The FBI is investigating payday loan scams. Bankruptcy attorneys can help recipients of payday loans being defrauded by these callers.
The AP has reported that the FBI is investigating allegations that some payday loan recipients have received calls by callers who lying and saying that the callers are from law firms, the FBI, and other agencies. These callers threaten legal consequences and demand repayments of the payday loans. The debtors who took out the payday loans think that the calls are coming from the payday loan employees and are merely harassing them. The debtors assumptions that the calls are coming from the payday loan employees is understandable, since it is common for collection agencies to make threatening calls. This has led to much confusion since the calls from the fraudulent callers sound like the collection agency calls.
Payday loan companies lend short-term loans to borrowers who use these small loans to cover expenses in between paydays. Many recipients of payday loans find it difficult to repay these loans because the interest rates can be quite high. In fact, some payday loan debtors take other additional payday loans just to pay back their original payday loans. At times, payday loan recipients choose to hire bankruptcy attorneys to eliminate their debts and avoid the harassing phone calls.
The payday loan scam involves callers who have been able to acquire accurate information about the payday loan recipient. They use this accurate information to make repeated phone calls to the debtors at their houses and threaten them with arrest. As a result, the Federal Bureau of Investigation has stepped in to help the victims of this recent scam. The FBI has advised victims to call local law enforcement, their banks, and credit bureaus. However, one of the most direct ways to address the scams is by meeting with a bankruptcy attorney to determine if bankruptcy is a legal option to avoid creditor calls.
Bankruptcy attorneys can help debtors eliminate debt through Chapter 7 and Chapter 13 bankruptcy filings. Once debtors file bankruptcy, they are given a bankruptcy case number and federal law prohibits creditors, including payday loan companies, from calling to collect money. The filings also stop all collection activities, including garnishments and lawsuits. A Chapter 7 bankruptcy, also known as a liquidation, enables debtors to wipe out debts and the procedure typically is finished within a few months. In contrast, a Chapter 13 bankruptcy, also known as a payment plan, enables debtors to make monthly payments to the bankruptcy court who then pays out creditors over a 3 to 5 year period.
The AP has reported that the FBI is investigating allegations that some payday loan recipients have received calls by callers who lying and saying that the callers are from law firms, the FBI, and other agencies. These callers threaten legal consequences and demand repayments of the payday loans. The debtors who took out the payday loans think that the calls are coming from the payday loan employees and are merely harassing them. The debtors assumptions that the calls are coming from the payday loan employees is understandable, since it is common for collection agencies to make threatening calls. This has led to much confusion since the calls from the fraudulent callers sound like the collection agency calls.
Payday loan companies lend short-term loans to borrowers who use these small loans to cover expenses in between paydays. Many recipients of payday loans find it difficult to repay these loans because the interest rates can be quite high. In fact, some payday loan debtors take other additional payday loans just to pay back their original payday loans. At times, payday loan recipients choose to hire bankruptcy attorneys to eliminate their debts and avoid the harassing phone calls.
The payday loan scam involves callers who have been able to acquire accurate information about the payday loan recipient. They use this accurate information to make repeated phone calls to the debtors at their houses and threaten them with arrest. As a result, the Federal Bureau of Investigation has stepped in to help the victims of this recent scam. The FBI has advised victims to call local law enforcement, their banks, and credit bureaus. However, one of the most direct ways to address the scams is by meeting with a bankruptcy attorney to determine if bankruptcy is a legal option to avoid creditor calls.
Bankruptcy attorneys can help debtors eliminate debt through Chapter 7 and Chapter 13 bankruptcy filings. Once debtors file bankruptcy, they are given a bankruptcy case number and federal law prohibits creditors, including payday loan companies, from calling to collect money. The filings also stop all collection activities, including garnishments and lawsuits. A Chapter 7 bankruptcy, also known as a liquidation, enables debtors to wipe out debts and the procedure typically is finished within a few months. In contrast, a Chapter 13 bankruptcy, also known as a payment plan, enables debtors to make monthly payments to the bankruptcy court who then pays out creditors over a 3 to 5 year period.
About the Author:
If you are receiving harassing creditor calls, including from payday loan companies, make sure that your rights are not being violated or that you are being scammed by contacting us at bankruptcy lawyer. This article, Payday Loan Scams Under Investigation by the FBI is released under a creative commons attribution license.
0 comments
Post a Comment