If you are one of the millions of Americans who are inundated with payday loan debt, you may have considered asking the combined company for help. You have completed all the work you need to do on the payday credit: research an excellent and reliable company online, fill out all the paperwork, and finally, you are ready to regain control of your finances. Then suddenly, your lender tells you something that keeps you stagnant. A simple statement may make anyone in trouble feel completely desperate: "We don't work with the combined company."
This is real? If payday lenders don't work with the merged company, why do they even exist? This is the three main reasons why your lender will eventually work with the combined company.
1. Before you sign up for the Debt Assistance Program, the first thing the Payday Loan Consolidation Company will advise you to do is to close the bank account that the lender can access. Although the Merged Company sends the legal documents to your payday credit to revoke the authorization to automatically debit your bank account, it is necessary to close the bank account to ensure that it will not be generated from your account. Authorized fee.
2. Your payday loan consolidation company will also send legal documents to your payday credit to terminate and stop further contact with you. According to the Federal Trade Commission, lenders must follow certain rules and regulations when collecting debt. If the payday lender does not follow these rules and continues to harass the phone, your lender may be fined $1,000 each time you make a call. Since most loans are small loans [between $200 and $1,000], calling you will risk you not being worth it.
3. Many people worry that they will be sued if they don't pay their payday loans. Most borrowers do not know that most payday lenders [especially Internet-based lenders] do not have permission to lend to US residents. This means that payday lenders do not have the ability to bring non-payment customers to the Small Claims Court for a payday loan. Payday lenders often use this strategy to scare borrowers to repay their loans, which is effective because most customers don't know what the lender can and can't do.
Now sit down and think about it: payday lenders can't deduct payments from your bank account, can't call you for money, and can't sue your outstanding loan. How will they get paid? Who else can they look for? There is only one answer: a payday loan merger company.
So why did your payday lender first refuse to work with the combined company? this is very simple. There are obviously several payday loans for people who sign up with the combined company. In fact, people who are inundated with payday loans usually have two to twenty payday loans. Often, a combined company works from one lender to another, which means that if you are a payday lender, you are not sure when you will get paid. Payday lenders are aware of this and know that they have the opportunity to get paid faster if they don’t involve third parties. Therefore, they claim that they do not cooperate with the payday loan merger company even if they are willing to do so.
Don't let payday lenders pose a threat to you until you understand all the facts. If you try everything, you can get rid of the payday loan debt yourself, but it fails, maybe it's time to seek professional help. After all, who will sometimes get no help?