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Collections Law/collection calls for a payday loan

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Expert: Creditwrench - 4/29/2010


Question
I live in AZ, and I got a $400.00 payday loan in late 2006 I had just started a new job in which I took a $3.00 an hr pay cut, so I was unable to pay off the loan the company would not make payment arrangements with me, so they started sending the check to the bank over and over which kept putting me further and further into overdraft at the bank, so the bank closed my account, in early 2009 I started getting calls from people making themselves sound like they were lawyers from XYZ law firm (the name changes from time to time) threatening to take legal action stating that writing checks on closed accounts is a federal offense, I did speak to one and explained I don't make much money and offered $50.00 payments a month he yelled at me and said I was making fun of him and he was going to make an example out of me, he kept yelling and over talking me until I hung up on him, nothing ever happened, but I still keep getting similar calls and messages, can they really send me to jail? or just garnish my wages, and if so why are they taking so long?

Answer
It is not a federal offense and no, they can't send you to jail. They can garnish wages after they get a judgment but not until in most states. You need to visit my web page at http://www.creditwrench.com/18questions.html to learn how to deal with these people.  

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Creditwrench

Expertise

Debt Collections law, Fair Debt Collection Practices Act (FDCPA), Fair Credit Reporting Act (FCRA), federal law, how to properly answer court summons for collection cases, how to prepare federal cases against debt collectors, how to deal with debt collection phone calls.

Experience

I've been an active consumer advocate for more than 40 years and have helped hundreds of people win cases against debt collectors as well as helping them defeat demands for summary judgment lodged against them by banks, debt collectors and defeat mortgage foreclosures and keep their homes.

Education/Credentials
Paralegal courses for the most part.
I have been teaching people how to deal with judgments, mortgage foreclosures and other such problems both on and off the internet for many, many years. I am a Richard Cornforth information provider ever since 2000 and worked with many other organizations and causes since 1980. I was Oklahoma State Chairman for the nationwide drive to defeat the Constitutional Convention which was proposed by various factions within our federal government such as the Council of State Governments and the National Organization of State Governors who were working hard to organize a Constitutional Convention to be held in 1995 for the purpose of rewriting our American Constitution to be more acceptable to the United Nations. I worked with Senator Charles Duke of Colorado and Senator Don Rogers of California and many others across the nation to keep them from getting the number of delegate states required to lawfully hold a Con-Con and we were successful. I have worked with many other legislative issues in Oklahoma and have always been very successful.

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