Expert: Michael Brotherton - 12/9/2008

Question
I had applied for a loan back in May of this year with CashNetUSA. I am not disputing the loan. In fact, I forgot I had gotten it. I didn't check my emails because I get so much spam, if an 800 number called, I didn't answer, thinking it was a telemarketer. This last Friday, my aunt got a call from a man who said he was an Investigator from New York with 2 pending complaints against me. I called them back today and found out the complaints were from Cashnet. The investigator stated that his job was to help keep the situation out of the courts and said I had owed 900 and something dollars, but said if I could pay 498.40 by the end of this month, the whole thing would be stopped because the company was going to sue me for fraud. I made a payment of $30 today because he said he needed something from me other than a verbal agreement for the company. I found out from my place of employment that I was not going to get a bonus like I thought I was, and therefore cannot afford the next 2 payments of $229.00 each. I don't know what to do. If he doesn't work with me on payments til I can pay it all off, what will happen? I understand they will take me to court here in Colorado where I reside, but what would happen from there? I'm really worried and I DO want to pay this off, but I have a feeling he will say he can't work out payments or a payment plan with me...PLEASE help!

Answer
First and foremost, relax, this is a civil matter, not a criminal case. This "investigator" is just a bill collector trying to tweak you.

I hope you didnt make any payments by phone or authorize a direct debit from your checking account. This could very well be a fraud perpetrated against you. Many times when you give a collecotr or thrid party banking info they can take any amount that will go through and they may clean out your account. If you did this I would close the account immeidately to avoid any abuse. Also, did you keep his name and contact info? If so, check him out before taking any action here. M ake sure he is a legitimate rep with the CashNetUSA.

It would be costly for them to take action agaionst you in civil court and although they may legally sue you they would much rather get their money. My advice is to write them a letter and let them know if you are in a financial hardship and let them know what you can pay. Then follow through with your proposal.

Dont worry about what they say unless they put it in writing. Threat are hollow. Do what you can and pay your debt. You cant pay what you dont have. Do the best you can and stay on top of this until it is paid in full or offer them a smaller lump sum as "settlement in full".

Fear not... you will be fine. This is not a criminal act.