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Posted: Tue Sep 04, 2007 11:49 am Subject: Default on checkngo installment loan

Hi. My friend defaulted on her checkngo installment loan this past Friday. She contacted checkngo today and spoke to someone in the collections dept. and was told that she needs to pay the defaulted amount by this Friday or the account will be turned over to third party collections for wage garnishment and reporting to the credit bureau. I know that her wages cannot be garnished because we live in S.C. (which is a non-garnishment state). Do you think that they are just trying to scare her into paying? It seems awfully soon for them to be turning it over to third party collections.

Posted: Tue Sep 04, 2007 12:17 pm Subject:

Eleroo - I responded already, but I will post my answer here too.

I think it could be a good thing to be sent to a third party collector. Usually they will be much better about setting up a payment plan. They can't garnish the wages anyways without a judgement and court order. Since you live in a non garnishment state, they would be able to collect on the judgement in other ways, such as siezing any assets the court allows (such as bank accounts).

But I think that this could be a good thing. 3rd party collectors can be easier to work with then these crazy companies.

Posted: Tue Sep 04, 2007 12:28 pm Subject:

Thank you so much Goudah. I know that she is very scared, and I am scared for her. I know that they will not come and arrest her and she is very willing to pay something, but she is not going to be allowed to pay anything other than the full amount. And they will only accept debit card, credit card, or drafting it from her checking account. She blocked them from her account so that she wouldn't incurr horrific nsf fees. Hopefully the third party collectors will be willing to accept money orders which would be the safest way for her to pay, I think.

Posted: Tue Sep 04, 2007 12:29 pm Subject:

I really hope they aren't bluffing. Being sent to a 3rd party collector could be a godsend for her. I'm hoping that is the case . . . . They will accept payments.

Posted: Tue Sep 04, 2007 12:30 pm Subject:

I just heard a CheckNGO commercial over the radio today. And I thought... If only people knew! These places are horrible.

Posted: Tue Sep 04, 2007 12:34 pm Subject:

They are horrible. I don't know how those collectors sleep at night. So far noone has been nasty, but they are not willing to bend at all.

Posted: Tue Sep 04, 2007 12:35 pm Subject:

I just went to check them out, and their installment loan is through First Bank of Delaware, the same people who do CashCall I believe, and also do most of the 'bad credit' credit cards...

Posted: Tue Sep 04, 2007 12:38 pm Subject:

Yep, their loans are backed by 1st Bank of DE . . . . Same people that seem to back all of the high interest "installment" loans. They also back Purpose Loans.

Posted: Tue Sep 04, 2007 12:38 pm Subject:

Yep. That's them! Apparently Cash Call has run out of funds. I wonder if that will affect the installment loans through checkngo.

Posted: Tue Sep 04, 2007 1:44 pm Subject:

I really hope they aren't bluffing. Being sent to a 3rd party collector could be a godsend for her. I'm hoping that is the case . . . . They will accept payments. quoted from goudah2424

do you know someone this has happened to?

Posted: Tue Sep 04, 2007 1:51 pm Subject:

I know of other people that had very high interest installment loans, and defaulted. The companies wouldn't accept any alternative payment arrangements. Once they were sent to a 3rd party collector they were able to make affordable payment arrangements. Most collection agencies working for legitimate companies are going to accept payments. It's how they do business. Most people that default did so because they couldn't afford to pay. Most collection agencies know this, and don't expect you to pay in full immediatly.

Posted: Tue Sep 04, 2007 2:09 pm Subject:

thank you goudah2424. I had some tell me that
I have to pay them back in 4 installments!!
like 300+ each pay period, I'm like I can't do that,
then they said ok then we will move to the next level
of action?

Posted: Tue Sep 04, 2007 2:20 pm Subject:

van - that is someone, probably an illegal payday loan, that is trying to scare you into paying. I love their phrasing on that one "next level of action"... They are trying to be subtle and let your own mind try and guess what that might be, court? jail? oh my goodness I better get them their money! Yeah right....

Legitimate companies know they can make more money off of you by letting you take longer to pay. Illegal companies, I guess are trying to.. how did the pdl manual put it... Hit it hard and get out quick, so of course they can't wait to get their money, they need to run along to another scam before they get caught!

Posted: Tue Sep 04, 2007 2:26 pm Subject:

Yep - My point exactly! Only the illegal collectors and illegal pdl's will give you unreasonable terms and threaten "other action".

Check n Go is a legit company, and I would be surprised if they were to sell accounts to shady collection agencies.

Posted: Tue Sep 04, 2007 2:28 pm Subject:

Probably, but at least they have to follow the fdcpa.

Posted: Tue Sep 04, 2007 2:33 pm Subject:

But that doesn't make them any less evil for how the entrap people in the cycle of debt. They claim to be there to help, but if you are an honest person and just have trouble paying for a few months they seem to treat you like dirt.

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