Payday loans are short-term cash loans that need to be repaid by the next payday. There are lenders like EZPaydayCash who also have a rollover or extension option by which the borrower can postpone the due date. If the debtor does not ask for a rollover and does not make the payment on or before salary day, it would be considered as an intentional default of the debt. In that situation, the borrower might deploy a debt collector to collect the payment or might deal the matter itself directly.
The debt collecting agency or the lender may make phone calls to the debtor to ask for repayment. However, there are some rules that need to be followed both by the lender and the debt collector. Firstly, they cannot call you frequently, and cannot threaten you over the phone. Calls can only be attempted during the allowed time of the day. They should not call your office and make your debt public. These are the strict guidelines set by the Federal Trade Commission (FTC) in its Fair Debt Collection Practices Act (FDCPA).
Is your lender violating the act? Are you getting repeated phone calls from your payday lender and feeling harassed?
If you are getting calls from your payday lender or the assigned debt collector before 8 AM or after 9 PM, if the calls harass you or threaten to put you in jail, or they call you repeatedly at home and at work, you can take action to stop them. As a first step, you can write a letter to the financing company or the debt collection agency asking to cease communication. According to the FDCPA Act, the calls need to stop immediately after that. However, the debtor should mention in the letter how he or she wants to be contacted. The borrower can ask for communication via letters or emails. Even after that, if the calls do not stop bothering or harassing you, then report that to the FTC or the state authorities. Remember that while reporting, you can also mention if you got threats from your lender of any kind, including arrest threats, since they are illegal.
On the other hand, if your lender calls you to discuss finding an alternative plan of repayment, having a dialogue is always good. It is important for the debtors to pay back if they have taken out payday loans on time.
If you’re receiving persistent calls from a payday loan lender or debt collector and you want them to stop, you can take the following steps:
Remember that it’s important to stay informed about your rights and take action when dealing with debt collectors. If you’re unsure about the legality of their actions, seek advice from a consumer protection attorney.
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