Creditor is Harrassing me….?
I took out a payday loan for a friend who didn’t pay it back, now the creditor is calling me demanding I call them back to make payment or they will contact my boss to my information from them. I have already sent them a certified letter asking them to stop the calls that when I have the money I will contact them, but then he called me saying that he’s was giving me until a certain day and time to call him back or he was going to contact my boss. Can he really do that? Isn’t this considerd harassment?
The FDCPA applies to third party collection agencies, not the original creditor. Sending a cease and desist letter to the original creditor is useless.
Payday loan companies do not play fair. They give a whole new meaning to "aggressive". They will undoubtedly call your boss about your debt, even if it is illegal. Yes, they will definitely "harrass" you. Figure out some way to pay them off. Then sue your friend in small claims for repayment.
It is never a good idea to co-sign or loan your credit to someone. But getting a payday loan for a friend is one of the absolutely stupidest things I have ever heard. People with really bad credit can qualify for payday loans. Your friend’s credit was soooo bad he couldn’t even get a payday loan on his own? And you thought he would pay it off cause it’s in your name??
January 29th, 2010 at 3:35 pm
Go to Daveramsey.com
He has examples of letters that you can send to creditors. You DO know that YOU are responsible for this loan, right?
Dave Ramsey also has a fantastic plan on how to become debt free. It worked for me!
References :
http://www.daveramsey.com
January 29th, 2010 at 4:24 pm
CEASE AND DESIST TO A COLLECTION AGENCY
Under the Fair Debt Collection Act, you have the right to ask the collection agencies to stop contacting you—and they must comply with this request. Here is a letter you might use as a guide. Keep a copy for your files and send the letter registered mail.
Your Name
123 Your Street Address
Your City, ST 01234
Cheatem Collections
123 Fagetaboutit Ave
Chicago, IL 00001
Date
RE: Account XXXX-XXXX-XXXX-XXXX
Dear Sir or Madam:
I request that you CEASE and DESIST in your efforts to collect on the above referenced account (see letter attached). It is my personal policy not to deal with collection agencies and I will only deal with the original creditor of this account.
You are hereby instructed to cease collection efforts immediately or face legal sanctions under applicable federal and state law.
GIVE THIS LETTER THE IMMEDIATE ATTENTION IT DESERVES.
Cordially,
Your Signature
Your Name
THE FAIR DEBT COLLECTION PRACTICES ACT of 1979
All the info that you need on this subject can be found in this government website.
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf
This is the full listing of what a collection agency can and cannot legally do.
References :
January 29th, 2010 at 5:09 pm
Since it is the payday loan store calling you and not a collection company, they are allowed to do so. If it were a collection company, they would have to stop immediately and can only mail you a letter once to let you know of further legal action.
It may be considered harassment if they contact you more than twice a day. They can call your employer and actually can contact or tell anyone they want. All they want you to do is be in contact with them and make payments. Tell them you will pay back $50 a week or $20 every two weeks, whatever, and stick to it. They shouldn’t bother you again if you are making payments.
They may turn it in to Small Claims Court which would in turn be on your credit report.
References :
Former debt collector of 8 years
January 29th, 2010 at 5:51 pm
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References :
January 29th, 2010 at 6:34 pm
The FDCPA applies to third party collection agencies, not the original creditor. Sending a cease and desist letter to the original creditor is useless.
Payday loan companies do not play fair. They give a whole new meaning to "aggressive". They will undoubtedly call your boss about your debt, even if it is illegal. Yes, they will definitely "harrass" you. Figure out some way to pay them off. Then sue your friend in small claims for repayment.
It is never a good idea to co-sign or loan your credit to someone. But getting a payday loan for a friend is one of the absolutely stupidest things I have ever heard. People with really bad credit can qualify for payday loans. Your friend’s credit was soooo bad he couldn’t even get a payday loan on his own? And you thought he would pay it off cause it’s in your name??
References :
BD