Author Topic: Payday Loans: Barely Legal...or Not Legal At All. The law and payday lending  (Read 22458 times)

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Flyingifr

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Payday Loan companies lose the privilege of doing business in Arizona on Jan 1 2010. There is a proposition on the ballot this year to allow them in AZ permanently. Here in Tucson the newspaper has been against that repeatedly.
BTW-the Flyingifr Method does work. (quoted from Hannah on Infinite Credit, September 19, 2006)

I think of a telephone as a Debt Collector's crowbar. With such a device it is possible to pry one's mouth open wide enough to allow the insertion of a foot or two.

Debtors Exams are the perfect place for us Senior Citizens to show off our recently acquired Alzheimers.

Founder of the Credit Terrorist Training Camp (Debtorboards)

Rottweiler

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    • Debtor Talk:  "Tough Love" for the Collection Industry.
I did "miss" another important law that could help:  The TCPA!  Cutting off their collection "lifeline" (once the bank account is out of the picture) by using the TCPA as that sword and shield would not make them happy. 

But...the consumer might think rather differently, don't you think?   ;D

I guess I am not quite through....yet.
“This is a court of law, young man, not a court of justice."
~ Olver Wendell Holmes

Flyingifr

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TCPA doesn't apply if they have an established business relationship with you -like an outstanding loan.
BTW-the Flyingifr Method does work. (quoted from Hannah on Infinite Credit, September 19, 2006)

I think of a telephone as a Debt Collector's crowbar. With such a device it is possible to pry one's mouth open wide enough to allow the insertion of a foot or two.

Debtors Exams are the perfect place for us Senior Citizens to show off our recently acquired Alzheimers.

Founder of the Credit Terrorist Training Camp (Debtorboards)

Rottweiler

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    • Debtor Talk:  "Tough Love" for the Collection Industry.
Good point, but it appears it may not be all that simple and is why the topic needs to be explored.  Some points to think about in the meantime:

1.)  If we are talking about the lender themselves being bound by the TCPA's anti-telemarketing provisions ("Can they call?") ?  It might be possible to invoke the restriction on calling cell phones if the borrower withdraws such permission.

2.)  If it turns out that the collector is a CA?  Initially they would "inherit" the permission to call the borrower if it remains in force at the time of assignment BUT that permission is more easily withdrawn even under current law (if one can find the contact information to do it in writing).

3.)  The permission to call, as far as I can see so far, is also specific to the borrower; calls to any other entity that the collector has phone information for would likely not be automatically allowed since those parties are not signatory to the original agreement.

4.)  The anti-telemarketing provisions of the TCPA might also apply if one got a call out of the blue offering a loan from a lender they did not contact themselves:

Most payday lenders work from one or more Internet "portal" sites and those sites do not identify to just whom they submitted the information.  This also means that the consumer may not know for sure whether they submitted an application--even by proxy--to the business calling them or not;they could have been passed off to a telemarketer who then passes them off to another one:  The lender on the other end of the phone. 

The argument for retaining the right to call will likely be raised by the lender if a dispute arises.  It would likely be this:  One did give the portal the permission to call, after all, so all their clients inherit the "no-calls" exemption even if there is no current business relationship between the lender in question and the consumer.

That is one place where the applicability of the TCPA can be explored.

A possible scenario?  The anti-telemarketer provisions of the TCPA may well apply, at least initially, for such a case.

If a loan is actually issued?  Absent a contract provision in writing stating that the consumer has granted permission to call, it becomes a question of whether the OC (and their heirs and/or assigns) can call or not;the question is "Can a lender invoke the rights they have under the TCPA to call if there is no agreement in writing between the consumer and the lender?"

“This is a court of law, young man, not a court of justice."
~ Olver Wendell Holmes

 

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