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Payday loan help
Payday loans and your rights
When a payday loan goes unpaid, the calls, bank withdrawals and collection letters can start fast. Federal and state law limit what lenders and collectors may do, and those limits are broken more often than most people expect.
GetWell Legal prepares the documents that put your rights on the record: written disputes, requests for validation and itemization, cease-communication letters and violation documentation. We track every statutory deadline, and possible violations are referred to an attorney in the GET WELL Legal Network. We do not negotiate, settle or pay your loan.
Which laws apply depends on who is collecting
The same loan can fall under different laws as it moves from the lender to a collector or a debt buyer.
- Third-party collectors and debt buyers whose principal business is collection are covered by the Fair Debt Collection Practices Act (15 U.S.C. §1692) and Regulation F (12 C.F.R. Part 1006). These laws give you the right to demand validation and set limits on contact and on deceptive threats.
- The original payday lender collecting its own loan is generally outside the FDCPA. State law often fills the gap. In Texas, the Texas Debt Collection Act (Tex. Fin. Code ch. 392) also reaches creditors collecting their own debts.
- Active-duty servicemembers and dependents: the Military Lending Act (10 U.S.C. §987) caps the cost of covered loans at a 36% military annual percentage rate and restricts certain loan terms.
- Texas licensing: many Texas payday lenders operate as credit access businesses regulated under Tex. Fin. Code ch. 393.
Collection practices to watch for
Keep a record of any of the following. Which law applies depends on who is collecting.
- Collecting after you dispute in writing, before verification is mailed (§1692g(b))
- Threatening arrest, jail or a lawsuit the collector cannot or will not bring (§1692e)
- Calling before 8 a.m. or after 9 p.m., or at work after you said not to (§1692c)
- Calling more than 7 times in 7 days, which Regulation F presumes is harassment (12 C.F.R. §1006.14(b)(2))
- Telling family, friends or your employer about the debt (§1692c(b))
- Adding fees or interest your agreement or state law does not allow (§1692f(1))
Documents we prepare for payday loan accounts
Every document is prepared for your specific account and cites its legal authority.
- Debt validation request to a third-party collector or debt buyer (§1692g(b))
- Written dispute and itemization request to the lender or collector (12 C.F.R. §1006.34(c)(2))
- Cease-communication letter (§1692c(c))
- Written revocation of automatic-debit authorization
- Violation documentation for referral to a network attorney
Bank withdrawals and state law
Many payday loans are repaid by automatic debit from your bank account. Two rights matter here.
- Stopping a payment. Under Regulation E (12 C.F.R. §1005.10(c)), you can stop a scheduled electronic withdrawal by telling your bank at least three business days before it is due. The bank may ask for written confirmation within 14 days.
- Revoking authorization. You can tell the lender in writing that you are withdrawing permission to debit your account. Revoking does not cancel the loan, but it puts the lender on notice.
The CFPB’s payday lending rule also contains limits on repeated withdrawal attempts after failed payments. Parts of that rule have been challenged and revised over time, so we review what applies to your loan.
State law sets the rest: fee limits, rollovers, loan amounts and licensing vary widely. In Texas, credit access businesses are regulated by the Office of Consumer Credit Commissioner.
What to do and what to keep
- Save every letter, text, email and voicemail, and note the date, time and caller for each call.
- Do not give new bank or card information, or agree to a new payment plan, over the phone.
- Dispute in writing within 30 days of a collector’s validation notice to trigger your full validation rights.
- If you are served with court papers, respond before the deadline, often 20 to 30 days, and contact an attorney right away.
- Complete the client intake form so we can prepare your documents.
Frequently asked questions
Can I be arrested for not paying a payday loan?
Not paying a loan is generally a civil matter, not a crime, and a threat of arrest can itself violate the law. If you receive court papers or a criminal notice, contact an attorney right away.
Does disputing the loan make it go away?
Not by itself. A dispute requires a third-party collector to verify its claim. The underlying debt may still exist, and results depend on each account.
Do you negotiate or settle payday loans?
No. We prepare documents that put your rights on the record. We do not negotiate, settle or consolidate debts, or make payments to lenders.
I’m in the military. Does anything change?
Possibly. The Military Lending Act protects covered servicemembers and dependents. Your base legal assistance office can also help at no cost.
What if the lender is online or based outside my state?
Different rules can apply, and we review each account individually. Tell us what you have on intake.
GetWell Legal provides document preparation (SIC 7338-19) and connects clients with legal resources, including licensed law firms in the GET WELL Legal Network that handle legal action. GetWell Legal does not itself practice law; legal advice and representation are provided only by the attorneys you engage. Using this page does not create an attorney-client relationship. We do not negotiate, settle or consolidate debts, make payments to creditors, or provide credit counseling. Outcomes vary by case.