Help with Payday Loan Collector

[JuJuBee84]

I received a call this morning from a local phone number. When I answered, the woman stated she was calling from Evans Law Assoicates for a payday loan taken out 3/31/2008. I googled the company and found a great deal of reports about them. They are located in NY. Now back in my day I did use a couple services but ALL were paid back and I have receipts for each one. The company she stated they were collecting for I know I didn't use. I stated this was not mine as I never dealt with this company. She continued to argue the debt was mine although she stated they have no copies of any documentation on the loan. Then she stated we still can collect on this as they just changed the SOL for your state. WHAT? I am in California and as far as I know the SOL is still 4 years so I am assuming even if by some chance this was mine the SOL has expired. How should I proceed from here?

[FrugalRican]

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@JuJuBee84 wrote:

 I stated this was not mine as I never dealt with this company. She continued to argue the debt was mine although she stated they have no copies of any documentation on the loan. Then she stated we still can collect on this as they just changed the SOL for your state. WHAT? I am in California and as far as I know the SOL is still 4 years so I am assuming even if by some chance this was mine the SOL has expired. How should I proceed from here?

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So they have no paperwork for this loan that you know you don't owe?

Yeah, okay. Sounds like a real winner there.

I don't know what you can do AFTER, but I'm telling you right now, definitely don't be sending anyone a check.

Technically though, they can TRY and collect FOREVER and a day, they just can't sue after the SOL is up, two different things.

[RobertEG]

That is what the DV process is all about.  Send them an immediate DV request under FDCPA 809(b).

That will require them to cease collection on the debt until they have obtained verification from the owner and communicated that verification to you.

If they have no current records pertaining to the debt, they must obtain verification in some manner, such as by contacting the credtior. Until they do that, they must cease collection on the debt, including reporting it to the CRAs.

Meanwhile, keep on the lookout for dunning notice.  Their call to you was an initial communication that triggered their statutory obligation to send dunning notice within 5 days of that initial communication.  You dont have to wait for dunning notice to send a DV, so if they gave you enough info in their call to communicate with them, send it immediately, thus blocking their ability to report to the CRA. 

If you dont receive dunning notice within approx two weeks, I would draft a complaint to the FTC, and send a cc: to the debt collector, putting them on notice that you are aware of and taking action on their lack of compliance with their debt collection responsibilities.

You might also include in your FTC complaint their representation that they have somehow altered your state SOL.

 That is, at the least, a violation of FDCPA 807(10), which prohibits any "false representation or deceptive means to collect or attempt to collect any debt."

[Anonymous]

Ask for a DV form sent; just to let you know, most payday loans are illegal and if they do vailidate the debt, you probably only owe the principal.

[Revelate]

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@Anonymous wrote:

Ask for a DV form sent; just to let you know, most payday loans are illegal and if they do vailidate the debt, you probably only owe the principal.

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That varies wildly by state, they are legal in Cali though I don't know if there's limitations on the terms.

DV is the right solution for this, and if you get a run around, well, that's what the legal system is for worst case.  Not certain that a change in the statute of limitations window can pickup debts from before that point in time either... doesn't sound right.

[JuJuBee84]

Thank you all for the replies. I will be sending out a DV letter Monday and will be watching to see if they do send a "dunning notice".

[LALALISA]

Be careful because I've gotten these calls too. Mine was from a fake payday loan collection so make sure it's not yours. They threaten you with jail and that they're going to serve you court papers at ur work or hom (which is highly illegal). I reported them to the FTC. I'm not saying its one of those but just to be sure.