0
Does an online payday loan's collection agency have to abide by the FDCPA?
Wiki User
∙ 12y ago
Any legitimate collection agency has to abide by the FDCPA. They also have to abide by individual State's laws. Payday lenders are often in violation of the law. In many states, payday lending is illegal. You can report them to the FTC and your state financial regulatory agency if they are in violation of collections laws. You may even be able to sue them, but beware, many payday lenders are not even located in the US and may be hard to track down. They obviously do that on purpose.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
What is a first party Collection agency?
That's the original creditor's "in house" collection department. They are NOT subject to the FDCPA as are 3rd party collection agencys.
Can a collection agency lie about who they are?
No. In fact, they are required by law to notify you of who they are and that they are attempting to collect a debt. This is covered under the Fair Debt Collection Practices Act (FDCPA).
What is commercial collection agency?
A Commercial Collection Agency is and agency that collects debt on behalf of their clients, same as a consumer collection agency, but a commercial collection agency collects business to business.
Are your rights the same if your credit card debt went to a legal firm and not a collection agency or is a legal firm considered a collection agency?
Yes, a collections law firm, is still defined under the FDCPA as a collector. They are required to follow the same regulations that apply to a regular collection agency.
FDCPA in Florida protect home from credit card collection agency?
How much can a credit card collector do with a lien on your property in Fl
Can a payday loan company put a block on your drivers license?
No, payday lenders are not the motor vehicle department, nor are they law enforcement. If they're telling you they can do this, they're breaking the law. Research the Fair Debt Collection Practices Act (FDCPA). You can find it online. It will tell you what collectors can and cannot do. At most, they could sue you civilly for default, that's it.
Is it a felony if you banking account closes on a payday loan in Indiana?
It's not even a misdemeanor to default on a payday loan. Payday loans are governed by law as any other loan. They cannot file criminal charges. At most, they can sue you, if your state allows payday lending. Some states have made payday lending illegal. Research the Fair Debt Collection Practices Act (FDCPA). This will tell you what collectors can and cannot do by law.
How many years can a collection agency still pull your credit report?
A collection agency can't access a credit report w/o the permission of the party involved. They may try to mislead someone into believing they are able to do so, and that is a violation of the FDCPA and should be reported as such.
How early can a creditor call you?
No Earlier than 8am, and no later than 9pm. This is based upon your timezone and not the timezone of the agency calling you. Other details regarding the legalities can be found online by researching FDCPA (Fair Debt Collection Practices Act).
Can a collection agency sue you for money in any state How can they do that if the original company wrote it off Is this legal?
When you default on some debt, the original creditor writes it off. When they write it off, they usually sell it to collection agency. Since the collection agency bought it, it becomes theirs. If they try to collect and you don't pay, they can sue you. Learn your rights by reading up on the FDCPA.
Can law collection agencies keep asking for more money even you can't afford it?
Yes, even though it makes very little sense for them to do so. A collection agency regardless of the status can continue collection attempts as long as they do not violate the FDCPA.
How to stop collection calls on small personal loans and payday loans?
Any legitimate loan is covered under the Fair Debt Collection Practices Act. This Federal law covers the behaviors of bill collectors. Many of the aspects of FDCPA only apply to collection agencies, not necessarily to the original lender. Most lenders will still abide by the rules of the FDCPA, and most states have their own laws governing bill collection. Payday loans themselves, are illegal in many states due to the high interest rates. Most states require lenders and bill collectors to be licensed in that state to conduct business. Many payday lenders are not licensed, and are practicing illegally. You would have to contact your state Financial Regulatory agency to find out your state's specific laws. As a rule, if you write a cease and desist letter to a bill collector, they must cease contacting you unless it is to tell you that they intend to take further legal action against you.
