Payday debt settlement
Date: Thu, 06/16/2011 - 07:32
FTC Regulation Changes in PDL Consolidation and Your Legislation
For starters, you won't want to go to consolidators on this. I work in that industry and it is now in violation of FTC regs to start new programs, so you'll need to do this on your own. If it were legal to continue to help people in this fashion and be allowed to charge enough to feed our families and keep the lights on, we still would.
I'm assuming all of the lenders are storefronts. If any are internet lenders, you'll have to switch gears. Billing for validation of debt is a good start, but most unlicensed lenders will proceed to eat you alive if they catch wind that you know the loan is illegal.
My suggestion is to go to the regulatory commission of your state and start by asking them how many loans you are allowed to have at one time. As I understand it, Ohio has tightened the leash considerably and unless I am mistaken, the lenders are responsible for ensuring you have only one loan at a time, in addition to having no more than 4 loans per year. I believe they are also required to stay below $500.
I don't suggest you attempt to dodge the debts, but if you were put into an unreasonable position by people pretending to help while breaking to rules to get a residual piece of your income.... Well, you may need your legislation's help to force them to be reasonable.
In some cases, it's as simple as lack of choice. If you're unable to renew, then you'll default. They can't rake you over the coals with continually accruing interest as they want you to believe. You could then pay them down quickly, one at a time rather than rolling them over again and again. Which is also being done through a loophole as I understand it.
I hope this helps and good luck to you.
