what i should do if a lawyer call me about a payday loan

Don't speak to them other than to request a verification of the loan. You should send a request for verification certified mail, return receipt. If they keep pursuing you, you should speak to an attorney who does debt collection defense and possibly criminal defense, though you have not listed anything that is a crime.

Full Answer

Do you need a lawyer for a payday loan?

Payday loans can be helpful to borrowers who need a loan in a short amount of time. However, such loans often carry certain risks and may be limited by state laws. You may need to hire a qualified financial lawyers if you need help or advice regarding a payday loan.

What is a payday loan?

A payday loan, or “cash-advance loan”, is a loan that is generally repaid directly from the borrower’s next upcoming paycheck. These are usually loans in smaller amounts, but are often associated with higher interest rates due to the short repayment term.

What are the consequences of a payday loan dispute?

Criminal sanctions and consequences may be applied to lenders who are caught violating finance and loan laws. Common violations include identity theft and a misuse of the borrower’s personal information. Do I Need a Lawyer for help with a Payday Loan Dispute? Payday loans can be helpful to borrowers who need a loan in a short amount of time.

What happens if a person defaults on a loan?

In the event of a default of payment or other similar dispute, courts may issue an injunction requiring the borrower to pay. In serious cases, the default may lead to a lien being placed on the person’s property. Or, payment may be applied to the person’s subsequent paychecks.

Can cash advance take me to court?

If you don't repay your loan, the payday lender or a debt collector generally can sue you to collect. If they win, or if you do not dispute the lawsuit or claim, the court will enter an order or judgment against you. The order or judgment will state the amount of money you owe.

What happens if you dont repay payday loans?

Payday loans come with exorbitant interest rates and fees that often make them very difficult to repay. If you can't pay back a payday loan, the account may be sent to a collection agency, which will damage your credit.

Why would a law firm be calling me?

It could be that you are a witness to some event that they represent someone else for, they could represent a creditor of yours, or many, many, many other reasons.

Can payday loan companies harass you?

Even if desperate circumstances led you to take a payday loan and you are struggling to pay it back, you are still entitled to protections from abusive debt collection tactics. No lender, even a strip-mall cash advance company, is allowed to harass and threaten you in an attempt to collect a debt.

What happens if I close my bank account and default on a payday loan?

If you close the checking account to keep the lender from taking what you owe, the lender might keep trying to cash the check or withdraw money from the account anyway. That could result in you owing your bank overdraft fees. The payday lender might send your loan to collections. Then there will be more fees and costs.

How long does a payday loan stay in the system?

Payday loans do not work like regular loans. The records of traditional loans may be kept for 6-10 years. Payday lenders do not usually report to the credit bureaus, even in case of overdue repayments. But the payday loan may be filed once it is passed to the collectors after the lender sells the debts.

How do you know if a lawyer is scamming you?

How To Avoid Legal Representation ScamsPayment needs to happen quickly. You can't ask questions or get clarification.It's an emergency. Someone may threaten you or your loved ones.Requests for money usually happen over text, email or phone.The person contacting you is not someone you recognize.

Do lawyers call people?

A: Yes, an attorney can contact you but you have no obligation to speak with them. If you believe you are at risk of being accused of a crime, you should contact a criminal defense attorney to discuss the details of the matter. If you are contacted by law enforcement at any point, do not make any statements.

How do you beat a debt collector in court?

How to Beat a Debt Collector in CourtRespond promptly to the lawsuit. ... Challenge the debt collector's right to sue. ... Bring up the burden of proof. ... Review the statute of limitations. ... File a countersuit. ... Decide if it's time to file bankruptcy. ... Use these 6 tips to draft an Answer and win. ... What is SoloSuit?More items...•

How do I respond to a collection letter from a lawyer?

Four Steps to Take if You Received a Debt Collection Letter From a LawyerCarefully Review the Letter to Determine the Claim. ... Consider Sending a Debt Validation Request. ... Gather and Organize All Relevant Financial Documents and Records. ... Be Proactive: Debt Does Not Go Away on its Own.

How can I stop payday loan garnishment?

To stop the next scheduled payment, give your bank the stop payment order at least three business days before the payment is scheduled. You can give the order in person, over the phone or in writing. To stop future payments, you might have to send your bank the stop payment order in writing.

What should you not say to debt collectors?

3 Things You Should NEVER Say To A Debt CollectorAdditional Phone Numbers (other than what they already have)Email Addresses.Mailing Address (unless you intend on coming to a payment agreement)Employer or Past Employers.Family Information (ex. ... Bank Account Information.Credit Card Number.Social Security Number.

How do scammers work?

Here’s how the scam works. They send a letter or call you up. They tell you that you took out a payday loan years and years ago. They also say that you closed the checking account that you used to take out the loan, and as a result they’re accusing you of wire fraud.

Do scammers take your information from payday loans?

The scammers bank on you not remembering every single payday loan you’ve ever taken out. They often get your information from payday loan forms you fill out on the internet, the type that come from lead generation sites rather than directly from companies that issue payday loans.

Do I need a lawyer for a scam?

Often these scammers claim to be from a law firm, from the Federal Trade Commission, or even from the FBI. Fortunately, you probably don’t need a white collar or federal criminal lawyer if you get a call like this.

Payday Loan Rules

If the lender is licensed, then in order to give out a valid and legal payday loan to a consumer, there are still a good number of rules that they have to follow. For example:

How Can We Help?

We would love to see what we can do to help, as many Massachusetts residents, and many citizens and residents around the country have been victimized by these payday loan lenders who subject people to excessive charges and prey on individuals who are just trying to make ends meet and support themselves and/or their families.