Scammed by loan company in Demopolis, AL

(Request from Allyson in Demopolis, Alabama) I am 21 years old and a billing clerk here in Demopolis…I was scammed by a loan company and kicked out of my home all in one week and I am looking for anyone to help me with my 628.20 security deposit for my new apartment…I can afford to pay the rent every month and I can afford to pay this money back but because of everything happening so unexpectedly I have no funds to cover this and it has to be paid by Monday at 12:00 pm and I don’t know how I am going to do it, I really don’t want to be homeless, so if anyone can help please give me a call at 334-XXX-XXXX. Thank you so much.Dear Allyson,

Getting scammed by a loan company could be a very serious violation of federal and/or state laws. If you were adversely affected by a lender that violated the law, then you could have several options for getting even.

First, if the loan contract itself does not conform to legal requirements required of loan documents, then it could potentially invalidate the loan. Cancellation of a loan is a potential option that could help you restore your credit rating while protecting you from any legal action that the loan company may take down the road (judgments, liens, wage garnishments).

Second, you may be entitled to some form of restitution by the loan company. For example, if a lender assigns your bad debt to a debt collector who in turn violates provisions of the Fair Debt Collection Practices Act, then you could be awarded $1,000 per violation by filing a lawsuit against the lender. Of course, legal action could be complicated, so you are encouraged to contact a licensed attorney who is knowledgeable about taking legal action against a rogue collection agent.

Finally, you may find that the easiest option is to file a formal complaint against the loan company. The Better Business Bureau is one option, although this agency cannot force compliance by a party to the complaint.

Better options for filing a complaint include the Consumer Financial Protection Bureau (CFPB) and the Attorney General for your state. Here is contact information that may be helpful:

Hopefully this information helps you assert your rights and protect yourself from potential illegal action from your local loan company. Since you are still in need of housing, you may wish to contact one of the local rental assistance organizations in Marengo County or Demopolis.

You may be able to get grants or low-cost loans for a security deposit or first month’s rent, depending on your eligibility. There may also be funding to help you with the security deposit on your utilities.