You need money at an odd hour. You walk into a nearby Payday Loan Center. You show you ID, write a check. You get the cash. Payday loans are very simple to get. Its all about convenience and hassle free life. If all goes well, you pay back the cash to get you check back or your check is cleared directly from your account.

If you don’t show up on due date, the check is sent to bank for clearance. If the check is bounced, Payday loan collection process begins. You start receiving phone calls and letters etc.

No matter what the debt collector on phone says, you must remember one thing during the whole process.

“Payday loan is a civil debt. It is not a case of Check Fraud.”

Following are some of your rights during the collection process. We have compiled this list based on Fair Debt Collection Practices Act.

1. Debt Collector can not threaten you with criminal action i.e. check fraud. It is a civil case and police can not interfere.
2. Debt Collector can only call you during their own working hours. In no case collection calls be made during holidays and before 8:00 am and after 9:00pm
3. Payday loan is a confidential matter. Debt collection agencies can not contact your employer, relatives, friends or anyone who is not involved in the loan agreement.
4. If you have hired a lawyer to file bankruptcy, All debt collection procedures from lender must stop.
5. As per Federal Truth in Lending Act, Payday loan lender can not charge or threaten to charge any fees that are not mentioned in original loan agreement.

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