Watch Out for Payday Loans

Credit Card Late Payments. The average repayment period is two weeks from when you receive your funds. For consumers who are having serious financial problems, credit counseling from a reputable agency can offer valuable advice on monetary matters, creating a budget, and getting out of debt. Family Living together, marriage and civil partnership Ending a relationship Death and wills Gender violence Children and young people Looking after people Education. Federated Financial is currently in it's 20th year of service.

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Payday loan debt advice If you’re struggling with debt problems, payday loans aren’t the answer. They’re a short term type of loan and will usually have a /types-of-debt/  · Debt and money Borrowing money Types of borrowing Loans Payday loans Payday loans A payday loan is a short-term loan intended to /loans/payday-loans. Dealing with payday loan debt If you’re struggling with payday loans it is probably a sign that you need help, particularly if you have more than one loan. Trying to borrow your way out of debt will only make you situation worse and we’d never recommend that you take out a payday loan to pay your

Avoid Quick Cash Loans

What to do if you can’t pay back your loan

Check out all your options, including contacting your creditors directly, before signing any counseling agreement. The stress caused by financial problems can be enormous. But borrowing money, which in effect is taking on more debt, is not always the best answer. If you have fallen behind with your mortgage payment, or car payment, or any other creditors you owe, the most important thing to do is contact them immediately and explain the situation.

Avoiding the problem will only make it worse. Most creditors will work with you to arrange a repayment schedule that you can handle. Also, consider ways to get extra cash that don't involve borrowing money. A garage sale, working additional hours if possible, an advance on your paycheck- all of these can add to your monthly income without causing you to take out a new loan.

Before committing to a cash advance type loan, consider the alternatives available. Friends and family members may be willing and able to loan you money.

It's best to have a written, legal agreement so that there are no problems later on. If you have a bank or credit union account, apply for a small consumer loan at your financial institution. Small loan companies also exist and while the interest rates are usually higher than those offered by a bank, the rates are still better than those associated with a payday loan.

Shop around and investigate all your options before making a final decision. When you desperately need cash to get through a tough financial situation, a payday loan can seem like a quick and easy solution. But it's important to understand the risks that come with these loans. If you find that you can't fully repay the loan at the end of the two week period, it then becomes necessary to rollover the loan for another two weeks- with additional fees and penalties attached.

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What can I do? By Mark Cappel June 8, Don't worry, we'll never post without your permission OR. Log in using your email address:. Keep me signed in. I am honestly a little confused and a little scared about this. I reside in Florida.

In general, do not believe legal advice given by creditors or collection agencies, even if they call themselves lawyers. The information is usually wrong or incomplete, and is always self-serving. First, I will answer your question assuming the person who contacted you works for a collection agency or law firm. Second, I will answer your question assuming the person who contacted you works for the original creditor -- the payday loan company.

Section e of the FDCPA reads, "It is the purpose of this title to eliminate abusive debt collection practices by debt collectors, to insure that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged, and to promote consistent State action to protect consumers against debt collection abuses. Section 1 defines a debt collector.

Later in this section, Congress excluded employees of the creditor, which we will discuss later. But getting back to 1 the definition of a debt collector is broad and inclusive. If the person who called you was attempting to collect debt owed to another, then that person is a debt collector. There is no exclusion for law firms or payday loan organizations.

Therefore, if the person who called you works for someone other than the original creditor, they are subject to the FDCPA. If the caller harasses you or continues to misrepresent themselves or the law, you may have a cause of action against the creditor.

Consult with an attorney in your state to discuss this possibility. Let us go a step further and assume you were speaking to an employee of a law firm. If the person you spoke to was calling on an attorney's behalf, then that person creates liability for that attorney if he or she violates any laws or rules of conduct. If the attorney told his or her employee to lie to you, then that attorney may be in violation of his or her state's professional responsibility rules.

I would argue an attorney violates ABA Rule 8. Violating professional responsibility rules do not create a cause of action for you, but giving a detailed and factual report of a rules violation to an attorney's state bar usually creates an investigation, which may cause that attorney to modify his or her behavior.

The next time the person who is says he or she is calling from a law office, ask for the caller's full name, the name of the law firm, the state where he or she is licensed to practice law, and his or her bar number. You are free to report the attorney to his or her state bar association with the facts you gather. Under the FDCPA section 6 A and B , employees of the original creditor are exempt from its provisions unless they collect the debt under a different name.

Here, if the person who called you is an employee of the payday loan company, then if they said they were calling from some organization other than the payday loan company, then they are subject to the FDCPA.