There was an emergency and the need arose to take a payday loan. It seemed to be the fastest and the best option available then. However, now the debt collectors’ harassment is horrendous. The fact that using third-party debt collectors is against federal laws does not seem to matter to them. The Fair Debt Collection Practice Act clearly states that it is against the law for the creditors to contact third-party debt collectors to collect debts. The act further states that the use of harassment and threats is a violation of the law.
Harassment Tactics Of Debt Collectors
Debt collectors harass their client’s customers using various tactics. They send constant reminders through the mail. They call home everyday and sometimes twice or thrice a day. They are known to use profanity, humiliate publically, tarnish reputation, and give out false information about the debtor to outsiders, all with the intent of coercing them to pay off the debt.
The Way Out
Don’t think that there is absolutely no way out from the harassment of debt collectors who circle you like vultures. There are several options available.
1. Filing for bankruptcy is an option but need not be always a viable one. Payday loan bankruptcy is a common thing nowadays. Debtors who are neck deep in debt and who are constantly being harassed by debt collectors apply for bankruptcy to rid themselves of the trouble.
2. Another option is to report against the debt collector for violation of the law to the state Attorney General’s office. You can also send a cease and desist letter to the debt collector’s office. Although debt collectors’ harassment is a violation of the law, not everyone has the time or the money to go after the law, especially when a person is caught in debt.
3. A debtor can also approach payday loan consolidation lenders. The thought might occur—“Why take another loan when you are already loaded with debt?” This debt is quite different. Consolidation lenders help debtors to get out of their mess. They liaison with the creditors and get the debt collectors out of the picture. They set up a system through which the loans are paid off and there is no further need to contact the creditors. They charge lower interest rates and within a maximum period of 12 months get the debts discharged.
Do not fear debt collectors’ harassment. They can be easily managed through federal laws. A debtor can also get out of the trap of payday loans through loan consolidation companies or by filing for bankruptcy.
