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Question
My husband had surgery in November, 2008 and I had to take out some payday and finance company loans. He has just gone back to work Jan. 2009. Financially it is very difficult to make the payday loan payments twice a month. I am wondering how to negotiate with them so that I can make monthly payments. I want to take care of the debt, but if they won't work with me, what can I do and what can they legally do as far as collection? Can they take a judgment?
First of all, TX is a consumer friendly state with a no garnishment law. This kind of takes the teeth out of any threats by the creditor so the ball is in your court.
I recommend you write a letter to the finance companies informing tthem of your hardship and make your proposal for payment plan. Make sure your proposal is affordable then send the letter by certified mail, return receipt requested. Then stick to your plan NO MATTER WHAT. Send a copy of your budget but do not give them employment or banking info. Change banks if you need to so they cannot access your bank account.
Payday loan companies can be very hardcore in their methods but dont be intimidated by them. They have no teeth. You can only do what you can do and you cant pay out money you dont have. Be assertive and dont give in to threats. If they dont like your proposal do it anyway. Even if they file suit they are limited in what they can do and if you go to court you can show the courts you have made a reasonable effort and you can ask the courts to allow you to continue your plan. Do what you have to do. You will be fine.
Good luck.
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Answers by Expert:
Michael Brotherton
Expertise
Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. We are well versed in Loss Mitigation practices and the legal collection process. We have helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. We actively promote Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).
Experience
28 years in financial services industry as a loan officer and debt collctor. Developed bankruptcy and loss prevention manual for large finance company for manager training. 15 years as a debt counselor and consumer advocate.
Education/Credentials
Veterans sponsored OJT Manager Candidate Scool for AVCO Financial Services, Keystones to Management for ITT Financial Services, Certified Finance Management for Associates Financial Services.
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