Bad credit loans (often known as “payday loans”) are supposed to help people who experience too much month and too little money. Guess what happens when people discover the truth about payday loans?
On the surface, bad credit or payday loans appear to help cover the month until payday.
However, that’s not always what tends to happen…in my experience.
Weekly, I receive many emails or forum posts from from people asking for help…people who never read or understood the terms of their payday loan.
What you see below is an actual forum post from a person asking for help:
I have been receiving correspondences from a company called “Loan Shop Online” with a guy named Kxxxx Cxxxx (name removed). He claims I have a balance and when I insisted he send proof of the suggested debt he failed to do so, I received a letter on Wednesday from him demanding payment via Money Gram when I talked to him over the phone he said he cannot accept a money order however he can either; Take my credit card info and process payment that way, or, send the payment via Money Gram. I told him absolutely not!
Must I pay him this way? I’m irritated at the fact that he hasn’t shown proof, is threatening me with credit reporting, and refusing money orders… seems terribly odd. If I don’t have to pay him that way, is there a law stating so, and which is it?
Thanks! They call themselves LSO or Loan Shop Online and they want me to Money Gram $130 to a place called LTS Management. Both companies located in Delaware.
I asked my bank to pull old records and no loan was received from either company.
Click Read More below now for the rest of this payday loan request for help. Some forum posts leave me shaking my head, and this is one of them.
PAYDAY LOANS REQUIRE RESPONSIBLE BEHAVIOR
Responsible behavior?
Yep, that’s right….
Unless this forum poster suffers from amnesia, he/she would KNOW if he/she received money from LSO…even if it was 10 years ago!
Don’t you think?
If you MUST borrow money from a “loan shark,” carefully read, understand & accept their payback terms. You’d better believe you WILL pay through your teeth for this loan.
And if you don’t pay, you won’t just walk away….
Here are my observations from this request for help:
- Did you receive money you didn’t pay back? You say LSO wants $130…. It appears to me you should have no problem recalling the loan, when & for how much.
- If so, when did you receive this money?
- What is the statute of limitations on this type of loan?
Chances are, the SOL has expired and this debt collector has no legal grounds for demanding payment.
For $130, a debt collector probably will not sue you — it will cost more to sue than he could collect (even IF this debt were within statute of limitations).
Debt collectors are required by law to send you a dunning letter, clearly indicating a debt collector is attempting to collect a debt. Within 30 days, you legally can demand validation of this alleged debt.
After this 30-day period, debt collectors are not required to validate.
If/When you receive phone calls from people demanding money, insist he/she put a request in writing and that you do not want any more phone calls.
TIP: Get the person’s complete name, business name, phone number & address.
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Bad credit loans or payday loans should not result in this kind of problem if people would understand terms before taking a loan…and then pay back the debt according to agreed-upon terms. Most banks domicile in Delaware and North Dakota, due to the relaxed laws governing banks. Take a moment to scroll down to leave a comment, question or experience.
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