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Payday loans in serious default
Anonymous2 views3 answers
I live in California and a couple months ago I took out a bunch of payday loans to pay to get my car back (which had been reposessed). I paid back 3 of them but still owe 5 of them for a collective total of about $1,800. The checks bounced and I am still not able to pay them back right away. I can pay a little at a time. The loans are now about 120 days past due & I don't know what to do. Can I get sued or can they garnish my wages? Or will they just go through collection agencies? Should I pay one at a time (even though that will take months to do) or should I pay a little to each one each month? Who should I talk to (the companies' corporate offices, lawyer)?? Plese help! I'm desperate
In my clients' experiences, a payday lender will probably harass the heck out of you and assign the debt for collection to a debt collector which will also contact you, but may also sue you in California Superior Court. Please be aware of the four year statute of limitations on such written loans. Also, be aware of your rights under the Fair Debt Collection Practices Act, for which there is a one year statute of limitations. For smaller loans, like the ones you had, I doubt that they will sue you. If they don't sue you and win a court judgment for the amount due, they cannot garnish your wages.
Please be aware of the one year statute of limitations for debt collection violations and please note that until I have a written fee agreement signed by both of us, there is no attorney-client relationship between us.
Robert Stempler
www.StopCollectionLawsuits.com
Joshua P FriedmanDebt Collection AttorneyBeverly Hills, CA ·
Payday loans do eventually file suit. You need to contact them and explain the situation and work out a payment plan ASAP. Do not wait or avoid them - that only leads to bigger problems and more costs.
Disclaimer of California Attorney
Although the above response is believed to be accurate, it should not be relied upon as any type of legal advice because the information provided is incomplete. It is intended to educate the reader and a more definite answer should be based on a consultation with a lawyer. No attorney client relation is formed with me without a written contract.
Joshua P. Friedman
[email protected]
www.losangelescollector.com
Payday loans have high interest rates & it can be next to impossible to ever pay them off, as the interest keeps accumulating faster than you can pay them.
In Nevada, the attorneys that represent the payday loan companies are very capable. They sue early & often, and they are very effective at finding out where you work & garnishing your paycheck.
The only thing you can do to stop them is to pay off the debt or file bankruptcy, and $1,800 is not worth considering a bankruptcy!
If you can find someone to lend you the money to pay them off, you won't have any problem finding the creditor to make the payment. They will be calling you day & night for payment!
Hope this perspective helps!
