Collection Laws About Cash Til Payday Loans
Cash til payday loans are very popular among US consumers because these loans are very easy to borrow and almost anyone who is employed can qualify for it. People with very limited monthly income often find themselves in deep trouble when they have to meet an urgent unexpected expense and they do not have enough cash to fund that expense. This is when a payday cash loan looks like the best option for them, as it gives them the money they need within just one to two business days. You either get a check or a direct fund transfer to your bank account. It is only because of the ease of the application and approval process of these loans why consumers feel tempted to borrow the same. Most of the borrowers tend to ignore the negative aspects associated with payday lending. The cost of these loans is extremely high and the cost increases further high when you fail to make the repayment in time. Payday lenders are also often very aggressive with their collection strategies and may cause harassment for you. Though borrowing a payday loan never makes an intelligent financial decision, if you have already borrowed a couple of them, you must keep in mind the following collection laws applicable to this type of loan.
Can Your Payday Lender File A Lawsuit Against You?
Unless you are attempting a fraud, financial inability to repay cash til payday loans is not considered as a criminal offence under the US payday loan laws. Therefore, a payday lender can never file a criminal lawsuit against you. But yes, a civil lawsuit can be filed by them. They have the right to demand repayment. If you are showing your inability to repay the same, they can file a civil lawsuit and request the court to interfere. Here, it is very important for you to keep in mind that the punishments under the judgment of such civil cases never include jail imprisonment. It means even if the court gives a judgment in favor of your lenders, you will never be sent to jail for the offence of not repaying a payday loan in time. Some possible punishments may include a forced bankruptcy, liquidation of certain assets, debt consolidation or an
extended payment plan.
Which Types Of Collection Activities Are Considered As Harassment?
Since the Fair Debt Collection Practices Act applies to cash til payday loans also, it is illegal for payday loan companies or collection agencies to practice certain activities that cause harassments to debtors. Following is a brief list of some of those activities that are not legal, and if your lenders are engaged in such activities, you have the right file a police complaint against them. If they are causing extreme harassments (such as, physical abuse), you can even file a criminal lawsuit against them.
- Giving you phone
calls at dawn hours or during the late hours at night. As per the collection laws for cash til payday loans, they are allowed to call you only during the time period between 9 am and 8 pm.
- They must not make more than 2-3 calls per day. If they are calling you again and again without having anything new to say, it is also harassment.
- You have the right to request them in writing that you do not want them to call you anymore and that you will pay the money as soon as you are financially able to do so. If they still keep calling you, this is harassment.
- Using abusive language in the conversation on phone calls is also harassment and a criminal offence. But, you are advised not to react abusively in return. You should instead try to record the conversation, if possible. This can be a solid evidence of harassment and can turn out to be very helpful for you in court cases.
Contacting You At Home And Office
- If your payday lenders (or the collection agencies appointed by them) try to contact you at home or at your office, they are not supposed to discuss anything about your cash til payday loans debt with a third party, such as a neighbor or an office colleague. If they do so, it is harassment.
- They must stop contacting you at home or office or anywhere else regarding your debts once you make a written request to them that you do not want them to contact you anymore by any means. If they do not honor such written requests, it is harassment for the debtor.
- If you do not repay cash til payday loans, your lenders may give false threats to you. For example, they may say that they are going to file an FIR against you and that you will be sent to jail soon if you do not make the repayment. As mentioned above that the US laws do not consider non-repayment of a payday loan as a criminal offence, such threats are just an attempt to harass and terrify you.
Sending The Same Check Again And Again For Collections
- When you borrow cash til payday loans, you give a postdated check to your lender, which they send for collection to your bank on the set due date. If the check is bounced due to nonsufficient fund in your bank account, they are not supposed to send the same check again and again for collection. If they do so, it online viagra is financial harassment. The payday loan laws in most states have strictly prohibited such activities.
As you can see, awareness regarding the collection laws for cash til payday loans is very important. This way, you viagra can make deal with the possible harassment quite efficiently.
Category: Payday loans