PaydayLoansOnline.net Publishes Informational Guide for NY-Based Consumers Being Illegally Harassed by Payday Lenders

NEW YORK, March 18, 2013 /PRNewswire/ -- PaydayLoansOnline.net has published a practical guide for New York-based consumers being illegally harassed or chased by payday lenders. The website explains that as the provision of the loans is illegal, so is the lender attempting to recover or collect from a borrower any monies owed.

PaydayLoansOnline.net made the announcement in the following statement:

"Failure to repay a payday loan in New York is not a crime. It is a civil matter. At most, a lender can attempt to obtain a judgment against a borrower in a civil court or sell a collection account to a licensed collection agent. But, as payday loans are illegal in New York, their repayment has to go through a third-party debt collector and only through the correct channels. A lender must not take enforcement action against a borrower. This includes intimidation tactics such as multiple letters, threatening phone calls and calling their employers or neighbors."

Nevertheless, PaydayLoansOnline.net reports that some unscrupulous lenders are attempting to collect the balance directly. Consumers living in New York that are being aggressively contacted by payday lenders demanding repayment should review the advice offered by PaydayLoansOnline.net and take the necessary steps to protect themselves:

• A payday lender is illegally pursuing a borrower if they contact them directly. They can only legally attempt to recover the loan if they have sold the debt to a third-party licensed debt collection specialist.
• Once the debt has been sold to the collection agent, the borrower is now obligated to repay the balance to the collection agent, but unfair interest (usury) does not need to be repaid. This should be reported to the New York State Department of Financial Services.
• If the payday lender or debt collection agency is harassing the consumer, they should send them a cease-and-desist letter, quoting the Fair Debt Collection Practices Act (FDCPA). This federal law states that a third-party must stop telephoning if notified to do so in writing.
• If they continue to violate the FDCPA, seek legal advice and file a complaint with the New York State Department of Financial Services
• The consumer should contact their bank and discuss ways to cancel the Automated Clearing House (ACH) direct withdrawal processes if the lender is retrieving repayments this way. The bank may be able to help open a new account that has no ACH access.

To read the guide in full, visit:

http://www.paydayloansonline.net/new-york-state-take-action-against-illegal-payday-loans/

Contact:

Sam Milo
Tel: 678-666-0100
Email         

SOURCE PaydayLoansOnline.net