If you are one of the countless Americans drowning in payday advance debt, chances are you have probably considered seeking help. You have done all of the work you needed to do to get the upper hand against your payday lenders: researched on the internet for a good and reliable company filled out all of the paperwork and ultimately, you are ready to get your finances back in control. Then your creditors tell you something that stops you. One simple statement that can make anyone in debt feel utterly hopeless: we do not work with consolidation businesses. Here are the three reasons.
- Before you enroll in a debt relief application, the first thing payday loan consolidation companies will advise you to do would be to close the bank accounts your creditors have access to. Although consolidation businesses send legal documents for your payday lenders to revoke their consent to automatically debit your bank account, it is crucial that you close your bank accounts to be certain there are no unauthorized charges coming from your account.
- Your payday loan Consolidation Company may also send documents to your payday creditors to cease and resist communications. According to the Federal Trade Commission when collecting debt, lenders need to follow regulations and rules. If your payday lenders do not adhere to these principles and continue to make harassing phone calls, your creditors can be fined 1,000 per EACH telephone call they make. Since many loans are small amounts calling you becomes a danger that is simply not worth taking.
- Many are afraid they will get sued if they do not repay payday loans. Vast majority of borrowers do not understand that many payday lenders especially Internet-based are not licensed to give money to individuals living in America. This means payday lenders do not have the capability to take clients to small claims court to get a payday advance. Payday lenders use this strategy into paying them to frighten borrowers and are successful because clients are not educated about what lenders can and cannot do.
Individuals who register with consolidation companies have payday loans. People drowning in payday loans normally have to twenty payday loans. Consolidation businesses work to another meaning if you are a payday loan lender, you would be unsure as to if you would get paid. Payday loan debt consolidation knows this and understands that chances are they could get paid quicker if there is absolutely no third-party involved. Because of this, they claim that they do not work with payday advance consolidation companies, despite the fact that they eventually will. Do not let your payday till you understand the facts, you intimidate. In case you have tried everything you could to escape payday loan debt but have failed it is time.