1. What is a payday loan settlement?
A payday loan settlement is an agreement made by our negotiators on your behalf with your payday lenders stating that they are willing to take a lesser amount of money than you currently owe them. Once the settlement amount has been paid, they will consider it a full payment with a zero balance reporting on your account.
2. Why would my payday lenders be willing to accept less money that what I actually owe them?
Payday lenders often come across borrowers who cannot pay back their full balance. Some borrowers face financial hardship and have a high probability of filing for bankruptcy. If you end up filing for bankruptcy, your payday lenders will receive nothing. To prevent this, your payday lenders will try to get back at least a portion of what they lent to you. Our negotiators have a personal history of dealing with major payday lenders that have come to realize that our clients are more likely to follow through the settlement amount than clients whom are not enrolled into our payday loan consolidation program.
3. How long does it take to enroll into your payday loan consolidation program?
Once you have discussed your financial situation with our consultants, you can immediately enroll into our payday loan consolidation program and start benefiting from lower monthly payments.
4. How is the service fee paid? Are they paid upfront?
Our fees are not charged upfront – instead they are withdrawn from your monthly payment each month. Fees are spread out over the period of your enrollment (6, 9, or 12 months). Most of our fee is paid out over the first 5 months, and the rest is paid out over the remaining months. All fees are included in the one monthly savings amount that our account executives will quote to you.
5. Will I receive phone calls from my payday lenders?
No payday loan consolidation company can stop all collection calls, so if a company claims they can, be very careful! Your payday lenders do have a legal right to call and try to collect the debt from you. However, there are federal and state laws designed to protect you from payday lender harassment. We will supply you with a script so if a payday lender does call, you can be assured of what you need to say to them. We will also send out cease and desist letters to your payday lenders so they are informed that you have enrolled into our payday loan consolidation program and to contact us directly to work out a new payment arrangement. In addition, we will work with you to make sure violators of collection laws, including the Fair Debt Collection Practices Act (FDCPA) are appropriately handled. Our goal is to get your payday lenders to call us and not you when they want to ask for money.
6. Do you begin negotiating with my payday lenders right away?
We contact your payday lenders right away (typically within 1-2 days of your enrollment in our payday loan consolidation program) to let them know that we have a Limited Power of Attorney and to request that future collection calls come to us and not you. The actual negotiation
activity begins as soon as you make your first monthly payment but is typically very limited until you have saved up enough in your settlement account to make reasonable offers to your payday lenders. Most (but not all) payday lenders do not want to spend time negotiating an account unless they know there are funds available. The first settlement typically happens in months 1 to 3 of a client’s program (this varies greatly and depends on your monthly savings amount and the number of payday lenders you have enrolled in the program as well as the balance of each individual payday loan). In some instances it may take more than 3 months before the first settlement is reached.
7. Can I be sued?
If you received your payday loans from a storefront payday lender, you can be sued. They are legally licensed to lend in your state and they have the ability to take a borrower to small claims court to recover the money which is owed to them. The purpose of the lawsuit is simply to get their money back. However, most payday lenders would rather not go through this trouble because of the paperwork and legal expenses involved.
Depending on the program we set up for you, partial payments are usually sent to your payday lenders after you make your first payment. Immediately, your payday lenders will start seeing the loan getting paid back and it will become illogical and unnecessary for them to sue.
Please note, we are not a law firm and cannot provide legal advice or legal representation.
8. Can payday lenders garnish my wages?
It is possible that your payday lenders can garnish your wages. However, they will have to take you to court first, successfully obtain a judgment, and then file a garnishment action. Again, you easily avoid legal action if you are enrolled in our payday loan consolidation program.
9. Could I negotiate my debts with my payday lenders myself?
Yes you can. You can also do your own taxes and repair your own car, but most people choose to seek help. Some people have tried to negotiate their debts and succeeded, while most would rather leave it up to an experienced negotiator. Remember, you are going up against a professional collector who makes a living off of collecting debts and may not take an individual as seriously as a professional negotiator who is officially representing the client. Our knowledge and experience puts us in the best position to stand up to your payday lenders and fight for the best settlement possible.
10. How much will I save with your program?
There is no way to determine how much you will save on our program until we have spoken with you. However, we have found that even in our shortest program (6-month) most people will end up paying half the amount of the minimum payments they are paying their lenders now. If you would like to know exactly how much you can save with our program, contact us for your free consultation and one of our counselors will call you to explain our program and determine the amount you could be saving. Call us today at (800) 966-5151 .
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Category: Payday loans