Protecting the Rights of Consumers For Over 25 Years

Question: Can a payday loan company take you to court? Someone called my house asking for my debit card information to pay off an old payday loan.

Answer: A payday lender can sue you — if it is a licensed lender. If it is an internet loan, check with the Illinois Department of Financial and Professional Regulation as to whether it has a payday loan or Consumer Installment Loan license. If it is not licensed, its loan is unenforceable, there are substantial statutory damages available against the lender, and any attempt to collect it by a third party is a violation of the Fair Debt Collection Practices Act, among other things.

However, under NO circumstances should you EVER provide credit or debit card or account information over the telephone. There are lots of scammers who claim to be collecting loans or debts when they are just trying to steal your money. They may have some information about you, such as you got a payday loan, or even from whom. Apparently some crooks acquired information from loan brokers that originate payday loans.

If someone calls you to collect a debt, you want a letter from them explaining who they are and what they are trying to collect. Ask for a street address (not PO Box), and to check them out by contacting the creditor. This applies to any debt collector that calls you.

If you have provided financial information to a caller, inform your bank that your account information has been compromised and close the account, instructing the bank to not honor anything from the caller. Confirm this with the bank in writing.