Consumer Blog
How to handle payday loan debt
Missouri consumer writes:
I have 5 payday loans that I received by going on the internet. Now I am unable to pay them back the way they would like me to. I have contacted them and asked if we could set up a payment plan of some sort. The answer is always no. What are my legal rights? They call my work numerous times.
You are dealing with two separate issues:
- Debt collection: Understand that you do have rights under federal law.
- Outstanding payday loan: you can file a consumer complaint with us about this.
We take lots of complaints, and we're able to resolve many of them. The lenders usually agree to a reduced payment and call it even.
Technorati Tags: APR, debt, federal payday loan law, payday loan, payday loan APR, payday loan complaints, payday loan law, payday loans, moagoconsumer, consumer protection
Posted by on July 23, 2007 11:27 am :: Comments (3) :: Permalink
3 Responses to "How to handle payday loan debt"
says:
September 25, 2007 5:48 am
what do i do if i owe payday loans and closed my account. will i go to jail?
says:
October 27, 2008 1:11 pm
There are many fallacies concerning the payday loan industry. As far as the question by Tasha above in regards to going to jail, the answer is no. Your credit will be effected but no company can have you do jail time for failure to pay an outstanding balance. If they are unwilling to cooperate, and the fees are such that you will never resolve the debt, then you may want to check into the statutes of limitations and other consumer credit laws with in your state as how to effectively resolve the debt over time.
