Presumed Collection Debt

by laura

I received a phone call at home telling me I owed a payday loan company back from 2004. Apparently it's a loan that I did online for 1000 dollars. They are asking for me to make payment arrangements over the phone with a debit card or checking account or they are in the process of suing me and sending me to court. This agency is out in the Eastern part of us. They don't want to give me any more information over the phone until I set up payment arrangements with them. What should I do.

Comments for Presumed Collection Debt

Click here to add your own comments

Jan 08, 2010
debt collection payday loan
by: Gerri

Laura, I am sooo glad to hear you didn't give them your debit card or bank account information over the phone! In our ebook Debt Collection Answers we warn why you should never do this.

It sounds like this company is playing hardball with you and you need to steel yourself to fight back. The first thing you want to do is download our Free Debt Collection Worksheet and keep notes from every conversation with the collector.

Next, I presume this is a collection agency calling you, correct? If so, they may have already broken the law. Under the federal Fair Debt Collection Practices Act, debt collectors are required to send you a written notice within 5 days of first contacting you. When they send the notice (describing the debt), you then have the right to dispute the debt in writing and ask them to verify it. It sounds like they are refusing to send you anything and, if so, that could be illegal.

Next time they call, try to find out the name and address of the debt collection agency. Be persistent! Tell them you are not sure what this call is about and you need their name and address to research the debt. If they refuse, then refuse to talk further with them until they give you that information. It is not at all unreasonable for you to get this information - in fact it is your right!

In addition, please be sure to get copies of your credit reports to see if they have reported the account. Go to for that information. You can also see how it is affecting your credit score by using's free Credit Report Card. (Print out copies of your report and score information for your files.)

I do think our ebook would be very helpful in your situation, so you'd fully understand your rights and options. But if you cannot afford it right now, at least please read the first chapter which we have posted online for you to read for free.

If the debt collector is breaking the law (sure sounds like a possibility to me!), you will want to be sure to talk with a consumer law attorney with expertise in debt collection cases.

You may have a case against the collection agency, and if you win, you may be entitled to damages and attorney fees. If you aren't sure who to talk with, we would strongly recommend you talk with a consumer law attorney with experience in debt collection cases. Find out how to get a FREE consultation with a consumer law attorney here.

Don't get panicked over their threat to sue. It sounds like you may have just as strong a case against them. So treat this as a fact-finding mission right now.

Please let us know what happens.

Click here to add your own comments

Return to Debt Collection Questions.

Learn how debt collection laws can help you!
This website does not provide legal advice.
All information is for educational purposes only.
Copyright 2007 - 2016 by Mary Reed and Gerri Detweiler.
All rights reserved.