Getting Collection Calls For Payday Loan Not on My Credit Report
Payday loan credit reporting can be very confusing. A common question is, if I’m getting collection calls for payday loan not on my credit report, do I really owe them? The answer is, maybe. The are two predominant reasons why this would happen.
Payday Loan Collection Scam
The names of the payday lenders and their tree of companies can be confusing. This is bad news. It is not uncommon for people to literally not know what or who they owe. The scammer knows this and leans hard on their victim, scaring them into paying a loan they never had. NEVER blindly pay anyone claiming to collect on a payday loan you do not recognize. Instead, first demanding they validate it. If they can’t prove it’s yours, you have no reason to pay a dime. If they do, then you can make educated decisions on how to proceed. They have to, whether they want to or not. It’s the law.
Otherwise, It’s Probably Yours
More than likely, it very well could be a valid debt. These pay day and short term loans can be very confusing, especially if someone pulls many out at one time, and most DO NOT report the loans to the credit reporting bureaus. That far from means you don’t have to pay it. Any time you take a loan and enter into a contractual obligation, you must adhere to the terms of the loan, including all payback mandates.
If you fail to pay back a valid loan, they will send you to a collector and sometimes even file civil suit. Both of these scenarios ARE likely to be reported and in a very negative status. Sometimes collectors hold back reporting loan defaulting as an incentive tool to collect the debt. This way they have yet to wreak havoc on your file with a default, but with the promise of reporting the loan tardiness if the debt isn’t immediately rectified. The damage is already done many times with old debt, leaving little incentive for the debtor to pay anything back. This way, you get a chance to keep the bad experience off the record before it’s too late.