How to choose the best payday loan consolidation companies
Are you trapped by multiple payday loans? Rest assured that you're not the only one. Approximately 12 million borrowers are in payday loan debt, and all of them are looking for a feasible solution to end this debt.
Payday loan relief companies can help people get out of this situation and get back on the right financial track.
Here's how they can do it:
The payday loan consolidation company checks the state payday loan laws and the lender's license.
Next, the payday loan debt consolidation company helps you revoke your ACH authorization to stop lenders from depleting your bank accounts.
After that, attorneys negotiate with your payday lenders for a payment plan you can afford.
Once the deal is finalized, you make monthly payments to the company, and they will disburse it to your lenders.
Why should you always work with the best payday loan companies?
The best payday loan company delivers the best result at an affordable price, and their success rates and reviews are much better than others. So when you need help with payday loan debt consolidation, look for the companies with the best online reviews.
How to pick the best payday loan consolidation company
Success depends on research and sound decision-making. Here are a few tricks to select the best payday loan consolidation company:
Do your homework.
Perform a background check on the company. For example, how long have they been in the debt relief industry? Do they have any experience dealing with payday loan companies? It's wise to use companies that work with lenders regularly. They are familiar with the lenders and can negotiate effectively with them.
Take a look at the success rate.
The best payday loan consolidation companies have a high success rate. To learn more about the company's success rate, go to their website. It's a good one if it's higher than 80%.
Look at the fee structure.
FTC-compliant companies are the best to work with because they charge fees only if they are successful. Examine the fee structure and compare it with other companies. Choose the one with a reasonable fee structure.
Go through their online reviews.
How many customers are happy with the service, and how much money have they saved? Read the online reviews (such as Google reviews, Yelp reviews) and watch video testimonials.
Check the BBB rating.
Check if the company has a positive BBB rating. The best payday loan companies will have an A+ BBB rating, whereas scammers will lack BBB certification or high ratings. Even if the BBB accredits a company, review its rating and unresolved complaints. Also, check to see if anyone has filed a lawsuit against the company.
Best payday loan consolidation companies - A comparative analysis
| National Payday Loan Relief | OVLG | Moneyfit.org | Debthammer | Real PDL Help | |
|---|---|---|---|---|---|
| Success Fee | 35% | 15% | Not disclosed | Not disclosed | 8%-20% |
| No. of years in business | 29 | 14 | 25 | 1 | 8 |
| BBB Rating | Not a BBB accredited business | A+ | A+ | Not a BBB accredited business | Not a BBB accredited business |
| Yelp Rating | 1.5 | 5 | No Reviews | No Reviews | 2.5 |
| Google reviews rating | 5 | 4.7 | No reviews | 4.9 | No reviews |
| Video reviews | No reviews | 400+ | No reviews | No reviews | No reviews |
| Accreditation | No accreditation | BBB IAPDA | AFCPE BBB | No accreditation | No accreditation |
Should you work with payday loan consolidation companies or law firms?
Since law firms have skilled attorneys and provide better repayment options than others, lenders are wary of them. Attorneys are well-versed in payday loan and debt relief regulations. As a result, lenders are unable to defraud them. If attorneys find that lenders are breaking the rules, they can file a lawsuit against them.
There are instances where payday loan companies threaten borrowers with dire consequences if they don't make the payments. Some have threatened to put them in jail, while others have harassed them at work. Both are prohibited.
Recently, a payday loan company threatened to inform a client's boss if she didn't pay a massive amount of money. Initially, the client had borrowed $500 from a payday loan company. But even after paying $3,500 to the payday loan company, the client couldn't pay off the loan. The lender kept withdrawing money from the client's account until nothing was left. The bank charged overdraft fees, and the client had to pay that too.
Attorneys are skilled negotiators who can get the job done. When I threatened to sue, the lender provided my client an acceptable repayment plan. You may check out my recent success stories here.
Legitimate payday loan consolidation companies can help you consolidate your payday loans. But they don't have the legal expertise of an attorney, which is very much required to deal with lenders. Even some of the best payday loan consolidation companies can't provide legal help at crucial times. So, it's best to work with law firms instead of consolidation companies.
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