated and asked if anyone else have contacted me. I told them a group called CDR contacted me and they told me that the CDR is a legit collection agency and that I should pay my debt to them. I want to pay to the correct collector and not be scammed. Who should I contact?
    0 Votes

    • 35x35
      Sep, 2011
      Bill
      It is unclear to me who owns the right to collect on your account. Only one collection agent has the right to collect a collection account at a time. Did AAA sell the account to DMP, which then sold it to CDR? Validate the debt with the company that seems to think it owns your account, or that you think owns your account.
      0 Votes

  • 35x35
    Sep, 2011
    Brittany
    I had a payday loan over three years ago with this company called first advance. I forgot all about it, now the collection agency(Global) keeps calling me, my mom and other people I know saying that I have a warrant out for my arrest. It's getting real aggravating and on top of that embarrassing. What can I do?
    0 Votes

    • 35x35
      Sep, 2011
      Bill
      It is highly unlikely that there is a warrant out for your arrest. It sounds like the collection agency is making bogus claims and may be violating laws that govern debt collection.

      You can contact your State Attorney General's Consumer Affairs division or whatever agency in your state regulates payday lenders. You can also seek a consultation with a lawyer that specializes in violations of the Fair Debt Collections Practices Act (FDCPA).
      0 Votes

    • 35x35
      Sep, 2011
      Britt
      okay, thanks for your help.
      0 Votes

    • 35x35
      Sep, 2011
      edward
      You can't be arrested for owing money to a creditor. Anyone threatening a debtor in this matter is breaking the law and breaching the terms of their employment. Depending where you are, there are set rules and regulations which apply to all debt collection agencies. I have never heard of anyone begin arrested for owing money for a civil ddebt. This shows that they are not compliant and I suggest that you report this matter to the police and the office of trading, as they are the ones who can point you in the right direction. Don't be afraid of these idiots and take their threats with a grain of salt.
      0 Votes

  • 35x35
    Sep, 2011
    Leslie
    We got a payday loan in Las Vegas Nevada. We have not been able to make the entire payment back. NOW, they have just SHOWED UP at our work! Threatening to send a Marshall after us. Is this legal? Are they allowed to show up to people's places of work? It seems like a form of harassment. People could potentially lose their jobs over this.
    0 Votes

    • 35x35
      Sep, 2011
      Bill
      Consult with a Nevada lawyer who has consumer law experience to learn if the collection agent violated the Fair Debt Collection Practices Act when it appeared at your workplace.
      1 Votes

  • 35x35
    Sep, 2011
    Dave
    I have a loan with Loanbyphone, also known as Check Into Cash. It is an on-line loan for $2600. The repayment plan is outrageously expensive but it was a quick fix to my problem. I was a few payments away from paying it off when I became further in debt. I was able to refinance the loan for another $1700. I don't want to default or close my bank account. I would like to negotiate smaller payments, but they won't budge. Do I have any other options? Thank you
    0 Votes

    • 35x35
      Sep, 2011
      Bill
      One option, a not particularly good one, is to pay the creditor what you can afford. The downside to this tactic is that without an agreement to make this payment amount, you open yourself to a lawsuit for a breach of contract. However, the creditor is in the business of lending money and not suing its paying customers, so it is a risk worth taking if your only option is to pay zero.
      0 Votes

  • 35x35
    Sep, 2011
    Tammy
    I have several loans that i am currently paying off. Most recently i was contacted by a collector threatening arrest. Thanks for your clarification in your article re this matter. However, are you sure? Thanks. As you may understand this type of threat is very dishearting. In the meanwhile i trying to pay the loans off one by one, but one collector is very aggressive, calling my job once every hour. I spoke with him to try to reach an agreement, he became abusive/threatenin and hung up on me, but still calls repeatedly. I now ignore the calls and am contacting an attorney re debt consolidation. In meantime, id like to know i have comfort in knowing i will not be arrested or served at my job (as the collector indicated). Thanks. Please advise. I live in Iowa.
    0 Votes

    • 35x35
      Sep, 2011
      Bill
      District attorneys ask judges to issue arrest warrants. Collections agents are not district attorneys, nor are they state or federal judges. A collection agent can file a complaint with the police or a district attorney, like anyone else can, but delinquent debt is not a criminal offense. That said, in some states, writing a bad check can be a criminal offense. However, in the list of priorities facing district attorneys, bad check offenses are just above barking dog complaints in importance.

      Send the collection agent a cease communications notice, and find a lawyer who specializes in consumer law if this collection agent continues to harass you.
      0 Votes

    • 35x35
      Sep, 2011
      Tammy
      the loan is an internet/online loan which is why im skeptical as to what this collector can/cannot do re pursuin the debt legally.. is it still a civil matter or can it turn into a criminal matter?
      0 Votes

    • 35x35
      Sep, 2011
      Bill
      Fraud is a specific intent crime. What were your intentions when you contracted for the loan? If you intended to repay the loan, then you had no intention of committing a crime. If you had no intention of paying the loan and the plaintiff has evidence to support this theory that it shares with the DA, then the DA may decide it has a criminal case he or she can pursue.

      Bernard Madoff is not a federal prison resident today because he was in debt. He plead guilty to 11 federal felonies because he intended to commit fraud. Being in debt is not a crime, but taking money and promising to repay it and never intending to do so is.
      0 Votes

    • 35x35
      Sep, 2011
      Tammy
      Thank You for your Clarifications.
      0 Votes

  • 35x35
    Sep, 2011
    angela
    Hi, I have a few questions. I live in NY and have 3 payday loans (Oneclick, AdvanceMe and DJR (River Elk), these were all online loans and none of them are located in the state of new york. I have been rolling over the loans for a while because I cant afford to pay the balance and none of my payments are going towards the principal, so basically ive been paying finance charges, etc. I can no longer keep this up and will have to close my checking account and open another. What should be my next step with these companies? Should i call and try to make payment arrangements for only the original amount borrowed on each? Should i contact the attorney general's office and complain? Oneclick is charging 476.09% APR!! Im at my wits end. Ive already went through a bankruptcy in November of last year due to a bad divorce, I dont want to add any more negative to my credit report. Please help!! Thank you!
    0 Votes

    • 35x35
      Sep, 2011
      Bill
      Please reread the original answer above, and in particular the section "How can I handle payday loan collections?" Also, we have a link in the original answer to a New York payday loan page, which will provide more specific information for New York residents.
      0 Votes

    • 35x35
      Sep, 2011
      angela
      Bill I forgot to ask, can they wage garnish if they wanted to?
      1 Votes

    • 35x35
      Sep, 2011
      Bill
      Please see the Bills.com resource Collections Advice to understand the process a creditor must follow to receive a wage garnishment order, an account levy, or a lien.
      0 Votes

  • 35x35
    Aug, 2011
    Almondy
    I've been receiving phone calls from a company called Rosenburg about a online loan that was applied in my name with my social security number and the money was deposit into a different bank account that I have no recollection of whatsoever, I've told the company I filed a report about this and they told me there's nothing that they could, so I told them I'm not paying for something that I didn't do, so now another company called the alliance from Phoenix AZ, had called me today for the same complaint and that they had issued an summon, I had asked for the address of this company and they wouldn't give it to me because they work for private companies, what I should I do?
    0 Votes

    • 35x35
      Sep, 2011
      Bill
      Validate the debt. Contact your state's Attorney General's Consumer Protection office or find out which agency regulates payday lenders in your state.

      It sounds like the collectors are trying to pressure you into paying for a debt you don't owe. Don't panic. Don't pay a penny if they can't prove you owe the debt.
      0 Votes

  • 35x35
    Aug, 2011
    Angela
    While on Facebook, a few ads kept popping up on payday loans online saying I could get $1,000-$2,500! I sent my info to apply to see what I could get. I was told $250-$500. I never responded back. Never agreed to taking the loan, never received a loan. Next thing I know I'm getting harassing phone calls from Officer so & so from the Dept of Finical Investigations (eastern accent hard to understand). My address is being investigated, a police officer will be showing up at my door soon, & my social security number is on hold (as in blocked) until debt is paid. When I asked what this debt was for I was told a online pay day loan. Told them I never got one and they are a scam. He said "No you scammer" and hung up on me. I stopped answering their calls and they left messages, sometimes telling me to have my lawyer contact their lawyer and if I ignored their message then all they could do is wish me luck. They even called my boss and threatened to sue her! She told them to go ahead! I refuse to repay something I did not get! I have never received anything from them in the mail, only on my cell. I may have gotten emails but I don't open any I receive in my junk file. The only mail that gets to my inbox is what I have allowed. How do I make them stop harassing me?
    0 Votes

    • 35x35
      Sep, 2011
      Bill
      It can be hard to stop a scammer. You can speak to your state's Attorney General's office to report them, but they are likely calling from overseas and just fishing for anyone they can pressure into paying. Good for you for standing strong!
      0 Votes

    • 35x35
      Sep, 2011
      LeslieAnne
      That Dept of Financial Investigations is a fraud! I work for a law firm and the guy that called me said he worked for a law office in NY. Said a warrant was being taken out so I told him to go ahead...that was 4 months ago and he keeps calling with different names of law firms. He cannot even use the correct legal jargon for an investigator. They are fake!
      0 Votes

  • 35x35
    Aug, 2011
    jesus
    I had a payday loan arround 2 years ago in NJ. Now, a guy is calling me, saying that he want to sees me to give me some papers because they were suing me. I ask them for their address and they dont want to give it for security reasons, and they only accept payments by debit or credit cards- no money orders. The guy told me that he works for the goverment and he was in the city hall with all the documents of the loans.
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      What the person is telling you is either totally false or a mixture of truth and lies. I don't believe the person works for the government, as the government does not collect on debts for payday lenders.

      I advise you to contact the New Jersey Department of Banking & Insurance. It regulates payday lenders in New Jersey. Don't pay a penny!!!
      0 Votes

    • 35x35
      Sep, 2011
      Chrissy
      I filed bankruptcy a year ago. The payday loans were part of the bankruptcy, and I have received a discharge. A collection/law firm/someone or other, keeps calling my job about the payday loan, but they refuse to ask for money. Instead, they keep asking, "If I am aware that there is a case against me for fraud." I've told them about the bankruptcy, I've told them I have a lawyer, I've asked them not to call my job, but they keep calling, refuse to give me a legitimate name of their business, they call from different phone numbers every time, and now they are threatening me with losing my job. I keep asking if this is an attempt to collect a debt, and they say no it is a law firm regarding the payday loans. So, if they don't want money, what do they want?
      0 Votes

    • 35x35
      Sep, 2011
      Bill
      It is rare for a collection agent or original creditor violate federal law by attempting to collect a debt discharged by bankruptcy.

      My thought? Play the caller's game. Assume the calls are recorded, say you are weary of receiving these calls, and would like to discuss a possible settlement. Do not say you wish to reinstate the debt, or that you acknowledge responsibility for the debt. Keep the caller on the phone, and discuss terms you want to consider. Ask him or her to fax or mail a settlement offer to you. Explain that you will only consider the offer valid if it contains his or her physical address, the company name, and the name of the company's principal. Once you have all of these facts, send them to your lawyer, who will file a lawsuit against the collector or payday lender for violating federal bankruptcy laws and the Fair Debt Collection Practices Act. The caller's game will be a very expensive legal lesson, indeed.
      0 Votes

  • 35x35
    Aug, 2011
    Lisa
    Bill, I took out several payday loans in 2007-mostly via the internet-I had just been demoted and lost some of my income. I was a part year resident of Maryland and New York (my license was still NY). I wasn't able to pay off all of the loans. I moved to Virginia and became a resident. I have been receiving calls from collection/attorney offices. I have asked for verification of the debt and who the original lenders were. I have been told that since they were internet loans, they only have to communicate with me via the internet. Is this true? How can I find out the original lenders of the loans? One lender says I owe $1500. The largest loan I ever had was $400 (that were paid off). If I owe the money I would like to make arrangements to pay them. Don't they at least have to verify the debt? Also is there a way to check which loans may be outstanding? Thanks
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      Start by validating the debt, if it is not too late to do so.

      You could pull a free credit report, to see if any of the loans show, but it is not necessarily the case that they will appear. Some pay day lenders don't report the loans the bureaus. Check with the State Attorney General's Office in the state in which you took out the loans, to find out if the lender was licensed, the loans were legal, and if there is a maximum amount of interest you can be charged.
      0 Votes

  • 35x35
    Aug, 2011
    Lexi
    Hello there. I took out a small payday loan in 2007 that was not paid. I've been contacted recently by a company saying they are a litigation firm working with the original payday loan lender, but then later on said that they own the account and I need to pay them. Things sound fishy to me due to inconsistencies in the few conversations had. I live in NJ, and while doing research I learned that payday loans are NOT legal here. Does that go for internet loans as well? How can they try to collect on a loan that was illegal in the first place? What should I do now, or what letters should I be sending?
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      There are unscrupulous debt collectors who try to collect on illegal debts, as there are collectors who specialize in trying to trick people into paying back debts that have passed the statute of limitations.

      My understanding is that you may have to repay the principal balance, but not any interest, but I advise you to contact the New Jersey Department of Banking & Insurance to get all the information you need. Don't pay a penny, before you speak to the NJDBI.
      0 Votes

  • 35x35
    Aug, 2011
    Stephanie
    I had a payday loan about 4 years ago at a fast bucks store. I could not continue to pay the loan back because my husband lost his job. I have had people calling friends and family and even my landlord stating that I committed check fraud and that I was going to be arrested if I didn't resolve the matter with them. Is this kind of collection tactic even legal?
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      It is not legal to make collection threats that threaten actions that the collector does not plan to take. For instance, saying you will sued, if it is only a threat and the collector is not planning to sue you is not legal. Saying that you're going to be arrested is likely improper. When speaking to a third party, communications are limited, so talking about you being arrested if you don't pay them is not proper.

      Contact an attorney in your area that handles FDCPA (Fair Debt Collections Practices Act) violations. There is usually no advance fee to hire a lawyer for this work. The lawyer will only take the case if she or he feels you have a winning case.

      You can also contact the State Attorney Generals Consumer Protection office in your state.
      0 Votes

  • 35x35
    Aug, 2011
    Robin
    I had a internet payday loan that did not get paid. I live is SC and i think the internet payday loan was Utah. They have turned it over to an attorneys office and they have contacted my stating that they are going to file charges against me. They charged me 300% interest on this loan. I am willing to work with them but they are not willing to work with me regarding the high payment they want back. What can I do?
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      The first thing you should do is to make sure that the lender is licensed to make loans in your state. Contact the South Carolina Department of Consumer Affairs. Their phone number is 800-922-1594.

      If the loan is legal and the creditor does not want to work with you, then it is possible for them to sue you and try to garnish your wages or levy your bank account. Fortunately for you, wages have strong protections in SC; a payday lender should not be able to garnish your wages. If the creditor does sue you, keep the funds in your bank account to minimum, so they are not seized.
      0 Votes

    • 35x35
      Aug, 2011
      Robin
      I was told that they are not licensed in SC. What is my next step to get this Lawyers office to stop contacting me?
      0 Votes

    • 35x35
      Aug, 2011
      Bill
      If they are not licensed, then you may not have to repay the loan, or only pay back the loan amount, but not the interest.

      I think you should call back the SC Department of Consumer Affairs and see if they offer any advice. If not, consult with an attorney.

      If you speak to the lender, prior to getting solid advice, tell them you contacted the State of SC and found out that the loan was illegal, that the firm was not licensed to lend in SC, and that you are seeking legal advice.

      You can also send a cease and desist letter to the lawyer's office, that requires them to stop calling you and only to mail you notice, if they are going to sue you.
      0 Votes

  • 35x35
    Aug, 2011
    yazQ
    I had 3 payday loan i was a always a good customerand always paid on time. Hoever my situation changed over night. I hurt my back only to discover i have some disc problems on my back. I was on short term disability for a year and was only able to pay one of the loans cause they threatened to send me to court and suspend my driver license. After a yr on std my job decided to put me as a volutary quit as they could not wait for me any longer. I have the othe two pdl places harrassing me every day 3-5 times. Due to my situation i lost my home, my car and had to move in with family in california. This morning i got a message stating i have to call them back because they have a summons and they dont want me to miss a court date. What do i do? I have no money at all. I have no work.
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      Learn if you have been summoned to court. Oftentimes, collection agents lie when they say legal action is pending. But sometimes they do not. If you are summoned to court, and the court is local, then by all means appear at the date and time on the summons, and explain your side of the story to the court. Some plaintiffs will ask a court to dismiss a case because they are not prepared to mount a case. Consult with a legal aid office in your area for more assistance.
      0 Votes

    • 35x35
      Aug, 2011
      yazq
      How do i find out if i am summon'd this is in AZ and im now in CA. and in case i discover i do have a court date, i dont have a way or money to take a 6 hrs trip to AZ.... Im so stressed over this.
      0 Votes

    • 35x35
      Aug, 2011
      Bill
      Ask the creditor which court the complaint (the lawsuit) was filed. Get the exact name of the court, including its address. Call the court clerk's office and ask the clerk to send you the complaint. Alternatively, some courts have Web pages containing the list of lawsuits.
      0 Votes

    • 35x35
      Aug, 2011
      YazQ
      Thank you so much for helping answer these questions, I really appreciate it. What happens if i cant make it to the court date, not by choice; but, because i have no way to get there?
      0 Votes

    • 35x35
      Aug, 2011
      Bill
      You risk having a judgment entered against you, by not showing up. Do everything you can to appear.
      0 Votes

  • 35x35
    Aug, 2011
    cheryl
    Hello, I took out a payday loan 4-5 years ago through Authorized payday. At the time I owed a little over $300. The collection agency contacted me in 2009 and I settled the debt and paid in full $884.00. I have a reciept of payment. The collection agency said that my balance was paid in full & that I am released from all liability and further collection on this account. About a month ago, I recieved a call from another collection agency stating to me that I owed $600. They claimed that I never made a payment on this account. I verbalized to them that I had a reciept to show that I paid the amount in full, they did not want to see it. They were threatening to take me to court and file check fraud charges on me. The bank account that I used back then was closed and charged off. They kept trying to get money eventhough my bank account had closed. Then today I recieved a phone call from a lawyers office named Toms Gregory Kline at 1800-764-3056. When I spoke to the representative she told me that Authorized Payday company wanted me to pay and additional $935.00. I told her that I already paid the bill. She asked me for the original account number. My account # on the reciept was different from her account number. I told her that I did not take out an additional loan. She was nice and then she got really nasty with me and told me that they have other people on hold waiting to settle their debts and she did not feel like arguing with me about it. I told her I could send her a copy of the reciept, but she did not want it. Then she hung up on me. How should I handle this situation?
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      Send the collection agent or law firm or whatever the caller tells you it is a debt validation letter immediately. Send it Certified Mail so that you receive a proof of delivery.

      Bills.com receives a regular stream of messages from readers who have repaid a debt, or in many cases never borrowed money, from rude and verbally abusive collection agents. See the Bills.com resource Fake Debt Collector to learn the telltale signs your caller may be a con artist.
      0 Votes

  • 35x35
    Aug, 2011
    J.M.
    I got a call this morning from cashtime.net, an online payday lender. I am in texas. I took the loan in 09. couldn't pay it al and subsequently had overdrafts and fees to bank account and bank account closed. I had to pay all those fees before i could open another account with another bank as it had been repoerted to chexsystems. anyway, i did make some pyaments on the the origianl loan, and did make two small good faith payments after default. now they are threatening to sue me and want to serve me a court summons this week and when again I tried to make small payments on the account, the person in litigation said it was unreasonable, and theat the judge wouldn't be lenient with me and good luck in court. can they take me to court over a $300 online loan?
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      Yes, in theory, it is possible to for one party to sue another for $300, especially if your state offers a small claims court. Is it prudent financially to do so? Probably not, but that is not to say you are immune from a lawsuit where the plaintiff asks for a $300 judgment.
      0 Votes

    • 35x35
      Aug, 2011
      j.m.
      Thanks for the reply. Is there an agency that regulates the online lenders when you take loan in Texas?
      0 Votes

    • 35x35
      Aug, 2011
      Bill
      The Texas Office of Consumer Credit Commissioner regulates payday loans in Texas. Call the OCCC at 800-538-1579.

      If you learn any information you think may benefit other readers, please return and share it here.
      0 Votes

  • 35x35
    Jul, 2011
    Debbie
    I was totally embarrassed in our morning meeting at work when on call (I work in the medical field) report was read which EVERYONE in our corporation receives a call was placed at 8:00PM by a paycheck advance company who left their paycheck name for me to call them. Everyone in our corporation received that message and heard the message on morning report. I have NEVER been so embarrassed and humiliated in all my 50 years of life..Do I have any legal action against this company????
    0 Votes

    • 35x35
      Jul, 2011
      Bill
      Debt collectors have to abide by the Fair Debt Collections Practices Act (FDCPA), as is stated in the article above.

      You should speak to an attorney that handles FDCPA violation cases. Most attorneys handling this kind of case don't require an up-front fee. They either take a percentage of what you win in a suit or get their fees from the business you sue. This means that an attorney will not pursue a case unless he or she thinks your case is a winning case.
      1 Votes

  • 35x35
    Apr, 2011
    James
    I have several outstanding pay day loans in default and am working with a payday loan consolidation company. I did have one that threatened to report a ACH transfer that didn't go through as a hot check. I called and they said they'd work with me first. I am assuming that as long as me and the company are staying in contact with them and paying them I won't have any issues. Is that correct?
    0 Votes

    • 35x35
      Apr, 2011
      Bill
      Delinquent payments on a payday loan are not a criminal offense, no matter what a payday lender claims. See the Bills.com resource Payday Loans & Hot Checks in Texas to learn more. You are asking me to predict the behavior of a creditor, which is impossible. Looking at the odds, it is very unlikely you will be on the receiving end of a civil suit. However, the moment a consumer is delinquent on repaying a loan there is a risk the lender will file a breech of contract lawsuit against the borrower.
      0 Votes

    • 35x35
      Apr, 2011
      James
      Thank you for your response. I will keep everyone updated on the settlements in hopes it may help others in the future. I understand I took the loans out and I plan to pay them back also. Just want to make sure others don't get bullied by these lenders. They make it so easy to receive a loan but then turn on you if you're late once. I believe I am doing the right thing by keeping the lines of communication open at least.
      0 Votes

    • 35x35
      Apr, 2011
      Bill
      Please do keep us updated. I have a few final thoughts to share. In some states, online payday loans are illegal. If you took out your loan online, check with the agency in your state that regulates payday lenders. Ask them whether the payday loan you received was legal. If it was not, you may not have to pay anything back and may be entitled to a refund. If the loan was legal, find out if your state caps the amount of interest that a payday lender can charge you. It is up to the consumer to find out if he or she has already paid enough back, under his or her state's law, to not have to pay any more.
      0 Votes

  • 35x35
    Mar, 2011
    Robert
    I received a payday loan for 300$ online in Virginia. Paid about twice from automatic debits from my account. My account then went low on funds and they kept trying to collect money from the account. My account then closed. I moved from VA to DC and yesterday I receive a call from a collection agency saying the pay day loan place was trying to take me to court and fraud charges will be brought up and that I owed 800 dollars. I know the fraud charge is BS but they wanted my account info which I did not give. They said that they would lower my balance to about 650 and that I had to make 4 payments to clear this. They also wanted me to get a reloadable visa card to pay. They said that a gift card would not work and did not even mention money orders. shouldn't I be able to pay with money orders. I told them my church wanted to help and asked them for something saying what I owed and all that . they said they would email me an outline that afternoon and now it is the morning and I have received nothing?? How does this sound?? Legit?? Thank You
    0 Votes

    • 35x35
      Mar, 2011
      Bill
      It could be legitimate or it may be a scam. I would not pay them anything, before doing more research. I suggest you contact the Virginia state agency that regulates payday lenders. The Bureau of Financial Institutions (BFI) is a regulatory division of the Virginia State Corporation Commission (SCC.) This division is involved in consumer protection through administration of state laws regarding depository and non-depository financial institutions, including payday lenders. You can reach them by phone at (804) 371-9657. Ask them whether the payday loan you received was legal. If it was not, you may not have to pay anything back and may be entitled to a refund. If the loan was legal, find out if you have already paid enough back, under Virginia law, to not have to pay any more.
      1 Votes

    • 35x35
      Mar, 2011
      Robert
      I was told when I spoke to the woman at the number you gave me briefly (my phone died) that since this company operates on the internet thay are unlicensed and they are operating against the law. I did not get a chance to ask her but should I have to pay them back?? Thanks again
      1 Votes

    • 35x35
      Mar, 2011
      Bill
      If the payday lender is making loans that are illegal in Virginia to Virginia residents, I would assume that you don't have to pay them back. Still, you should call back the state agency and confirm whether or not that is the case. Also ask them what kind of language you should use when you contact the lender. Ask whether it is better to send a letter registered mail than to contact the lender by phone. If you mail a letter, keep a copy of any correspondence you send.

      Also ask the state agency whether you have any recourse to recoup any of the money you have already paid back. You may be entitled to a refund of any money you paid over the principal amount you borrowed. You may have a legal basis to sue the lender, potentially turning this negative situation into something positive. If the state agency indicates that you may have a legal case, seek a free consultation with an attorney. If you have a strong case, you may be able to find an attorney who does not charge a fee up front, but takes a percentage of any money you are awarded as a result of a suit or a settlement. Please report back on how things develop for you.
      0 Votes

  • 35x35
    Feb, 2011
    connie
    i have a question i received a phone call from a payday loan collector they said that i had gotten a payday loan back in 05 and that i had to pay it back by noon tomorrow or they would come to my work and serve me with papers and to have my supervisor there but i had to make payment on my debit or credit card the was the only kind of payment they could receive. What can i do ?
    0 Votes

    • 35x35
      Feb, 2011
      Bill
      Do you recall taking out a payday loan in 2005? Have you checked your credit report recently? Was there a delinquent account or collections account listed that could be this payday loan?

      I think that it is likelier that the phone call was a scam, as a first notice from a collector should not be so threatening nor give you such short notice to pay. Personally, I would not pay a penny, unless I was convinced I owed the debt.

      If a collection agent demands payment of a debt an individual does not owe, or more than they owe, under federal law the individual can dispute the debt in writing. The formal terms for this process are "debt verification" or "debt validation."

      A debtor should, as a matter of course, validate a debt when a collection agent attempts to collect the debt. Why? Just because a voice on the telephone or a letter that you receive claims that you owe the collection agent money does not necessarily mean the collection agent owns the right to collect the debt, or that the debt is even owed.

      According to Section 809(b), 15 U.S.C. § 1692g(b), if the consumer notifies the debt collector in writing within the 30-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.

      You can find a sample debt validation letter at the Bills.com debt self-help center.
      0 Votes

    • 35x35
      Aug, 2011
      sarah
      I took out a payday loan back in 2006. I am bipolar and was manic. When the company tried to take the fund back on payment day, my account was already to overdrawn. Just yesterday I received a voice message from a lady saying that there was a court summons for me. I called the number back argued back and forth with the person who answered, she said they don't call people. She said they are a lawyers office and representing ACS which took over a payday loan for cash advance america. I know the statutes for TX are 4 years on debt, she said it was different for on line loans. The conversation went on and on as I was trying to get information and she was extremely rude. I am just confused because I never received anything from ACS about a debt, just this call from a lawyers office 5 years later. What should I do?
      0 Votes

    • 35x35
      Aug, 2011
      Bill
      The Texas Office of Consumer Credit Commissioner regulates payday loans in Texas. Start bu calling the OCCC at 800-538-1579. I believe that you are correct about the SOL. Ask the OCCC. Please report back here if you find out something worth sharing.
      0 Votes

  • 35x35
    Feb, 2011
    WORRIED
    What happens if I can't pay the payday loan on the day it is expected? I will have the money on the 25th. They want it on the 1st. What can I do?
    0 Votes

    • 35x35
      Feb, 2011
      Bill
      Keep negotiating! Explain your situation. Also review your state's laws regarding payday loans to understand your rights and liabilities. Finally, remember who has the power here — you do. You have the money the payday lender wants. Make a promise to pay the lender on the 25th, and then stick to it. Promise made, promise kept.
      0 Votes

  • 35x35
    Jan, 2011
    Matthew
    I am in the State of Virginia and I had a payday loan collector call me today and tell me that is has 3 fraud charges on me and one of them is a check fraud charges and I do not remember doing this payday loan at all and why I am posting this comment is I like to know if I am going to go to jail when they take me to court and can they get me for them fraud charges and when they do take me to court do I have to show up I just do not want to go to jail please send me something about what they can do and not do when they take this to court please thanks for your time.
    0 Votes

    • 35x35
      Jan, 2011
      Bill
      Matthew, I hear warning bells ringing, when reading your letter. You stated that you don't recall doing this loan. It could be the case that you never did take out the loan and that the collector is trying to scam you. I suggest that you take a look at your credit report ASAP. See if there are any collection accounts listed. You can get a free credit report by visiting annualcreditreport.com. You may want to check your report with all three of the credit reporting bureaus, if you don't see the debt listed on the first report you view.

      Have you received anything in the mail? Are you at the same address at which you have lived for a number of years? The fact that the collector is making threats that you could end up in jail increases my belief that this may be a scam. While I suppose that if you wrote bad checks you could be prosecuted, it would be the police who would be involved in such an issue, not the debt collector. I think it is likely the case that they are trying to scare you into paying them, when you may not owe them anything. We don't have debtor's prisons in the USA; it is not illegal to owe someone money and not repay it.

      Contact the Consumer Assistance division of Virginia's Office of the Attorney General. You can speak with someone there to see if the office is aware of any scams involving the entity that is contacting you.
      0 Votes

    • 35x35
      Jan, 2011
      Chris
      A check written to a payday loan company is considered a promissory note and you can NOT go to jail for it. This is the law so tell them they have no leg to stand on to send you to jail.
      0 Votes

  • 35x35
    Jan, 2011
    Nicole
    If the company harrassing/calling me for payments on a pay day loan do not show up on my Credit Report and refuse to give me their address or send me written documentation of my debt, what do I do next?
    0 Votes

    • 35x35
      Jan, 2011
      Bill
      Regarding your credit report, whether an account appears on your credit report has no legal significance. A credit report is like a newspaper -- just because an event does not appear as a story in a newspaper does not mean the event never occurred. Many debts are never reported to the credit reporting agencies, but that does not mean those unreported debts can or cannot be collected. Ignore the fact that the payday loan does not appear on your credit report.

      The second part of your question is more difficult to answer. What you are asking about is called Debt Validation. A collection agent must in all states follow the Fair Debt Collection Practices Act. A person collecting a payday loan may or may not need to follow the FDCPA depending on the borrower's state of residence. In some states, the original creditor is subject to the FDCPA rules, which includes validating debt, and in other states they are not subject to the FDCPA and do not need to validate the debt. See the Bills.com table Collection Laws & Exemptions by State to learn if the FDCPA applies to original creditors in your state.
      0 Votes

  • 35x35
    Oct, 2010
    Bill
    A collections agent may not contact your manager regarding your debts. See the Bills.com Collections and Harassment to learn what steps you can take to stop the harassment. It is not illegal for a collection agent to attempt in-person collections unless it crosses the line and becomes harassment.
    0 Votes

  • 35x35
    Oct, 2010
    Maricel
    A payday loan had sent a letter at my work place in attention to my manager. I had to tell my manager my whole story why I got into a default. Then he assured me that I cannot loose my job over this. Can the pay day loan do that is that considered an harrasment. Today I had a doorbell at my door, but didnt answer it and another gentleman waiting in the car. I didn't answer it. I didn't know what it was for. I was not expecting anyone. Can they try and find me and serve me.
    0 Votes

  • 35x35
    Sep, 2010
    Bill
    What were the terms (fees and interest rate) of the loan contract your spouse signed? How long was the span of time the $250 loan was in your account? These are key facts necessary to determine if the amount you are being asked to repay is in accordance with the contract. You mentioned the incorrect account information and the confirmation e-mail about the loan. That may or may not be significant. Again, what does the contract say about this type of situation? Did your spouse ignore the confirmation message or reply with an unequivocal "no"?
    0 Votes

  • 35x35
    Sep, 2010
    Janice
    My husband was thinking about getting a payday loan. He gave them the wrong acct. number so they sent an email stating that he had to call, fax, or email them to confirm that he still wanted the loan. He didn't, because after much discussion we decided it wasn't worth it. Well, I go to find out that they somehow found our acct. number and put the money in there anyway. Before I even knew it was there, my bank took the money to offset of two accts. ( Even though a direct deposit was going in the next day to cover the negative.) This of course caused a big problem. Now the payday loan company wants us to pay 430 on what was a 250 loan we did even want. What can we do? I feel that they put the money in there without permission, so we shouldn't be responsible for it. I would be willing to pay back the 250, if it comes to that. But not the 430.
    0 Votes

  • 35x35
    Sep, 2010
    Bill
    Readers: Please do not follow Nicole's example and type your question in all-capital letters. All-caps is difficult to read, and comes across as shouting, which I sure was not Nicole's intent.

    Nicole: Please reread the original question and answer above for a discussion of what a creditor can and cannot do when collecting a payday loan, and tactics and strategies for repaying a payday loan.
    0 Votes

  • 35x35
    Sep, 2010
    NICOLE
    I HAVE A PAY LOAD COLLECTOR CALLING ME WITH A SUMMONS FOR DEFAULTING ON MY LOAN... IS THIS TRUE.. I AM VERY SCARED THAT I WILL ENDED UP IN JAIL AND LOOSE MY FAMILY WHAT CAN I DO....
    0 Votes

  • 35x35
    Sep, 2010
    Melanie
    I am in the state or Texas and I have a payday loan company threatening to come to my place of employment to collect the money. Can they do that? They can come but I have no money and my boss is very understanding and would probably find it funny, but still I would be mortified.
    0 Votes

  • 35x35
    Sep, 2010
    Bill
    There is no law preventing in-person collections. However, it is the least economical means to collect a debt, and I am guessing the collection agent is using your fear of embarrassment to motivate you to repay the loan. Please see the Bills.com resource Payday Loans & Hot Checks in Texas to learn more about your rights as a Texan.
    0 Votes

  • 35x35
    Aug, 2010
    Bill
    Do you owe the money? If so, then the creditor can pursue you in civil court. This is not a criminal matter and the caller is attempting to frighten you into paying immediately. If not, the caller is a scam artist. Please read the original answer and replies I have made to other readers for more information.
    0 Votes

  • 35x35
    Aug, 2010
    jessica
    hi i live in ohio and i got a call yesterday from a lady saying she was a investigator and that i needed to pay 600 dollars for aloan i got in 2007 or i was going to be charged with check fraud. i currently have no income and at the time i took out the loan i cant remember if my account was already closed or if it was still open. if it was closed can i get criminal charges pressed against me? its been so long since i got the loan and i had many of other loans out and got in a bind, i know i paid alot of them off and believe i made an attempt to pay this loan off from advanced america. I guess my question is can they really issue a warrant out for my arrest and charge me with check fraud? i had to go to court for bad checks out of the same bank account already but not for this cash place. im really scared im not trying to go to jail but i also have no way to pay these people right now and shes not willing to wait. what should i do?
    0 Votes

  • 35x35
    Aug, 2010
    Spring
    We just got a phone call for this "attorney" saying that we took a pay day loan and that we didn't pay it back. We never took a pay day loan from anybody and they said that they deposited the money into our account well I went and got my bank statement from that time and there is no money deposited into our account. They are saying that they are going to send a police officer to pick my husband up and take him to jail for 160 days. I checked with the local police department and check the website of our local courts and he does not have a warrant or any court dates. Is this something that is just a scam or should we be worried? They have our account information at our bank.
    0 Votes

  • 35x35
    Aug, 2010
    Bill
    I have been receiving a wave of messages from readers with stories similar to yours. Congratulations, you have a front-row seat for a scam. Please read the Bills.com resource Fake Debt Collector to learn how to deal with this caller.
    0 Votes

  • 35x35
    Aug, 2010
    Bill
    Any creditor may report accurate information about debts and payments to credit reporting agencies (CRAs). Payday lenders as a class are not barred by law from reporting information to the CRAs. I would be surprised if payday lenders did not report payment information to the CRAs. In fact, it would be foolish for them not to, given that the threat of an appearance of derogatory information on a credit report can be incentive for a consumer to make payments.
    0 Votes

  • 35x35
    Jul, 2010
    Brandt
    Is it true that if payday loans do not report to the credit bureau...that if turned into collections, the collection company cannot report this to your credit score. Will default on a payday loan or installment loan affect your credit? Thanks in advance!
    0 Votes

  • 35x35
    Jul, 2010
    Bill
    I do not understand your question regarding the statute of limitations. Please see the Bills.com resource Payday Loans & Hot Checks in Texas. The last people I would give my credit card information to are collection agents for payday lenders. Regarding the DA issue, that claim is preposterous.
    0 Votes

  • 35x35
    Jul, 2010
    Terry
    What is the statue of limitation in Texas regarding a return checks on a pay day loan. I have one from 3 years back and I am willing to pay the original amount. They want me to pay them $600 over the original amount saying they are fees and court cost. I haven't been served any warrants. They want me to give them the payment by credit card and I refuse to give out my credit card # to them so they threaten to turn this over to the DA's office for prosecution.
    0 Votes

  • 35x35
    Jun, 2010
    Bill
    I am not going to lay odds here. Your safest, most conservative assumption is to believe your opponent will use whatever legal means it has available against you.
    0 Votes

  • 35x35
    Jun, 2010
    max
    Thank you for your prompt reply, bill! I understand you cannont speak for the lender. But, if you were to speculate would you say $597 is a figure worth going to court over? Morever, I imagine the time to get a judgement could take more than several months, right? I mean the law process ain't exactly fast, especially in Texas. Bill, I'm not looking for an exact number just a ball park figure. One, thing I'm going to do for sure is cancel the check and try to work something out. Thanks.
    0 Votes

  • 35x35
    Jun, 2010
    Bill
    You are asking me to speak on behalf of what I agree is a particularly aggressive class of creditors. Should the payday lender sue you in small claims court, what it seeks will be a default judgment it can use to secure a wage garnishment or account levy against you in the future. You may be unemployed now, but you will find a job eventually. When you do, a payday lender with a judgment may be happy to garnish your wages. As I mentioned in my first sentence, I cannot speak for the payday lender. It may have an arbitrary limit below which it will ignore or sell collection accounts. Who knows?
    0 Votes

  • 35x35
    Jun, 2010
    Max
    Hello, I find this site as a great source of information. Ok see here goes. I have a payday loan that totals 597 that with the 145 "refinance fee". My problem is that my unemployment insurance dried up already and I can't make the payment. I'm thinking of cancelling the postdated check at my bank and then evetually try to work something out. Is it really worth it to take someone to small claims court over $597? These payday loan places should be calle for what they are loan sharks and vicious ones at that.
    0 Votes

  • 35x35
    Jun, 2010
    John
    I took out a loan awhile ago. I was taken to court and sued. Is always good to pay back your payday loans. It will keep you from getting higher interest rates in the future
    0 Votes

  • 35x35
    Jun, 2010
    Bill
    First, read Fake Debt Collector to understand the steps you should consider taking in response to these calls. Second, read Domesticate a Judgment to understand what steps a creditor in another state (assuming the creditor really is in California) must accomplish before obtaining a judgment in your state. Finally, consult with an attorney in your state before signing any contract regarding this debt, especially if you are considering bankruptcy.
    0 Votes

  • 35x35
    Jun, 2010
    Maria
    I live In NC, I am getting calls from a florida number, and they say that I have to pay $998.00, and that I needed to py $150 for them to hold my case, and not take it to court in state of California for a bad check, which was a payday loan. Can they sue in California, when I live in NC, and then what happens. I tried to negotiate with these people and set up a payment plan, but I could hardly understand them. The english was very poor. I plan to file bankruptcy in the near future, What can I do to end these calls in the meantime? They are calling me more than 4 times a day. Sometimes back to back calls.
    0 Votes

  • 35x35
    Jun, 2010
    Bill
    Do not pay this debt until you speak to your bankruptcy attorney. The caller is almost certainly not from your bank. I say this because you almost certainly violated no criminal law, and will not go to jail for failing to pay a payday loan. Because she told you these whoppers, we can conclude that she does not represent your bank. Your caller may not even represent the creditor. Validate the debt and do not be talked into paying it until your attorney tells you to.
    0 Votes

  • 35x35
    Jun, 2010
    emma
    Hello> I need HELP ASAP! 3 years ago I took got a payday loan from an online company for 300 dollars. I made a couple of payments then lost my job. I was unable to repay the loan. The company attempted to collect payment from my bank account which had insufficient funds and the bank closed my account for being overdrawn. Today I got a call from a woman claiming to be a check fraud detective for the bank. She informed me that I would be charged with check fraud and sent to jail if I did not pay the 1300 dollars now owed. I had to set up a payment plan over the phone with her using my debit card in order to stop the charges from being filed. I have recently filed for bankruptcy. If the bank and the loan company are both included in the bankruptcy, where is this money being payed to?
    0 Votes

  • 35x35
    Jun, 2010
    Jodi
    I have filed a complaint against the so called collection agency for payday loans with the FTC. They informed me that if you request proof fromt he collection agency they are required to send that documentation to within 5 days of request. If the decline and say they can not send it to you it sounds like it is a scam and you should report to FTC.
    0 Votes

  • 35x35
    Jun, 2010
    Jodi
    Hi, I have gotten several calls from supposed collections on payday loans. I have paid all my payday loans, but these people that call me have sound like they are from India stating I didn't pay back these loans since 2008. I have paid about 5 times to these call. I recently filed bankruptcy, can they get a judgment against me if I have filed bankruptcy. Also when they leave messages they keep saying that I have to call them with my lawyer but they will not leave the name of where they work on my voicemail. What can I do to stop the phone calls at work. Can I send them something that I only want to be contacted by mail.
    0 Votes

  • 35x35
    May, 2010
    Bill
    Reread my original answer above, which outlines tactics for resolving payday loans. Do not do nothing -- take action.
    0 Votes

  • 35x35
    May, 2010
    Bill
    This has the signs of a scam. Read the Bills.com resource Fake Debt Collector to learn actions you can take.
    0 Votes

  • 35x35
    May, 2010
    MS
    I received a call from an old friend today saying he got a call saying he was being summoned to court, and they could not serve him the papers until they contact me first. So I called the 877 number my friend gave me, and the case #. It was a collection agency called IAG, and he said he was filing a civil suit agains me in behalf of Cashnet. I told him I never received anything from Cashnet, and he argued I took out a loan in 2008 for $300, and now owe $2000! He said I could clear it up with him, or they would serve me papers. I told him I am not paying anything until he sends me proof that I owe the debt, and he got nasty and said I will be served papers and sued. Today I got a call from a San Francisco phone number, and it was some lady saying she was a freelance process server, and she was coming by my work or home today, to serve me papers, and then she was going to serve my friends (I am still not sure how 2 of my old friends even got mixed up in this). I know for a fact she does not have my home address, and it would be hard to just walk into my "place of work" considering I work from home. I tried to call back the number she called me on, and it just gave me a beeping sound, like a fax machine sound. All of this sounds pretty strange to me, if a process server was to call before they show up, wouldn't it to be to verify your correct address? Not to just say "here I come!" Should I be at all concerned about this? I honestly don't even recall taking out a pay day loan, as I have never needed to do so.
    0 Votes

  • 35x35
    May, 2010
    Bill
    If I understand you correctly, you borrowed $450, and over the course of five pay-periods you paid the payday lender $450. You are saying the lender did not disclose it would charge you interest for the loan. What does the contract you signed disclose about the terms of the loan? Regarding settling the debt, please reread the section above "How can I handle payday loan collections?" to learn effective tactics and strategies.
    0 Votes

  • 35x35
    May, 2010
    Trina
    A payday loan place has been calling me saying they are going to take me to court for fraud and press charges. My account was being charged interest for the loan which they are claiming they never took! The took $90 in interest out of 5 pay checks. When I first applied for the loan the guy told me that every pay check the would take out the $90 which would go towards paying them back the full $450! He never mentioned interest!The account was closed due to over draft because I was no longer recieveing direct deposite. When I attempted to call and set up a payment plan and was spoken to very nasty by one employee and the other time I called I was told by the employee she didnt have to deal with my complaints about their service she then hung up on me after. Now 2 years later, they are calling my mom, step dads cell phones and house phone. They are saying I only paid $90 which is fraud! I no longer work and dont have any troubles with the law! Can the legally do this to me? My account was in Delaware and Im from Maryland. PLEASE HELP
    0 Votes

  • 35x35
    May, 2010
    Bill
    Debtors have not been imprisoned in the US since the Civil War. Being in debt is not a criminal offense anywhere in the US. If a debtor fails to repay a debt, the only remedy creditors have is in the civil -- not criminal -- court. The remedies to debt are wage garnishment, levy, and lien. See the Bills.com resource Collection Advice to learn more about these three remedies. "Seagal" is misapplying bad-check law in an attempt to frighten you into thinking this is a criminal matter -- it is not. See Fake Debt Collector to learn actions you can take.
    0 Votes

  • 35x35
    May, 2010
    Maryann
    I received a call from a man that claimed he was a investigator and his name was Seagall or something to that effect, I had gotten a payday loan over the internet from a company called Summit group, I had been paying them 90.00 a paycheck for many months when some things happened with my bank account it went into the negative and I could not afford the fees so I had to have that bank account closed. I have been off of work on Medical leave and have not been able to pay anything on this loan. This Seagall guy called me today and said that he is going to bring up charges on me for check fraud and theft by deception. I have done some reserch and have found many other people that these so called investigators have called stating the same thing. I know that it is against the law to falsify being a Officer. He alsmost had me until I goggled the phone numbers he gave me and found out there were numbers in Pensacola, FL and there was a bunch of complaints filed on them, it said that they are scam artist just trying to get your money. My questions is I paid them interest payments every 2 weeks for months when I got the loans I had a open account and was working at that time. Would they be able to press criminal charges on me? I do have a appointment with a attorney tomorrow to pursue filing bankrutcy once I have filed can they come after me for criminal charges?
    0 Votes

  • 35x35
    May, 2010
    Bill
    Validate each unexpected an unexplained debt. See the Bills.com resource Fake Debt Collector to learn what to do when you are presented with a debt that may not be yours.
    0 Votes

  • 35x35
    May, 2010
    Neena
    Since October I have paid out about $4000.00 for resolution of payday loans taken out in 2007 & 2008.These inquiries started out of the wood work and come back to back. As soon as I pay of one, here comes someone else calling for a payment.I became a victim of identity theft in 2007 and due to issues with bank and employer dropping the ball at that time, any time I see issues with my bank acct, I close out my acct and open up a new acct. I have filed report with my local police dept, ftc, and bbc. Now that these calls are coming out of the blue, I am getting nervous. I never had issues with payday loans and I had been using them as needed for over 10 years. These agencies have people calling me referring to themselves as officers, threatening to file charges for wire fraud,bad check writing and telling me that if I am convicted, I will never in life be able to write checks. Out of fear I have been paying them, but now I starting to think that I am victim of another scam. How can all these agencies have different names all have "officers" working them and all of the people I speak with have accents, maybe from India?? If I closed my account due to identity theft, can I be charged with wire fraud, bad check writing? I am tired. It seem like the call are never stopping.
    0 Votes

  • 35x35
    May, 2010
    Bill
    Under the Fair Debt Collection Practices Act, anyone collecting a debt -- whether that person be an attorney, paralegal, clerk, electrician, minister, or milkman -- is subject to the rules set forth in the Act. Whether the person calls you from an attorney's office or not doesn't matter because under the FDCPA he or she cannot lie to you, harass you, or threaten you with arrest for writing a bad check. You did not write a bad check -- you took out a loan, and payday lenders are misapplying bad-check laws to confuse and intimidate consumers. Reread my original article above for a discussion of these issues and strategies for paying payday loans.
    0 Votes

  • 35x35
    May, 2010
    Ashley
    I have a quick question. My husband took out a pay day loan throught First Bank of Delaware a couple years ago and after losing my job found it very difficult to pay back. Eventually, he defaulted on the loan. Earlier this year we were contacted by a company called First IRS Legal Dept. based out of Houston, TX. They claim they are a legit attorney's office and not a collection agency and have regularly called to collect on the debt. We have been speaking to a man by the name of "Mr. Minor" and were told that we needed to make a payment of $200 every two weeks to pay it off. We have been doing so, sending the payments via Money Gram. However, it is getting increasingly diffifult to afford $400/month right now in our situation. When we suggest that we need to make a lesser payment or reschedule Mr. Minor puts his supervisor on the phone and she threatens to proceed with our file and recommend my husband be prosecuted to the fullest extent for writing a bad check. We want to get this paid off and only have about $700 left to pay. I am very concerned because we made a payment 2 weeks ago but are not in the position to do so this week. We have left messages and have asked for our options but they just demand the payment. I am scared that they will do what they say and have my husband arrested. Are you familiar with this company and do we have anything to be concerned about? Thanks so much for your help.
    0 Votes

  • 35x35
    Apr, 2010
    Bill
    Read what reader Gary wrote above on 03/28/2010 about his experience with the mysterious, aggressive, heavily accented callers who are attempting to collect on non-existent payday loan debt. In a nutshell, confront him or her on the phone. Get the caller's name, street address, and telephone number, and tell him/her you are filing a complaint with the FTC.
    0 Votes

  • 35x35
    Apr, 2010
    Jodi
    If you have not had payday loans with the company these collections agencies have been calling you for and the people calling always have a strong accident how do you stop it. I have changed my cell number. They call my work phone number but will not leave a message. How should I handle this.
    0 Votes

  • 35x35
    Mar, 2010
    Bill
    Lisa: 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 to learn more about your rights.
    0 Votes

  • 35x35
    Mar, 2010
    Bill
    Julie: No one has gone to prison for debt since the Civil War. The collection agent is unscrupulous, and is using your ignorance of the law against you in an attempt to collect a debt you may or may not owe. 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 to learn more about your rights.
    0 Votes

  • 35x35
    Mar, 2010
    Julie
    Hi, I just received a call from a man who goes by the name Internet Mail Clark. He told me that if I don't pay back $1,300+ from a payday loan taken out 4-5 years ago, that he will notify the sheriff who will come to my job to arrest me by Wed. He told me that it is too late to make payment arrangements, due to my not responding to 8 letters that have been sent to my house (have not lived in this house in years, and he refused to send paperwork to my current address. What should I do? His advice to that questions was to contact family members for money and to collect a bailbondsman. Help!!!
    0 Votes

  • 35x35
    Mar, 2010
    Gary
    I recently took out several payday loans. After I paid them off I started getting phone calls from a "collection agency" asking me to have my attorney call them. After calling them (they had a deep foreign accent btw) I realized something was funny. I googled the company name they gave me and found others had been duped and scared into wiring these criminals money on supposed payday loans that were never taken out. Please be careful!! Just because you defaulted on a payday loan, do not assume that the person calling is legit and calling regarding that loan. After telling them I knew who they "really" were, I have never heard from them again. I then get a call from a totally different area code last week, same accent,when I insisted on knowing their address and details about the bill they hung up on me and blocked me from calling back!! They expect you to get scared, wire them money and they have scammed you, all because somehow they know you once "applied" for a payday loan.
    0 Votes

  • 35x35
    Mar, 2010
    Lisa
    I have several open accounts with payday lenders and for the most part I haven't had any problems, but one company is becoming a problem. I had a previous loan with them that i paid in full, they issued a new loan at my request some time later. That loan was put in my account on a thursday and the very next day they began taking their payments out of my account. That caused more financial problems and i eventually issued a stop pay request with my bank to avoid further overdraft fees. Now they are threatening me with arrest for fraudentally obtaining a loan. They also say that because i have a previous conviction for id theft (very old conviction now) that they are going to prosecute me as a habitual offender. I live in AZ and would like to know if they can do this? The person who called and told me this said that the company will not accept my money at this point but that he can accept it as the assigned collection agent. I have strived to live lawfully since my incarceration and this has me really stressed out. They are also threatening my employer and family.
    0 Votes

  • 35x35
    Mar, 2010
    Bill
    I am not aware of any "complaint board" or blog that lists any confidential client information. Readers, if you know of any public displays of this information, please indicate the URL below. Remember that some collection agents are unscrupulous, and may not relate accurate information to a debtor. In your case, the creditor may be making outrageous claims to your reference in an attempt to cause you to contact them. One sliver of accurate information is that a market exists for collection accounts. To my knowledge, the information contained in a collection account is conveyed when the account is purchased.
    0 Votes

  • 35x35
    Mar, 2010
    Ronnie
    I may have been delinquent with one or more online payday loans a few years ago when I lived in another state. My brother is now receiving calls from so-called collection attorneys because I listed him as a reference. I have been informed that these "attorneys" may have gotten my delinquent loan information from a "complaint board"(?) or blog, and are now making threats of jail time and demanding immediate payment. I have done some research and understand that they are not in compliance with the Fair Dect Collection Practices Act. I simply would like to find out HOW they received all this information under the guise of "delinquent loan buyers". Can you help me find out where I can go to find out where my name might be listed under these complaint boards or blogs? I do not dispute anything at the moment, but I want to remedy this under fair and equitable terms that the law provides me. Thanks for any help you can provide.
    0 Votes

  • 35x35
    Mar, 2010
    Bill
    From my understanding the state of Texas has strong consumer protection laws, which most likely means that they might not be able to garnish your wages. Regardless of the state you live in a creditor has to win a judgment allowing a wage garnishment to take place. I encourage you to read Collections advice to learn more.
    0 Votes

  • 35x35
    Mar, 2010
    MONICA
    I HAVE 3 LOANS OUT, 2 FOR 200 AND ONE FOR $1000. I FELL ON HARDSHIP AND WASN'T ABLE TO KEEP UP WITH THE PYMNTS. I HAVE BEEN REFINANCING THE $1000 FOR ABOUT 3 MONTHS NOW AND CLOSED MY ACCOUNT DUE TO SOMEONE SENDIN CHKS AND ACH CHARGES THRU MY ACCOUNT. I LIVE IN HOUSTON TX. CAN THEY GARNISH MY WAGES WITHOUT TAKIN ME TO COURT?
    0 Votes

  • 35x35
    Feb, 2010
    Bill
    See the article above for a discussion of that tactic. See also the State of Wisconsin Department of Financial Institutions Web page Payday Loans for adjustment service companies licensed by Wisconsin to aid consumers in your situation.
    0 Votes

  • 35x35
    Feb, 2010
    Nancy
    Help! I have 3 payday loans payments automatically withdrawn from my bank account monthly.I live on a monthly disability icome. What possible results could occur by me closing those accounts and reopening another? I live in WI.
    0 Votes

  • 35x35
    Nov, 2009
    Bill
    Trick question. The answer is both. It is likely although not certain that the Delaware payday lenders will file breech of contract lawsuits against you in Delaware. Assuming they win, they will need to domesticate their judgments in Pennsylvania. It is likely they will be able to do so. At that point, a Pennsylvania court will enforce the judgments by allowing the creditors to garnish your wages, levy bank accounts, and/or place a lien on your property. See Advice on Pay Day Loan Collections and Domesticate a Judgment for more details.
    0 Votes

  • 35x35
    Nov, 2009
    Paul
    I have 4 payday loans. 3 are for $500 each and one is for $1000. I have been paying on these since July and still owe what I started out with. I am a PA resident and the loans were storefronts in DE. If I start paying these sharks on my terms instead of theirs, which state law would apply when they decide to start collections? Thanks, Paul
    1 Votes

  • 35x35
    Oct, 2009
    Bill
    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.
    0 Votes

  • 35x35
    Oct, 2009
    Kelly
    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?
    0 Votes

  • 35x35
    Oct, 2009
    Bill
    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.
    0 Votes

  • 35x35
    Oct, 2009
    shanda
    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
    0 Votes

  • 35x35
    Oct, 2009
    Bill
    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.
    1 Votes

  • 35x35
    Oct, 2009
    Rae
    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?
    0 Votes

  • 35x35
    Sep, 2009
    Bill
    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.
    0 Votes

  • 35x35
    Sep, 2009
    Mary
    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.
    0 Votes

  • 35x35
    Aug, 2009
    Bill
    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.
    0 Votes

  • 35x35
    Aug, 2009
    randall
    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
    0 Votes

  • 35x35
    Aug, 2009
    Bill
    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.
    0 Votes

  • 35x35
    Aug, 2009
    tp
    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!!!
    0 Votes

  • 35x35
    Aug, 2009
    Bill
    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.
    0 Votes

  • 35x35
    Aug, 2009
    trixy
    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.
    0 Votes

  • 35x35
    Jul, 2009
    candy
    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?
    0 Votes

  • 35x35
    Jul, 2009
    Bill
    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.
    0 Votes

  • 35x35
    Mar, 2009
    Bill
    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/payday-loan-trouble/
    0 Votes

  • 35x35
    Mar, 2009
    Lilly
    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!
    0 Votes

  • 35x35
    Mar, 2009
    Bill
    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!
    0 Votes

  • 35x35
    Feb, 2009
    peggy
    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...
    0 Votes

  • 35x35
    Feb, 2009
    Bill
    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
    0 Votes

  • 35x35
    Feb, 2009
    dshox
    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
    0 Votes

  • 35x35
    Feb, 2009
    Bill
    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.
    0 Votes

  • 35x35
    Feb, 2009
    Machelle
    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.
    0 Votes

  • 35x35
    May, 2010
    Kimberly
    I have a total of 4 payday loans out there 2 from over the internet and 2 walk-in where i went to the business.......RIGHT NOW i dont have the money to pay them back but i know next week they will be deducting from my bank account my question is should i leave my bank account open and let it go into the negative and be sent to collections by my bank intill they decide to close my bank account.....or if i close my bank account will it bad checks on my part?? also i have two accounts at the same bank are they able to go in my other account and get funds out? Thank YOu
    0 Votes

  • 35x35
    Jan, 2009
    Nate
    These are only threats, you cannot be arrested.
    0 Votes

  • 35x35
    Jan, 2009
    Pam
    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!
    0 Votes

  • 35x35
    Jan, 2009
    Bill
    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.
    0 Votes

  • 35x35
    Jan, 2009
    Tara
    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?
    0 Votes

  • 35x35
    Dec, 2008
    Bill
    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.
    0 Votes

  • 35x35
    Dec, 2008
    abov
    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.
    0 Votes

  • 35x35
    Dec, 2008
    Bill
    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.
    0 Votes

  • 35x35
    Dec, 2008
    Joyce
    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
    0 Votes

  • 35x35
    Dec, 2008
    Bill
    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.
    0 Votes

  • 35x35
    Dec, 2008
    Samantha
    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?
    0 Votes

  • 35x35
    Oct, 2008
    Bills
    Thank you for the information. We welcome all data points.
    0 Votes

  • 35x35
    Oct, 2008
    Payday
    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.
    1 Votes

  • 35x35
    Sep, 2008
    Nithin
    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.
    0 Votes

  • 35x35
    Sep, 2008
    Christina
    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!!!!
    0 Votes

  • 35x35
    Sep, 2008
    Bill
    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
    1 Votes

  • 35x35
    Sep, 2008
    Kristine
    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
    0 Votes

  • 35x35
    Sep, 2008
    Bill
    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.
    0 Votes

  • 35x35
    Sep, 2008
    Kristine
    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
    0 Votes

  • 35x35
    Aug, 2008
    Bill
    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.
    1 Votes

  • 35x35
    Aug, 2008
    Daley
    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.
    0 Votes

  • 35x35
    Aug, 2008
    Bill
    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
    0 Votes

  • 35x35
    Aug, 2008
    maggie
    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?
    0 Votes

  • 35x35
    Aug, 2008
    Nate
    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.
    0 Votes

  • 35x35
    Aug, 2008
    gono
    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.
    0 Votes

  • 35x35
    Aug, 2008
    Bill
    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.
    1 Votes

  • 35x35
    Aug, 2008
    christine
    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?
    0 Votes

  • 35x35
    Aug, 2008
    Nith
    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.
    0 Votes

  • 35x35
    Aug, 2008
    Katie
    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.
    0 Votes

  • 35x35
    Jun, 2008
    Keshia
    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?
    0 Votes

  • 35x35
    Jun, 2008
    Bill
    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.
    0 Votes

  • 35x35
    Jun, 2008
    Bill
    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.
    0 Votes

  • 35x35
    Jun, 2008
    Shelly
    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...
    0 Votes

  • 35x35
    Jan, 2008
    Nathan
    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.
    0 Votes

  • 35x35
    Jan, 2008
    Lynn
    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.
    7 Votes

  • 35x35
    Jan, 2008
    rod
    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
    6 Votes

  • 35x35
    Jan, 2008
    william
    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?
    0 Votes

  • 35x35
    Jan, 2008
    Nate
    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.
    0 Votes

  • 35x35
    Jan, 2008
    Noel
    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.
    0 Votes

  • 35x35
    Feb, 2008
    bgregory
    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.
    0 Votes

  • 35x35
    Feb, 2008
    rod
    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?
    0 Votes

  • 35x35
    May, 2008
    Andy
    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.
    0 Votes

  • 35x35
    May, 2008
    Daniel
    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
    0 Votes

    • 35x35
      Apr, 2011
      Linda
      I think if you took out the loan you need to pay it back. NO excuses.No one can take you to jail unless its check fraud , Authorizing funds to clear your account is the same as writing a bad check plus why take out more loans if you had not pay one back ,..... people excuses pay your bills look up FDCPA FAIR DEBT COLLECTION PRACTICES ACT. WHEN YOU SUE SOME ONE YOU HAVE PROOF YOU WERE VIOLATED. You can record a collector unless they give you permission .. you will loose best way to avoid someone calling you pay your bills and don't take out loans and borrow funds you can't pay.. To me its FRAUD.. YOU HAVE NO INTENTIONS ON PAYING
      0 Votes

    • 35x35
      May, 2011
      John
      Did you ever stop to think that many people who take out these loans whether it be one or multiple intend on paying them back. Good people with good intentions can fall on times where they cannot pay their bills. My best advice to you, don't judge other people when you don't know them. You may fall on hard times and have to turn for help and no one will be there for you and you may have to take out these kinds of loans. So quit knocking on all these people when you have no idea whether they was going to pay them or not.
      1 Votes

  • 35x35
    Dec, 2007
    Nithin
    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
    1 Votes

  • 35x35
    Dec, 2007
    Susan
    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
    3 Votes

    • 35x35
      Feb, 2011
      jason
      It is your checking account. How could they prove that you shut it down to not pay them. They also would have to spend thousands of dollars in court fees to toss you in jail. They ain't going to do that over $300. Work with them now to pay back the principle on your terms. Don't listen to their threats and educate yourself on your rights!
      0 Votes

  • 35x35
    Mar, 2008
    Cindy
    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?
    0 Votes

    • 35x35
      May, 2011
      Mike@Debt Collection
      If you send a letter to the debt company stating that you do not wish to be contacted at work then they simply wont contact you. You must know your rights if you are not to be bullied by the collection company.
      0 Votes

  • 35x35
    Mar, 2008
    Bo
    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.
    0 Votes

  • 35x35
    Apr, 2008
    Monica
    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?
    0 Votes

  • 35x35
    Apr, 2008
    Bill
    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.
    0 Votes

  • 35x35
    May, 2008
    Liz
    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
    0 Votes

  • 35x35
    Jun, 2008
    Karen
    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.
    0 Votes

  • 35x35
    Jun, 2008
    Bill
    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.
    0 Votes

  • 35x35
    Apr, 2008
    Bill
    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.
    0 Votes

  • 35x35
    Apr, 2008
    lisa
    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
    1 Votes