Payday Loans

Is It Possible To Negotiate A Settlement With A Payday Loan Debt Recovery Attorney?

Yes, it is very much possible. In fact, when a payday loan debt recovery attorney contacts you for debt payments, it is your legal right to attempt to negotiate a settlement. The debt recovery attorneys are usually hired by the lenders or by someone who has bought the debts from your lenders. Though negotiating a settlement deal with these attorneys is not an easy task, but it is also not something impossible. If you are unable to handle things on your own, you can also consider hiring a lawyer to go through the negotiation process on your behalf. Following is a brief overview on some of the most important things that you must keep in mind.

Things That A Recovery Attorney May Not Do

It is very important for you to keep in mind that the Fair Debt Collection Practices Act applies in payday lending as well. It means a payday loan debt recovery attorney has no right to harass you by any means just because you are unable to make the payment toward your debts. They are also prohibited from sending you fake legal notices. For example, many recovery agents try to terrify you by sending false notices about wage garnishment, liquidation of assets, or other such things. In fact, sometimes, they even tell the borrowers that they are going to file a police complaint and that the borrower is going to be arrested soon. Always remember, nonpayment of debt (including payday debt) is not treated as a criminal offence in any state of the United States of America. It means you cannot be sent to jail just because you are going through financial hardship and are unable to pay off the debts. Overall, the more informed you are about the laws and your legal rights, the better you will be able to protect yourself.

Things That A Recovery Attorney Can Do

Though a payday loan debt recovery attorney may not file a criminal lawsuit against you, but they have the right to file a civil lawsuit in the court. In general, payday lenders do not want to take the case to the court; they do not want to go through the legal hassles. But, if they are duly licensed and are running a legitimate business, they may sometimes use this option, especially in extreme cases, where you owe to them a very large sum of money. You will get a court summons that a lawsuit has been filed by your payday lender through a recovery attorney. Make sure you promptly send a reply to the legal notice you receive. You must attend the court proceedings, where you will be asked to tell your side of the story. You are advised to be well prepared when you attend the proceedings. For example, you must be able to convince the court that you are genuinely going through financial hardship and that you are still willing to make the repayment provided you get some relief through a settlement program. If the court gets convinced, it may interfere and help in finalizing a settlement deal that you can easily afford. But, if the court is not convinced with your story, there may also be some harsh consequences, such as a court order for wage garnishment or for liquidation of certain assets and even a forced bankruptcy in extreme cases.

In most cases, a payday loan debt recovery attorney agrees to settle the debt, but it is quite unlikely for them to accept the first offer you make. Therefore, you must be ready with back-up proposals when you contact the recovery attorney for a settlement deal. If you are good in negotiation skills, you can easily convince the attorney to accept a reduced amount of money as full and final settlement of the entire debt.


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