What Payday Lenders DON’T Want You To Know

Payday lenders often establish their own “in house” collections department. Once you have defaulted on a payday loan you will begin receiving calls from a representative who claims they are someone important (insert intimidating title) from “collections”, leading you to believe it’s an outside collection agency who is doing you a favor by informing you they have some type of legal papers (pending of course) if you don’t pay up NOW!

They’re always cranky and brash using terminology that sounds legal and urgent!  Usually they speak the words quickly to dissuade you from recognizing the BIG words they’re using to sound scary and legal!

The fact of the matter is,  most payday lender employees are uneducated and have absolutely no idea what they are talking about, all they know is IF they collect- a percentage of it will be on their next paycheck in the form of a bonus!

Here are a few tips on how to handle those fast talking collectors who think they are doing a service for their employer:

  1. Ask them their name (make them spell it), employee ID number and a phone number to their direct line (in case you accidentally get disconnected lol).
  2. Ask where the office is located of which they are calling (address).
  3. Ask their supervisor’s name (again, make them spell it).
  4. Ask how long they have been employed by this company.

If they have agreed to answer the questions above (I rather doubt it, but it catches them off guard and collectors are fun to play with lol), keep asking as many questions that will come to your mind, or hang up!

The point is, using this method usually bewilders an in house collector who’s soul purpose was to scare the pants off of you. On the other hand, if they volunteer the information you will then have contact information to make payment arrangements!

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51 Comments on “What Payday Lenders DON’T Want You To Know”

  1. Nb615 Says:

    HELP! I’m trying to stop East Side Lenders and SSM group from debuting my checking account. I’ve notified my bank and they told me to “give the companies time to stop the withdrawals”. In the meantime I have to watch my money fly out the window? I’ve faxed these companies a letter to revoke their authority to withdraw from my account. What else can I do? I spoke with my states head of banking and they basically said Im screwed and to cancel my bank account and change banks. Any other tips?

  2. Wandy Says:

    I tried to find if the companies SSM Paydayloan and Pack management Group have license to work in Florida? They’ve been calling me in daily basis threatening of legal action, garnish my salary. At the begining I was receiving calls from a William G Sokol law office and now I am also receiving phone calls from a Fl phone number which states that is a debt collection agency. I included these two debts in a consolidation program but they insists that they are not going to do business with them and I have to pay $520. Any suggestions?

  3. CowTex Says:

    Shazzers, i appreciate what you are doing. I am on serveral internet pay day loans and if i change my bank account, is there any legal action they can take against me?

  4. Janet crews Says:

    I have been recieving harrassing phone calls from these telemarkers with thick east indian accents that you can’t understand. They said that I took out a loan from East Side Lenders. They said they work for the Law Offices of Howard Fletcher. I asked them for the number they refused then they gave me this #310-929-4125. Which is the # for turkey mini market in PA.. Still harrassing me

  5. Theresa Says:

    Do you have any info on “PDL Assistance?” You mentioned that if these Payday loan consolidation companies are not valid, they cannot come after you. What if they are a valid company but you have still found information that they have scammed people?
    We have already closed our account and informed our bank of this situation. We are going to work with the payday loan people that we original took out the payday loan with… something we should have done to begin with. We have tried to get our bank to back charge the company for the 3 withdrawls they made but the bank denied us. I am not letting this go though. With your info. I may try to tape their conversation with me because that is where, I believe, they will say something wrong and that will give me more evidence. I am also in the process of contacting the attorney general of the state of which their office is in and also filing a claim with the attorney general’s office that you can do online. Can you offer any other advice or direction? Thank you so much for your site.

    • shazzers Says:

      Using a debt relief company for payday loans is very risky, there are many reasons why. If any of the payday lenders are Internet loans the chances are very high they are not licensed lenders. Unlicensed/illegal lenders will not negotiate.

  6. charlie Says:

    Hi, I live in ct also and got myself into a 6 payday loan company problem. now iam finding out that the majority of them are illegal. i have a loan out with zip19, discount advances, loan point usa, cashexpressdirect,natioal payday, and my cash now. I do. I want to pay back what i borrowed but it seems to be going backwards. If i close my account and open a new one in the same bank, can these loan companies come in and withdraw from my new account without my permission? thankyou

  7. charlie Says:

    hi Shazzers, how do I find out what the payday loan laws are here in connecticut. is there a link for me to go to? Thankyou kindly Charlie

  8. Amy Says:

    Hi, I have a question about a payday loan I have with cash direct express which is now in collections with alliance assets.. The loan amount was $600 and I’ve paid in just interest $507 and I live in Illinois first off, now this collection co is calling me like crazy saying I owe $746. And that I need to pay it before things get really bad I have put in stop payment on anything from them I fell behind due to an unexpected job loss please do you have any advice on how to handle this company thanks Amy

    • shazzers Says:

      Hi Amy,

      Are you aware that Cash Direct Express is not a legal/licensed lender in the state of Illinois? They absolutely are not! Send a cease and desist letter (certified, return receipt requested) to Asset Alliance, (make sure you date the letter). Tell them upon receipt of the letter they you are exercising your rights per the FDCPA they cease all contact with you via telephone. This includes your place of employment, home phone number and cell phone. The only form of communication can be done via the United States Postal Service. If they fail to adhere by the law, you will file a complaint against them with the FDCPA for non-compliance and may be subject to a fine.

      I would also include in that letter, “while this is not an acknowledgment of owing this alleged debt, you are attempting to collect on an unlicensed/illegal debt.

      That should take care of it, I hope. A side note, if they should call before the cease and desist contact letter is received, do not speak to them, hang up.

  9. Donna Stedman Says:

    i too have made the mistake of taking several on line loans. Something I will never do again! I have made payments but with the dath of my husband at 47 years old and no funds to pay them I am at a loss as to what to do. i am closing my bank account but how do I get the original loans paid off slowly so I can afford to liove. i do not want to completely default. how do I handle this, should I call each one and make arrangements?

    • shazzers Says:

      Hi Donna,

      I need to know what state you are in, also, were all of these Internet lenders? If they were, the chances of them being legal/licensed are slim to none. I would be most happy to help you but first I need more information.


  10. charlie Says:

    Hi Shazzers, I too have gotten myself into a financial jam with 6 of these pay day loan companies. I now am getting phone calls at work threatening me with wage garnishments and all kinds of legal action. I live in connecticut. national payday, zip19, loanpoint usa, my cash now, discount advance and one click cash are the loan companies involved.Can you tell me please if these companies are legal in Connecticut? Now if they are not legal can they attempt to come at me with harrassing phone calls? What if they have in the agreement you sign a clause saying you agree to waive all rights and agree to their terms, even though they are illegal in Ct., can they still attempt to collect. I would greatly appreciate any help you can offer me. Thanyou Charles in Connecticut.

    • shazzers Says:

      The state you are located in tells the whole story, payday loans are prohibited in your state, so all of your loans are illegal, I am going to provide you a few links below to get you started.

      You will need to close your account asap!
      Your payday loan laws are at the link below:

      The link below will guide you step by step on how to deal with unlicensed/illegal lenders, all that you are obligated to pay is the amount you borrowed, less any payments you have already made.

      They can’t garnish your wages unless they take you to court and receive a judgment against you first, BUT, they can use a “wage assignment” to deduct money directly from your wages, however, this is a voluntary process and can be revoked at any time. So, all you need to do to prevent this from happening is emails to all your lenders revoking their rights to attach your wages, but most importantly, pr

  11. shazzers Says:

    Sorry, I hit the wrong key on my keyboard and it posted. lol

    Print out a copy of those emails and take it into your employer, then, they can no longer use the wage assignment against you. No matter what they tell you, they can NOT sue you or use this wage assignment once it has been revoked. Read the links I gave you above and you will be fine!


  12. charlie Says:

    Thank you Shazzers for your help. Out of the 7 lenders, three have no email address, just a little message screen at their site. I dont know if I can put that whole letter into that little message screen. Mycashnow.com and natinalpaydayloan have a little screen and discountadvance has only a phone#. Is there anything I can do with these 3 companies? I can still print the emails and bring them to my employer, just cant send them. Thankyou so much for your help.

    P.S. I will take these emails to my job on Monday.

    • shazzers Says:

      Since you are able to log into your accounts, I have an idea, take a screen shot of your account and save it for future reference.

      Here is the information I have on the 3 companies you mentioned:
      support @ mycashnow.com

      customerservice @ national-payday-loan.com

      customerservice @ discountadvances.com
      customerservice @ creditprotectiondepot . com

      For your information, Discount Advances is the same as Credit Protection Depot.

      Hope this helps!

  13. shazzers Says:

    Something else I wanted to mention, after you send those letters out to your payday lenders, you can expect they will block you from viewing your account, don’t be alarmed, it’s a typical action on their part. Also, please make sure your account is secured (closed preferably, at least a deposit only status) BEFORE you send those letters out, if not, they will hit your account quickly and probably try to debt HUGE amounts. 🙂

    • charlie Says:

      Thanks. account has been closed. you are right, I cannot access 4 of my accts. Just was very worried about them attaching or garnishing my wages until I talked with you. Thanks Charlie

      • shazzers Says:

        They will still threaten you with garnishment, but no worries, they can’t because you have beat them to the punch! Also, expect harassing calls, possibly threats of jail, summons, and taking your first born child! lol Tell them to bring it on! Of course we both know they can do nothing, they wouldn’t dare walk into a court of law!

        What they might do is turn your account over to a bottom feeder collection agency (which can be dealt with per the FDCPA), or someone who states they are “United States Law Enforcement Office” or some other scary sounding name, there is no such place! Keep your eyes and ears open. The best word of advice to follow; never ever admit to owing a debt to a voice on the phone, whether you owe it is irrelevant, but(this applies to 3rd party collectors) within 5 days of their first phone call to you, per federal law (FDCPA).

  14. Julianna Says:


    I got caught up in too many PDL both store/on-line. I recently started working with a payday debt assistance program to pay them all back. The biggest problem I am having right now is that I notified my bank 4 days prior to my next scheduled ach withdrawls were that I was working with this program and I wanted to have the ach stopped. They told me there was nothing they could do this was on 12-6-10. On 12-10-10 the ach came through with no more than maybe a $1.50 in my account the bank paid several of the loans. This took my account over $700.00 two weeks later still no money deposited they paid a couple more. This now took my account over $1000.00. I have talked to at least 10 people either by phone, in person or by letter nobody will help me. The creditors that have been notified till try to send the payments through as of last week my account is now up to over $1200.00 overdrawn. I truly don’t know what to do I am trying to pay my creditors back but I can afford to pay back both. On 2-10-11 60 days after all this started they will close my account and refer me to telecheck. I asked to have my account blocked they told me there is nothing they can do. Do you have any advice?

    • shazzers Says:

      Did you notify your bank in writing? There is a law that makes a financial institution responsible if they do not honor your wishes to stop ACH withdraws. It’s called the EFTA (Electronic Funds Transfer Act). Your financial institution is breaking the law by not honoring your request to stop ACH’s. Click the link below for a summary of the EFTA, print it out, and take it into your branch manager (no one else will do), tell them you want all of those debits returned and all the bank charges removed or you will be forced to file a complaint against them with your state regulator. Seriously, they could be in a load of trouble!

  15. charlie Says:

    Hi Shazzers, well cashdirectexpress sent me their reply which i have injected below

    GOVERNING LAW, ASSIGNMENT AND EXECUTION: This Loan Agreement is governed by the laws of the State of Delaware, as it is the State in which Your
    Application is received, the Loan Agreement is entered into, the Loan is approved and funded and where payment is received by Us in fulfillment of Your
    obligations under the Loan Agreement. We may assign or transfer this Loan Agreement or any of Our rights hereunder. If this Loan Agreement is approved by
    Us, then You agree that the electronically signed Loan Agreement We receive from You will be considered the original executed Loan Agreement, which is
    binding and enforceable as to both parties.

    Can you tell me if this holds any water so to speak? thankyou Charlie

    • shazzers Says:

      That’s a typical response. The only law that applies to the lender is the state where they have presence. Just reply to them as such:

      Please note I am not a resident of Delaware, have never prescribed to be a resident Delaware and have no Delaware presence, as such am not subject to the Delaware laws you detail!

  16. Erica Says:

    Hi I live in PA and I did an internet payday loan over the summer through DJR Group LLC. They are continuously calling me at work but I cannot pay them at this time. Is there anything I can do? Thank you!

  17. KMay Says:

    I did get a payday loan from SSM and Lazer Lending, well I have started receiving emails stating Dear** your account was sent to NATIONAL CREDIT ADJUSTORS 1 866 660 1262, and today I get a call from 661-347-6405 but i didnt know the number and they left a message, stating they were from the Federal Attorneys Office, so I started so some investigation, and I came across your page, I am based in NC,so what is the best way to handle them, because I have not spoken with them yet.


  18. Alice Says:

    Help,,,I am in the horrible circle of payday loans. I live in OH and han 9 internet loans out. The fees are taking my entire paychecks! The loans are with iAdvantage, American web loan, checkngo,cashnetusa,fourseasons,paydayone, paydayservices, magnum cashadvance,24/7 Green Street. Can anyone give me advice???

  19. Alice Says:

    Thanks for all of your advice. One more question,,,I have $1300 out with Cashnetusa and $1100 with Checkngo.
    I know those amounts are higher than what the law reads,,,,what do I do?

  20. shazzers Says:

    When you say “the amounts are higher than what the law reads”, are you referring to the amount of the loan issued, or the interest rate set forth by the loan?

  21. tam Says:

    Hi i live in NC and have a internet loan for 300 $ plan on paying back but lost my log in info and try to email them to get my info but never got an email back …but anyway they are now threating me to take me to court… what should i do ? i think pdl’s are illegal in nc but not sure about this site are they liscends or anything like that please help im freaking out !!!! what steps should i take tp put a stop to this?!?!? thanks

  22. Hi, just wondering if PayDay One Loans is a legal company? Can they come after me for defaulting on a loan?

  23. Kylie Says:

    what if the payday lender claims indian reservation and they don’t have to abide by the rules of your state?

  24. Ricky Clayton Says:

    I reside in North Carolina. I took out a payday loan with Everest Cash Advance for 500.00. The interest rates are insane. I’m making payments in the amount of 180.00 per month and I’ve done this for 4 months already. They all of a sudden went up in fees. I don’t feel that I should continue paying them. Should I change my bank account number? I complained to the BBB already to no avail. Please help me. I don’t even know if they are legal in N.C.

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