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Cash Advance Customers Are New Target For Scam Artists |
Article Submitted by: speedy cash
Tuesday, 09 March 2010
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Due to the increasing
popularity in cash advance loans, scam artists have begun to target consumers
of payday lenders, threatening them with lawsuits and jail time if they do not
pay back the loan immediately. Due to the high regard many have for their
credit scores, they comply with the requests made by these fictitious
collection agencies, often loosing hundreds to thousands of dollars with little
chance of recovery. Thankfully, authentic cash advance collection agencies
follow the guidelines of the Community Financial Services Association and Fair
Debt Collections Practices Act. The purpose of a collection agency is to collect monies owed for a loan that has been defaulted on. Knowing one's credit history and the number of loans that are able to be collected on is the first step towards protection from predatory practices. If an individual has never taken a cash advance loan, then it would be impossible for them to owe money to such a loan. Equally, if a person has paid off a payday loan, then there would be no reason for a collection agency to call regarding a delinquency on that loan. Another method for protection is in knowing the laws surrounding cash advance loans. No lender or collection agency is allowed to sue an individual, nor send them to jail, due to a default on a loan. Additionally, if a cash advance loan has been in default for 7 years, or longer depending on the specific state of residence, then it is no longer considered collectable and must be discharged by the original lender. However, scam artists use the general public's lack of knowledge against them, constantly badgering them, threatening legal actions, and attempting to get them to accept loan obligations that are not theirs. In fact, the discharge date is based on the last date of activity of a Cash Advance loan. If scam artists can get an individual to admit that they owe on a loan even after it has been discharged, then they can modify the activity date and begin the countdown all over. This is why it is important never to agree to the debt until it can be proven who the debt belongs to and the date of its last activity. On the other hand, real collection agencies work with consumers to find ways to pay off debt. While it is not always pleasant, cash advance loan companies follow the regulations created by government agencies and the laws enacted in each state. In other words, there are no threats of jail time, no attempting to collect on cash advance loans that have been paid off, and no overt scare tactics. Article Source: http://www.ArticleBlast.com |
About The Author:
Robert Sullivan has been using Cash Advance Loans to solve his short term credit problems in the past. Having dealt with a fraudulent collection company in the past, Mr. Sullivan has since learned the telltale signs of scam artists and methods to deter them. Rather than assume the worst, Mr. Sullivan continues to work with the Cash Advance Loan industry while staying knowledgeable about the laws and regulations surrounding them.
Robert Sullivan has been using Cash Advance Loans to solve his short term credit problems in the past. Having dealt with a fraudulent collection company in the past, Mr. Sullivan has since learned the telltale signs of scam artists and methods to deter them. Rather than assume the worst, Mr. Sullivan continues to work with the Cash Advance Loan industry while staying knowledgeable about the laws and regulations surrounding them.
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