I took out a payday loan with Electro Loans and missed my first payment. I paid the second payment early, but they still tried to debit my account for that payment. They got both payments on November 27, but are now saying I owe them $65 for a missed payment. They acknowledge receiving both payments and the third payment isn’t due until December 13, but they still keep making things difficult. I know I will pay the $65 for being late once, but I don’t owe them for two late payments. They are terrible to deal with.
Here are some tips to protect yourself from Electro Loans:
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Review Your Loan Agreement: Make sure to go over the loan terms carefully. Payday lenders often have tricky rules about payments, late fees, and debits. This could explain the $65 charge.
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Document Everything: Keep records of all your payments. Save confirmation emails, receipts, and screenshots of your bank statement showing the payments on November 27.
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Contact Customer Service (In Writing): Send them a formal email explaining the situation. Dispute the $65 charge and request a breakdown of what you owe, including any late fees.
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Block Unauthorized Debits: If they keep trying to debit your account incorrectly, consider placing a stop payment on future debits or closing the account.
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Report to Authorities: If they’re threatening to contact your references or workplace, report them to the Consumer Financial Protection Bureau (CFPB), your state’s Attorney General, or the Better Business Bureau (BBB).
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Negotiate a Resolution: You might have to pay the $65 to avoid more penalties. After that, keep up with the next two payments to avoid any further issues.