Payday loans are quick and simple kind of short term loans. However, it is very important that you educate yourself with your rights and responsibilities. Furthermore, you must also understand and educate yourself when it comes to the subject before you finalize any future payday loans you may apply for.
There are lots of stories circling around about borrowers being harassed by bad lenders. You must be careful when it comes to choosing the kind of lenders you are borrowing from. There is a big difference when it comes to legitimate money collection agencies and being harassed by lenders.
Payday loans are short term loans that are meant to be paid on your next payday. The idea is that the borrower agrees to pay back the money being borrowed in full with interest when your next wage arrives. The payday loan agency will debit the money from your bank account at the agreed date automatically.
The idea of payday loans is simple. However, you must be responsible when it comes to paying back your short term loan on the agreed date. If you are unable to repay on the agreed date, then the lender has the right to contact and arrange repayment. If the repayment fails, then the borrower is liable for further charges and interest as a result of the breach in contract with the original loan.
In the event that you are struggling to repay the full money amount you owe, make sure that you do not get it unresolved. This will only become extremely costly for you in the long run. It is a lot better to contact the lender and inquire for reduced repayment until you clear the remaining borrowed amount. Responsible lenders would do everything they can to work with you so you will be able to pay off the remaining balance through different repayment options such as payday loan consolidation.
The lenders are entitled to contact you with the subject of repayment in case you are unable to pay on the agreed date. However, they are not allowed to contact you more than three times per week. Furthermore, lenders are also not allowed to contact you during socialable and unreasonable times. They must also be polite and proper. They are not allowed to be intimidating or threatening in any way. If the lender contacts you in such manner, it is considered as harassment and you have the right to report them to the proper agencies.