Payday Loans

Know Your Rights Regarding Payday Loan Collection

It is true that payday loans are different from conventional loans, but it is very important for you to keep in mind that the FDCPA is applicable for payday loan collection also. FDCPA stands for Fair Debt Collection Practices Act, which have been introduced by the US laws to protect the rights of the consumers against the possible harassments by lenders and other agencies regarding the unfair practices they use to collect debts. If you are getting harassing collection calls from a debt collector or from your payday loan company, you must not hesitate in using your legal rights, which are as follows.

Collection Calls Must Be Made Only Between 8 am And 9 Pm

It is illegal for a payday loan collection agency to call you before 8 O’clock in the morning or after 9 o’clock at night. If they are harassing you by making late night calls or making calls during the early hours, they are doing an illegal act, which you can file complaint against. But, it is not advisable to file a complaint right away. There is a step-by-step procedure to follow in this regard. First, you must warn the caller and inform them that you are well aware of your legal rights. Do it in a very decent and humble way; request them that you do not want them to call you at a time outside the time frame of 8 am to 9 pm. If they still continue harassing you, you can file a complaint with the Federal Trade Commission. Sometimes, it happens that the debt collection agency or your payday loan company is located at a different location and the time zones do not match. In such cases, your local time zone will apply. The callers cannot make it an excuse that they are abiding by the laws but are acting according to their own time zone. So, the next time they make such an excuse, make this thing very clear to them and tell them what the laws exactly say.

Contacting Third Party Is Prohibit, But There Can Be Exceptions

The laws do not allow a payday loan collection agency to contact any third party, such as your neighbor, your relative, your employer regarding your debts. But, there can be certain exceptions. For example, if the agency is having difficulty in locating you and they strongly believe that a particular third party can help them locate you, they can contact them and ask for your contact information. But, here again, they are legally prohibited to discuss your debt situation with any third party.

You Have The Right To Request Them To Stop Contacting You

You even have the right to request a payday loan collection agency in writing that you do not want them to contact you anymore. A better way to do this is to tell them in a decent way that you are currently going through some financial hardship and are not able to pay off your debts, and that you will continue making the payments once you financial situation improves, and that, you do not want them to call you until then. Once you place this request in writing, the agency will be legally bound to stop making collection calls to you. If not, you can file a complaint against them with the Federal trade Commission.

Collection Calls At Workplace

A payday loan collection agency has the legal right to contact you at your workplace, but they must stop doing so once you place a request in writing that you do not want them to contact you at your workplace, neither through calls nor by personal visits.

You Cannot Stop The Debt Collectors From Sending Legal Notices To You

A payday loan collection agency has the right to send you legal notices regarding your debts. But, here again, they must not send you false notices just to make you frightened. Any such attempt, where the debt collectors provide you wrong information just to threaten you, is considered as a serious criminal offence. For example, if the agency is threatening you that they will send you to jail, it is an illegal thing. As per the laws, you cannot be sent to jail for not making the repayment on payday loans.

Overall, if you are aware of your legal rights and use the same at the right time, you can easily deal with the unfair and harassing practices regarding payday loan collection.


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