What Should I Do If I've Been Harassed by a Payday Lender?

Payday lending is a predatory lending practice that targets low-income and financially vulnerable individuals. Payday lenders offer small, short-term loans with high interest rates and fees, often trapping borrowers in a cycle of debt.

In the United States, payday lending is a $38 billion industry, with an estimated 12 million Americans taking out payday loans each year. The average payday loan is $375, with an average annual percentage rate (APR) of 391%. This means that a borrower who takes out a $375 payday loan will end up paying back $1,456 in interest and fees over the course of a year.

Payday lenders often use aggressive and harassing tactics to collect debts from borrowers. These tactics can include:

• Repeated phone calls and text messages
• Threats of legal action
• Contacting employers or family members
• Withdrawing funds from bank accounts without authorization

These tactics are illegal and can have a devastating impact on borrowers' lives. If you have been harassed by a payday lender, it is important to take action to stop the harassment.

Recognizing Payday Loan Harassment

Payday lenders often use a variety of tactics to harass borrowers, including:

• Repeated phone calls and text messages: Payday lenders may call or text borrowers multiple times a day, even at odd hours.
• Threats of legal action: Payday lenders may threaten to sue borrowers or have them arrested if they do not repay their loans.
• Contacting employers or family members: Payday lenders may contact borrowers' employers or family members to try to collect on debts.
• Withdrawing funds from bank accounts without authorization: Payday lenders may withdraw funds from borrowers' bank accounts without their permission.

These tactics are illegal and can have a devastating impact on borrowers' lives. If you have been harassed by a payday lender, it is important to take action to stop the harassment.

Immediate Steps To Take

If you have been harassed by a payday lender, there are a few things you can do to stop the harassment:

• Document the harassment: Keep a record of all communications with the payday lender, including phone calls, text messages, and emails. Note the date, time, and content of each communication.
• Contact the payday lender and demand that they stop the harassment: Send a cease-and-desist letter to the lender, outlining the harassment and demanding that it stop immediately. Keep a copy of the letter for your records.
• Report the harassment to the authorities: File a complaint with the Consumer Financial Protection Bureau (CFPB) or your state's attorney general's office. Provide detailed information about the harassment and any documentation you have gathered.

Long-Term Solutions

In addition to taking immediate steps to stop the harassment, you may also want to consider taking the following long-term solutions:

• Seek legal assistance: Consult with a consumer protection attorney to discuss your options for taking legal action against the payday lender. Consider filing a lawsuit to recover damages and stop the harassment.
• Rebuild your credit: Pay off your payday loan debt as soon as possible. Work on improving your credit score by making timely payments on other debts and managing your finances responsibly.
• Educate yourself about predatory lending: Learn about the risks of payday loans and other predatory lending practices. Share your knowledge with others to help prevent them from becoming victims of harassment.

Payday loan harassment is a serious problem that can have a devastating impact on borrowers' lives. If you have been harassed by a payday lender, it is important to take action to stop the harassment. There are a number of resources available to assist you, including the Consumer Financial Protection Bureau (CFPB) and your state's attorney general's office.

You are not alone. There are people who can help you.