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

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,

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.

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