Defaulted Payday Loans Do Not Report To Credit Bureaus

It may come as a surprise that defaulted payday loans almost never report to credit bureaus. I’m not sure as to their reasons for not reporting, I just know that as a general rule, they do not. Obviously, I would not make this claim unless I’ve had some personal experience to rely upon.

Over the years, I have defaulted on more than a few payday loans and to date, only one (1) has ever shown up on a credit report. The kicker is that the one that did show up on my credit reports was not even licensed to grant payday loans in my state. They had some nerve!

Obviously, being armed with this knowledge, the thought of ever paying them back never crossed my mind. I mean, just what are they going to do, sue me? Yeah, good luck with that!

This is why I always tell people that knowledge is king. If you do your research and arm yourself with the right information, then you cannot be taken advantage of by unscrupulous bill collectors.

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GC Services Limited Partnership and Sprint

Sprint has several levels of collections, including internal and external. GC Services Limited Partnership (GCSLP) is an example of one of Sprints external collection agencies, but debtor beware! GCSLP’s collection letter reads like this:

By this time, you must realize that you are delinquent. You may be eligible to participate in a special program to have service reinstated and retain your SPRINT phone number and rate plan. If you are interested in reinstating service with SPRINT, please call us at 866-801-2459.

It sounds like a great offer, right? Well, that’s what I thought too, so I called them up about a past due balance of $403.69 and they informed me that they have a “special” program that would enable me to pay just $303.69 to have my Sprint phone service restored within 72 hours of payment. Sounds great! So far, so good!

I informed the agent that I didn’t have the cash at the moment but that I would call back the next day so that I could get this past due bill taken care of. The next day comes around and I call them back to say that I have the money and am ready to pay the agreed upon balance of $303.69.

Well, that’s when the old bait and switch came in.

The collection agent that I spoke to tells me that she can restore service within 72 hours if I make a payment of $323.69. Now, wait a minute! That is $20.00 more than the $303.69 that I was quoted just one day before, so naturally, I ask “What’s the deal?”

The agent’s response is that she made a mistake in the original quote and that she should have quoted me $20 more. Being the type of person that I am, I told her that if she made the mistake, she should stand by it and honor her initial quote. Well, she refused.

I then told her that I was very disappointed and was tempted to just call Sprint directly and pay the entire $403.69 out of spite and that’s exactly what I did! I know what you’re thinking…why wouldn’t I just pay the extra $20 rather than pay an extra $100, right?

Well, it’s because sometimes principle is more important than money.

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Statute of Limitations for Debt Collection

Statute of Limitations (SOL): A type of federal or state law that restricts the time within which legal proceedings may be brought.

In English, this means the period of time in which a creditor may legally sue you. This covers all kinds of debts including credit cards, oral and written contracts, as well as promissory notes. Additionally, the SOL varies from state to state.

Typically, a creditor will make attempts to contact you via phone, email or postal service until they can convince you to pay. Suing you is generally a last resort... and even if they do, sometimes it's just a scare tactic and the case will later be dismissed due to having no legal right to sue, as in the case of an expired SOL.

However, keep in mind that if a creditor has been unsuccessful in getting you to pay for several years and is nearing the end of the SOL, there are certain instances where the SOL can be reset.  One such instance is if the creditor can talk you into making at least one payment.

It is important to note that the SOL does not start until the day after the last payment was made before the account went into default. A single payment can take a past due account that was nearing the SOL and give the creditor brand new life. This process is often referred to as “resetting the clock”.

Resetting the clock starts the SOL all over again and gives the creditor a brand new time frame in which to sue you, should they choose to go that route. An expired SOL does not restrict the creditor from attempting to collect the debt. It only stops them from winning a judgment against you.

To find a list of the statute of limitations for all 50 states, click here.

You might also like: Why Don't You Just Pay Them?

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The History of Credit Repair

In the past, up until about 1992, having negative items removed from your credit report was as simple as requesting a copy of the report, circling the item you wanted to be removed and then writing “This is not mine” next to it and about 30 days later the credit bureau would notify you via mail that the disputed item had been deleted. It didn't matter if the item really belonged to you or not.

Back then, if one credit bureau removed an item from your credit report, they would automatically notify the other two bureaus and they'd just follow suit and remove the derogatory items from their listings as well, without even bothering to launch their own investigation into the matter. Those were the good old days!

Today, however, having a negative item removed from your credit report can be a very daunting task. It doesn’t matter if the credit report entry is inaccurate or doesn't legally belong to you. Getting it removed can be a nightmare. That’s why I highly recommend “The Credit People”. They will remove negative items from the 3 major credit bureaus for one of the lowest prices in the industry!

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