If you one of the thousands of Americans that are in payday loan debt, most likely you have probably already considered seeking help from a payday loan consolidation company. You have done all the work you had to do to gain the upper hand against your payday lenders: did research online for a good and reliable consolidation company, filled out all the paperwork, and finally, you are ready to get your finances back in control. Then suddenly, your payday lenders tell you something that stops you in your tracks. One simple statement that can make anyone in debt feel completely stuck: We do NOT work with payday loan consolidation companies.

Is this true? If payday lenders do not work with consolidation companies, then why do they even exist? Here are the three main reasons why your payday lenders will eventually decide to work with your consolidation company.

1. Before enrolling in a debt help program, the first thing that payday loan consolidation companies will advise you to do is to close the bank account that your lenders have access to. Although consolidation companies send legal documents to your payday lenders to revoke their authorization to automatically debit your bank account, it is necessary that you close your bank account to make sure that there are no unauthorized charges coming out of your account.

2. Your payday loan consolidation company will also send legal documents to your payday lenders to cease and desist further communications with you. According to the Federal Trade Commission, payday lenders have to follow certain rules and regulations when collecting on their debt. If your payday lenders do not follow these rules and continue to make harassing phone calls, they can be fined $1,000 for EVERY phone call that they make. Because most payday loans are small amounts (between $200-$1,000), calling you becomes a risk that is just not worth taking.

3. Many people are worried that they will get sued if they do not pay off their payday loans. Majority of borrowers do not know that most payday lenders (especially Internet-based) are not licensed to lend money to people residing in the United States. This means payday lenders do not have the ability to take non-paying customers to small claims court for a payday loan. Payday lenders often use this tactic to scare borrowers into paying them, and is effective because most customers are not well-informed about what lenders can and cannot do.

Now, think this for a moment: Your payday lenders cannot debit your bank account for payment, cannot call you to ask for money, and cannot sue you for the unpaid loan. How else will they get paid? Who else can they turn to? There is only one solution: payday loan consolidation companies.

So why would your payday lenders deny working with consolidation companies in the first place? It’s simple. People who sign up with consolidation companies obviously have several payday loans. As a matter of fact, people drowning in payday loans usually have between two to twenty payday loans. Usually, consolidation companies work from one lender to another, which means that if you are a payday lender, you would be unsure as to when you would get paid. Payday lenders are aware of this and know that chances are, they could get paid faster if there is no third-party involved. For this reason, they claim that they do not work with payday loan consolidation companies, even though they eventually will.

Do not let your payday lenders intimidate you until you know all the facts. If you have tried all you could to get out of payday loan debt yourself but have failed, maybe it is time to seek professional assistance. After all, who wouldn’t benefit from a little help once in a while?

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Have you received a phone call from a so-called law firm threatening to sue you for check fraud? Have they called you at work and told you that if you did not pay them, they will show up at your job and serve you with court papers or worse yet, arrest you? Are your family and friends being harassed and threatened about being sued for conspiracy to your crime?

These are the most common tactics used by scam companies today so that you would provide them with your credit card or bank account information.| They tell you that you need to pay off a payday loan debt that you supposedly borrowed from a lender online.

Who would not be afraid of these threats? Most borrowers who receive these phone calls are the ones who did obtain a payday loan over the internet at some point or another. Let’s face it; payday loan borrowers are repeat borrowers. It is possible that one may forget which internet companies they actually have borrowed money from. Upon receiving one of these calls, one might think that they forgot to pay off the lender and now is the time to pay them back.

It is not so hard to believe these scammers either. Most will tell the victim that they are collecting the money to pay off payday loans that they did owe before, or may currently still owe. 99% of the time, they will convince you that you borrowed the payday loan by stating the same exact information that is typically used to apply for a loan: your social security number, your bank account number, employer information, and personal references.

So how did these companies get a hold of your information if they are not your payday lender? How can you be sure that this is a scam?

There is no certain answer as to how these scam companies gather your personal and private information. The process is still under investigation and may take years to crack.

Most of the people who receive these calls are those who do have payday loan debt with numerous companies over the internet. In most cases, these people are protected by the payday loan consolidation company they are working with. These companies can easily track which collections calls are legit or not.

So what if you are not working with a payday loan consolidation? How will you know that this is a scam? First of all, think to yourself: “Will a ‘law firm’ actually ask me to make a payment directly to them? Is that really their job?” Obviously, the answer to this questions is NO. Second, most of these scam companies work off-shore and you will be able to tell the difference just by hearing their thick accents. 3rd, ask the voice on the other line to provide you with your loan agreement and documents. You need to ask them for proof that you did indeed borrow this money, and if they cannot give you the information you requested, let them know that you will not pay them a dime. You can also take their phone number and search for it online to see if it is a legit company or not.

While many have fallen victim into this scam, you do not have to be one of them. Stand your ground and do not be afraid to say no to these criminals. Be persistent and let them know that you will not succumb to their threats. Once these scammers realize that you are too smart to fool, the phone calls will stop and the nightmare will be over.

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