Payday Loan Collection

[sybo32]

What is the name of your state? VIRGINIA

I applied for a $350.00 internet payday loan and took the loan with a VERY high interest rate. After renewing the loan and have a couple bad things happen, I was unable to repay the loan. The longer the loan was alive and going unpaid, there were additional, DAILY fees that were being tacked onto the loan. The amount due to the loan company is now $1,000 +. I cannot afford to pay that amount to them. Since that time, the checking account that they'd collected a couple of the payments from (they've collected extension [or refinance] fees and one principal payment of $50) has been closed due to checks bouncing all over the place.

They have since hired a collection agent who has called me and my job and harassed EVERYONE he can think of (from being rude to me and the HR manager to calling a couple directors and a security officer to request that either me or my attorney return his call) and indicated that I have committed internet fraud. This has lead me to three questions:

1) Can I settle for just the amount of the principal as it is really all I can afford
2) HAVE I committed an act of fraud?
3) Do I need to consider an attorney to get this resolved? I don't have a lot of money and am afraid that I'll waste more time trying to find a reasonable attorney (I make WAAAAAAAAY too much money for legal aid), resulting in a garnishment of my wages.

ANY advice you can offer would be greatly appreciated!

Thanks!!

 

[Ladynred]

First of all NO ONE can garnish your wages without suing you and winning a judmgent FIRST and that doesn't happen overnight. If the collection agency is telling you he can garnish any day, he's full of crap.

Second, since they hired a 3rd party debt collector, this collection agency IS bound by the Fair Debt Collection Practices Act (FDCPA) which you really need to read. What this collector is doing is a violation of that law so you need to know your rights and his limitations.

1 - probably not, but you can try. Payday loan people are vicious and I doubt they'll settle. These loans carry interest rates of anywhere from 300 to 600% !!!

2 - they say this because you essentially gave them a check, then didn't have the money to pay it, but I doubt they could win with 'internet fraud'.

3 - Not necessarily but you might WANT one anyway. Dealing with these slugs on your own can be a real headache.

 

[sybo32]

Thank You!!

Ladynred, you're awesome! Thanks for the quick response!! I REALLY appreciate your help in calming this storm!!