Question about a storefront PDL
Date: Mon, 07/19/2010 - 08:11
Hello, I am located in the state of Florida. I went and got a cash advance loan from a storefront lender and the check ended up bouncing. I informed the lender in writting that I'm having trouble with my bank account and will pay them back as soon as I can.
Today I got a call from someone with a local area code that left an 866 number for the callback, claiming that I would be summoned to court for check fraud unless I called back to settle out of court with the lender. This person did not identify himself as law enforcement or an agent of the court, and did not identify himself as a representative of the lender. In fact when he spoke with one of my co-workers he refused to give more than his first name and a 'case number'. He refused to say who he worked for.
I have experienced things like this in the past, when my car was repossesed back in 2005. Someone would call my mom implying he's law enforcement and talking about taking me to court, having me arrested, etc. It was so bad my mom actually filed a police report about it.
Anyway here's my question - just to be on the safe side I've done a public records search with the county and come up with nothing under my name. If this guy was legit, the case would already be filed with the county, right? Second of all, if I've told the PDL not to call me at home or at work and to send me any correspondence in writing, and they go to a third party to contact me, is that a violation of the fair credit act?
Today I got a call from someone with a local area code that left an 866 number for the callback, claiming that I would be summoned to court for check fraud unless I called back to settle out of court with the lender. This person did not identify himself as law enforcement or an agent of the court, and did not identify himself as a representative of the lender. In fact when he spoke with one of my co-workers he refused to give more than his first name and a 'case number'. He refused to say who he worked for.
I have experienced things like this in the past, when my car was repossesed back in 2005. Someone would call my mom implying he's law enforcement and talking about taking me to court, having me arrested, etc. It was so bad my mom actually filed a police report about it.
Anyway here's my question - just to be on the safe side I've done a public records search with the county and come up with nothing under my name. If this guy was legit, the case would already be filed with the county, right? Second of all, if I've told the PDL not to call me at home or at work and to send me any correspondence in writing, and they go to a third party to contact me, is that a violation of the fair credit act?
[quote]Anyway here's my question - just to be on the safe side I
[quote]Anyway here's my question - just to be on the safe side I've done a public records search with the county and come up with nothing under my name. If this guy was legit, the case would already be filed with the county, right? Second of all, if I've told the PDL not to call me at home or at work and to send me any correspondence in writing, and they go to a third party to contact me, is that a violation of the fair credit act?[/quote]Several points here. The storefront PDL is most likely licensed, so they can collect on the debt and contact you irregardless of the letter sent to them. They own the debt. However, they cannot harrass you, etc.. This would fall under the FDCPA.
Now if the loan has been completely sold to a CA, then the PDL has no ownership and the CA can collect being they own the debt. They can also refuse to honor your letter unless you are being harrased, etc. In that case you can file complaints.
I am guessing since you sent the PDL company a letter they possibly could have sold your loan to a collection agency.
Quote:Anyway here's my question - just to be on the safe side I'
Quote:
Anyway here's my question - just to be on the safe side I've done a public records search with the county and come up with nothing under my name. If this guy was legit, the case would already be filed with the county, right? |
Yes, I would think so if you had a pending civil case.
Quote:Originally Posted by Cool_AbyssSeveral points here. The st
Quote:
Originally Posted by Cool_Abyss Several points here. The storefront PDL is most likely licensed, so they can collect on the debt and contact you irregardless of the letter sent to them. They own the debt. However, they cannot harrass you, etc.. This would fall under the FDCPA. Now if the loan has been completely sold to a CA, then the PDL has no ownership and the CA can collect being they own the debt. They can also refuse to honor your letter unless you are being harrased, etc. In that case you can file complaints. I am guessing since you sent the PDL company a letter they possibly could have sold your loan to a collection agency. |
Thanks for the information. When I sent the letter, I said 'please cease and desis all harassing phone calls at work and at home'. I didn't realize that it had to be harassing to be a violation at the time, but when they called and gave my wife a hard time I drew the line.
Anyway I called this guy back and when I asked for confirmation of the debt, I was advised to just fight the case in court because they would not be able to provide me with that documentation.?*
So this is very confusing to me because I thought a debtor is required by law to provide debt verification when requested. I'm also confused because a section of the agreement I signed says "You cannot be prosecuted in criminal court for a check written under this agreement, but all legally available civil means to enforce the debt may be pursued against you".
Now, this guy is talking about trying to file a claim for check fraud, which is a criminal offense. I have a feeling their tactic is to try to scare you into paying, but it is surprising that a licensed lender would go to a third party that is willing to do something like that.
Quote:Originally Posted by AnonymousThanks for the information.
Quote:
Originally Posted by Anonymous Thanks for the information. When I sent the letter, I said 'please cease and desis all harassing phone calls at work and at home'. I didn't realize that it had to be harassing to be a violation at the time, but when they called and gave my wife a hard time I drew the line. Anyway I called this guy back and when I asked for confirmation of the debt, I was advised to just fight the case in court because they would not be able to provide me with that documentation.???* So this is very confusing to me because I thought a debtor is required by law to provide debt verification when requested. I'm also confused because a section of the agreement I signed says "You cannot be prosecuted in criminal court for a check written under this agreement, but all legally available civil means to enforce the debt may be pursued against you". Now, this guy is talking about trying to file a claim for check fraud, which is a criminal offense. I have a feeling their tactic is to try to scare you into paying, but it is surprising that a licensed lender would go to a third party that is willing to do something like that. |
Okay, I basically answered my own question :)
I found the florida statutes and it is not legal in this state to charge someone with check fraud for a check written as collateral for a payday loan.
Now what I am wondering is, just what kind of an agency am I dealing with? They don't appear to be a collections agency and it doesn't seem as though the original lender sold them this debt. So that would mean the original lender has sent information about this debt to an unauthorized third party, which I understand to be illegal. I also wonder if the actions these people are taking can be tied to the original lender if the debt has not been sold or transferred.
Seriously thinking about calling a lawyer at this point. I make good on my debts, I have just run into hard times recently, and I refuse to be stepped on.
Quote:Now what I am wondering is, just what kind of an agency am
Quote:
Now what I am wondering is, just what kind of an agency am I dealing with? They don't appear to be a collections agency and it doesn't seem as though the original lender sold them this debt. So that would mean the original lender has sent information about this debt to an unauthorized third party, which I understand to be illegal. I also wonder if the actions these people are taking can be tied to the original lender if the debt has not been sold or transferred. |
My advice if these clowns call again let them know to send you proof of this debt or they can see you in civil court. A legit company would honor the validation within 30 days. If you still feel uneasy, go ahead and contact your states DFI and a attorney.