Archive for August, 2010

A Look Into Payday Loan Collection Agencies And How You Can Stop Harassment

Wednesday, August 25th, 2010

Services of a payday loan collection agency are hired by lenders of instant payday loans when borrowers fail to repay their money. An instant cash loan is taken by people when they are in urgent need of money for some sudden expenditure, which has managed to rear its head and refuses to wait. While these loans are a definite boon, they are not without their share of drawbacks, and collection agencies are just one of them.

The main job of collection agencies is to try and get payment on loans, which have managed to go into default. A payday loan collection agency works by tracking down borrowers who have failed to repay their loans and trying to get the money. In return, the lenders let these companies keep a sizable portion of the recovered money.

It is a well known and acknowledged fact that payday loan collection companies sometimes stoop to threats and harassment in order to get their money. This is where you can protect yourself with debt collector laws. These laws have been designed to make sure that the borrowers are not hounded, threatened and/or harassed.

Why Borrowers Get Caught With Agencies

Most people tend to think that instant payday loans are an easy way to get their hands on some quick cash, but what they tend to forget is that these come with very heavy interest rates. Once you get caught up in the habit of taking out these loans, interest rates tend to become very taxing. This is when people find it difficult to pay the money back and collection agencies come into the picture.

Payday loan collections are mostly done by companies stooping to some unethical practices like threatening and harassing. While this is unacceptable under any circumstances, it becomes even more unbearable when the borrower is being contacted unnecessarily and given threats that transcend the boundaries of civility and decency. Now is the time to study protection laws, which will inform these companies to back down. You can also choose to get a legal expert involved so that you know about these laws more clearly.

What You Can Do To Stop Any Debt Collection Harassment

If, at any time, you feel that you are being harassed by collection agencies, you can make the most of various laws, which require these firms to behave properly with debtors and treat them with respect. In order to keep the collection agency totally away, you can send a certified desist notice demanding that you should not be contacted by the agency at all over the phone or otherwise. The companies are legally bound to agree to this.

Other protective laws bind companies by giving them a time frame in which they can call and forbidding them to contact anyone who is not directly involved with the loan, among other things. If you ever feel that you are being unnecessarily harassed, you can take advantage of these laws and stop payday loan collection agencies from troubling you.

Tips For Choosing A Payday Loan Consolidation Company

Tuesday, August 24th, 2010

If your cash advance debts have escalated and you are finding it difficult to pay them off, you should look for a payday loan consolidation company. While the new payday loan law aimed at curbing the excessive interest rates and shady practices of payday loan companies offers some protection from cash advance debts, it is still easy to let your debts get out of control. If you are deeply in debt, a cash advance debt consolidation company will negotiate with your lenders and come up with a single payment so that you can get rid of your debts without paying hefty fees. Most lenders agree to negotiations with debt consolidation firms as it helps them to cut their losses.

In order to make the best use of consolidating your unsecured loans you should choose a payday loan consolidation company carefully.Here are some tips for choosing the right cash advance debt Consolidation Company.

Check The Fees Charged By The Company

You should make sure that the company you hire does not have high fees for their services. You want to get rid of debts, not accumulate more of them; therefore, look for companies that offer services free of cost or have nominal charges.

Check If The Company Offers A Guarantee

Your cash advance lenders are not obligated to negotiate with the payday loan consolidation company. Therefore, you should hire a company that offers a guaranteed program. If the company is not able to reduce or waive any late charges or reduce interest rates, it should refund you the entire fee.

Check If The Company Offers Credit Counseling

A good payday loan consolidation company educates its customers on how to manage finances in order to remain debt-free. Before hiring a firm, you should check whether the firm offers credit counseling.

Take A Look At Feedback About The Company

You should look at feedback about the company from its customers. This will let you know about the company’s level of customer service levels and whether the firm is genuinely involved in helping people pay off their payday loans.

If you do not want to hurt your credit score, then you should consider a debt consolidation loan instead of loan consolidation program. While choosing the debt consolidation loan company, you should pay particular attention to the following two points:

Check The Interest Rates Of The New Loan

Since you want your monthly loan payments to become affordable with debt consolidation, look for a company that offers an attractive interest rate. The interest rate on the new loan should be quite lower than the average interest rate on the cash advances you owe.

Check The Terms Of The New Loan

You should check if the company offers secured or unsecured loans. In a secured loan, you are required to pledge your property against the loan, while in an unsecured loan, no collateral is required. However, the interest rate of secured loan is lower than that of an unsecured loan. If you are not sure whether you will be able repay the new loan, you should avoid a secured loan, because you will risk your property if you default on the loan installments.

Pay day loan consolidation can help you to repay your cash advances very quickly. The key to making the debt consolidation work for you is choosing the right firm for consolidating your pay day loan debt. A good company will negotiate hard with your lenders and educate you on financial planning so that you can come out of the debt trap quickly.