Five Things You Can Do If a Payday Lender Threatens or Harasses You by Phone
Some of our readers report being threatened and/or harassed over the phone when they were unable to repay their online payday loans.
The Fair Debt Collection Practices Act (FDCPA) protects consumers from unethical collection practices by debt collectors. Unfortunately, this law does not apply to payday lenders* because they do not meet the definition of “debt collector” under federal law.
*We would like to thank Jillian for kindly pointing this out.
If a lender threatens or harasses you by phone, you are not protected by the FDCPA but there are still things you can do to protect yourself and others.
Listed below are five things you can do if a payday lender threatens or harasses you by phone…
- File a Complaint with the Federal Trade Commission (FTC)
You can file a complaint against an unethical paycheck advance lender at the FTC’s website on credit (there is a “File a Complaint” button on the top right navigation bar).
- File a Complaint with State Regulators
You can also file a complaint at the state regulator or agency that licenses your payday lender to complain. Our site has a list of state regulatory agencies for payday loan companies.
- Contact Your State Attorney General’s Office
Many state Attorney Generals have taken a strong stance against payday lenders and other cash convenience businesses. The office of the Attorney General in your state may be able to offer you advice or educational materials.
- Contact Police if Threats Escalate
If the threats escalate (i.e. they threaten physical violence or taking your possessions by force) you should contact the police immediately.
- Consider Payday Loan Alternatives
To avoid such situations in the future, please consider payday loan alternatives. Credit unions are much more approachable these days and many offer payday loan alternatives at excellent rates.
Finally, if you are threatened or harassed by an online payday loan company, please contact us so we can warn fellow readers on our site. Thank you!
Please remember that information contained in this website is of a general nature only and is not intended to constitute advice for any specific fact situation. For particular questions, please consult your lawyer and/or financial consultant.
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