In payday loan debt? Don’t let false promises sink you in deeper.

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Many people who take out payday loans have trouble paying them off quickly. A recent FTC case shows how dishonest companies can take advantage of people who can’t make their payments, while fees and interest costs grow.

Payday Support Center promised to help people who fell behind on payday loan payments. According to the FTC, the company’s ads gave false assurances that it would pay off or eliminate payday loans in a short time. Payday Support Center charged an enrollment fee and biweekly payments — sometimes hundreds of dollars. According to the FTC’s complaint, Payday Support Center claimed to negotiate interest-free payments, apply the biweekly payments to loans, and either pay off or eliminate the loans — all through what they said was a four- to six-month program. The FTC says the company even convinced people to stop paying the loan companies altogether.

So, what happened to borrowers? The FTC says that borrowers’ payments didn’t go toward paying off their loans. Borrowers still owed money under the original loan terms, and sometimes even owed more money because of interest payments and late fees. Instead of getting help, borrowers got a piece of paper: according to the FTC, Payday Support Center simply sent out form letters asking the lenders to prove the loans were legitimate. But the company did not, the FTC alleges, make efforts they’d promised to pay off or eliminate consumers’ loans.

If you’re feeling overwhelmed by debt, consider other ways to get out of a financial bind. Learn more about making a budget, and what you should know about payday loans and dealing with debt.

 

 

Tagged with: debt, loan
Blog Topics: 
Money & Credit

Comments

I had payday loan,the way out of it is to borrow less it month until you nolonger need it,by law you can offer them a creditor settlement on the loan,for less payment.per month this also work for loans that's made against your car.keep your settlement papers with you,

In till to fullfill my refund inquiries I need fast cash on payday to solve my timely financial problems.

I tihnk anything with the term PAYDAY in it's title should be enough warning to stay away. Bad news.

Thank You!!!

the credit store is a interest soaking place, my sister and i both had a title loan with them hers ended up monthly payments and mine was 28 day.

thank for advice

I applied for a loan and was scammed out of almost $700 by consumerpaydayloans.com

caller called me today said that I was suppose to get a fax or delivery from UPS. I knew I was not expecting a package but I know things had been delayed for the holiday with some family members. I called the number back and this guy answered. He asked me what phone number I called from and like a dummy I said it; however, this man goes on about how I owe money for a payday loan back in 2008. He had some information on bits and pieces of me, but there is no place called KNOX LOANS. Plus the staute of limitations for debt collecting in PA is four years. PLUS, if you were legit, then you would not be whispering on the phone. The message said his name was JEFF LOCKETT, but then it goes automated.
I hung up on these people and called my mother..lol DO NOT TRUST THEM.. tell them to send it to you in writing to whatever address they have you will get it...

somebody called me back in December 2015 and called be back again last week left a message to confirm address for proper delivery, the # 18552908572 I called back today 3/23/16 and he said if I got a mail but I never got anything. He also mentioned that I owe money and before they send me to court he want to confirm and to settle it. he identified himself as a arbitration office, so confuse because he mentioned that I have bank of America acct etc. I don't know if this is a real scan.

If you think you owe money on an account, call the company yourself and ask about your account. If you have a debt, ask how to settle your debt with the company. Ask the company if it hired the person who called you.

A criminal might call you and pretend to be a debt collector. He might guess where you have an account and try to scare you into sending money. This article about fake debt collectors tells you how to handle calls like that.

Anyone have any experience with National Payday Relief? I can't find ANY reviews on them

WARNING: BEWARE OF MAXLEND ONLINE LOANS. I BORROWED $500 AND IT ENDED UP COSTING ME ALMOST $2000. THEY SAY THEY EXPLAINED THE TERMS OF THE LOAN - THEIR CONCEPT OF EXPLAINING THE TERMS AND MY CONCEPT OF HOW THEY EXPLAINED THE TERMS WERE TOTALLY DIFFERENT OF COURSE. I AM AN EDUCATED, ALTHOUGH A SENIOR CITIZEN, AND WAS TOTALLY FOOLED INTO BELIEVING I WAS WORKING WITH A HONEST (AS POSSIBLE IN THIS INDUSTRY (LOANS)). I HAVE TAKEN OUT NUMEROUS LOANS OF THIS NATURE IN MY LIFETIME AND THIS IS MY FIRST EXPERIENCE WITH A SCAM. PLEASE BEWARE OF MAXLEND AND PASS THE WORD.

You can report this to the FTC at FTC.gov/complaint. The information you give goes into a secure database that the FTC and other law enforcement agencies use for investigations. The comments you put here on the blog don't go into the law enforcement database.

I would like to know why it is considered a negative mark if you have paid off a satisfied contract with a Consumer Finance lending company on your credit report how long does it stay there keep in mind I have never had a late payment

If you think there is an error on your credit report, you can dispute it. This FTC article explains how to dispute errors on your credit report.

I wish I had seen the above video before I took out TWO (2) ONLINE PAYDAY LOANS. I found out way toooo late that by the time I pay them off one loan would cost me $2200.00 and the other $2300.00. Looking for a way out!!

Does anyone know of a legitimate payday loan relief company?

Never use a company that tells you that you have to pay them, to make your payments.

Nice

Highly vigorous blog, I liked that much.

I work at a Senior Living Community and was made aware that an elderly resident has a loan with a small company. He was called by the company yesterday and was told if he didn't make his payment they would call the Sheriff's Office and have him arrested. What agency would we contact to make a formal complaint against this loan company?

You can contact your state Attorney General and file a complaint with the Consumer Financial Protection Bureau (CFPB). The CFPB works with financial service companies including lenders and debt collectors.

You may want to check on the lender too; ask the Attorney General's office if it has complaints on file about the company. Or search online for the company name and the word "complaint" or "review."

If the company has access to the resident's bank or credit account number, the resident may want to contact his bank or credit card company to make sure his accounts are secured so that no one can make an unauthorized charge.

When a debt collector threatens to have someone arrested, he's violating the Fair Debt Collection Practices Act. This FTC article about consumer rights related to debt collection explains more. Please let the FTC know about this too at FTC.gov/complaint. Thank you.

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