Expert: Chris Ebert - 8/27/2009

Question
I am in need of a consultation in regard to a Payday loan group who I owed $115.00 to before they turned it over to a collection company (in the hands of the Collection company it is $435). I began receiving phone calls from the collection company (early last week and the demand was on (so to speak). They are now talking about taking me to court and all the monies they will be getting from me. Do I need a lawyer. I tried talking to the loan company and they gave me the name of someone at the collection company (Alliance) of which they never called back. Rude is not the word for what they are but I want to get this taken care of. I asked them for the notification and they refused. I will not give my info out over the phone..Judy

Answer
Judy,

First, payday loans do not always (and seldom do) take clients to court. It just cost too much to file for what they might recoup.

Second, you can use Letter "C" - Letter to the Creditor to send to the collection agency to find out what is owed and then another form (Debt Settlement Sheet) to settle the debt.

They can be found here:

http://www.henleycreditlaw.com/diy-credit-repair/

I wish you the best of luck in getting it taken care of.

Chris