What can you tell me about PayDay Loan collections? What are they allowed to do?

Answer by  eatwrite (1559)

They are allowed to rob you blind. they will charge you something like 300% interest rate. It is better to go to a friend or family member to borrow money. The laws are cracking down on payday advance but it is still bad. They also want you to have a checking account.

Answer by  patti (29325)

Read the FairDebtCollectionsAct, available online. There are limits to the number of phone calls and rules about threats, language, etc. Get info on the caller and notify the state's AG.

Answer by  diva25 (4016)

I know for a fact that payday loans are designed to be short term loans. You are given a certain amount of time before they money is paid back, and your check is cashed. I would also do a little research and see what you can do if you are being threatened.

Answer by  tamarawilhite (17883)

You cannot go to jail for an unpaid pay day loan. They can seek a judgment in court to garnish your wages or put a lien against your property. They cannot take your home. They cannot take your car unless the payday loan was secured by the car title. They cannot threaten violence - that is a crime.