Collection Agencies in Payday Lending

Written by David Schmidt. Posted in Debt Collectors

There are a lot of questionable practices when it comes to the payday loan industry. Most people who are worried about whether they are going to be able to get rid of their loan problems do not consider what may come as a result if they do not. Not only will they have the payday loan trap to worry about, but there are collection agencies that can be a real hassle to deal with. Many people in the industry are questioning the practices of the collection agencies and even the payday loan companies that hand over personal information and data to get them to help.

Many legislatures are bringing up this issue as a debatable practice that should be taken away if at all possible. Some of the people who are working with the collection agencies claim they are just providing a service to try to get money, but often the hassle is not well or tactfully done and just creates a range of problems for those who are involved.

Personal Info and Collection Agencies

One of the biggest differences within the payday loan industry and the payday loan consolidation industry is how the money is retrieved. With a payday loan consolidator, it is easy to speak to a single person who is not only more friendly, but a lot more willing to discuss things with you and have a good conversation about the topics you need help on.

Comparing that to a collection agency, most people will see a huge difference. These collection agencies have one thing in mind and that is to get the money that you owe so that they can improve their numbers and get paid by the payday loan companies.

Often the payday loan companies will hand over a lot of personal information including employment, household, and even direct bank account access in some situations. The debt attorney in Stamford, Connecticut known as the “fair debt attorney” says that the collection agencies are ruthless. If you have payday loans that are late then you know exactly how aggressive these agencies can be.

Regulation of Debt Collection

One of the things that many consumers and the public are clamoring for is a change to the laws that allow people to get bothered by debt collectors on such a huge scale. So many people are faced with problems from a debt collector all the time and there are many who just don’t have the time or patience to deal with it for very long. It is natural that the regulation of the debt would be difficult and not welcomed by all (especially those who need it), but the laws against debt collectors would be universally loved.

Make sure you read about the fair debt collections act and what lenders are allowed to do and not allowed to do so you know your rights.

Do Lenders Enjoy Clients With Too Much Payday Loan Debt?

Written by David Schmidt. Posted in Debt Collectors, Payday Loan Debt

Considering we have spoken so poorly about payday loan lenders, it is a good idea to clarify some of the truths and falsehoods about them. Our clients have spent many frustrating hours trying to deal with lenders who hassle and berate them with lies and illegal threats. However, how many people actually know payday loan lenders and why they do their job? It is easy to vilify them for their misdeeds, but perhaps it is also wise to consider their point of view as well. This can help us to cope with the problems that we have.

Nerve Wracking Payday Loan Debt

In reality, most payday loan lenders have a nerve wracking time just like anyone else. Many families who take out loans are in need of the money so that they can survive and pay for food and other necessities. However, many of the lenders are trying to make a living without worrying about people who borrow money and do not pay it back. After all, they are stressed out that payday loan debt will go unpaid.

As many debt holders will attest, this is absolutely no excuse for the harassment that they put people through on a pretty routine basis. There is no reason to call people up to tell them that they are going to jail and they will be sued. That is illegal, immoral, and just plain wrong.

However, perhaps if you understand why it is that these lenders do this, you will have an easier time coping with their abuse. After all, they are trying to do the best for their families as well sometimes.

Consolidate Payday Loan Debt

Now you know that many of the lenders are also in situations that allow them to act so rudely. It is no excuse, but you can understand why they are so willing to consolidate payday loan debt. Thankfully, they are worried about getting paid all of the money back so they are willing to take a fraction of the money from us in order to at least recuperate some of their losses.

Nonetheless, when they are asking for 300-1000% returns on their small investment, that is altogether too big. However, the lack of repayment causes the free market to determine the rates of interest on these loans. In order for many of the lenders to break even or be able to pay the bills, they must charge high interest rates to cover the people who never pay back the money at all.

A Sad Industry

consolidate payday loan debtOverall, the payday loan debt industry is a sad one. At every step of the way there is some questionable morality and incentive to do things that most civil people would never do. It is unfortunate that so much is riding on payment of those loans, but the fight between lenders and borrowers is one that could leave the loser without food.

Hopefully with time the industry will change for the better. Restrictions will someday allow lenders to make the money that they need without hassling the borrowers. In the meantime, hopefully this article has given you an idea of what it is like to be a money lender. This will give you an easier time or insight to understanding  their harassment.

Are You Being Harrased By Debt Collectors? A List Of Your Rights

Written by David Schmidt. Posted in Debt Collectors

Are debt collectors calling constantly bothering you at home or worse at work? Some of these collectors are extremely agressive and will stop at nothing to scare you or harass you into paying them. Most people do not know their rights and what the laws are which are there to protect you. Follow along here and I am going to advise you as to your legal rights and you can download the actual Fair Debt Collection Practices Act at the end of this article.

Debt collectors are ruthless and the most complained about industry on the Federal Trade Commissions website. As well the abuses and threats by aggressive collectors are appearing to be getting worse. These tactics they are using can cause terrible stress for consumers. As well, its imperative you know what rights you have.

The laws in regards to what debt collectors can do may be difficult to comprehend but we will break it down and give you  few key points of the law to teach you what you can do to protect yourself:

What Tactics Are Off Limits For Debt Collectors?

Harassment. Debt collectors may not harass, or abuse you or any family members they contact. Such as, they may not:

  • They cannot use verbal threats of violence or physical harm.
  • Post or publish a list of  people who have not paid their debts (they can only give this information to the credit reporting companies)
  • Repeatedly use the phone to harass a debtor or their family.

False statements. Debt collectors may not lie when they are trying to collect a debt. For example, they may not:

  • Claim they are attorneys.
  • Claim that you have committed a crime or that the police are coming for you.
  • State that they work for a credit reporting company.
  • Inflate the dollar amount that you may or may not owe.

Debt Collectors Also Are Prohibited From Stating That:

  • You will be arrested if you don’t pay your debt. There is no debtors prison and owing a debt is a civil matter not a criminal matter.
  • They will seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do so.
  • Give out false credit information about you to anyone, including a credit reporting company.
  • Send you anything that looks like an official document from a court or government agency if it is not associated with such agency
  • Use a false company names to sound more threatening or legitimate.

Unfair practices. Debt collectors may not engage in unfair practices when they try to collect a debt. Such as, they may not:

  • Try to collect any interest, fee, or other charge on top of the amount you owe unless the contract that created your debt – or your state law – allows the charge.
  • Deposit a post-dated check early or try to tap your account for more money that you may or may not owe. Payday Lenders are notorious for doing this.
  • Take or threaten to take your property unless the matter has gone to court and the agency has a judgment against you.

Here is a copy you can download and read to gain a better understanding of your rights and debt collector’s responsibilities. Download Fair Debt Collection Practices Act.

By printing out this information and knowing your rights you can protect yourself from Debt Collectors and their harassment.  If you feel you are being harrassed by overly aggresive debt collectors you can file a complaint  with the Federal Trade Commission at FTC Complaints or you can contact us with any questions on the contact us page. We want to help.

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