I get at least 3 to 5 requests every day from someone whom is shouting “I need payday loan consolidation help!” and I completely understand what they are talking about.
These companies get down right nasty and will resort to just about anything be it moral or not to collect their money!
We have seen these guys do everything from trying to talk you into taking out more loans, rolling over the loans you already have even if both of those practices are illegal, to downright threatening to take your property.
We thought we better post some information on what these companies can and can not do when trying to collect past due payday loan debt.
Collection Rules, Right!
There are many rules created state by state that payday loan companies are required to follow and most of the brick and mortar storefronts do follow then for the most part, but the online companies completely disregard any and all rules at any given time.
It is much easier to police the storefronts as they are a physical entity and complaints can be filed and investigated, and that is what has been happening around the United States lately.
Online companies on the other had are running wild and causing all kinds of headaches for both the borrowers and the banks.
While both companies call your boss, your friends and references, and you non stop when payday loans go into default, the online companies seem to just not care what the rules are.
I had one client tell me she was getting called anywhere from 20 to 25 times every 24 period from her online payday loan company and nothing she could say to them would slow them down.
Another client shared with us they simply could not come up with the interest payments totaling $600.00 every two weeks for the 4 payday loans their online company talked them into, so they put a stop payment on the company at their bank since the payments were being taken electronically from their checking account.
This cost them $20.00 to do the stop payment, only to have the payday loan company resubmit the payment request under a different name.
We have been told of online companies repeatedly granting multiple payday loans in states that have banned them ans made them illegal, but the law is really hand tied in enforcing any of the rules.
These companies hide in other countries and change their names at the drop of a hat.
Remember, there are huge profits to be made with these loans and these companies feel the risk is well worth the payoff.
What Can You Do
The best thing to do is avoid these companies at all costs, but if you do have to use them use storefront companies only!
Do not use online companies no matter how quickly they claim they can get you the money! They will follow their own rules, their intrest structure is higher and the way they collect from you is set up for massive profits on their end of the loans.
Pay these loans off on your first due date in full and be done with them. Never roll over a loan or take out more than one at time.
If you are already buried in out of control payday loan debt the best thing to do is contact us toll free at 1.877.280.5100 or fill out our form for your FREE no obligation quote and let us take your loan over and stop all the collection activity including any legal threats.
We can also reduce your interest usually by half or more and set you up on low affordable bi monthly or monthly payments.
Payday loans have grown to epidemic proportions because of the huge profits these companies can make on each and every single loan they write.
Don’t be their bread and butter any more!
Let us help get them out of your life forever!