If you’ve ever been a little late paying your bills, you know how difficult it can be to deal with debt collectors. Even when they are following the Federal Trade Commission’s (FTC) rules for fair debt collection practices, it can feel like you are being harassed. When they violate these rules, the stress can feel overwhelming. That’s why it’s no surprise that payday loan collection tactics—widely known to regularly break Fair Debt Collection Practices Act (FDCPA) rules on dealing with consumers— can be the most difficult to deal with.
Payday loan collectors regularly make illegal harassing calls to the debtor, inform unauthorized third parties like family, friends, and coworkers of debts, and even regularly make empty threats about taking legal action against debtors. These actions are blatantly illegal under the FDCPA, but often it can be difficult to take legal action against payday loan collectors, because they are almost exclusively located overseas. Payday lenders sell off the debt to third parties abroad, technically protecting them from the consequences from such illegal tactics, and the collectors are free to act as they wish.
3 Things You Can Do to Stop Payday Loan Collector Harassment
Because of the heavy-handed illegal collection tactics, many people feel desperate to stop the harassment and will do almost anything to stop it. Luckily, there are some things you can do to handle payday loan collectors more easily and stop the harassment. The following three are the three most effective.
Report the harassment to the FTC. Yes, many of these payday loan collectors are overseas, but many are connected to companies in the U.S., as well. You are certainly not the only person being harassed, so reporting these tactics can help stop the harassment, especially when you inform the collectors that you have reported their actions to government authorities.
Call out the scammers. Let the collectors know that you are aware of the illegality of what they are doing, and tell them that you know that they cannot send you to jail for fraud. Tell them that you will not pay unless the debt is verified and collected by a legitimate collection company. When you make it clear that you will not be paying, especially after they use blatantly illegal collection tactics, they often will focus on an easier target.
Hire an attorney on your behalf to stop the calls. If your efforts and the efforts of the FTC don’t stop the harassment, an attorney may be able to help. Your Cleveland consumer debt lawyer has more experience finding and holding these companies responsible and may be able to root out connections within the U.S. to prosecute. You may even be able to sue for harassment under the FDCPA, allowing you to collect damages for what you’ve suffered.
While it may take some time and effort, these collectors will eventually leave you alone. In the meantime, it’s not worth stressing over these criminals. Inform friends and family who are called that the payday loan collectors are scammers who should be ignored, and simply stop answering. They should move on to a new target.
In the meantime, be cautious about taking on debt through payday loans; the harassment you face if you cannot pay can be overwhelming. If you are in serious financial trouble or drowning in debt, you have other options to get a new start. Call the Cleveland consumer debt lawyers at Cleveland Bankruptcy Attorneys today at (216) 586-6600 for a free consultation on your case. Learn about your options and get objective advice on how you can move forward.