Bohemia, NY (PRWEB) April 24, 2013
On April 24, John Monderine, CEO of the New York-based debt collection agency Rapid Recovery Solution, discusses the problem of usurious payday loans.
Monderine issued a statement after the New York City Department of Consumer Affairs issued a printed letter on April 19th to active collection services agencies, reminding them that it is illegal to collect or attempt to collect on a usurious payday loan purportedly owed by a consumer residing in New York City.
Monderine says that according to the Department’s letter, many payday loans and other small-dollar loans are typically offered with sky-high interest rates which exceed the state’s civil and criminal usury limits. The state limits these interest rates for small-dollar loans (under $250,000) to a maximum of 16 percent per annum, while many payday loans typically bear interest rates as high as 400 percent per annum.
“Personally and professionally, we shun the entire payday loan industry,” says Monderine. “This is a system designed to hurt people, not help them. Loans made at rates higher than what the city deems permissible are illegal loans, pure and simple. It is therefore illegal and unethical for collection services agencies to pursue any attempt to collect on this kind of debt. It’s important that people in my position to make sure we never attempt to collect on illegal loans, and this has always been a priority for us.”
Monderine adds that the consumer also has his or her own part to play in ensuring that they are informed about their rights as debtors and about what kinds of loans are considered acceptable by reputable experts. “We educate our clients about the Fair Debt Collection Practices Act to make sure they’re informed and that everyone is on the same page. It’s surprising how much easier it can make matters if everyone has a basic level of understanding of the other party’s position.”
Founded in 2006, Rapid Recovery Solution, Inc. is headquartered at the highest point of beautiful Long Island. Rapid Recovery Collection Agency is committed to recovering your funds. We believe that every debtor has the ability to pay if motivated correctly. We DO NOT alienate the debtors; we attempt to align with them and offer a number of ways to resolve not only your debt but also all their debts.