PaYdayloan question

by Mo
(Nashville Tennessee)

I am in the state of Tennessee and have been receiving calls from a law firm called hoffman and schwartz who claim they are attempting to collect a debt on a Pay day loan from 2008. The lady who called me calls herself Investigator Atkins. She is very rude and abrasive and is threatening me with legal action. She also has doubled the amount of the loan that I owe claiming that I signed something which allows them to do this. She is also saying that with the amount being doubled it becomes over $500 and that makes it a fraud check felony.(I didnt write a check for over 500 though so how can that be possible) She offered to let me set up payments and I told her I wanted everything in writing before I gave her any money because I have a 10month old son and no job. She then said that she would email it to me but I have yet to get an email from her or anything in the mail. but this morning she called again saying that the paperwork was going out to the courts on Friday if I dont pay

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Aug 23, 2010
Collector trying to collect payday loan
by: Anonymous

Sorry about your problems with the debt collector. The amount owed on a payday loan can quickly escalate as long as the loan remains unpaid, which is one of the problems with such a loan. However, without having seen the paperwork you signed when you first got the loan there is no way for me to know if the amount that the collector is trying to collect from you is accurate or not.

When you are initially contacted about a debt by a debt collector (or a law firm that collects debts), the federal Fair Debt Collection Practices Act gives you the right to ask that the debt collector verify the debt in writing -- in other words, provide you with proof that you actually owe the debt and the amount of the debt. It sounds like you did not ask for this proof. You can ask for it now but if the law firm intends to sue you for the money, time is running out.

Therefore, I suggest that you immediately 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. Find out what they have to say about your situation and what they recommend.

If you are sued, be sure to respond to the notice you receive from the court notifying you of the lawsuit and make sure that you show up in court on the day of the hearing related to the lawsuit. I understand that money is tight for you right now, but if you are sued, you will need an attorney's help. You may be able to get free or low cost legal help from your Legal Aid Society or you can call your local or state bar association and find out if they know of some other free or no cost source of legal help. Some attorneys take a limited amount of cases on a pro bono or free basis.

Good luck resolving your problem. Let us know what happens.

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