When And How To Hire Payday Loan Debt Settlement Lawyers?
Payday loan debt settlement lawyers are legal representatives specialized in handling cases where consumers are drowned neck deep into huge payday debts. They help such consumers by negotiating a settlement deal with the lenders in light of the law. Though it is illegal for any lender (including payday loan companies) to harass borrowers who are unable to make the repayment, it still happens. Unfortunately, even borrowers do not complain against the same because they feel non-payment of debt is a crime and that if they complain, it can put them into further trouble. It is very important for you to understand that the laws applicable in the United States of America do not consider non-payment of debts as a criminal offence, and so, you cannot be sent to jail for this. Besides that, you must also know that almost every state has now enacted certain payday loan laws that lenders must follow. Following is a brief rundown on how debt settlement attorneys can help you handle your debt problems affordably.
The Lawyers Know How To Use The Laws In Your Favor
Since payday loan debt settlement lawyers are legal specialists, they know how to use the laws in your favor. When you hire them to handle your case, they first do a thorough review of all your payday debt accounts and check if the lenders are violating any of the state laws for payday lending. Most states have imposed maximum limits on the amount of cash advance that a lender can issue to a single borrower and on the rate of interest and additional finance charges they can charge. Besides that, there are also laws that specify whether rollovers should be permitted or not (if yes, how many times). Payday lenders have also been found to be very unfair with their collection strategies. For example, they keep on sending the same check again and again for collections, and every time it bounces, they charge hefty penalty charges on your account. The majority of states have also enacted laws to restrict this practice. There is now a maximum legal limit on how much collection fee can be charged and how many times.
Lawyers Negotiate With Your Lenders On Your Behalf
Payday loan debt settlement lawyers will then contact your lenders on your behalf. Many lenders try to terrify borrowers by sending them false legal notices. But, when you have a lawyer to represent you, all such practices will stop and your lenders will agree to offer you an affordable repayment plan. If they are found guilty of violating some of the laws, your lawyer will have an upper hand in the negotiations. The lawyer will also educate you about your legal rights
and the options available to you.
Dealing With Illegal Payday Lenders
Many times, borrowers do not realize that they are actually borrowing from a payday loan company that is not licensed to issue such cash advances in their state. Payday loan debt settlement lawyers know how to deal with such lenders. Most of these illegal lenders usually run their business through Internet and they do not have a physical address for their office. It is very important for you to keep in mind that many states have banned payday lending, but a large number of Internet-based payday lenders are still issuing loans to consumers residing in those states, claiming that the laws of those states do not apply to them because their offices are located in other states where payday lending is illegal. This is not true. As long as you are residing in your state, your lender must follow the laws of your state regardless of which part of the world their offices are located in. in case, you realize it later that you have borrowed money from an illegal lender, the laws require you to repay only the principal amount of money that you initially borrowed; you are not obligated to pay interest or other charges. Your lawyer will guide you on how to get rid of such lenders.
Full And Final Settlement
Even if all your lenders are doing legal business and that they are not violating any laws, payday loan debt settlement lawyers will still talk to them and try to negotiate an offer, where your lenders agree to accept a reduced amount of money in full and final settlement of your debts. Though settlement deals usually occur in cases, where the lenders are going through extreme financial hardship, such as a job loss or a serious illness, the lawyers can still manage to negotiate a settlement deal even if your finances are in a much better situation. Depending upon your specific situation and the negotiating skills of your lawyer, you can get a chance to get rid of your entire debt by paying anywhere around 30% to 70% of the overall debt balance. In fact, lawyers can also convince your lenders to allow you to pay back the reduced amount of debt in easy monthly installments, in a way that you can afford.
Overall, the role and importance of payday loan debt settlement lawyers just cannot be ignored, especially if you are trapped badly in payday debts. But, you have to be very careful in your selection of the right lawyer. Make sure that they are duly licensed to handle such cases and that they are charging their fee reasonably. You must shop around for the best lawyer and spend some quality time in your research.
Category: Payday loans