A payday lender sent you to collections. Know your rights.
If you cannot repay a payday loan, the lender may attempt aggressive collection. Federal law (FDCPA) limits what collectors can do. Some tactics used by payday lenders — like threatening arrest or unauthorized bank debits — are illegal. Federal law
What collectors cannot legally do
Cannot threaten arrest
You cannot be arrested for failure to pay a debt. If a collector threatens jail or legal action for a civil debt, this violates the FDCPA. Federal law
Cannot call at unreasonable hours
Collectors cannot call before 8 AM or after 9 PM local time. They cannot call your workplace if you tell them to stop. Federal law
Cannot debit without authorization
Once you revoke ACH authorization in writing, neither the lender nor a collector can debit your bank account. Contact your bank to place a stop-payment. Federal law
Cannot harass or deceive
Repeated calls, threats, obscene language, and misrepresenting the amount owed are all FDCPA violations. Document everything. Federal law
If you are in payday loan collections
Request written validation
Within 30 days of first contact, send a written request for debt validation. The collector must prove the debt is valid and the amount is correct before continuing.
Revoke ACH access
Contact your bank in writing to revoke any ACH authorization. This prevents the lender from making further withdrawals.
Document violations
Keep records of all calls, texts, and letters. Note dates, times, and what was said. FDCPA violations can result in $1,000+ in damages per violation.
File complaints
Report violations to the CFPB, FTC, and your state attorney general. These agencies track patterns and take enforcement action.
If you choose...
If you assert your rights:
- Illegal collection tactics must stop once you send a written cease-and-desist
- Debt validation may reveal the amount is incorrect or the debt is past the statute of limitations
- Documented FDCPA violations can result in $1,000+ in statutory damages
- Filing complaints creates a record that can lead to enforcement action
If you ignore collection contacts:
- The collector may continue calling and sending letters indefinitely
- You miss the 30-day window to request debt validation
- Unauthorized bank debits may continue if you have not revoked ACH
- The debt may be sold to another collector and the cycle starts again
Here's what you can do today
- Send a written debt validation request within 30 days of first collector contact (keep a copy).
- Contact your bank in writing to revoke ACH debit authorization for the lender.
- Start a log: date, time, caller name, and exactly what was said on every call.
- If any rights are violated, file complaints at consumerfinance.gov/complaint and your state AG.
- Use Balance On Hand to see if you can negotiate a lump-sum settlement from a future paycheck.
Know your rights and your cash flow before responding to collectors.
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