How You Can Stop Paying Payday Loans Legally
Sometimes it seems that your debts last forever and your paycheck is constantly threatened by payday loans collection despite your best efforts to pay up. This is a payday loan trap and you need to get out of it sooner rather than later. Payday loans are designed to trap you in a cycle of debts with no way out, but there's a way to stop paying payday loans legally.
With DoNotPay's guidance, you can revoke the automated clearing house (ACH) to legally stop automatic payments on a payday loan. ACH is an organization that gives authorization that permits a lender to take money from your account electronically once payday arrives. We'll explain more below.
What If I Stop Paying My Payday Loan?
To stop your payday loans from being debited to your account, a certified letter has to be sent to the company. This allows you to have traceable evidence that there was communication between you and the company.
This letter also serves as a reference in case there are issues along the way concerning the revocation of ACH authority. For proper communication, it is advisable to follow up the letter with a phone call to confirm that the letter was received.
Does an Unpaid Payday Loan Affect Your Credit Score?
Payday loans do not affect your credit rating as they are not reported to the three prominent credit rating companies:
However, debts in the collection can hurt your credit rating and, in some cases, payday lenders can bring forth a lawsuit if you fail to pay their money. In some instances, when you fail to pay your payday loans, a payday lender may sell your payday loan to a debt collector for payday loan settlement.
On the other hand, a debt collector can report you to one of the three main credit rating companies and debt in collections can seriously damage your credit scores.
Payday lenders can also bring forth lawsuits against defaulters of payday loans. Losing a court case regarding payday loans will see the information appearing on your credit report, which will damage your ratings. It's far better to find payday loan relief and other payday loan solutions.
How to Stop Paying Payday Loans Legally by Yourself/On Your Own
Payday loans are not only inconvenient but also expensive. The average percentage of payday loans per annum is a whopping 396%, which is an outrageous amount. An average borrower of a payday loan pays around $500 in interest and additional fees.
You can stop an automatic payment from being charged on your account even if you haven't revoked your authorization to the company by giving a stop payment order. There are a few steps you can follow to stop payday loans by yourself.
- Call and write to the company: By writing and calling the payday lending company and asking permission to revoke an authorization, you can stop them from charging your account.
- Call and write to your bank: You can tell your bank or credit union of your revocation of automatic payments.
- Stop payments: By giving your bank a stop payment order, you can stop automatic payday loans from being charged to your account. This is effective if it is done three business working days before the payment is scheduled.
- Monitor your account: This can be done by telling your bank or credit union to revoke any payment that you did not authorize.
It is worth noting that stopping the automatic payment of payday loans does not cancel your contract with the lending company. While you might stop paying payday loans legally, you will still owe the payday company.
Next Steps to Stop Paying Payday Loans Legally If You Can't Do It Yourself
It could take you weeks or even months to hire legal professionals or work on a lawsuit to sue a big corporation and get out of a payday loan. This is an expensive undertaking and one that might take forever. Luckily, DoNotPay is here for you.
Stop Paying Payday Loans Legally With the Help of DoNotPay
If you want to lower your payday loan or payday installment loan, but don't know where to start, DoNotPay has you covered. Lower your payday loan in 5 easy steps:
1. Search "Negotiate Payday Loans" on DoNotPay.
2. Enter the state you took out the payday loan in.
3. Tell us the amount you borrowed, the date you took out the loan, and when the payment is due.
4. DoNotPay will automatically calculate the APR on your behalf, and determine the best way to negotiate your case based on the amount.
5. You're all set! You can generate your personal negotiation letter with one click, and use it to contact your lender to get better terms for your loan.
Why Use DoNotPay to Stop Paying Payday Loans Legally
There are three key reasons why DoNotPay is very useful when it comes to solving your payday loan issues.
|It’s Fast.||There is no need to spend days waiting for this process to be done or waiting for approval. This can all be done in a single day.|
|It’s Easy.||All you need to do is give DoNotPay the information they need, and the rest is up to them.|
|It’s Successful.||You can finally stop paying payday loans legally.|
DoNotPay Works Across All Companies/Entities/Groups with the Click of a Button
It doesn't matter if you have more than one payday loan with different companies, or different forms of payday loans like a payday loan extended payment plan or some payday installment loans. DoNotPay can navigate all of these various organizations that offer these services. We are able to find you payday loan relief regardless of your circumstances or the amount of debt you have.
What Else Can DoNotPay Do?
DoNotPay is your one-stop online shop when it comes to matters of law. The new and expanded DoNotPay includes features that help users to get help with:
- Parking Tickets
- College Fee Waivers
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- Help With Bills
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- Reducing Property Taxes