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Old payday loan

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kennerchick
Frequent Contributor

Re: Old payday loan


@Sbrooks1 wrote:
I have no idea, they called with thick accent work and cell. I have an unpaid loan from an online server since gone bust. The loan was 500 and now all I can imagine is a thousands of dollars judgement . The last they said was court is next and haven't contacted me since. If it is the old PD loan what should my move be to prevent this escalating

Hey Sbrooks,

 

I am also from Louisiana!  Don't worry about these idiots!  They're scammers for sure!

 

My husband had a payday loan from years back and they called my cell.  I answered and I was informed by the heavily accented man that if my husband didn't pay, he'd have him fired from his job! LOL  I laughed when he said it and ever so politely said "GO AHEAD HE HATES HIS JOB ANYWAY" and somehow the phone disconnected from his end!

 

I also got a phone call telling me they were sending the sherriff out with a summons for my husband, I called the courts around us and there was NOTHING in his name!

 

Don't let the bully win! Don't look into it. Oh and they have NEVER been on my husbands reports either.  By the way Western Sky a.k.a CashCall is illegal in the state of Louisiana!

 

Starting all over again!
Message 11 of 17
Sbrooks1
Valued Contributor

Re: Old payday loan

But I know I have an old PD loan and from my research here they are super quick to sue, so knowing this I would like to pay it off but. They haven't even validated anything , should I call again and ask for collection notice with OC
Message 12 of 17
RonM21
Valued Contributor

Re: Old payday loan

I had scammers try to do this to me before, and it wss about a payday loan. I never had one, but considered it some time ago. I believe they got my info from phishing online. They had my address, social..everything. They used the phishing method apparently when I was applying online, using a not so secure PC.

Good thing is, I caught on to their act. They made tje same threats to.sue, arrest, etc. Hard accent also.


Total CL: $321.7kUTL: 2%AAoA: 7.0yrsBaddies: 0Other: Lease, Loan, *No Mortgage, All Inq's from Jun '20 Car Shopping

BoA-55k | NFCU-45k | AMEX-42k | DISC-40.6k | PENFED-38.4k | LOWES-35k | ALLIANT-25k | CITI-15.7k | BARCLAYS-15k | CHASE-10k

Message 13 of 17
kennerchick
Frequent Contributor

Re: Old payday loan


@Sbrooks1 wrote:
But I know I have an old PD loan and from my research here they are super quick to sue, so knowing this I would like to pay it off but. They haven't even validated anything , should I call again and ask for collection notice with OC

What is the name of the company threatening to sue?

 

I said my husband had payday loan as well.  That was 4 yrs ago.  Nothing on credit reports, NO arrest warrents, no court summons, NOTHING!

 

If they aren't validating, don't worry about it.  Unless you want to start something then you can file a complaint with the CFPB for the violation.  Only thing is that they may decide if the company is legit to add it to your credit report.

 

If I were you, I would leave sleeping dogs lie!

Starting all over again!
Message 14 of 17
RobertEG
Legendary Contributor

Re: Old payday loan

As an aside, the pay day loan market is currently under CFPB scrutiny, as discussed in the following article in Fortune Magazine (6/2/2015):

 

"New Rules Could Dramatically Alter the PayDay Loans Market

 

The U.S. agency charged with protecting consumers from financial abuse unveiled a proposal on Thursday that would limit short-term borrowings known as “payday” loans, which can carry interest rates as high as 390%.

The Consumer Financial Protection Bureau’s proposal includes having lenders determine if some borrowers can afford to take out debt. It also calls for restrictions on loan rollovers.

 

Payday lenders typically cater to low-income borrowers who need cash in a pinch but cannot access financing from mainstream banks. The name comes from the idea that a borrower would take out an emergency loan and repay it with the next paycheck. Since the loans often are not collateralized, lenders take the risk of not being repaid and charge higher rates.

 

“Too many borrowers seeking a short-term cash fix are saddled with loans they cannot afford and sink into long-term debt,” said CFPB Director Richard Cordray in a statement, calling the proposal “mainstream” and “common-sense.”

“It’s much like getting into a taxi just to ride across town and finding yourself stuck in a ruinously expensive cross-country journey.”

The industry has braced for new regulation from the CFPB since the 2010 Dodd-Frank Wall Street reform law gave it authority over the payday loan market, and anticipation of new federal rules has already created political fractures on Capitol Hill.

 

Meanwhile, the Federal Bureau of Investigation and Internal Revenue Service have cracked down on alleged fraud and racketeering in the industry. Payday lenders are one of the targets of “Operation Chokepoint,” an FBI investigation into business relationships between banks and potential law-breaking companies.

 

The CFPB’s proposal includes a “full-payment” test for people borrowing up to $500 over a short period. Lenders would have to determine whether a borrower could afford each loan payment and still meet basic living expenses, according to a summary.

It would bar lenders from taking auto titles as collateral and would make it difficult for them to “push distressed borrowers into reborrowing.” It would also cap the number of short-term loans made in quick succession. At the same time, it would limit the number of times a lender could try to debit a borrower’s bank account for an outstanding payment, with the CFPB saying failed withdrawal attempts rack up bank fees for borrowers.

The proposal presents two alternatives for longer-term loans. One caps interest rates at 28 percent and the application fee at $20. The other is an installment loan of equal payment amounts, with the loan’s total cost capped at 36 percent.

The agency said current practices ensnare borrowers in “debt traps” with accumulating fees and interest, and that they encourage people to take out new loans to pay off old debts, all of which can leave them broke, without bank accounts, or carless.

Lenders say they fill a critical hole in the economy, allowing people living paycheck to paycheck to cover basic costs and those in need, who may have poor credit records, to quickly take out loans.

 

LONG FIGHT, POLITICAL FRACTURES

The fight over the proposal will span months. The agency will evaluate comments on the proposal, due Sept. 14, before issuing final regulations. It is also beginning a review of “other potentially high-risk loan products and practices” such as open-end credit.

Cordray was scheduled to discuss the proposal later on Thursday at a hearing in Kansas City, Missouri. A coalition of advocacy groups supporting reforms planned a rally in the city, while detractors have already begun voicing concerns.

On the political front, Republicans, who are widely critical of the bureau, say restricting small dollar, short-term loans will cut off struggling consumers’ access to a legal financial lifeline during emergencies.

Democrats generally support reform, but are divided on how it should be carried out.

Massachusetts Senator Elizabeth Warren and other proponents for stronger financial regulation have lined up behind the CFPB.

Democratic National Committee Chair Debbie Wasserman Schultz, on the other hand, has promoted the approach used in her home state of Florida which is considered more permissive. She has sponsored a bill with other members of the House of Representatives from the state to delay the CFPB rules for two years and exempt states with laws similar to Florida’s.

Message 15 of 17
Anonymous
Not applicable

Re: Old payday loan

I have a couple of these from 2010 that I am mildly concerned about also. My SOL is 6 years. I am not even sure what month I took these out in. I know it was between June and September of 2010. So, unless I am served papers here in the next few months, I won't worry. However, here is some advice. I check my soft (and hard) inquires monthly. Addresses and phone numbers changes over the years. This results in the CAs wanting to track you down. One common method is to do a soft (and some hard) inquires. I check my monthly soft inquires. I vet out each company. Sometimes they say "collection or promotional". It if is a collection, my personal plan is to wait for a call. They have my correct address and phone number if they did a pull. For me the last unknown soft or hard pull was from early 2015. Prior to me starting to clean my credit. I assume they saw the mess and said with $40K in unpaid debt, we won't get anything for the time spent and passed on me. If they looked now, it would be a different answer.  Just thought I would share. 

Message 16 of 17
Sbrooks1
Valued Contributor

Re: Old payday loan

That's a good idea, how can I check for soft inq.? I do not want or need a judgement 😫
Message 17 of 17
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