If you have fallen into the vicious and unending loop of payday loans, you have likely considered getting help from a payday loan consolidation company. You take the time to get a foothold in your finances against the payday lenders by researching online for a reliable company, have completed all of the necessary paperwork and you are ready to take the leap back into control. After all this work your payday loan providers issue the statement that “We are not able to work with payday loan consolidation services.” This can make anyone feel completely out of control and hopeless.
There are some people that feel completely deflated at this point and throw their hands up in frustration. The fact is, however, you need to determine whether or not this is a true and accurate statement. After all, if no payday lenders are willing to work with consolidation companies, why are they even in existence – and growing?
Here are the three top reasons that the payday lenders that you are using will eventually give in and work with your payday consolidation service.
Number 1: Closure of Your Bank Account
The very first thing that your payday loan consolidation service will tell you to do is close the bank account that your payday lender drafts payments from. Even through your consolidation will send a document to the lender that revokes their right to draft your bank account automatically, it is essential you completely close the account to ensure that no unauthorized charges take place.
Number 2: Sending Cease and Desist Documents
Once you decide to work with a payday loan consolidation service, they will send documents for your lenders to eliminate any further communications directly with you. In accordance to the Federal Trade Commission, your payday lender is required to follow certain regulations when they are attempting to collect a debt. If they do not follow these rules and continue the calls, they can be fined up to $1,000 for each phone call that is made.
Number 3: Risk of Being Sued
There are many people that are worried if they do not continue to pay on their payday loans, they will be sued. However, a large number of the borrowers also do not understand that payday lenders (especially ones passed off of the internet) do not hold a license to actually lend money to people that reside in the U.S. This means that they are not able to take their non-paying or late customers to court for the balance of the payday loan.
Now if you think about the situation for a minute, you should come to three very significant conclusions:
- Lenders are not able to debit your bank account;
- Lenders are not able to call you for the money you owe;
- Lenders are not able to sue for the balance due.