Posts Tagged ‘negotiating with payday debt collectors’

A 5-Step Guide To Fight Back Against Payday Debt Collectors

Dealing with payday debt collectors is often not a very task because they are known to be very aggressive in their debt collection approach. But, just avoiding their phone calls is not going to stop the harassment they cause to you. You will have to come up with better strategies. And, the best way to do this is to get yourself well informed about your legal rights and options and then plan your moves accordingly. Following is a brief rundown on the seven basic steps that you must follow to fight back against harassing debt collection agents.

Check The Law Code And Learn About Your Legal Rights And Options

When it comes to dealing with payday debt collectors, the first thing you have to do is to learn about your legal rights. The Fair Debt Collection Practices Act applies to all the states of the United States of America. As per this Act, you have been given several legal rights to protect you from possible harassments from debt collection agents. These laws are applicable to payday loan companies and their debt collectors as well. It is illegal for a collection agent to harass you in any

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manner, including using abusive language or giving you phone calls during unusual hours (such as late night or very early in the morning). It is also common for them to give false threats, which is again illegal. For example, they often threaten that they will file criminal lawsuits against the borrower. It is very important for you to keep in mind that the payday loan laws in the US do not consider nonpayment of payday cash advances as a criminal offence. It means no one can put you into jail if you are unable to pay off the debts. The more you are informed about the laws and your legal rights, the more efficiently you will be able to deal with your debt collectors.

Inform Them That You Do Not Want To Receive Anymore Calls From Them – Do It In Writing

The next step is to stop the harassing calls from payday debt collectors. As per the laws, when you request the debt collection agents that you do not want them to give you phone calls regarding your debt, they must stop all such collection calls. But, this request must be made in writing. Just making verbal requests on phone is not enough. In fact, you have the right to tell them that you do not want any communication from them at all, be it through phone calls, letters or through personal visits. However, even if you have made such request in writing, the debt collectors will still have the right to send you legal notices (but not the false ones). Keep a copy of all such requests made by you. If the collection agents continue harassing you despite such written requests, you can use the copy of those requests as proof to file complaint against them.

Ask Them To Provide You A Debt Validation Letter

Even if you have stopped payday debt collectors from making any contacts with you, you still have the right to contact them and discuss about your debts. So, give them a call or simply write them an email and ask them to provide you a debt validation letter. This letter must contain documented proofs that you really owe the debts (that the debts are in your name). If they fail to validate the debts, you will legally not be liable to pay back the alleged debt. In many cases, where the debt account is very old, collection agents and even lenders fail to provide a debt validation letter. Therefore, if you are lucky enough, this step may bring you a quick solution. Remember, every state has set a specific time period during which a debt collection agency must provide the debt validation letter when requested by a borrower; this time period is usually thirty days.

Check The Statute Of Limitations

Likewise, the laws allow payday debt collectors to make efforts to collect debts only if the statute of limitations for the debt account in question has not expired yet. In general, debt collectors or lenders are allowed to collect debt within one to six years from the date when the last payment was made by the borrower. So, check the statute of limitations in your state. If your debt accounts are very old and the statute of limitations has already expired, it is illegal on part of the collection agencies to contact you for debt repayment because you do not owe those debts legally anymore.

Negotiate With Them

If you legally owe the debts, your best bet is to negotiate with your payday debt collectors. There is always a scope for negotiation. It is very important for you to understand that even debt collectors want to avoid legal hassles. In fact, that is the reason why they tend to harass borrowers so that they can terrify them and collect their debts easily without going through any legal proceedings. But, the moment they realize that you are well aware of the laws, they hesitate in using any illegal method. Instead, they are open for negotiations. If you show them in your approach that you are willing to make the payments, they will definitely listen to you. Prepare a written statement on how much money you earn every month, the amount of regular monthly expenses you have and how much you can afford to contribute toward your debts every month. Do not forget to attach your salary slips, bank statements, utility bills and other documents to support your claim. The lenders will review the information provided by you and then decide whether they should accept your proposal or not. In general, they often reject the proposal sent by you and offer a counter proposal on their own. Accept any such proposal only if you are sure that you can afford timely repayment. Besides that, there must also be a written agreement duly signed by both the parties in this regard.

Overall, when you work on your strategies while keeping in mind the above five steps, you will definitely be able to deal with payday debt collectors efficiently and will also be able to bring a solution to your debt problem.

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