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daniwacko · Apr 14, 2008, 12:59 PM

So after 2 years I get a phone call from a Pay day loan place telling me I need to pay off my loan I took out. This is not a collector calling either, this is the actual loan place. They also tell me that they are contacting my employer to gaurenshee my wages if not made within the week. So first thing I think is "Oh no did I miss this payment?? Two years ago?" The loan was for $200 and I was pretty sure from what I can remember it was paid. So I have had a few days to think about all this and I am in shock that these people have missed contacting me in two years from this May. I am pretty sure this was paid off. How do I go 2 years back to find out. I don't even use the same bank I did two years ago? Do I pay it and forget about it. Do I take legal action? I am kind of mad that they contact me after 2 years with threats...
Any thoughts on this?

progunr · Apr 14, 2008, 02:23 PM

They cannot garnish your wages until they sue you and obtain a judgment.

I would do my best to contact the old bank and obtain any records that could help.

If you paid them with cash, you should have gotten the post dated check back, did you?

If they still have that check, and you can't prove it was paid, you could have a problem.

Just to see how serious they are, next time you talk to them, explain that you are well aware of the FDCPA (Fair Debt Collection Practices Act) and that if they make another threat of garnishment you will report them. Also, tell them they are not allowed to contact your employer unless it is to verify employment and that if they do, that is also a violation of the FDCPA. I would tell them you want Proof of the Debt and see what they come up with.

One last thought, you are not in Arkansas are you? If so, those payday loans have been outlawed, and you may be off the hook all together.

daniwacko · Apr 14, 2008, 02:51 PM

I do not live in the U.S either. So I am wondering what kind of laws we here in Canada have for this particular issue. If I can find that out I will surely use your tactic.
To answer your question there was no check only a void one. So it will be hard to track.
Thanks for the help

progunr · Apr 14, 2008, 02:57 PM

Originally Posted by daniwacko

I do not live in the U.S either. So I am wondering what kind of laws we here in Canada have for this particular issue. If i can find that out I will surely use your tactic.
To answer your question there was no check only a void one. So it will be hard to track.
Thanks for the help

Even though VOID was written on the check, they probably still keep it for collection purposes. At least they do here in the states. Granted it cannot be presented to the bank for payment, but it could be used as evidence in a legal proceeding.
Sorry, I still need to get used to questions from other places than the USA.

daniwacko · Apr 14, 2008, 03:03 PM

Hey...
Honesty... is the best answer!
Thanks for your thoughts.