If you’re one of the millions of Americans drowning in payday loan debt, you’ve probably already considered seeking help from a firm. You’ve done all the work you had to do to outperform your payday lenders: research online about a good and reliable company, fill out all the paperwork, and finally you’re ready to manage your finances. Then suddenly your lenders tell you something that is stopping you. One simple statement that can make some debt feelings completely hopeless: “We do NOT work with firm companies.”
Is that true? If payday lenders don’t partner with consolidation companies, why do they even exist? Here are the top three reasons why your lenders will eventually partner with your company.
1. Before you enroll in a debt relief program, the first thing that payday loan companies will advise you is to close the bank account to which your lenders have access. Although consolidation companies send legal documents to your payday lenders to revoke their authorization to automatically debit your bank account, you need to close your bank account to ensure that there are no authorized charges coming out of your account.
2. Your payday loan company will also send legal documents to your payday lenders to stop and waive further communications with you. According to the Federal Trade Commission, lenders must follow certain rules and regulations when collecting debt. If your payday lenders do not follow these rules and continue to make harassing phone calls, your lenders may be fined $ 1,000 per EVERY phone call. Because most loans are small amounts (between $ 200 – $ 1,000), calling you becomes a risk that is simply not worth taking.
3. Many fear that they will be sued if they do not pay payday loans. A majority of borrowers are unaware that most payday lenders (especially online lenders) are not allowed to lend money to people living in the United States. This means that payday lenders do not have the ability to take unpaid customers to court for payday loan. Payday lenders often use this tactic to scare borrowers into paying them, and it is effective because most customers are not well informed about what lenders can and cannot do.
Now, sit back and think about this for a moment: Your payday lenders can’t owe your bank account for payment, can’t call you to ask for money, and can’t sue you for the unpaid loan. How else will they get paid? Who else can they contact? There is only one answer: payday companies.
So why would your payday lenders refuse to work with consolidation companies in the first place? It’s simple. People who sign up with consolidation companies obviously have several payday loans. In fact people drowning in payday loans usually have between two to twenty payday loans. Usually consolidation companies work from one lender to another, which means that if you are a payday lender, you would be unsure about when you would receive a salary. Payday lenders are aware of this and know that they could probably pay faster if third parties are not involved. That’s why they claim they don’t work with payday loan companies, even though they will eventually work.
Don’t let your payday lenders scare you until you know all the facts. If you have tried everything you can to pay off your debt but have failed, it may be time to seek professional help. After all, who wouldn’t benefit from some help from time to time?
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