Defaulted Payday Loans

If you've ever defaulted on a payday loan, then chances are you've received more than a few phone calls threatening lawsuits and arrest warrants like the ones you’ll hear on my blogs audio player. Needless to say, they're just scare tactics.

I've received over a hundred such calls over the years and I've never had a single courier serve me a summons at my home or place of employment like they are so famous for threatening people with. Furthermore, if they were going to have me served they would never give me advanced notice.

These ridiculous threats are intended to do one thing and one thing only...scare the debtor into making a payment. I have nothing against a person trying to make a living. Believe it or not, debt collectors do serve a purpose. My only issue is the way in which they go about collecting the debt. 

Having said that, defaulting on a payday loan may be an issue of morality, but it’s certainly not illegal. I’m sure we all had intentions of paying the loan back when we borrowed the money but the reality is, sometimes *hit just happens! 

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Consumer Financial Protection Bureau

Normally I do my own dirty work but for whatever reason, call it a gut feeling, today I decided to do a little extra research and I ran across an organization called the Consumer Financial Protection Bureau or CFPB. They work as a middleman between you and the debt collector and work to get your issue resolved.

In my complaint I made no admission to owing the alleged debt or any promises to pay. I simply stated that I had recorded transcripts of the company’s illegal collection tactics and that if they didn’t cease and desist all communications with me immediately, that I would seek legal action against them.

This is where Google-voice really comes in handy. With Google-voice, all voice-mails are recorded and can be downloaded to your computer as an mp3 file which can be used as proof of the illegal collection practices being used against you. In the case of my CFPB complaint, I was able to upload the mp3 files that I saved to my computer directly into their online complaint form!

Don’t just think of the CFPB as an intermediary. Each complaint submitted to the CFPB is shared with several local, state and federal agencies that oversee collection tactics by unscrupulous companies that illegally harass consumers about unpaid debts, even if the debt does not belong to you.

I took a more aggressive stance in my complaint by threatening legal action because I have a “no fear” attitude, but you may want to communicate in a less aggressive tone and hammer out some type of payment arrangement with them. I’m just providing the information. How you choose to use it is completely up to you.

The more complaints that we submit as consumers to organizations such as the CFPB and Federal Trade Commission, (FTC) the greater the chance we’ll have of getting some of these low life companies shutdown or at least fined enough to make them collect unpaid debts by the letter of the law.

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Phone Number Spoofing

So tonight I get a phone call and the caller ID reads: Sheriff’s Dept. Now, to the average person, panic would set in right away but for me, my immediate thought was that it was just someone trying to collect on a debt by disguising their phone number in order to make it appear as if the call was coming from the Sheriffs Dept. Seriously...That’s just how my mind works, so I let the call go straight to voice-mail.

The caller identified himself as Officer X, calling from the San Diego County Sheriff’s Dept. and he stated that a warrant would be issued for my arrest this evening at 9:30 PM and if I wanted to prevent the warrant from being served, I needed to call the plaintiff in this case back at the provided telephone number within the next hour or else I would be picked up and arrested!

The alleged charges were something along the lines of theft by deception, bank wire fraud and some mumbo-jumbo about fraudulent checks across state lines. At any rate, it was clearly a bunch of B.S. and that’s putting it nicely! I’ll give him credit…If I didn’t know better, I would have been scared “witless”, especially after I googled the number on my caller ID and found that it actually matched the San Diego County Sheriff’s Dept., but I’m smarter than that.

Listen, I didn’t create this blog because I was stupid. If the goal is to scare me, pull the Sheriffs car up to my front door with a warrant in hand and maybe then I’ll consider taking you seriously. Maybe. But even then, I’d know that the visit was due to some kind of mistake. The thought of it being for an unpaid payday loan or other debt would NEVER have crossed my mind because I know that these are civil matters and not criminal. You might sue me for the debt but you’ll never jail me for it!

Phone Number Spoofing:

Phone number spoofing is the ability to call from one cell phone number and disguise it to appear as if the call is coming from another phone number…Including numbers that belong to legitimate entities such as local law enforcement agencies with the hope that it will scare you into complying with their demands for immediate payment. Don’t fall for it. It’s a scam!

These apps can be downloaded from any iPhone or Android store in about 2 minutes and can be stressing a person out within 15! Yes, technology has come that far! I was so amused at the creativity that went into the creation of this scam that I had to blog about it right away so that I could give my followers a heads up before they got scammed or stressed out unnecessarily.

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Share Your Debt Collector Stories!

When you’ve dealt with bill collectors for as long as I have, you eventually run across just about every collection scenario in the business. In one such scenario, I received a call from a collection agent who was very nice and surprisingly a perfect gentleman throughout the entire conversation. The conversation went something like this:

The collection agent tells me that my visa account was in collections and that it would cost me just over $1000 to settle the account. I informed him that the credit card limit was only $300 and that I would be willing to pay the $300 to settle the account, as I was trying to clean up my credit.

He then informs me that the extra $700 was due to collection fees and interest. I remained calm as to not escalate the situation and kindly informed him again that I would gladly pay the $300 past due amount but there was no way that I was going to payback an extra $700 in interest and fees…not in this life or any other for that matter.

The agent then tells me that it will go on my credit report if I refuse to pay and I informed him that it's already on my report so I would gain nothing by paying him an exuberant amount of cash on a card that I would never be able to use again and on top of that, it would still ding my credit report for years to come.

It didn’t take very long to figure out that neither of us were budging any time soon, so we both agreed to end the conversation like gentlemen without the standard voice raising and name calling. All in all I believe it just may have been my best collection call ever! Do you have any debt collector stories that you’d care to share? If so, please type them in the comments section below!

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Do You Find "Bill Collectors Hate Me" Useful?

Due to unforeseen circumstances, I had to take a bit of a hiatus from BCHM! but I think I've gotten my life in order to pick back up where I left off. The question is... Does my audience appreciate all the hard work that I put into the articles that I write?

Sure, I get the occasional, "thanks for the great site!" posts but I really can't get a true feel for the impact the site has on the majority of my followers. I guess it doesn't matter much as long as I'm able to give at least a few people peace of mind in knowing that they are not going to go to jail for unpaid payday loans!

I often use payday loans as an ongoing blog topic because it seems to be one of the most popular topics that people email me about. At any rate, I enjoy helping to put peoples minds at ease and will continue to do so as long as people remain interested in what I'm sharing. Here's to a new year!!!

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Credit Karma: Free Credit Reports

Credit Karma has just gotten better! Not only do they offer 100% free credit scores, but they now offer free credit reports. This is great news! Now you can log into your Credit Karma account at any time to review your most recent TransUnion credit report.

This is a fully detailed report that will give you enough information to see exactly where you stand at any time. This means no more waiting for your one free credit report that you’re entitled to each year. No more paying for additional credit reports at any other time beyond your free annual report.

I’ve been using Credit Karma for over 2 years and as good as it was before this month, it just got a whole lot better. I highly recommend Credit Karma for free credit scores and reports. Sign up requires no credit card information and just takes a few minutes. Sign up today!

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The End of Payday Loans?

It’s no secret that some states have deemed payday loans to be illegal. Other states allow them but put a limit on how much you can borrow. California regulations for instance, only allow a person to borrow up to $300 maximum per payday. Other states have much higher limits.
 
It is my personal opinion that the days of payday loans are numbered. Just this past weekend, a friend of mine went to pay his loan off with the intention of borrowing the money right back. The employee didn’t tell him that they were discontinuing payday loans as of that very day until after he placed his loan payment in the employees hands. Ouch!

Needless to say, he was really counting on that money to pay bills and other monthly expenses. The shock on his face when he found out that he wouldn’t be getting his cash back must have been priceless! He was informed by the employee that the company was losing way too much money due to borrowers refusing to pay back loans. Go figure… It’s a miracle they’ve been in business this long.

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