In a recent blog, we talked about how consolidations and other actions can offer debt relief for those encumbered by student loans. This week, we’re talking about another type of debt that is sinking many in the state of Washington: payday loan debt.
Washington actually has strict laws governing payday loan debt, and those laws are supposed to make it less likely that individuals find themselves in a loan cycle they can’t get out of. Even so, predatory online lenders have found seeming loopholes, enticing individuals into payday loans online. When collecting on these debts, some lenders use harassment and other illegal practices. They will also lie to consumers, telling them bankruptcy and other relief is not an option.
The real truth is that some of these payday and online lenders can’t legally collect in the state. Others are restricted by both federal and state laws in the type of collections activities they can take. Another truth many of these lenders don’t want you to know is that you, as the borrower, are afforded legal protections just as they are. That doesn’t mean you get a free pass or legal “pass go and don’t pay your $200” card. But you do have rights, and you do have legal options for protecting those rights.
Borrowing money isn’t always a negative thing, and even small short-term loan with a local lender might have its time and place in your life. It’s easy to get caught in a cycle with such lenders, however, because paying back the loan at a high interest in a short amount of time can be difficult if you are already in financial distress. We can help you get off the payday roller coaster and protect your rights from lenders that would like to see you caught in such a cycle.