Desperate measures require desperate actions. It is a timeless statement that usually makes us think about how we would respond to an emergency. It is also an appropriate axiom to use when describing how some people try to pull themselves out of a deep financial home.
Considered by most consumers to the lender of last resort, check cashing and payday loan companies service consumers debts by offering a quick way to obtain cash, without going through the hassle of having to deal with the red tape that comes with a bank or a credit union debt transaction. Typically shorter term loans, the debt taken out at a payday loan business such as Ace Cash Express, Inc. includes higher than average interest rates and a much shorter loan term. When the time comes for the debt to become due, payday loan companies want their money back quickly.
If you took out a payday loan with Ace Cash Express, Inc. and you are now having trouble paying the money back, you might be confronted by an overly aggressive business that has violated one or more provisions of a landmark federal consumer protection law.
Can a Debt Collection Agency Contact a Third Party Regarding Your Debt?
Written into federal law by the United States Congress on September 20, 1977, the Fair Debt Collection Practices Act (FDCPA) makes it illegal for a third party debt collector to threaten you in any way. The federal consumer protection law prohibits a bill collector from threatening to seize your property, as well as threatening you with legal action for failing to take care of a consumer debt. Tucked within the FDCPA is a provision that forbids debt collection agencies from contacting third parties regarding consumer debts.
Like many other federal laws, the FDCPA has undergone a few updates since its inception back in 1977. One update has slightly changed how the legal professionals interpret the FDCPA. A few court rulings have established a precedent that allows third party debt collectors to contact consumers in an attempt to collect personal contact information. Although you submitted your address and phone number to the original creditor, the passing of time might have changed one or both elements of your contact information. Although Ace Cash Express, Inc. is not technically a debt collection agency, the company is allowed to contact a friend, neighbor, family member, or professional peer to acquire your contact information.
When a Third Party Debt Collector Crosses the Line
Since a payday loan company like Ace Cash Express, Inc. can become overly aggressive while collecting outstanding debts, it is important to understand what the company is not permitted to do under the FDCPA. A debt collection agency cannot call someone you know to discuss any element of your outstanding credit card or personal loan account. This means you should not take the harassment delivered by a company that discusses with a third party how much you on a debt or the consequences of not paying off your debt.
Never let a payday loan business intimidate you into paying off a delinquent debt. Schedule a free initial consultation with a state licensed FDCPA attorney to learn more about your consumer protection rights.
*Disclaimer: The content of this article serves only to provide information and should not be construed as legal advice. If you file a claim against Ace Cash Express, Inc., or any other third-party collection agency, you may not be entitled to compensation.