debt with payday loans

[keli449]

I have 6 payday loans out and have been paynig 800 a month interest, I cannott do this any moreas i have had my overtime cut at work, I tried getting loans with cheaper interest to pay off the higher ones but just dug my self in a pit much deeper, I wanted to recieve advice on what i am going to do and see if Iam making the right choice. First I am going to close my bank account and reopen another elswhere then I will send letters to the loan companies telling them i cannott pay the interest anymore but will pay the principle off, mabey i should say i am going to file bankrupcy but dont want to list them and make a deal to still pay off the principle minus the every two week interest. I am scared about what will happen but cannott take the stress anymore. Any advice on if this is a good idea and /or what is the worst case scenario I might recieve from them. Yes i am trying to get another job signing up with a temp agency monday and hopefully i can work my days off with them but my next paycheck will not cover all I owe. By the way these are internet loans and one phone by loan.

Thank you so much for your time .

 

keli

[Khris]

Keli,

I have not had any experience with this stuff, but I do appreciate you sharig your story. I have considered several times in the past about going to one of those plaaces but never have. Your story just tells me loud and clear not to do this. Good luck and please keep us updated!

[Uncle Leo]

First I am going to close my bank account and reopen another elswhere...

<{POST_SNAPBACK}>

 

If you can swing it, open the new account first, then close the old one.

[hurricanesfans27]

Keli,

I have not had any experience with this stuff, but I do appreciate you sharig your story. I have considered several times in the past about going to one of those plaaces but never have. Your story just tells me loud and clear not to do this. Good luck and please keep us updated!

<{POST_SNAPBACK}>

 

 

800 a month? how much do you owe? considering its about 10% a month or higher you must owe 8000 in these things.

[MistakeOfPast]

See how many times you can "roll over" your loan. BEWARE this is when you ONLY pay interest.

EXAMPLE if you have an 800 loan (borrowed) you pay around 160 for interest.

Pay at least this!

 

Next, do everything and anything you can to pay MORE than the interest.

Pay the 160 but an extra 25/50/75/100 whatever so that your NEW BORROWED amount will be say, 700 and your interest will be 140.

 

Most places allow roll overs but only a few.

 

I hate it for you!!!! I would eat 33 cent macaroni and cheese a while until I had this paid off!

 

If there were some way you could get a loan/cash advance/overdraft from checking), etc. Get it and pay these loan sharks off!

 

Good luck and thanks for sharing your story.

 

(As you can tell, I am familiar with these types of loans)

[willall]

If your score is fair, maybe you can get a high interest loan from citi or household @28 percent, which would pay those off. alteast you would be off revolving high interest

[keli449]

Thanks all for your advice, I dont owe 8,000 i owe 1,200 the interest is every two weeks, loan 300 with 90 interest = 180 month, others i have paid down, owe two 200 with 60 interest every two weeks, 2for 250with 75 every two weeks. also two others for 255 which i pay off in two weeks then have to get again to survive, then a 400 which i just paid and was paying 80 every two weeks but now rent is due and i have to get 500 which will cost me 100 every two weeks. I know its my own fault i just want every one to know stay away from these loans. Ive tried for a citi but have a car charge off so my credit is not good. thanks again to you all.

 

keli

[Cosmos Human]

i know payday loans can be included in bk. is there a time frame for when you took out the loans to when you file bk?

 

what will the payday loan places fo if you close the checking accounts?

 

if you took out a payday loan got into a financial mess, closed the checking account before it was to be paid back...is this legal? i know it sounds fishy.

 

the check would come back NSF or would it, if the account was closed. would it be reported to a check cashing system reporting bureau?

 

if they start calling you, and you tell them you are filing a bk, what can they do?

 

i would not want them to harrass my employer..i hear they do this.

 

once you give them a case number for the bk, do they have to stop calling you?

[ken3315]

I am just starting to get my life back to normal after the internet payday loan mess I got myself in. I had nine payday loans going at one time Interest was about 900 avery two weeks, most loans were 30% interest every two weeks.

I have a lawyer friend and taking her advice I stopped payment on all electronic transactions and closed my checking account and opened a new one.

They can not prosecute you for a bad check as it is a postdated check and they know you do not have the funds to cover the check when they authorize the loan (at least in Illinois that is the case).

This happened in March, since that time they have called me at home (of course I have not answered the phone), also at work I work for the US Govt and my bosses took care of those calls by basically telling them not to call work again and they haven't, the calls at home have been almot eliminated, I think there getting tired of calling. One company threatened to execute a voluntary wage assignment that I had signed, but in Illinois all you have to is revoke the assignment in writing, which I did not do, but I did e-mail the company and tell them it would be a waste of time for them to execute it, that was in late March, have not heard nothing from them since, although I have the paperwork ready to go. You may get listed with chexsystems or some aother check writing bureau, but I don't think it will go on you credit report. So that is my story, I don't recommend everyone doing it but has a last resort it did work for me, I have been in payday loan trouble for about 9 or 10 months, it feels great to be free from the debt. My best advise is stay away from payday loans, I know I will.

 

Ken

[keli449]

Ken

 

Boy your response made me feel a whole lot better. Should i open another account with my bank or go elswhere and should i write them a letter stating i cannott pay these but will pay off the principle in monthly payments? I am worried they will take me to court and or garnish my wages. If i close my bank account why would i say to stop all electronic transfers if i am going to change banks. Thank you so much for your input.

 

best regards

keli

[RealmKnight]

This is advice from someone who has previously WORKED in the industry.

 

1. Communicate with all of the places you have loans with and explain your situation. (some may offer a settlement up front if you have been "rolling over" for a while.)

2. Most will tell you that they have to deposit your check. (you can close your account or stop payment, but they will still se if you have any money.)

3. Contact them ASAP after the check is returned to them!! This cannot be stressed enough! They can charge you intrest for EVERY DAY unless you get a payment plan set up with them IN WRITING!!

4. Negotiate a payment plan that you can afford (I realize that you cannot afford much, but a second job to avoid litigation and garnishments is always a good idea )

5. STICK TO THE PAYMENT PLAN!!! This is also a very serious point. Although they may negotiate to stop your interest, if you miss even one payment on your plan they can charge ALL of the back interest!!

 

I know, I worked for Satan

I have reformed my evil ways (and found CB to help me!!)

[ericaneedshelp]

Keli:

 

About 2 years ago I was exactly where you are. I closed my bank (not before opening another), stopped my direct deposit and let it go. I have been fine ever since.

 

In my experience, they called me for 2 or so months and nothing ever came out of it. I do however have 2 collections on my credit report because of this. I am also listed on chexsystems.

 

I have not been sued or had anything happen to me.

 

I had 8 loans out and had to take one out to pay another. I was paying about $800 a paycheck in fees and still owed the original amount.

 

My advice to anyone is to NEVER take out one of these loans.

[belleama]

Open an account with another bank. Then close your current account. I had to do this due to 3 Payday loans of less than $300 each. They were charging $90 each payday (twice a month) in interest only. I tried to call a few of them to tell them that I couldn't pay. But as soon as I said that they got really Really REALLY nasty. They refused to stop the transfers and started harassing me on the phone. Not one ever sent me anything in the mail. They eventually turned them over to collections but those collections never mailed anything to me. They've only called. When I asked them to send a bill they got nasty too. It is only because of this board that I was able to report them to the BBB and send DV letters to them.

I am working with one of the companies because they didn't get nasty and they also didn't send it out to collections. That company stopped all the interest charges, they have sent me a full accounting and they allow me to put the charges on my cc (which I can always dispute because of the visa no liability feature). They only allowed me to set up this payment plan AFTER it went into collections though.

 

I am happy to report that none of these companies has listed anything on my credit reports. Or if they have it's only with the reporting agency that payday loans use not the Big three (or Innovis).

 

Do what you've got to do Keli. $800 is a crap load of money. Get them to stop the interest after you've closed your current checking account if you can. Otherwise let them know that they will be reported to the BBB and your state's AG.

[keli449]

Thank you Thank you all, I feel so much better, good advice from all of you i can breath now (and eat) well with my next paycheck (ha ha) i will close out my account after opening a new one and will send out the letters i have typed up.

Thank you all so much!!!!!!!!

 

best regards

 

keli

[belleama]

Thank you Thank you all, I feel so much better, good advice from all of you i can breath now  (and eat) well with my next paycheck (ha ha) i will close out my account after opening a new one and will send out the letters i have typed up.

Thank you all so much!!!!!!!!

 

best regards

 

keli

<{POST_SNAPBACK}>

 

Open the new account today or tomorrow if you can. That way by the time you close your old account you will already have your checks or debit card from the new account and won't be stuck having to go to the branch to get money out while you wait for the new stuff to arrive.

[RealmKnight]

Hope everything works out for you Keli!! Best wishes. Keep us updated as to how you are doing.

[keli449]

Good morning, does anyone know a bank that doesnt require a huge deposit to open an account? I am trying to open an account but found washington mutual wants 100.00 dollars to open, I dont have that and i want to open a new account before I close mine, this might be a big draw back for me.

 

thanks

 

keli

[jaslken]

In what state? In NJ, I have PNC and to open a free checking you need $25. Or try a local CU.

 

EDITED to Add: PNC has an offer online... go to www.pnc.com and search for checking accounts.

Edited May 10, 2005 by jaslken

[TammyB]

Good morning, does anyone know a bank that doesnt require a huge deposit to open an account? I am trying to open an account but found  washington mutual wants 100.00 dollars to open, I dont have that and i want to open a new account before I close mine, this might be a big draw back for me.

 

thanks

 

keli

<{POST_SNAPBACK}>

 

 

Regions Bank totally totaly free checking but you earn no interest.

that is if they still offer this.g/l

[IManewbie]

Hi there,

 

My CU only required a $20 deposit to open a checking, $5 to open a savings. Perhaps you can join a local credit union.

 

Also, you might want to research the payday loan thing. I recently watched Dateline and another news story featuring these Payday loan places. It said that many charge outrageous interest and that many are operating outside of their legal rights. I don't know if that is the case with you, but I just thought I would mention it.

Good Luck.

[jamied66]

Bank of america wants $50, and they'll give you $50 after you open (a few weeks) if you do it online.

 

also found to be pretty "lenient" on CR's and Chex. DW has bad credit and is in Chex and no problem.

 

they are also most everywhere. i can't throw a rock in my town without hitting a BOA. lol

[zanders mom]

I have about 5-6 of these loans, they are nailing me for 383.00 every 2 weeks... i had to take them out becuase my son was ill and i couldnt work... i already stopped my direct deposit because i cant afford them anymore... is anyone familiar with wage garnishment laws in MA. that is the only thing i am nervous about....

[RealmKnight]

These companies will rarely take you to court unless you somehow make them mad. If you work with them, they are usually able to come up with a solution (ie stopping interest, as long as you make your scheduled payments). But make sure that any agreement you have with them is IN WRITING. Otherwise the contract is the only thing you have to go on. And if they do take you to court SHOW UP!! A lot of these cases have been thrown out due to unconsciounable loans and lending practices (most judges hate these companies!!)

[zanders mom]

im sorry i sound so stupid but ive never done anything like this before.. so they cant garnish my wages unless they take me to court?

does it have to be court near me or are they going to make in new mexico where i cant go? i am unfamiliar with laws regarding this topic

i appreciate any help you can offer

[rtd2]

I have about 5-6 of these loans, they are nailing me for 383.00 every 2 weeks... i had to take them out becuase my son was ill and i couldnt work... i already stopped my direct deposit because i cant afford them anymore... is anyone familiar with wage garnishment laws in MA.  that is the only thing i am nervous about....

<{POST_SNAPBACK}>

 

 

 

No but you didnt have to stop the DD you could have sent them a letter like so:

 

Wage assignment revocation letter:

If you want to stop a wage assignment at any time, you can use this sample letter. Remember, the letter must be sent to your creditor by certified mail. A copy must also be sent to your employer.

[Date]

[Your name and address]

[Creditor’s name and address]

[Re: your account number]

Dear Sir or Madam,

I hereby revoke your right to use the wage assignment I signed on [date you signed the wage assignment]. You no longer have my permission to use this wage assignment.

Sincerely,

[your signature]

 

 

 

Also Most things I've read about payday loans is they are considered a credit transaction and not a BAD check...You can check with your state and local codes cause 99% of these fly by night operations are not following the rules...Talk to a lawyer before giving in to them!

 

More TIPS on these CROOKS!

 

Again....Talk To a Lawyer

If you have borrowed money from a payday loan company or a title loan store, contact a lawyer to see if they can get you off the hook. Sometimes short-term lenders do not follow all the laws. Search the "Helpful Organizations" section below to find free legal help.

 

Are you getting threatening phone calls?

Sometimes a payday loan store will call you when you have missed a payment and threaten you. They may try to scare you into paying them some money. But you cannot go to jail for failing to pay a payday loan in Illinois. The only thing the payday loan store can do is sue you in the local civil court. If they win, the worst thing that can happen is that they can start garnishing up to 15% of your wages to pay off the loan. Of course, if you are retired or unemployed there will be no wages for the payday loan store to garnish. But, with the help of a lawyer you can successfully defend the lawsuit. Remember, even if they win a lawsuit against you, a payday loan store cannot touch your monthly social security or pension check.

 

Did you sign a Wage Assignment?

If you signed a wage assignment when you took out the payday loan, you can revoke (cancel) it quite easily. To cancel the wage assignment, just write a letter to the payday loan store and give a copy of it to your employer. Click on the link below to get a sample letter that you can fill out and print.

 

Letter to Revoke a Wage Assignment (SEE ABOVE)

Did you agree to let the payday loan store electronically transfer funds?

If you signed an agreement allowing the payday loan company to take its payments directly out of your bank or checking account, you should call your bank and tell them you want to cancel that agreement.

 

Did you give the payday loan store a post-dated check?

If you gave a post-dated check to the payday loan company, they will probably try to cash it. If the check bounces your bank will charge you a fee—maybe as high as $30. The payday loan company may threaten to file a criminal complaint against you for giving them a “bad check” but they are almost always bluffing and will probably not do so. It is not a criminal action to give a post-dated check to the payday loan store unless you intended right from the start not to pay the debt.

 

You can call your bank and tell them not to pay on the check. There will be a fee for this.

 

Don't rollover the loan!

In many cases the smarter choice is NOT to rollover (renew) the payday loan, even if it means you will not be able to pay it off and will be defaulting. Rolling the loan over extends the loan over time and allows the interest to grow. Sometimes it is better just to tell the payday loan company that you are unable to make any more payments. If you take the steps listed above there may be nothing the payday loan store can do to collect its money from you.

Edited May 10, 2005 by rtd2