Does a collection agency have a right to report to Equifax if you have a complaint unsettled with the payday loan company they are trying to collect for. I was disputing the amount owed to Cash Money, and rather than dealing with me Cash Money threw it into collections...I told the collection agency that I was not dealing with them because Cash Money has not addressed my complaint yet. Cash Money said they would get it back from the agency, but it is already on my report. From what I have read they should not have been able to do that..How can they just do that without having anything in writing stating I let them access my credit report?? How do I get this off my report?? Nobody from either place has called to address this.

Don't forget to send him a Christmas card .....one with Uncle Scrooge on it.

Ray

Just to update you from the last time. "Dave" from Cash Money has not called me since I begged him to sue me. And as for his threat that he would make my life miserable. So far I couldn't be happier...I guess he could not stand the fact that I was educated on the way things work. I do not imagine he has had too many clients beg him to sue them, or offer the address of the court house to go to. I don't think I have heard the last of him because he will likey try again...or send it to collections. I will keep you updated

Payday loans should be considered only in emergencies, and should be avoided if possible. The cost of borrowing is just too high.

Way to go girl!

Ray

I had Dave at Cash Money call me a couple of weeks ago and I offered to make $100 a month payments which he did not accept. He just kept yelling at me so I got pissed off and told him he was getting nothing and to sue me..So today I received another lovely call from "Dave". For over 20 minutes he basically wasted his breath yelling and calling me names to intimidate me into paying...I told him once again that he could sue me and (took Raymond's advise) asked if he wanted me to give him the address of the Small Claims Court? He said no and then threatened to call my payroll department again. I said okay and even offered to give the phone # & name of the person he should contact. He said he already knew...I asked him what he was going to ask them when he called and he said "you'll see". I guess he thought he was going to scare me by saying this...Ha, too bad I know better!!!
Through the whole conversation he would come up with these different sceniors as to why I should pay..Basically drawing at straws as I kept telling him to go ahead and sue me.
He told me he was going to make my life a living hell and then hung up on me.

From the way the conversation went it doesn't sound like they can do anything besides maybe keep calling me and then I guess I can sue them for harresment because I have already told them to take me to court.

My question is has anyone ever been sued by Cash Money or any other Pay day loan place? Because from my experience I was threatened at first with being sued but now that I have turned the tables on them and said go ahead they don't seem to want to act on it.

I have asked him to tell me how much money they have made off me over the years and his response is every loan is a new loan so it's not relevent even though I know I have given them thousands!!!!

A judgment occurs only after a creditor successfully sues someone in court. That can take a considerable amount of time and effort to obtain and then collect on afterward.

A creditor can use a collection agency if they wish; but the collection agency has even less power than the creditor they act for and can only take a debtor to court with the permission of the creditor - unless they have actually outright purchased the debt form the previous owner.

I would not be concerned with any of this though. I would just do as advised.

1. Screw up your courage and resolution.

2. Tell them enough is enough. I't over!

3. You want to end it now and will settle for a negotiated settlement amount. That amount should be no more than 1200 dollars. Personally, I wouldn't give them anything close to that. You will offer them a seires of post dated monthly payments starting now for the $1200 or whatever reduced amount (50%?, 70%? etc) you think you can get away with.

4. There will be no futher interest paid! And they don't get a single penny until you walk out of there with a SIGNED written settlement that clearly states that those monthly payments will represents full and complete payment of the account.

5. Also go in there with the address of the local Small Claims Court and give it to them if they're not happy with points 1 to 4.

6. Don't worry, be happy.

Ray

Thanks Ray, this information is very helpful.

My other concern is that if the pay day loan company decides that they want to send the current outstanding amount to a Collection Agency for them to collect, what can happen then? Can the collection agency sue me? Will they have better luck at getting a judgement against me if it goes to court?
My intentions were not to run away from my obilgation but at the same time I have been in these pay day loan places for years and I want out.

Not to mention the first solution they had was for me to pay off the outstanding balance and reloan...That kills me, they just want to keep making money off us poor people that unfortunately don't have any alternatives but to use their services.

Needless to say I have asked both verbally and in writing that they provide me with a total amount of money that I have given them over the years. I am still waiting and know I will probably wait forever unless a judge or someone in the judical system asks for these records..

I probably will have more questions as I think of them...

In Ontario, as well as in most other provinces, there's a mandatory pretrial settlement conference before it goes to actual trial. Even if the sharks sued her, she'd be better off since they would have to take time off attend a mediation. If the company didn't accept a reduced mediated settlement, the judge, when it came to trial, would likely offer her fairly easy terms - far easier than what she's got now if she explained her ornerous circumstances. Besides, it take months to get to pretrial, then trial and then to file sheriff's fees ($100+) for wage attachments. That's why they are unlikely to sue for 1200 bucks

However, sometimes these companies will file statements of claim, knowing that a large portion of their client base will be of a demographic that won't show up for court and they can expediently get a default judgment. Nonetheless, for modest amounts, it's not worth the frequent filer court fees, paralegal costs and writ filing charges, plus hassle, time and paperwork etc.

And so, more often than not, these defaulted debts are sold off as portfolios. You can see fom the link posted on the Credit Bureau Collections website, a group of 8 typical debt debt portfolios are offered in a classified ARM (Account Receivable Management) section for collection industry debt buyers. The 3'rd one down involves a payday loan portfolio being auctioned off for circa @2.9% of original receivables. Though the portfolios are American, they are similar to Canadian ones in that the average defaulted account is just under $700. Really, not much point in taking these people to court for any debt holder.

http://www.insidearm.com/go/portfolios

What all this means is that the payday loan company knows they 3 options in cases like Saralee's

1. Take her to court and suffer through all the time and expenses, not all of which will be reimbursed) and risk never collecting on the judgment, especially if she leaves her present job.

2. Get a couple of pennies on the dollar way down the road from a debt buyer.

3. Accept Saralee's offer of 150 or 200 bucks a month (or preferably less).

Which do you think they will take?

That's why I said I felt she was being too generous with the scavengers.

As for interest, I would forget about it in any negotiation outside of court. Those sharks have made enough already. Even though they will howl and whine they need 30% (or whatever), given the options of 1,2 or 3, I'm sure they would be secretly relieved if they were relatively certain they could recover the current balance over the next year or so in monthly payments.

Ray

Raymond is correct, PayDay loan companies are not well liked by the courts. However, that could work in your favor. Beg them to sue you in Small Claims and go to the court hearing. Explain to the Magistrate that you wish to make payments (bring post dated cheques with you to court). The court will likely offer Consent Judgment and allow you time to make payments. They will not be allowed to garnish if you stick to your promise. Also, make sure you mention the interest rate. I don't know about other provinces but in Manitoba, Court appointed interest is only 3%.

Furthermore, the PayDay loan company is only trying to intimidate you when they say they will contact your employer. If they are implying that they would act on the "Voluntary Wage Assignment" form that you signed, then check your provinces Garnishment Act. In Manitoba, the only way any monies can be deducted from your paycheque is with a COURT ORDERED Writ of Garnishment. Voluntary wage assignments mean squat. You can also prepare a letter for your employer which would cancel all previously made Wage Assignments.

Don Beall
don@thecreditpros.ca