online loan apps
5 months ago
hello sir, my friend had borrowed loan from one of the online registered loan apps , and he couldn't pay it on time for which they charged high interest and in order to repay that he kept borrowing loans from different apps, now all of the apps are charging high interest rates and keep calling him up and blackmail him with his contact and personal details. what has to be done
A.Dear Client
If your friend is being harassed by lenders, they should inform the lenders in writing to stop contacting them. Many countries have laws that regulate debt collection practices, and lenders are often prohibited from using abusive or threatening language. Your friend may file a complaint with the appropriate regulatory authority or consumer protection agency if they believe the lenders are engaging in unfair practices or if the loan terms are predatory
If your friend is being harassed by lenders, they should inform the lenders in writing to stop contacting them. Many countries have laws that regulate debt collection practices, and lenders are often prohibited from using abusive or threatening language. Your friend may file a complaint with the appropriate regulatory authority or consumer protection agency if they believe the lenders are engaging in unfair practices or if the loan terms are predatory
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A.Dear Client, Lenders are not legally obliged to settle a debt lowering your outstanding debt, but because they want to protect their bottom line, they may agree to a debt settlement to avoid further financial loss. You can try to negotiate a debt settlement on your own if your pocket permits to repay the entire outstanding at a time for a one-time settlement of dues, but sometimes it's typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than your creditors/lenders, along with chargeable fees. Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the remainder. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's office and local consumer protection agency to ask if they have any consumer complaints on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial crisis, there are also a few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward.
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