Pay Day Loans Threats

Hi

I have taken 8 payday loans and have had trouble paying back. But have been trying. They have sent my case to a company called certified recovery systems and they want all of the 2,000 a checking account or they will garnish my wages. What should I do?


[Converted to small for better readability: Vikas]

Hi Guest,

Welcome to the forums. First of all, I would like to suggest you that taking payday loans is not a good decision and it has so many bad affects. However, people take such loans only when they fall in emergencies. Please try your best to avoid such types of loans.

You can try to increase your monthly income and earn additionally from other sources. Also you can reduce your expenses so that a considerable amount of money can be used in making the monthly payments.

However, I will like to update you that in case the company CERTIFIED RECOVERY SYSTEMS is trying to garnish or withhold your wages then you can legally ask them to valid the judgement against you. They cannot garnish any of the following:

1. Welfare checks
2. Social Security checks
3. SSI checks
4. Unemployment checks
5. Veteran's Administration checks
6. Child Support or Spousal Support Income

Anyways, I hope that you come out of this problem very soon and return back with your smile.

Roxette

Have they taken this to court yet?

Only way to garnish your wages is by getting a judgement against you in a court.

Jerry

I took out 13 pay day loans, I have had a company called ELLIS CROSBY AND ASSOCIATES, call me and harass me at my place of work, and at home.
They have threatned to take me to Jail and they also told me that I STOLE money, and thats a felony. They also told me that a detective would show up in 1 hour to take me away.

They told me that my employer would undergo a lawsuit if I didnt pay bc I used their computer and would be fined $50,000. ( loan was only for $260 )

Well i never stole any money. These companys told me they would take out the finance fee only, they called me to confirm the fees, and they took out the whole amount, which I was told would not happen. And before you know it they took MY WHOLE PAY CHECK.

I had to get more loans to cover my bills and food.
And before you know it, i had 12 loans then 13 loans and so on.

Ellis and crosby has lied and really stressed me out about the whole situation. Making me not even want to deal with them.

Ellis and Crosby has called me once since then telling me 5 of my loans were transfered to them and they were considering filing charges on me for a HABITUAL OFFENDER. And told me i had to pay 500 now and so on and so on. I told them i could only pay 300 now, they told me i would be in jail in 2 hours.

Well there is no such thing as a DEBT PRISION.
maybe a law suit for not paying, but NO PRISON.

I now work for a lawyer and if they call me agian i'll be sure to prosecute for false statments, and harrasment.
If you ever get a call from them HANG UP!

I called this So called "LAW OFFICE OF ELLIS AND CROSBY" To find out what they were,
(collections or lawyers)and they asked me "WHY ARE YOU INVESTIGATING OUR COMPANY MAM" " WHY ARE YOU ASKING" "WHO ARE YOU CALLING FOR" "WHATS YOUR NAME"

MY POINT IS IF THEY WANT TO LIE ABOUT WHO THEY ARE, DONT THREATEN LEGAL ACTION.
these people ARE FULL OF IT
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Hi Katherine

Welcome to the forums. I wonder 13 pay loans is quite a large number.

I will always suggest you and not to go for payday loans anymore in the future. Though you might be having tough times but it is always better to avoid payday loans as it creates a deeper hole and moreover causes harassments and pains.

ELLIS CROSBY AND ASSOCIATES is crossing every limit while trying to recover the debt from you. As per the fdcpa law, you can file a case against them and get compensated.

For a broader idea, please look into the FDCPA page in this site for a detailed explanation.

http://www.debtconsolidationcare.com/fdcpa.html


As these unpaid loans are damaging your credit, have you thought about paying them through easy monthly installments at lower rate of interest? debt consolidation program will cover all your payday loans and eliminate the financial charges and waive off the late fees.

http://www.debtconsolidationcare.com/benefits.html

The consultant will be offering you counseling at all times so that you don't take wrong step anywhere in the middle of the program and build furthermore debts from other sources. He will budget your spending by cutting all the unnecessary spending and offer the best payment plan suitable to your needs.

Hope that you will take this positive move to repay your debt in the easiest way and thus improve your credit rating.

http://www.debtconsolidationcare.com/signup/

Regards
Roxette

Wow, you are right. These people are indeed full of it. You have endured a lot from this company. This company has broken almost every collection law in the book.

For instance, they are not allowed to call you at work if your employer does not allow this. You have a right to protest this by writing to them and asking them to stop calling you at work. If you did this and they continued to call, then they would be breaking the law. So, you do have the power to stop this.

In addition, this company is guilty for making an incredible number of false statements. This is a violation of the fair debt collection act. Under the fair debt collection act, a company is not allowed to make any false statements to you when collecting debt.

For instance, they are not allowed to threaten you with jail or accuse you of committing a crime. They have violated this law by saying that you stole and you will be put in jail.

In addition, they are not allowed to threaten you with arrest. They insinuated this violation by stating that the detective will come to your house.

And finally, they are not allowed to make false statements about filing a lawsuit. This was violated when they threatened to sue your place of employment. They wont be able to sue your job because they are not even responsible for the debt.

The fact that these threats are coming from lawyers is astonishing. Because they should know that they have no legal basis for making the comments that they have been making. So, they are succeeding in giving the good lawyers a bad name.

But in any case, they have violated the law and you do have the right to sue them. Just keep good records of your correspondences and present them to an attorney.

Now, I would like to talk with you about the payday loans. I know that you are probably aware of this by now, but I would just like to reiterate the fact that these are dangerous. These are very short-term loans with very high interest rates. Unless in extreme once in a blue moon emergencies, these loans should not be used. So first, you should consider breaking your habit of using these types of loans.

For starters, 13 loans is way too many payday loans. You might as well have obtained a larger long-term loan. At least it would come with lower interest.

So, you should take steps to break this habit of using payday loans. One ways you could do this is by making a better budget for yourself. First, prioritize things. Your food and shelter should come before anything else. If you need loans to cover your food and shelter, then maybe you should consider scaling down certain areas of your life. Think about moving into smaller, more affordable living quarters. Or think about downsizing your car. These are all things to ensure that you can afford your lifestyle without loans.

Another way that you could break your reliance on these payday loans is by picking up a part time job to supplement your full time job. You could use these earnings to make the difference between your regular paycheck and your costs. This would help you avoid debt and also keep you away from collection agencies and poor credit.

Well just to reiterate, I would strongly advise you against using payday loans. I think the Costs outweigh the benefits. You said that you are having trouble repaying them. Well that can be easily be explained by the high interest rates that are usually attached to them. So, you should know that these are the loans that you should avoid. You should not use it as a crutch. Instead, you should use them once in a blue moon for emergencies. Try to spend within your means. Budget for your most important items first. Any nonessential items should wait for a time when you save enough to purchase it. Just try to be more fiscally conservative so you wont have to rely on these loans anymore. Because this small loan in collections could do a lot of damage to your credit in the long run.

Now concerning your plan of action, you should contact your collection agency and try to negotiate a payment plan with them. Try to level with them and reassure them that you are willing to repay them but you need a repayment plan that is within the confines of your financial abilities.

If you are unsuccessful, you should contact a lawyer because they are threatening you with garnishment. If they are not serious about the garnishment, you can sue them. Because this would qualify as a false statement under the fair debt collection act. All violations are prosecutable.

But regardless, you should get in contact with a lawyer because, if they are serious, you have to prepare to fight their garnishment suit in court. So chances are you will need to contact a lawyer in the very near future.

I want to reply because Ellis & Crosby called me at work and said that this was a call from "Investigator Paul Epstein" and that I had a bad debt (payday loan) and it was a bad check, felony, prosecution, on and on and on. Scared and intimidated me and questioned the debt and he hung up on me. So being stupid I called back and try to actually send the money. Western Union stopped the transfer and said they were a scam and told me not to deal with them - so I called back and said, well Western Union said they wouldn't forward the money and said it was a scam. So, then Mr. "Investigator" got his boss Mr. Ellis on the line and Mr. Ellis proceeded to say I did not transfer the money correctly per their instructions... To make a long story short, I reported them to the FTC and have a case/reference number on file. Also called and left a message for the "investigator" and told him per the Federal Fair Debt Collection Act, that they were to notify me of the debt in writing within 5 days and I had 30 days form the date of the letter to respond to say if this was a valid debt or not. Never heard anything again from them , no call, no letter - oh, and the worse part was they called at work. Absolutely NO payday loans for me ever again. These agencies count on you not knowing the law. Be informed and report these creeps - this agency should be shut down. By the way, do not even try to contact the company that originally lent the money. Told them would be happy to pay them and was treated badly when I complained about the agency they hired.

Hi Guest,

Welcome to the forums. It's nice that you are aware of the Federal Fair Debt Collection Act which protects you from falling in the wrong hands.

More about the fdcpa law has been summarized at this page

http://www.debtconsolidationcare.com/fdcpa.html

Regards
Roxette

I also had a call at my work from Ellis, Crosby and Assc. They scared me into sending them $660 via Money Gram. Now they are saying I still owe more. A total of $1025 for a $300 payday loan (just one). I still think it was already paid, at least partially.

Anyhow...is there any way, without spending a fortune on a lawyer or whatever, to get my $660 back. At the most, I don't think I could owe the payday loan comp. more than $390.

Hi


http://www.debtconsolidationcare.com...about2712.html

Since the membership has been cancelled of the said company, you can take legal help of your attorney to file a complaint against them.

Regards
Roxette

Katherine, they told me the same thing, I applied for a payday loan but never received it, I cancelled it, and now they are trying to collect on it, they called me at work and told me I would be arrested at 3 pm that day either at home or at work. They account number they gave me isn't even mine, its not even my bank. I called my lawyer who told me not to worry about it, that they are just trying to scare me. I was a nervous wreck at work, even worked myself into a panic attack! They had me throwing up at work I was so upset. I have not heard back from them, Oh if I find their email or web site boy are they gonna hear it from me! Good luke. Let me know how you make out. I just got a payday loan at ameriloan.com, they were wonderful, They took the first payment out, and the next one I am paying it off. Good luck to you.

Kelly

Hi shorty

Welcome to the forums. If the said payday loan company again tries to harass you, you have your rights protected under the fdcpa law. You can keep all the necessary proof intact and sue them legally.

I read in your post that you have taken a payday loan from a particular company. I understand that you have taken this loan due to some financial needs at your end. Payday loans are the most convenient loans and they can be easily acquired by anyone.

Payday loans do not fit to everyone's needs. This is due to the high interest rates. It can cost up to $15 per two weeks. If the need is just for two weeks on a single payday loan, it does not cost much. Please examine this calculation:

On an average one payday loan cost $30 on $100 borrowed from a payday loan company in a month. If you have taken payday loans worth $500, it will cost you $150 as interest on an amount of $500 which is equal to $650. Now if you have multiple payday loans due to the easy availability of such a type of loans, you can imagine the interest that you will be paying on each loan. Remember that this is the basic interest which will be paid in the due period of time. If a person fails in making the payment in the due date, his default charges will be beyond any control.

I suggest if you choose to borrow money from the payday loan companies, borrow only if you are 100% sure to pay it back within the due date. Do not get into the habit of rolling over your cash advances as it will be the worst thing that you can do to your finance.

Regards
Roxette