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// 06 — Survival Kit

Know your rights.

Federal law gives you more leverage than most lenders advertise. Here's the toolkit.

Your federal protections

Truth in Lending Act

All lenders

Lender must disclose APR, finance charge, and total of payments — in writing — before you sign.

Military Lending Act

Active military

36% all-in APR cap on most consumer loans for active-duty service members and dependents.

Fair Debt Collection Practices Act

Everyone

Collectors can't call before 8am, after 9pm, at work after you say no, or use threats / profanity.

Electronic Fund Transfer Act

Everyone

You can revoke ACH authorization for a payday loan at any time, in writing, to your bank.

Copy / paste scripts

Word these exactly. They invoke the right statutes.

Stop the ACH withdrawals

"Effective immediately, I am revoking authorization for [LENDER] to debit my account ending in ____. Please block all future ACH transactions from this originator. I am providing this notice in writing under the Electronic Fund Transfer Act, Regulation E."

Send to your bank

Validate the debt

"I dispute this debt. Under 15 U.S.C. § 1692g, please cease all collection activity and send written verification of the debt, the original creditor, and your authority to collect."

Send to the collector within 30 days

Ask for an Extended Payment Plan

"Before this loan rolls over, I am requesting an Extended Payment Plan as permitted under state law. Please send me the EPP terms in writing today."

Many states require lenders to offer one — free.

Direct links