Check out some similar questions!

debspells · Nov 17, 2011, 01:13 PM

Help... I took out a loan for 400 over a year ago... I am on a disabilty now to make a long story short... I did forget about it ( my bad mistake ) however can they freeze and take my daughter to court for my unpaid bill? I used her as a name reference.. they are now threatening me this.. plus this is the first time I have talked to them.. said I have no time to pay,and they say it is over 3000 owing now... I don't know what to do... just want to know if they can do anything to someone that never even put there name on it?

debspells · Nov 17, 2011, 01:15 PM

They called me. Sent some law firm after me for money owing.. but how does 400 get to 3000? Plus threatened to freeze the persons bank account I put on as only a reference... don't know how this is going to turn out yet

ScottGem · Nov 17, 2011, 01:25 PM

First, these pay day loans charge very high interest. So its not surprising that with interest and late fees, $400 has ballooned to $3K.

They can't touch your daughter's account if you only listed her as a reference so don't worry about that.

But ducking them and refusing to talk to them is the wrong move.

You need to explain to them you have little income and try to work out a settlement.

Fr_Chuck · Nov 17, 2011, 02:12 PM

First they are about as close to loan sharks as is legally possible, And many cross the lines and break collection laws on a regular basis. Such as threatening to do things they can't do.

If the daughter is only a reference and not a co signer on the loan, they can not touch her. If you and her have any joint accounts they can freeze those.
They can freeze any of your bank accounts. ( often you sign for them to get a non judicial judgement ( they don't have to take you to court) in many states.
They almost most likely had you list property for security, TV's furniture and the such ? This is common and they may come and get those things listed.

And yes 3000 is about after a year what I would expect, you are paying perhaps 25 or more percent interest, with my guess daily late charges, there will be collection fees and if they do get an attorney, attorney fees. If they go to court, there will be court fees.

debspells · Nov 17, 2011, 03:00 PM

Thank you for the answers... I wanted to make an arrangement for maybe towards the end of the month to start making payments... they told me that I had no time? But all I really did want to know about her, cause I couldn't live with myself if that happened ( kicked down too much in life lately ) .
They can do what ever they want to me, I got nadda! I am living on a fixed income... but I am willing to make some sort of arrangements... I guess I will wait to see when they serve these papers... all I know is.. never never again! Just at the time I was desperate and thought I could pay them back..

kcomissiong · Nov 21, 2011, 11:17 AM

Well, how about a different angle... have you asked for verification of the debt and confirmed who the lender actually is? A threat to freeze a bank account of a person who was simply a reference smacks of a scam. It is pretty common for information to be harvested from payday lenders by scammers, and for them to threaten you with illegal actions or even jail time for a debt the may not even exist. Give them a call, and let them know that they must provide you with a verification of the debt per the FDCPA. Write down names and employee numbers. File a report with the FTC if they threaten you again, and let them know that they are in violation and you are reporting them. Get any settlement they offer IN WRITING. You can ask them to communicate with you only in writing.

I'm not suggesting that you don't pay them. I'm not even suggesting that you don't owe a debt. Just make sure that you owe it to them, and that they are using legal means to collect it if you do. Don't waste time and money paying off a scammer instead of your lender.Threatening your daughter is clearly in violation of the FDCPA.