Dear Bankruptcy Adviser,
I have a company threatening me with a bench warrant. I believe it is from a payday loan I got a long time ago. They call me and my family. I don't even know how they got my parents' phone listing. They call me at my job and tell my co-workers I am a deadbeat. I am confused and upset. Can I do anything at all? This is terrible!
I agree, it is horrible. I am truly shocked by this development in the payday loan realm. The 1st time that a client told me about these types of calls, I was livid. I tried calling the company numerous times to yell, scream and threaten them with lawsuits.
I soon learned what you already know: There is nothing to be done about this -- at least nothing you can do to go after these illegal characters.
I can't say for sure how this illegal conduct has been able to continue for so long without either local or federal law enforcement agencies intervening. I have my theories, but nothing I can prove so I will just keep them to myself.
You took out a payday loan at some point in the past few years. You then defaulted on the scheduled payment. The lender attempted to collect, but to no avail. It then sold or transferred the account to a third-party debt collector.
The third-party debt collector is usually an offshore company or a company that moves around and has no set location in the U.S. The collector will call you and do skip traces to locate family and friends.
The debt collector says 1 of the following to you. He or she will also say a variation of the same thing to your family and friends: