Cash Advance Loans and Debt Collectors: 5 Things To Know About Your Rights
It’s all too easy for just a few cash advance loans to sink you into debt when you’re adding sky-high interest rates averaging 324% annually to the equation. Before you can manage to break even, you may have a debt collector knocking on your door.
While you may be late on cash advance loan payments, you have more rights than you realize.
The Federal Trade Commission (FTC) constantly combats debt collectors who can mislead and intimidate consumers. In the last year, the FTC resolved 7 debt collection cases that saved hundreds of thousands of Americans more than $5 million.
Cash Advance Loan Consumer Protection Tips
The Fair Debt Collection Practices Act (FDCPA) may be able to help you keep more money in your pocket and away from deceptive collectors. While this legislation doesn’t protect against who you owe money to, it does apply to the assigned collection agency.
You must receive a debt validation within 5 days of initial contact with a collector.
The validation should outline what you owe and who you owe it to. The validation should also give you the chance to verify or dispute the debt within 30 days.
Debt collectors can’t harass, make false statements or use unfair practices to force payments.
- Know that you’ll never be arrested for debt. Collectors also can’t threaten legal action they don’t plan on using.
- Foul language and threats of violence are forbidden.
- They can’t pose as attorneys or creditors to get you to pay.
- Your post-dated payments can’t be cashed before the written date.
A debt collector can’t garnish most of your federal benefits.
With a debt collector’s court order, garnishments mean that an employer can withhold your money to pay off part of your debt. Good news is that these benefits are safe:
- Student Assistance
- FEMA Aid
- Veterans’, Social Security, and SSI Benefits
- Service Members’ Payments
- Federal and Railroad Retirement Benefits
You choose how your payments are used on your debts.
In the event that you have different debts, you are entitled to select which one you want to pay off. This ensures that a debt collector can’t just count it toward an unauthorized debt that you may not even owe.
If you feel your debt collector is abusing your rights in regards to your cash advance loan debt, there are steps you can take.
While you should contact the FTC, you should also contact your state’s Attorney General. The specifics of the FDCPA may operate differently depending on individual state laws.