Payday Loan Collection Agency - What is It?
Our Easy Requirements:
Active checking account.
At least 18 years of age.
Employed for at least one month.
US Citizen or permanent resident.
No more than two outstanding loans
current with any other companies.
A payday loan collection agency is one that is hired to get payment on payday loans that have gone into default. The payday loan company hires them to track down debtors who have not repaid their loans, and the collection agency keeps a portion of any money recovered.
Many people get themselves into trouble with payday loans. They mistakenly believe that they will be able to get caught back up with their next paycheck. Unfortunately, they may actually end up falling farther behind. In some cases, this has created a cycle of borrowing more and more payday loans rather than paying them off. The government has actually had to step in to monitor payday loan companies to keep them from enabling this type of behavior.
Once someone has gotten himself into this type of situation, he is liable to have to deal with a payday loan collection agency. Either the collection agency is hired by the payday loan company, as described above, or it may even be owned by the payday loan company. No matter what approach is taken, the goal of the payday loan collection agency is simply to
get the debtor to repay the loan.
In the past, it was far too common for collection agencies to harass debtors. They would bully people over the phone and make unfounded threats of what would happen if the money was not repaid immediately. Again, the government has stepped in to prevent this type of behavior from collection agencies, not just those in the payday loan industry.
If someone feels they are being harassed by a payday loan collection agency, they have some alternatives. For example, it is possible to get them to stop calling by sending them a "desist notice" that requires them to cease making phone calls to you. This is just one example of how the debtor has rights protecting him from being unreasonably harassed by collectors. Different states have their own laws and regulations, so it is worthwhile to look into them to learn what rights consumers have in these situations.
Obviously, the best way to avoid the payday loan collection agency is to be financially responsible. If a person needs to take out multiple payday loans, then there is a problem, and taking out more loans will most definitely not solve it. The occasional loan may be helpful in emergency cases, but once the loans become frequent or there is a payday loan collection agency involved, it has elevated beyond a simple case of being short on cash.Source: instantloan.net
Category: Payday loans