Payday Debt Collection

Nov 20, 2009

How to deal with payday loan debt collectors
by: Gerri

Sam,

I understand how stressful this must be. But you're taking the right approach to look for a solution rather than just avoiding the debt collector.

It sounds like you are dealing with a third party collection agency and not the payday lender itself. Is that correct? It does make a difference since third party debt collectors are regulated under the Fair Debt Collection Practices Act. (You can tell if they are a 3rd party collector, if the name of the company collecting is different than the name of the payday lender from whom you borrowed money.)

If this is a collection agency, then please be sure to download our free debt collection worksheet. Next time you talk with them, have it handy so you can take notes. I know it's stressful, but try to approach it as a fact-finding mission and try not to let them push your buttons.

Explain what you can afford to pay, then ask them to work with you. If you can't pay anything, have a short explanation why and tell them you want to pay it but you can't right now.

If they make statements such as "If you don't pay right away we'll sue you," ask them politely if they are a law firm. Ask them when they plan to file suit. If they are not a law firm, they may be bluffing, and may be violating the FDCPA by discussing legal action that they cannot or don't intend to take. Even if they are a law firm, they may have no intention of suing for that small amount.

Our ebook will give you more guidance on dealing with them. Another good option is for you to talk with a consumer law attorney with experience in debt collection cases. Learn how to get low cost or FREE legal help with your debt collection problem here.

Please let Mary and me know how this goes OK?

Payday Debt Collection

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