National Credit Adjusters - What do consumers allege against them?
National Credit Adjusters, LLC is a collection agency (CA) located in Hutchinson, Kansas. It is a privately owned company specializing in collection of delinquent account receivables. The company is known to collect primarily on old payday loan accounts. There are certain instances where consumers have complained against this CA in the DebtCC forums. Read through the section below to know what complaints people have against them.
National Credit Adjusters complaints - How serious are the allegations?
Some of the complaints people have shared with the DebtCC community are given below. Take a look at them to find out how serious these allegations are.
- Collection of debts already paid off: A consumer alleges that the CA came after him to collect an old debt which he had already paid off. The CA claimed that he had to pay some fee for a missed payment he had years ago. The consumer told them the debt was paid off, but they threatened to take him to court! Know more.
- Contacting the wrong person: A lady complains that National Credit Adjusters claimed that her husband owed them a particular debt. But she found out that the debt was actually owed by some other person. Find more.
- Reporting illegal debt on credit report: A person says that the collection agency reported an illegal payday loan on his credit report. He says that the CA does not have legal right to report it to the bureaus as payday loans are illegal in his state. Get the details on this.
- Demanding excessive money: A customer says National Credit Adjusters collection agency demanded $570 from him for a loan of just $300. He made two payments of $133.50 each and they still wanted him to pay over $400! The customer had to file complaints against the CA. Find more.
- Harassment over illegal loan: A person says the CA came after him for a payday loan which someone else fraudulently opened in his name. He informed the CA several times regarding this, but they kept on calling him multiple times a day, even on holidays and weekends! Check out more on this.
A majority of the debts collected by National Credit Adjusters collection agency are old payday loans. Many of the consumers who have shared their complaints on the DebtCC forums have accused the CA of collecting on illegal payday loans, reporting them on credit report, etc. As most of the problems discussed in these complaints stem from payday loans, it seems relevant to look at the reasons why you should never take a payday loan in the first place.
Why should you avoid taking a payday loan?
Given below are some of the reasons why you should avoid taking a payday loan:
- High costs: Payday loans are unsecured debts and you do not have to go through credit check to qualify for them. This is why the interest rates on this type of loans are quite high. The average annual percentage rate (APR) on a payday loan can be as high as 300-400%, while the APR on a standard credit card is only about 12% or so. Apart from the high interest rate, the lenders also charge you finance fees which can often be higher than normal.
- Short repayment time: You usually have a very short time to repay the loan. The loan amount along with the fees can take up a good amount of your next paycheck. It leaves you with the same problem that actually forced you to take a payday loan. Some lenders may offer you installment plans if you fail to repay the loan on time. But it hardly helps you as the interest rate they charge on these plans are outrageous.
- Terms not disclosed: Some payday lenders include hidden terms in the loan agreement and these can really rip you off. For instance, a hidden term may allow your lender to double the fee for any kind of late payment you make.
How do you avoid taking a payday loan?
There are situations when you might be desperate to take a payday loan to meet certain expenses. But considering the risks involved in payday loans, it could be worth your while to check out some alternative options while avoiding a such a loan. You can borrow from your friends and relatives or can ask your employer for an advance on your next paycheck. If you have to spend extra money in a month, try to control your monthly expenditure and cut your budget accordingly. You should also build up an emergency fund to help you get over a sudden financial crisis without getting caught in a payday loan trap.
In case the CA calls you to collect an old payday loan or any debt account, you can contact them at:
National Credit Adjusters Address:
327, W 4th, P.O. Box 3023, Hutchinson, Kansas 67504
National Credit Adjusters phone number: 888-768-0674 (toll free)