How to Deal With Debt Collectors on Illegal Internet Payday Loans
Debt collectors are illegally trying to scare consumers into paying back Internet payday loans, even if the loans were already repaid, according to the West Virginia attorney general's office. Some of the people being called have never even taken out such a loan. The debt collectors use threats of arrest and imprisonment even though such threats violate federal collection laws. You must be assertive when dealing with these debt collectors.
Other People Are Reading
Instructions
-
-
1
Demand proof of the alleged Internet payday loan. Tell the collector to send it to you via postal mail. You have the right to ask for this, and the collection agency must provide it. Don't be fooled by illegal debt collectors who claim that the responsibility for proof is yours.
-
2
Ask for the name and postal address of the debt collection firm so you can mail a "cease and desist" letter disputing the debt and demanding that all phone calls cease. Collectors calling about illegal payday loans will not want to give this information because they don't want to be tracked down. They know you can report them to the attorney general if you know their location, and you may also be able to sue them for violating the Fair Debt Collections Act.
-
-
3
As soon as you suspect that a debt collector is calling illegally, tell him you are recording the phone call. Some states let you record calls without telling the other person, but it's best to warn the caller anyway. The collector might hang up, but if he does not, ask him for verification of the debt and his company name and address. Tape his refusal, which gives you proof of his tactics.
-
4
Refuse to acknowledge the debt or give any payment information to the debt collector. She may say you must give her a credit card or bank account number immediately to avoid being put in jail. This is an illegal threat, as you cannot be jailed even if you do owe money. Bad debts are a civil matter.
-
5
Tell the caller you are going to report him to the Better Business Bureau, the Federal Trade Commission and the attorney general in your state, and remind him you have his call on tape. Hang up immediately if he continues to call, and follow through with the reports.
-
1
Tips & Warnings
Illegal Internet payday loan collectors often leave threatening messages with a callback number. Before returning the call, look up the number on a site such as 800notes.com. You will see if it is linked to illegal Internet payday loans. If it is, you can ignore the call.
Illegal Internet payday loan collectors often use official-sounding names to make you think you are being investigated by a legitimate agency. ABC News says one such collection agency calls itself the Financial Crime Division, even though its call center is in India and it has no affiliation with law enforcement agencies or attorneys. Other names include Federal Legislation of Unsecured Loans and the Financial Accountability Association, according to the Better Business Bureau. Don't let these names intimidate you. They are designed to scare you into paying before you realize you are being scammed.
