Woman Borrows $200 From Payday Loan. Guess What Happened Next?
I’ve heard so many stories about people who take out payday and title loans, and how the interest is worst than borrowing from a loan shark.
Some years ago, I was called upon to do some research by an attorney to get information about a title loan company to see if they used what is called a “list serve” to serve them with summons. What I found is that the owners of the company, in Illinois, also own a used car lot in the State of Georgia. Title loan companies make loans that people cannot repay because of the high interest, then take possession of the vehicle. So, it seems that this one such company was creating inventory for its own used car business.
In other words, I learned that such companies can be shady.
After watching David Allen’s video (posted below), I did a Google search and found a site titled Consumer Affairs with stories by people who made payday loans, and the low things that they pull on people. It saddens me that companies stoop that low, but also saddens me that the general population does not know enough about the law so they do not become emotionally distressed when getting those calls.
For example, one person who posted a complaint said that they had filed bankruptcy, but the company said he/she was still liable. Under bankruptcy law, there is redress when a creditor seeks to recover a discharged debt or violates the automatic stay. If that individual used an attorney to file bankruptcy, he/she should have immediately contacted that attorney.
As another example, State or District Attorneys decide whether check fraud was committed. When a contract is involved where money is loaned with a promise to pay, it is civil matter. The lowdown collectors told them that they would be arrested without bail. Debt collectors are not people in the black robes who issue warrants and hold bail hearings. The people posting complaints did not appear to know that if they wanted to stump the collector, just ask for the citation of the statute they have been charged with violating.
When in doubt, call an attorney.
If you know anyone who has taken out a payday loan, the following video is a MUST WATCH. David Allen addresses why this case carries nationwide importance.