I can’t tell you how many clients I talk to every week that are getting harassed by a Payday Lender.  As I’ve previously written, the FDCPA only applies to third party debt collectors, not the original creditor.  So, the statute only gets triggered, generally, when a collection agency or a debt purchaser is collecting on a debt they didn’t originate.  Congress reasoned that original lenders didn’t need to be covered by the statute because they had a business interest in complying with the statute to maintain customers.  However, Payday Lenders do not have this incentive - in my opinion they are around for only one reason; to loan shark.

The most egregious stories I hear from consumers regarding harassment are from payday lenders and the companies that collect debt from them.  I get it if you need money for food, but if you are taking out a payday loan for something other than a direct necessity; don’t!

If things are so tight that you need to get a payday loan to eat, please consider taking care of your debt in a more holistic manner.  Talk to a Bankruptcy Attorney.  Talk to a Debt Settlement/Resolution Attorney.  Talk to someone!  If you are interested in Bankruptcy, visit www.legalhelpers.com.  If you are interested in resolving your debt for a fraction of what you owe, visit http://www.legalhelpers.com/bankruptcy-alternatives/debt-management.html.  I’m a part of two law firms that were created to help consumers that are in debt.  If you do nothing, nothing will change.

I hope things aren’t so bad for you that you’re considering a payday loan.  If they are, my opinion is to start thinking of a long term solution rather than taking out another loan.

-Jeffrey S. Hyslip

As many of my readers know, I used to be a debt collector/collection attorney between 2003 and 2007. I’d sue consumers and get judgments awarded for my clients (creditors). Once the judgment was awarded, we’d search various databases to determine what assets the consumers possessed that I could execute on to enforce the judgment. The three main assets I searched for were (1) wages, (2) bank accounts, and (3) real estate.

Whenever I found real estate, I got really excited. I would pay the $33 to file a certificate of judgment against the consumer which would in turn place a lien on the consumers real property (house). When a lien is recorded/filed, it is placed behind all previously filed liens (Mortgages, etc.). Back in the heyday of the real estate market, I’d routinely get checks in the mail from title companies paying off the liens that were filed. You see, when a consumer with a lien would re-finance or sell their house, the liens that were on the house would get paid before the proceeds were dispersed to the consumer. Since homes were appreciating, there was regularly enough equity to pay off the mortgage company and lien holders.

Now, that has changed. Consumers are upside down on their homes and it is rare there is any available equity to justify placing a lien on real property. So, now we get to the point; anytime a collection agency threatens to place a lien on your home (unless your home is paid for or has SIGNIFICANT equity) they are most likely lying to you (not to mention the fact that collection agencies CAN’T put liens anywhere since they are not attorneys). So, since there is no justifiable reason to place a lien on a home that doesn’t have equity that means its unlikely anyone will place a lien on your property. As such, if a collection agency threatens you with (or mentions) a lien, they are lying to you. It is illegal for collection agencies to lie under the FDCPA. As such, if a collection agency mentions a lien, they have violated the FDCPA.

At least there is ONE upside to the housing crisis - No More Liens!

-Jeffrey S. Hyslip

While I realize that I have a lot to discuss regarding collection agency harassment, I am going to take a quasi new direction on the blog.  Starting immediately, I will start publishing some posts written by my current employees.  These posts will give credit to their respective authors at the bottom of the post.  Fear not, I will continue to blog as well.

Jeffrey S. Hyslip

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