Simple Fast Loans Lawsuit: Protecting Yourself from Payday Lenders and Collection Agencies

If you're facing a Simple Fast Loans lawsuit, it's essential to understand the process and how to protect yourself from payday lenders and collection agencies.

The average debt owed to payday lenders is around $1,000, and the interest rates can be as high as 390% APR, making it difficult to pay off the debt.

To protect yourself, it's crucial to review the loan agreement carefully and understand the terms and conditions. Payday lenders often use predatory tactics to lure borrowers into debt traps.

Many states have laws regulating payday lending, but some lenders still operate outside of these laws, making it even more challenging for borrowers to get out of debt.

A $1.5 billion payday loan settlement has been approved by a judge.

The settlement was filed in federal court in Minnesota and requires businesses to comply with Minnesota law when lending to residents.

It also requires that any loan issued before the settlement be canceled, except to allow repayment of the original principal balance.

Loans issued before the settlement had principal balances between $350 and $1,500, and interest charges will be written down.

Past payments will be attributed towards paying down principal.

The lawsuit enforces Minnesota’s statutory interest-rate caps, also known as “usury” laws.

These laws were passed to protect consumers from exploitative and unfair lending practices.

In fact, Minnesota Attorney General Ellison has prioritized protecting consumers and supported legislation to close loopholes for online lenders.

An investigation by the Attorney General’s Office found that 634 of the loans issued by Bright Lending, Green Trust Cash, and Target Cash Now were in default and referred to collections.

The total balance of these defaulted loans was $990,575.

The Attorney General estimates that the lenders issued thousands of loans in Minnesota that violate the law.

The outstanding balances affected by the settlement are estimated to exceed $1 million.

The settlement includes mechanisms to ensure compliance and a full accounting of past illegal lending.

You won't be thrown in jail for not paying back a payday loan. Lenders can take you to civil court and sue for the owed amount, but they can't have you arrested.

If you can't pay, your wages may be garnished, but only if a judge orders it. This means you'll receive a court order before your wages are taken.

The good news is that wage garnishment is limited to your disposable income, so you won't be left with nothing to live on.

You won't go to jail for not paying back a payday loan, as it's considered a civil matter, not a criminal one.

If you're unable to repay a payday loan, you can expect the lender to take legal action against you, such as suing for the owed amount.

Payday lenders can't directly garnish your wages, but they can request a judge to order wage garnishment.

You'll typically receive an order to appear in court before your wages are garnished, giving you a chance to avoid it.

If a judge does order wage garnishment, the amount will be limited to your disposable income, so you'll still have enough to live on.

Arrests can sometimes happen, but it's usually for failing to appear in court, not for defaulting on a loan.

In some cases, borrowers may be arrested for failing to appear in court, even if it's just for a small amount, like in the case of Paul Aker who was arrested for a $1,500 student loan.

Hot check charges are a serious concern for payday loan borrowers in Texas. In some cases, lenders have filed "hot check" charges against borrowers, which can lead to arrest warrants.

Passing a bad check is a Class B misdemeanor in Texas. This is the typical charge associated with "hot check" cases.

However, Texas law provides a crucial exception for payday loans. Checks written to secure a payday loan aren't considered "hot checks" if they bounce.

The key reason for this exception is that payday lenders assume borrowers can't afford to repay their loans. This assumption is based on the fact that the check was written to secure a loan in the first place.

In other words, if a borrower can't afford to repay their loan, they never intended to defraud the lender. This nuance in Texas law can be a lifesaver for payday loan borrowers.

Don't ignore a summons to appear in court, as over 95% of debt collection lawsuits end in favor of the collector if you fail to appear or don't prepare a defense.

Showing up to court might surprise the lender, who often expects the borrower to skip out on their court appearance.

If you're sued by a payday lender or collections agency, you must show up to court to avoid arrest for ignoring an official court summons.

Don't ignore a court summons, it's not worth the risk of arrest for ignoring an official court summons. Over 95% of debt collection lawsuits end in favor of the collector when the debtor fails to appear in court.

Showing up to court proceedings can be a game-changer, it might even surprise the lender who expects the borrower to skip out on their court appearance. Many lenders don't prepare to prove a breach of contract, which could lead the court to dismiss the case.

If you're sued for failing to repay a payday loan, you must show up to court to avoid further action. Missing your court date can result in wage garnishment or other severe consequences.

Showing up to court might just clear your debt or save you from wage garnishment if the lender can't prove a breach of contract.

A real-world example shows how important it is to stay on top of your debt payments, even if you've relocated for a new job. Mike defaulted on a payday loan and relocated for a new job, but his lender refused to settle the debt.

If you relocate, make sure to notify your lender immediately. This will prevent them from garnishing your wages without your knowledge. Mike didn't receive a court summons because his lender didn't have his new address, and he had no idea he was being sued.

Wage garnishment means the lender will be repaid the entire loan amount, plus additional fees and interest that compounded over the years. This can severely damage your credit score. Mike's credit score was severely damaged as a result of the wage garnishment.

Don't assume your lender will drop the issue because they no longer have your address. They will pursue payment, and you'll be left with limited options. Mike's only remaining options were to repay the loan in full through the wage garnishment order or to file for bankruptcy.

If you're being threatened with a lawsuit, don't wait until you've gotten an order to appear in court. At that point, the lender has no incentive to negotiate a settlement. Contact a debt settlement company or attempt to negotiate a repayment plan on your own as soon as possible.

If you're dealing with payday lenders, it's essential to know your rights under the FDCPA. The FDCPA protects you from abusive debt collection practices by debt collectors.

Debt collectors, including those hired by payday lenders, can't threaten to put you in jail for unpaid debts. This is a common tactic used by scammers, but it's strictly prohibited by law.

Debt collectors can't use profane or abusive language towards you. They're there to help you resolve the issue, not to harass or intimidate you.

Debt collectors can only contact you between 8:00 a.m. and 9:00 p.m., and they can't continue to call you after you've told them in writing that you don't want to be contacted anymore.

Here are some key things to keep in mind when dealing with debt collectors:

A debt collector must also give you the contact information of the original creditor when they first contact you, or in writing within 5 days of initial contact. This will help you verify whether or not you owe the debt in question.