How to deal with payday loan debt collection to avoid scams

How to deal with payday loan debt collection to avoid scams

Did you receive a call from Thomas and Associates regarding a loan from Amplify Funding recently? Do you remember anything about this loan or did you ever take out this loan from Amplify Funding? If so, then here are a few steps you need to take right now.

Step 1: Google the name of the payday loan debt collection agency

To avoid getting scammed by abusive payday loan debt collection practices, dig out information on Thomas and Associates from Google. In many cases, payday loan companies try to coordinate with borrowers before selling debts to a third-party collection agency. In your case too, you need to find out if Amplify Funding has ever tried to reach out to you.

Read all the articles related to Thomas and Associates. What are consumers saying about them? Do they have a huge number of unresolved complaints? Are they legal in your state?

If you find that many consumers have given negative reviews against this collection agency, then it’s a red alert for you.

You need to be extra careful while dealing with this particular collection agency. Try to remember if Amplify Funding had given you a cash advance in the past. Check your email history to see if there is anything related to them.

If there is nothing in your email history, then you can be 90% sure that the debt is not valid. Once you get information on Thomas and Associates, send a debt validation letter to them via certified mail with return receipt request. It’s time to see how they can validate the debt.

Step 2: Note down what the payday loan debt collector is telling you

Now the million dollar question is, how did Thomas and Associates get your phone number? Well, it isn’t a Herculean task. Online portals often sell your phone number to financial institutions, banks, collection agencies, etc. So they can easily get your phone number from there.

Note down what the payday loan debt collector is telling you. Is he threatening to arrest you? Is he threatening to hurt you? Is he threatening to suspend your SSN or driver’s license? In that case, be rest assured, the collector is violating the FDCPA law. You can sue the debt collector and potentially win $1000.

Step 3: Read the payday loan laws in your state by heart

Do you have any idea of the state payday loan laws? If not, then it’s high time you read about the laws extensively. Are payday loans legal in your state? Ask this question in a payday loan debt forum and find out what industry experts have to say about this. Amplify Funding is a tribal payday loan company. So, this lender is illegal in all the states of USA. In that case, the loan is illegal.

Thomas and Associates are more likely to highlight the fact that since they own the debt now, so it doesn’t matter if the loan is illegal. But this is a lie. The contract is null and void since the loan is illegal irrespective of the state laws. Your moral obligation is only to pay off the principal amount. But certainly, this is not your legal obligation.

Don’t trust collection agencies blindly. They have a debt collection script for payday loans. If they threaten to foreclose your property or inform your employer even when it’s against the official policy, then they are simply trying to scam you.

Step 4: Explore all the payday loan relief programs

When the loan is legal, contact the original lender before paying a penny to the CA. You can negotiate with payday loan lenders and settle your debts. That will give you a chance to save tons of money your loans. If you aren’t comfortable, then you can give this task to a professional payday loan debt settlement company for a swift execution.

If you want to lower the interest rate instead of the outstanding balance, then enroll in a payday loan consolidation program. It can help you get rid of the high APR and save money. Get more information on this program.

Step 5: Send a C & D letter to the payday loan debt collector

If and only if you’re determined to ignore the debt, then send a Cease and Desist letter to the collection agency. There’s no need to send a debt validation letter. Why should you waste time and money? If the collection agency calls you even after receiving the letter, then you can sue them for an FDCPA violation.

Mind you, the debt collection agency can take legal steps after receiving the Cease and Desist letter. So think several times before sending this letter to them.

Conclusion

Finished reading the article? I’m sure you’re now ready to deal with the payday loan debt collection agencies like a pro. Henceforth, whenever you receive calls from a payday loan debt collector, just take the aforementioned steps to avoid getting scammed. Remember, fear is your biggest threat when it comes to dealing with a debt collector. So come what may, don’t get scared by what debt collectors tell you. If they threaten to suspend your SSN or driver’s license, don’t hesitate to report the matter to the State Attorney General or the FTC or CFPB.