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The short answer is, “No.” A few clients have told me that they’ve received phone calls from a collection agency, threatening jail time for not repaying payday loans.
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It's also illegal for the agency to blab at you about someone else's alleged financial woes. An honest collector calls you for "location information" and nothing more.
Check cashing and deferred deposit service companies, colloquially known as “payday lenders,” are a necessity to certain borrowers who may be labeled sub-prime, though consumers from a broad spectrum of income and asset levels use payday loan services. Payday loans are meant to assist consumers ...