Are you having sleepless nights because your payday loan lender is blowing up your phone every day?
Nagging phone calls can interfere with your productivity in the office. It’s hard to focus on your daily tasks when your mind is preoccupied with how to deal with an aggressive payday loan lender. Rather than endure unnecessary stress, just walk into the office of a legitimate payday loan consolidation company.
One characteristic of legitimate payday loan consolidation companies is swift delivery. After signing your loan consolidation forms, you can rest easy because your lender won’t call or text you again.
11 characteristics of legitimate payday loan consolidation companies
1. Transparent billing policy
A payday loan company makes money through charging interests on the loan repayment monthly installments designed for their clients. Your payday loan consolidation company determines the interest rate based on the outstanding loan amount and client’s credit score. However, you should perform due diligence by carefully reading the terms and conditions printed on the loan consolidation forms.
Reading the contract will inform you of the penalties charged for late payments. Some legitimate payday loan consolidation companies reduce interest rates if the client manages to clear the outstanding loan within a shorter duration.
2. Respects your privacy
Some seedy payday loan consolidation companies demand email and social media accounts’ passwords from desperate clients. If the client appears hesitant, the payday loan consolidator asks for their driving license or SSN online accounts. Devious loan consolidation officers manipulate clients by lying that their company is the only one that accepts defaulters with such low credit scores.
Legitimate payday loan consolidation companies conduct thorough background checks when vetting clients. If the client’s credit history makes them too risky, the loan officer requests for collateral such as motor vehicle log books, title deeds, and financial portfolios.
3. Physical address and landline numbers
The U.S government requires all loan consolidation companies to have a physical address where clients can visit. This policy enables state officials to keep track of all loan consolidation companies operating in their jurisdictions. In addition, loan consolidation companies require an active landline telephone number.
You can tell a lot about a payday loan consolidation company based on their aura. An aura is the emotional environment you feel when you walk into a new place. If you walk into a clean office that’s well equipped and has friendly staff, just book an appointment.
4. Offers free sessions
Legitimate payday loan consolidation companies provide certified financial consultants to their clients. The financial consultant listens to clients then creates personalized loan repayment monthly installment plans. In addition, clients receive valuable advice on how to improve their financial stability through expense management.
During your first visit to the loan consolidation company, you’ll get a free hour with an experienced financial coach. One advantage of this session is you’ll gauge how helpful the financial coach is. If you enjoyed the free session, request for the payday loan consolidation forms.
5. No online document signing
Defaulting on a payday loan brings about tension between the creditor and debtor. This is why you need a legitimate payday loan consolidation company as a mediator. The reason why illegal payday loan consolidation companies send contracts to their clients via email is to avoid detection by the government.
A legitimate loan consolidation company requires your physical presence during signing the loan consolidation contract. The law requires them to explain all terms and conditions to clients who are about to sign payday loan consolidation forms. Showing up to the company’s offices also shows your commitment towards clearing the outstanding debt.
6. Good reviews
Customers never lie. This is why thriving online stores such as Amazon and eBay push customers to post reviews immediately after purchasing products. Reviews help other customers know whether the seller offers value for money. Sellers also gain customers feedback from customers' reviews posted on their website or social media timelines.
You can visit the Better Business Bureau website and search the payday loan consolidation company you’re interested in. Another credible website dedicated to customers’ reviews is Trustpilot. Visit the company’s Facebook and read the reviews posted by previous clients. Avoid payday loan consolidation companies that aren’t on social media.
7. Professional customer service
After signing the loan consolidation forms, your assigned financial consultant expects you to make payments without supervision. You’ll receive a phone call once a month from the payday loan consolidation company to ensure you stay on track during the loan repayment duration.
Sometimes, an unexpected turn of events can put you in a drastic financial situation. A legitimate payday loan consolidation company won’t send numerous threats via your email due to non-payment. The loan officer will call you to check whether you kept your promise if you agreed to meet the outstanding installments at a later date.
8. Free application process
As mentioned earlier, legitimate payday loan consolidation companies earn their profits through interest rates charged on clients’ monthly installments. Since they already know that their clients are in a dire financial situation, it’s unfair to extort money from them. In fact, they go out of their way to provide free financial consultations, which normally costs hundreds of dollars per hour.
On the other hand, shady loan consolidation companies require clients to pay an application fee before signing the forms. If you come across a loan consolidation company that refers you to a private financial consultant who expects payment, avoid further communication.
9. Loan repayment progress report
Legit payday loan consolidation companies help clients to regain control of their bank accounts. The loan consolidation officer takes legal measures to prevent your creditor from accessing your monthly paychecks. This enables clients to consolidate their payments easily into one monthly installment.
When you pay the agreed monthly installment, your loan consolidation company forwards it to your creditor. After every three months, you’ll receive a progress report. In case you receive calls from your payday loan lender asking for payments, you can produce the progress report as proof of payment.
10. Registered with official credit regulatory bodies
If you walk into an office of a payday loan consolidation company and notice a certificate of registration from The Association of Independent Credit Counseling Agencies, you’re in safe hands. It’s a strong indicator that the government trusts the loan consolidation company to offer honest debt consultation and charge reasonable interest rates.
The National Foundation for Credit Counseling (NFCC) is a non-profit organization that promotes financial responsibility among its members by offering affordable consulting services. You're guaranteed of receiving high-quality help from an NFCC-certified financial consultant. To spend less time searching for an ideal payday loan consolidation company near you, just look for certified financial consultants on the NFCC website.
11.Long existence in the credit industry
You can tell whether a payday loan consolidation company is real or dubious by checking its history. It's advisable to choose a payday loan consolidation company that's been in existence for at least five years. A company that has successfully operated for five consecutive years has established itself as a credible entity.
One way of checking the real age of a payday loan consolidation company is using ScamAdvisor. Copy the payday loan consolidation company’s web address then paste and search on ScamAdvisor. You’ll get results on the domain age, real location, and customer reviews on various websites.
Adhering to the eleven tips described in this article will prevent you from falling prey to shady payday loan consolidation companies. Most legitimate payday loan consolidation companies allow clients to consult lawyers before signing the monthly installment agreement. Always provide your loan consolidation officer with your true credit rating because lying will get you disqualified.
Remember to visit several payday debt consolidation companies to compare loan costs. If you have a friend who has a nagging payday loan lender, share this article with them today.