Reasons Why Banks Work With personal Loan Integration Corporations

By Tim Tavender

If you're one of the countless millions of USA citizens drowning in pay day loan debt, chances are that you have doubtless already considered seeking help from a consolidation company. You've done all of the work you had to do to gain the upper hand against your pay-day lenders: researched online for a good and trusty company, filled out all of the paperwork, and eventually, you are prepared to get your financials in control. Then suddenly, your lenders tell you something that stops you in your tracks. One straightforward statement that may make any person in debt feel fully hopeless: "We don't work with consolidation companies."

Is this true? If payday banks don't work with consolidation corporations, then why do they even exist? Here are the 3 real reasons why your banks will at last work with your consolidation company.

1. Before you enroll in a debt help programme, the very first thing that pay day loan consolidation corporations will counsel you to do is to close the bank account that your banks have accessibility to. Though consolidation firms send legal documentation to your payday lenders to revoke their permission to mechanically debit your checking account, it is necessary that you close your bank account to make certain that there aren't any unapproved charges exiting your account.

2. Your pay day loan consolidation company will also send legal documents to your pay day lenders to desist further communications with you. According to the Federal Trade Commission, lenders have to follow certain guidelines and regulations when collecting debt. If your pay day banks don't follow these rules and continue to make hectoring phone calls, your lenders can be fined $1,000 per EACH telephone call that they make. Because most loans are little amounts (between $200-$1,000), calling you becomes a risk that is just not worth taking.

3. Many are afraid that they'll get sued if they do not pay off pay day loans. Majority of borrowers don't know that most payday lenders (especially Internet-based) aren't licensed to lend money to folks residing in the US. This means pay-day banks do not have the power to take non-paying purchasers to tiny claims court for a payday loan. Pay day banks regularly use this tactic to scare borrowers into paying them, and is effective because most consumers are not well-informed about what banks can and cannot do.

Now, sit back and think of this for a moment: Your Singapore money lenders cannot debit your deposit account for payment, cannot call you to request money, and can't sue you for the delinquent loan. How else are they going to get paid? Who else can they turn to? There is only one answer: payday loan consolidation firms.

So why would your pay-day lenders deny working with consolidation firms in the first place? It's easy. Folks who sign up with consolidation firms clearly have several payday loans. As an undeniable fact, people drowning in payday loans usually have between two to twenty payday loans. Sometimes, consolidation corporations work from one lender to another, implying that if you are a pay-day bank, you'd be unsure as to when you would get paid. Pay-day banks are conscious of this and know that probabilities are, they could get paid faster if there is not any third-party involved. For this reason, they are saying that they don't work with pay day loan consolidation corporations, although they at last will.

Don't let your payday banks dominate you until you know all of the facts. If you have tried everything you might to get out of payday loan debt yourself but have failed, maybe it is time to find professional help. In fact , who would not benefit from some help once in a while?

About the Author:

Tim Tavender is a writer with 10 years experience running his very own pay day loan in singapore . He has written for National Papers and Mags about line of credit .