6 Common Lies Debt Collectors Will Tell You Debt collectors are special debt collection agencies assigned by the financing companies- mostly direct payday lenders to collect payments from the delinquent borrowers who have defaulted their loans. People also call them bill collection agencies. Since it is their job to recover the debt, they try everything- including telling lies and threatening debtors- to make the borrower pay. If you have had any experience dealing with a debt collector, you would know…

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The Three C’s of Your Credit Your credit status tells a lot about your borrowing and debt management history; how you dealt with your previous debts. Although it is subject to change from time to time, it gives a fair idea of your current situation. Since your credit score reflects that in a numeric form, direct lenders may run through it while you apply to take out a loan. Have you ever gotten curious how by looking at your credit…

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Do You Need a Good Credit for a Payday Loan? Payday loans are short-term financing without any collateral pledge. These are popular because they give access to cash really quickly with online applications. On the other hand, a credit score is the numerical reflection (varies between 300 and 850) of a person’s borrowing practice or credit history. If someone does not pay off debts, obviously the credit report, prepared by credit bureaus such as TransUnion, Equifax, Experian, and others, records…

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Are Payday Loans Legal in America? Payday loans are unsecured debts that often come with high-interest rates. However, they are quick and an easy way of accessing money up to $1,000, especially during cash shortage. People with low income use these cash advances for various purposes including paying outstanding bills, medical expenses, fixing a car or for emergency travels. As the name suggests, these loans need to be paid back by the next paycheck day.  Everything sounds fine so far….

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When a Debt Collector Comes Between the Borrower and the Payday Lender Payday loans are simple ways of securing finance in between salary days with quick funding. These short-term financings need to be repaid by the next paycheck day. The repayments can be done by an automated clearing house (ACH) system –where money gets automatically deducted from debtor’s account on the due day– or the borrower can write a check in the favor of the lender. If a borrower does…

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Can Payday Loans Be Included in Chapter 7? Before knowing if a payday loan can be included in chapter 7 of the US bankruptcy code- or popularly “chapter 7”- it is important to know what the US bankruptcy code and its chapter 7 are. United States bankruptcy code, is a set of rules regarding bankruptcy in America. It is also called “Title 11 of the United States Code”. It has 15 chapters, and chapter 7 talks about liquidation and bankruptcy….

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When Wage Garnishment Becomes a Reality Defaulting a payday loan does not always lead to wage garnishment. What happens if you don’t pay back your debt is another topic. However, one thing is certain that if the lender is recognized by the state, and it wins the legal case to garnish your wage in order to recover the lent money, wage garnishment becomes a reality. In that case, your employer, while obeying the court order, would deduct a percentage of…

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Does Credit Rating Impact Your Borrowing Ability? Credit rating is done by credit bureaus, namely TransUnion, Equifax, and Experian, although there are secondary rating agencies that also do it. They basically prepare a detailed report of the borrowing habits of people- how they deal with debts. On the basis of that, they give them scores which could be anything between 300 and 850. If people pay off their debts on time, then that is considered to be a healthy credit…

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The Chances of Getting Arrested If a Payday Loan is Not Paid Debt collectors, and even the payday lenders themselves, sometimes threaten borrowers over the phone that they would be arrested for not paying back their payday loans. While it is a way to recover the money by making the borrowers concerned about the consequence of nonpayment, is it really possible? Before that, let us be clear that only nonpayment or delay in scheduled payment is not the reasons why…

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