Whether you debt is from a direct payday loan company or a credit card provider, the rules for collections once the debt has been sold off to a collector is the same. Debt collectors have their own set of rules which govern their practices. The Fair Debt Collections Practices Act has set specific guidelines as to what are appropriate collection behaviors and those defined as unacceptable and against the law. Just because an individual has debt in default, they do not to deserve to be treated unlawfully.
http://www.youtube.com/watch?v=X0IbwCoI9s4
What happens to direct payday loans in default?
Just because no credit bureau check payday loans are short-term loans, it doesn’t make the repayment of said debt any less important to pay. When payments are not received and the lender has tried to collect, the loan will eventually be sold to a collections agency. Once the debt is out of the direct lender’s hands, it becomes a credit history blunder like any other debt. The emergency cash loan is a help to those who need to use alternative money avenues, but it all ends up in the same pot once collector’s get their hands on it.
Credit card debt is not the only debt which can make a person’s credit score fall. Late and missed payments are recorded. In most cases, once debt goes beyond 180 days past due, the collectors are notified. Once your debt is in the collector’s hands, it gets reported to the credit bureaus and the request for payment now becomes a full-time job.
This is where regulations come in handy. In the past, collectors took any measure they felt necessary to collect. They no longer have the freedom to harass, threaten or coerce a debtor to make payments. Know your full rights if collectors are attempting to obtain payments from you.
Believe it or not, there are people who pretend to be collectors. It is important that you are aware of all debt, even those in collections. Know who you are talking to and what debt is being collected before ever trying to make a payment. If the collector is not willing to share details of said debt and is threatening police action if you don’t pay, you may be a victim of a scam and the police should be notified of their actions. Get as much information form them as possible; name address, telephone number and name of company for starters. If you have never received a letter about known debt, you can rest assured that these phone calls should be reported.
Some callers pretend to be creditors and payday lenders trying to persuade you to pay up. If you are aware of all your debt, then you should know whether there is any truth to the phone call. Truth or no truth, if the Fair Debt Collections Practices Act has been violated, you need to contact the proper authorities. Call the creditors and direct online payday lenders to verify if the companies have taken part of this abusive behavior or if they too are being victimized.