Legal Funda

Nowadays, an increasing number of people turn to payday loan as a quick fix to financial stress. However, with scammers mushrooming in the credit market, pay day loan industry has also become ripe for scammers now. Those, who look for financial assistance for the time being, usually opt for a pay day loan or cash advance. Here the lenders provide the consumers the required cash and in return hold his post dated check till his next payday. Pay day loan debt problems could be easily resolved by simple payday loan consolidation. Though it sounds really convenient, but it comes at a very high price.  Along with spiraling lending fee and interest rates, the consumers often have to deal with vehement collection efforts. The worst threat is posed by the fake payday loan debt collectors, who sometimes literally drive the consumer crazy by their millions of phone call and billions of emails. In addition, scammers, who have detail information about the victim’s name, address and Social Security number usually take advantage of the consumer’s vulnerable financial conditions and con them out of more money. Read on to know some of the preventive measures, which can save your from these fraud collection troubles.

While you are communicating with the pay day loan debt collectors, your first and foremost duty is to verify the name and address of the collection agency, for which the agent claims to work with. You must ask the agent to work offline and send you a written copy of your payment details. Keep in kind all legitimate debt collection agency will agree to do this because it’s mandatory as per the federal Fair Debt Collection Practices Act.

In case you are dealing with the agent over phone and he is not willing to give away this information, consider him a fake one. If his phone number pops up on your caller ID, immediately inform it to your state attorney general and the FTC.

Don’t pay, just because the collection companies are asking you to pay, especially when you are unsure about the debt.  Ideally, the collection company can not start demanding you the money without any prior notice. They should first take you to court and if court passes a judgment of wage and property garnishment then only the collection agents can force you to pay.

Last but not the least, remember, under FDCPA no collection agent can sue you because you can’t afford to pay a debt. Only if you fail to appear in court on time and summons was issued in your name, then only you could be arrested. Therefore, if pay day loan collection threatens that he will sue you, ignore his meager threats.

Keep the aforementioned points in mind and if you come across any of this similar situation, immediately send forth a report to your state Attorney General’s office and the Federal Trade Commission.