My survival guide for dealing with illegal internet Payday Loans
Date: Mon, 01/18/2010 - 13:52
Over the last year and a half I have been dealing with the consequences of taking out pay day loans from the internet. I like the vast majority of people in this community fell on hard times and I was forced to make the desperate decision to contact these scam artists. I fell head first into the†never get out of debt cycle†that these predatory lenders feed off of.
1) If you need to take a pay day type loan try to get it from a “brick and mortar†type lender. They have a more permanent address and count on return business.
2) If you are forced to take a loan from the internet pay back what you are legally obligated too in your state.
3) Never negotiate on the phone
4) If you have paid back what you legally owe and they are still taking money from your account then you need to close your bank account (depending on your state’s laws) or get your account number changed, cancel your direct deposit. You may have to be extremely persistent with your bank, let them know you’re a victim of fraud.
5) I would only use a money order or traveler’s check. Never send them a check from your new account.
6) Remember you are the victim here don’t let them use guilt or threats. You can’t go to jail and you have committed no crime. This is there only power and it’s easily enough to neutralize by not talking to them on the phone, you need everything in writing.
7) Check your credit reports and be prepared to dispute any entries regarding pay day loans. Send a “debt validation letter†to every collection agency. Dispute the legitimacy of every entry. File complaints with the FTC, Attorney General of your state and the state where the collection agency is, and with the Better Business Bureau. The collection agency does not have the authority to determine jurisdiction of the loan so don’t fall for it. I have taken the position that the loan is illegal and therefore they do not have authority to commence any collection activity and no consent was given. I also believe that since the loan is illegal any collection agency attempting to collect is just perpetuating the scheme to defraud.
8) The illegal Pay Day Loan Companies and Bottom Feeding Collection Agencies count on us to be ignorant, lazy and disorganized. We have to fight them by not being so!
This IS great--but I would add one thing to it: if you get a loa
This IS great--but I would add one thing to it: if you get a loan from a bricks and mortar lender, bear in mind that the business is probably licensed in your state--meaning that should you be forced to default, you have an excellent chance of being taken to court by the lender. This is why it's imperative to work with storefronts in paying off your balances promptly. Otherwise, these tips were excellent!
This is great. One other thing I would add is don't be intimidat
This is great. One other thing I would add is don't be intimidated by them. Use the help of this site. With all the help of this site I've gotten my self close to being done with this mess that I've gotten myself into with these. I would suggest reading as much on this site as you can especially threads that are relevant to your state and to the payday loans you have. Hearing stories of how people have dealt with them and getting yourself familiar with what they can do and can't do with give you more confidence when you speak with them and you won't be bullied. One other tip is come on here and ask there are alot of people here who know what they're talking about, I am so thankful for all the helpful advice.
good reasonable advice :) i agree with the additions others have
good reasonable advice :)
i agree with the additions others have posted, too.
