Consolidating online payday loans
Nonetheless, some payday lenders have succeeded in using bad-check laws to file criminal complaints against borrowers, with judges erroneously rubber-stamping the complaints.
The CFPB advises anyone threatened with arrest for nonpayment to contact his or her state attorney general’s office.
If the debits don’t go through, they may break the charge into smaller chunks in an attempt to extract whatever money is in your account.
Each failed attempt can trigger a bank fee against you.
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“If you have a valid, binding, legal agreement to pay that debt, and you’re in a state where they can sue you and attach your wages, you’re playing a game of chicken that you’re going to lose,” says Bruce Mc Clary of the National Foundation for Credit Counseling.
In a 2014 report on lender practices, the Consumer Financial Protection Bureau found that payday collectors visited borrowers’ homes and places of work and told friends, neighbors and colleagues the details of the person’s outstanding loan.
“They’re fairly aggressive because you’re already on a fairly short leash,” credit expert John Ulzheimer says.
“It’s not inconceivable that [third-party debt collectors] are paying 3, 4, 5 cents on the dollar,” Ulzheimer says.
That makes lenders’ first priority to collect the debt themselves, he says.“The collector has complete latitude regarding whether they want to report it at all, whether they want to report it immediately, or in six months, or ever,” Ulzheimer says.