Payday Loans Debt Consolidation

How To Settle Debt With A Payday Loan Debt Collection Agency?

If you want to settle your debts with a payday loan debt collection agency, you must co-operate with them, but while making sure that your interests and rights are well protected. In general, dealing with these agencies turns out to be a very frustrating experience, but if you know your legal rights and keep a calm head, you can handle them quite efficiently. It is very important for you to understand that collection agents usually harass those debtors who do not have much idea about the collection laws and who tend to avoid collection calls and do not even show any willingness to pay off the debts. By just letting your collection agency know that you are serious about the payday debt repayment, you can win half of the battle. After all, even collection agents are more interested in recovering the debt than harassing you. The following information will help you on how to work with them properly.

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Respond To The Collection Phone Calls, Emails And Letters

When it comes to settling debt with a payday loan debt collection agency, the first thing that is very important for you to keep in mind is that avoiding the phone calls made by collection agents or not responding to the emails and letters sent by them will only aggravate your situation. The more you avoid them, the more aggressive they are likely to become in their collection practices. If you talk to them and discuss your problems and show your willingness for repayment provided they make the terms a little more favorable, you will have a better chance of working out an affordable repayment plan.

Be Aware Of The Payday Loan Debt Collection Laws

Negotiating payday debts with a payday loan debt collection agency is not an easy task because they often try to pressurize you by using unfair and even illegal tactics, such as by threatening you that they will file a criminal lawsuit against you and get you arrested on the charges of nonpayment of debt. If you are aware of your legal rights, you can handle such situations more efficiently. As per the Fair Debt Collection Practices Act, lenders have no right to harass you in any manner. Besides that, it is also important for you to keep in mind that nonpayment of payday debt is not a crime. So, you need not take the false threats by collection agents about sending you to jail seriously. Instead, you can politely let them know that you are aware of the laws and your legal rights and that you will be able to pay off the debt only if they stop harassing you.

Confirm That The Debt Account Is In Your Name And That You Still Owe The Debt

Payday lenders hire a payday loan debt collection agency only when they fail to collect the debt on their own. Therefore, it is very much likely that collection agents are trying to recover a very old debt. If that is the case, you must first ask them to show proof that the debt account is in your name and that the statute of limitations has not expired yet. The statute of limitations refers to the time frame during which lenders or collection agencies can collect a particular debt. Depending upon the state you live in, this time period may vary from just one year to as long as five years. However, it is very important to note that the statute of limitations is determined form the date when you had made the last payment toward your debt account, not from the date when you had signed up for the loan initially. For example, even if you borrowed a payday loan five years back but have been making small payments from time to time and the last payment you made was just three months back, the collection agency will still have twenty-one more months to collect the debt provided the statute of limitations is two years.

Last, but not the least, a payday loan debt collection agency often encourages the debtor to make payments, no matter how small it is. Their purpose behind this strategy is to extend the statute of limitations so that they get more time to collect the debt. Therefore, you are advised to focus

more negotiating a permanent settlement plan, not just a temporary relief.

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