Payday Loan Debt Solutions Offered Under US Laws
If you are looking out for the different types of payday loan debt solutions that are available out there for you, you will be glad to know that your options abound. You may be wondering that if there are so many options, why thousands of consumers are still trapped in the viscous cycle of payday loan debts. The reason is that they are either not aware of the solutions or they just do not know how to use the same to their own benefit. If you are also facing similar problems, the following information should help.
State Laws For Payday Loans
With the debate regarding the predatory nature of payday loans getting hotter with every passing day, many states in the United States of America have already started enacting strict laws regarding these loans. The good news is that these laws are mostly in favor of borrowers. Therefore, if you just look at the laws applicable in your state, you will easily be able to work out your own highly customized payday loan debt solutions. It is very important for you to know the laws and then look into your loan agreement to find out if there has been any violation of laws. If yes, you can take legal actions and eventually find out some great debt relief solutions. Look at the following possibilities.
The Payday Loan Is Banned In Your State
If you are living in a state where payday lending is completely banned, you cannot be legally forced to repay your loans with interest and penalty charges. In such cases, you will legally be held liable to make the repayment for the principal amount of money only that you had borrowed. The lenders will not be able to charge you any interest or other finance charges. Besides that, you will have the right to file a complaint against that lender. The state may then further file a legal lawsuit against that payday loan company. Even if the company is located in a state where payday lending is legal, they cannot offer payday cash advances to consumers in those states where this type of lending is banned. The ban
applies to Internet based lenders also. As you can see, your awareness regarding the laws can provide you a wide array of payday loan debt solutions.
You Are Entitled To An Affordable Repayment Plan
If you have been facing financial difficulty and are not able to make the payments toward your payday debt as per the current repayment plan, some states make you legally entitled for an affordable repayment plan after a certain period of time as specified under the laws. If such things are applicable to your case, you can request your lender for the same. If they refuse to offer you any such convenience, you can file a complaint against them with the state authority or with the Federal Trade Commission.
The Debts Have Already Crossed The Statute Of Limitations
While you are looking out for payday loan debt solutions, it is also very important for you to keep in mind that when debt accounts become older than the statute of limitations allowed in your state, you can no more be held liable to repay those debts. For example, if you are living in a state where the statute of limitations for payday debts is three years, it will be illegal on part of the lenders to make collection attempts to recover those debts. Therefore, if you are struggling with some age old debts, it would be wise to see how old they actually are and whether they are still within the range of statute of limitations. If the statute of limitations has already crossed, you can request the debt collectors to stop bothering you because you legally do not owe anything to them now. If they still continue to harass you, you have the right to file a criminal lawsuit against them.
Overall, your awareness of the laws will help you find out if your lenders are violating any laws. If yes, it will automatically open several doors of payday loan debt solutions for you. Interestingly, in most cases, lenders are engaged in illegal activities. When you start telling them that you know the laws and are well aware of your legal rights, they will think twice before making harassing collection calls to you.
Category: Payday loans