Payday Loans

“Payday loans” is a term used to describe small loans (usually $1,000 or less) that are due in full in a period of week. The lenders make most of their profit with the fees associated with the loans, not with the interest. Many lenders will repeatedly refinance, and borrowers end up in a “cycle of debt”, unable to ever pay their way out of the loan.

Only some of these payday lenders will file a lawsuit against you. Most pursue other means of collection. Most of these loans are given under the Ohio Mortgage Loan Act (“OMLA”). Anyone the lender hires to collect this debt is subject to the federal Fair Debt Collection Practices Act (“FDCPA”), which means there are certain things they cannot do. Additionally, the OMLA requires lenders themselves to follow the FDCPA.

You see what the FDCPA prohibits here:

https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/fair-debt-collection-practices-act-text

Specifically, look at §806, 807 and 808.

If you have been sued by a payday lender, you think that a payday lender is collecting in violation of the FDPCA, or you think you may need a bankruptcy because of your payday loan(s), call our office.

Payday Loans

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