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If you repay your payday loan when it’s due, it won’t affect your credit at all. That’s because payday lenders don’t carry out a check of your credit score before approving your loan application.
But if you delay payments or default on your loan, your credit could be affected. Bounced checks, and your payday loan going into collections will pull your credit score down. In a worst-case situation, the lender could go to court and get a judgment against you. This will remain on your credit record for up to seven years.
No, there’s no need to close your checking account.
You can’t go to jail for not paying your payday lender. However, you could face imprisonment for ignoring or not complying with a court order. So, if the payday loan company gets a court order asking you to appear for a debtor’s examination and you don’t show up, the court could find you in civil contempt.
Don’t make the mistake of ignoring a notice or an order from the court. Consult a lawyer and seek help. If you need help finding a lawyer, a good place to start your search is the website of the Consumer Financial Protection Bureau, a government agency responsible for consumer protection in the financial sector.
Even if the debt is “time-barred”, consider consulting a lawyer. One option is to pay nothing. You can also consider paying a part of the debt. But this may lead to the limitation period being reset and revive the entire debt.
You can also think about settling the debt for a lower amount. But ensure that you get a letter from the lender confirming the settlement amount before you make the payment.
According to the law, the dues of a deceased person are to be paid from that individual’s assets. However, the debt is not passed on to the heirs.
Yes, we can! We can speak to the lender on your behalf and negotiate a debt settlement. This will involve making a single payment to settle the account. It’s possible to get a significant discount on the amount you owe.
If you can’t afford to pay the entire sum immediately, we could ask Sun Loan Company to accept payments over a longer period with an extended payment plan. We could even try and negotiate a lower rate of interest.
The statute of limitations on debt varies by state. In Florida, legal action to recover a payday loan has to be taken within five years.
However, if this period is over, it doesn’t mean that you don’t owe the money. It just means that the lender can’t initiate legal action. And it’s up to you to prove that the limitation period is over.
That depends on the best option for your situation. At Real PDL Help, we offer out clients a range of options. If you can afford to pay a lump sum immediately, we’ll try and negotiate a debt settlement with the lender(s). Under this program, you’ll be required to pay a reduced amount immediately or within a short period. The advantage is that you can get a very significant reduction of the amount owed.
If immediate payment is not possible, a debt consolidation or debt management program may offer a more appropriate solution. We will negotiate lower interest rates and reduced monthly payments on your behalf. In this case there is no upfront cost aside from the first monthly payment on the debt management plan (DMP), which is typically much less than clients are currently paying when they join the program.
Wage garnishment appears on the public record. It will adversely affect your credit report. Garnishment judgments remain on credit reports for up to seven years.
Yes, they can. However, if you have a letter from them agreeing to settle the account at the lower amount and proof that you have paid, they are unlikely to succeed in the legal proceedings. Remember to keep copies of all your documents as you may need them years later.
Yes, we can help after you furnish us with more details about your loans. REAL PDL HELP’s programs usually give you 6, 12, or 18 months to repay. But this depends upon your monthly income and how much you can afford to pay every month.
Don’t pay. Ask the collection agent to send you a debt validation letter. They are legally required to provide the details of the loan they say you have taken. If you are not convinced by the information in the debt validation letter, request more details. Here are some sample letters provided by the Consumer Financial Protection Bureau.
Yes. Write to the payday loan company and tell them you are withdrawing the ACH (Automated Clearing House) permission you had given them to withdraw money from your bank or credit union account. You should write to your bank or credit union as well.
In fact, you can stop automatic payment from your bank account even if you have not revoked the ACH authorization. Write a stop payment letter to the bank.
Sample letters for writing to the payday loan company, the bank, as well as the format for a stop payment letter, are available on the website of the Consumer Financial Protection Bureau.