Pay Day Loans

stacyppl · May 9, 2008

Okay, I have 4 payday loans out. The amount to pay them all out would be about $1500 ($330, $330, $230, & $600). Every two weeks, I pay about $200-$240 in fees alone ($400-$480 a month). I cannot see how I can pay these off in a timely way because my budget is so tight (I've already paid the amount of each loan in fees at least one time). I am so ready to do stop payments on each check that is out and on the ach debit for the big one that is an online payday loan. That way I could use the monthly amount of the fees to pay off each loan over 4-5 months and be free. However, I am scared of the repercussions. What would happen if I do this? Will I be thrown in jail? In front of Judge Hatchet? Paychecks garnished? Arbitration is what each loan contract talks about, but I don't know what that really is. Should I write to each company first to make alternative arrangements? Will my bank accounts be destroyed? My credit can't get much worse (471 last time I checked). My loans are with American Cash Advance, Budget Line, Payday One, & Advance America. Anyone else do this? What happened? Thanks.

vampireluck7 · May 9, 2008

Hi Stacyppl!

Is your question primarily about payday loans?

Or is it about your budget?

If it is rather about the payday loans, how about posting in the Credit forum? If you do, add your state.

stacyppl · May 9, 2008

Thanks! It's about handling the payday loans.

radi8 · May 9, 2008

Hi Stacy;

Are the payday lenders local to you, or are they online?

The online ones routinely violate state PDL laws. They tend to yell and scream if you stop paying but are often hesitant to sue because they aren't operating legally in many cases.

The brick-and-mortar lenders (local) tend to follow the state laws and are quick to file in small claims.

You might check here:

http://www.ncsl.org/programs/banking/paydaylend-intro.htm

or here:

http://www.paydayloaninfo.org/states.cfm

to see if the lenders in question are operating legally.

hlburi · May 9, 2008

Every two weeks, I pay about $200-$240 in fees alone ($400-$480 a month).

Jesus Mary and Joseph!

54regcab · May 9, 2008

As you already know this is a horrible trap to get into. Could you mow some yards for the new few weeks to make enough to pay them off?

Jen23514 · May 9, 2008

HI Stacy My name is Jen and I have used PDLs in the past.

::: every say "Hi Jen" in unison :::::

However, I am scared of the repercussions. We need to know your state.
What would happen if I do this? Depends on some various factors

Will I be thrown in jail? I'm 99.9% sure the answer is NO.

Paychecks garnished? They'd have to get a judgment first

Arbitration is what each loan contract talks about, but I don't know what that really is. Should I write to each company first to make alternative arrangements? Will my bank accounts be destroyed? My credit can't get much worse (471 last time I checked). My loans are with American Cash Advance, Budget Line, Payday One, & Advance America. Anyone else do this? What happened? Thanks.

Here is a recent thread where PDLs were discussed: http://creditboards.com/forums/index.php?s...8&hl=payday

As you'll see, personally, I walked away from mine.... BUT.... I live in a consumer friendly state, the PDLs broke several laws, and I had paid back the principal. I would not make that decision easily and I could not have done it without consulting my AG in my state. When I quit paying, they stopped charging interest, but that is not always the case for all.

Can you give us a little more detail about how much you've paid, original principal, etc?

Hi Stacy;

Are the payday lenders local to you, or are they online?

The online ones routinely violate state PDL laws. Absolutely correct They tend to yell and scream if you stop paying but are often hesitant to sue because they aren't operating legally in many cases. Not in KS, ask me how I know .

The brick-and-mortar lenders (local) tend to follow the state laws and are quick to file in small claims.

You might check here:

http://www.ncsl.org/programs/banking/paydaylend-intro.htm

or here:

http://www.paydayloaninfo.org/states.cfm

to see if the lenders in question are operating legally.

Radi always has great advice, and I would start at those links provided.

In no particular order, here are some other threads about PDLs that might be able to help. Good luck.

http://creditboards.com/forums/index.php?s...4&hl=payday (this one concerns deceptive loaning PDL practices)

http://creditboards.com/forums/index.php?s...7&hl=payday

http://creditboards.com/forums/index.php?s...1&hl=payday

http://creditboards.com/forums/index.php?s...5&hl=payday (OP wants to know if she will go to jail for PDLs)

http://creditboards.com/forums/index.php?s...7&hl=payday (PDL lending in NY)

http://creditboards.com/forums/index.php?s...9&hl=payday (PDLs are a written contract, useful for SOL if it goes to a CA)

http://creditboards.com/forums/index.php?s...3&hl=payday (harassment by PDLs)

http://creditboards.com/forums/index.php?s...3&hl=payday (PDLs and BK)

http://creditboards.com/forums/index.php?s...8&hl=payday (a gentleman with 4 PDLs and needs help getting out from under them)

flower · May 9, 2008

I might be missing something, but it sounds to me like you just need $1500 to make them go away. Is that right?

Is there any way you could pick up a short-term temporary job to earn this as quickly as possible? And sell whatever you can?

I know it will feel GREAT to be free from them, and it sounds like facing it and focusing on it is going to make it happen for you!

KarenFla · May 10, 2008

Hi Stacy,

I don't have any words of wisdom for you as I have no first hand experience with pay day loans, but I can certainly empathize with the predicament that you're in.

Hang in there, girl!

Best wishes and good luck to you!

pennypoor · May 10, 2008

hi stacy, i too had them in the past and i actually paid a little more than the fees on the principal. but then again i only had one. hang in there and start your research. you have come to the right place. more than likely someone else was in your shoe already. cheer up!

Forget_the_Odds · May 12, 2008

Hello-

Payday loans can make life a pure hell!! I have been there. Fortunately the state that I live in (CO) instituted a payment plan option to give people a way out. What state are you in? Who are your lenders? Are they members of the CFSA (http://www.cfsa.net/)? If so, the CSFA has a payment plan program where you payoff over four payments. If your lenders are not members, perhaps you could acquire new loans from members to payoff the other loans so that you can get on a payment plan. Other ideas & advice:

1. Please don't disappear or stop paying.

2. Talk to the Manager of the shop. Tell them your situation and that you need a way out. There have been times in my past when exceptions were made because I always paid on time.

3. Set up your situation on a spreadsheet to keep track. I was able to project payoffs and make plans by simply paying an extra $20 or whatever.

4. Shop around for the best terms. In CO, the max terms are set by law. However there are places that lend for longer periods of time, thus reducing interest (more $$ that can go toward reducing principle).

5. Look for other sources that charge less (credit union, bank, family).

6. Earn more to tackle this (short term job).

7. This industry is continually under regulatory pressure. I would consult the state governing body that regulates them IF they refuse to work with you.

8. Again, PLEASE do not just walk away!! Pay on time, do what you can to keep a good credit rating!!

Hang in there. Get through this then stay away from these places!!!

DyBunny · May 16, 2008

Hey stacy,

I used to use payday loans as backup money, but since I joined a credit union, I have found a better way to take care of life's crazy knots. I'm surprised they let you take out loans at multiple locations. Here in MI, the woman explained to my at CheckNGo that everyone is linked up to the same system/application. So If I decided to go to another Payday Loan Operator, I would be denied because I borrowed from another one. I don't know how true that is though, and I never wanted to test that.

I would take maximum of $500, which would mean I would have to pay back about $590 every 2 weeks. That meant I was giving them an extra $180 every month. Made my stomach turned when I finally realized that. I joined a credit union that gave me a line of credit (i.e. I don't have the best credit around), up to 500. Now I use my line of credit instead of CheckNGo. The savings was great. I only pay the CU $15 a month to use the full amount, whereas I was paying CheckNGo $180 month.

So, what I am trying to say is; try to get a line of credit your bank/CU for 1500 and pay off all the Payday loans. It's much cheaper and it'll help build credit.

My 2 cents.

-Bunny

Jen23514 · May 16, 2008

1. Please don't disappear or stop paying.

8. Again, PLEASE do not just walk away!! Pay on time, do what you can to keep a good credit rating!!

you do realize that stopping payment and not "renewing" or "rolling over" the loans may stop the accruing interest, right?

Forget_the_Odds · May 21, 2008

Sure, perhaps the interest will stop. BUT:

1. You will be reported to Checksystems

2. They will try very hard to collect...ie phone calls at home and work, phone calls to refrences you listed.

3. Penalty fees.

4. Legal violations??

5. In-person visits to collect

6. In CO the businesses maintain a database of these transactions. If a loan goes bad you will probably not be trusted for future loans (perhaps that is good!)

7. You made an agreement to abide by those terms

I do not work in that industry. I think they are predators that prey on people in desperate situations. However, I think that by not working with them, or getting creative, to solve the situation the whole thing gets worse. My point is to not keep digging a bigger hole. Find a way to deal with your problems honorably and then STAY AWAY from them!!

I would still like to know what state the OP is in. That makes a big difference.

pennypoor · May 21, 2008

stacy?

where did she go? I hope she sees all the good tips here.

Jen23514 · May 21, 2008

I do not work in that industry. I think they are predators that prey on people in desperate situations. However, I think that by not working with them, or getting creative, to solve the situation the whole thing gets worse. My point is to not keep digging a bigger hole. Find a way to deal with your problems honorably and then STAY AWAY from them!!
I would still like to know what state the OP is in. That makes a big difference. Absolutely!!!!

As for the comment in bold, I won't even go there how judgmental and many other things that is. I'm going with the assumption that I'm misreading what you wrote

As for the other things..... we'll just have to agree to disagree. FOR ME - walking away was infinitely better than paying every 15 days and not even paying off the interest. After I walked away, they got their principal and then some, but I saved hundreds (thousand?) in fees.

Forget_the_Odds · May 22, 2008

Well, what is your definition of a contract? Why is what I wrote judgmental by any stretch? If you sign a contract, the honorable action to take is to fulfill the terms you agreed to. It is fairly black and white (unless some fraud was involved). I suppose if the OP can accept the consequences of walking away, that is their choice. BUT. There will be some consequences that could create larger problems down the road. If you read my original post I explained many ideas for dealing with the issue in ways that ended the situation without running away or paying interest forever.

Are you telling the OP to just walk away?? If so, you are exactly right, we do disagree and I think it is absurd and reckless (nothing personal, I usually enjoy your posts). I want good credit so I can have choices when life happens and I need some money (like a high cl from NFCU). That way I can stay away from the payday loan places that are on almost every corner here.

I have been a member here for a long time. If there is one thing I have learned it is to avoid credit issues in the first place. Walking away only creates new problems whether it is from a loan shark or a credit card. If you try to first work out a plan with a credit grantor perhaps you can avoid all the lates and other ugly marks, etc. I am not trying to judge you or anyone. I just saw a subject that I am unfortunately intimately familiar with and I do feel my suggestions are valid options to overcome the problem.

radi8 · May 22, 2008

Well, what is your definition of a contract? Why is what I wrote judgmental by any stretch? If you sign a contract, the honorable action to take is to fulfill the terms you agreed to.

Many of the online payday lender's contracts violate state law regarding usury, number of simultaneous loans, repayment terms, rollovers and such. These "contracts" are not valid in the first place.

Perhaps 75% of the online lenders operate from overseas to attempt to avoid prosecution by US authorities. It's well known that some are money laundering operations for organized crime, it's suspected that some may additionally perform the same function for terrorist organizations. These are NOT nice people.

The B&M "storefront" lenders are normally legit and tend to follow the law more closely, but they are often the worst offenders when it comes to violating collection related laws- threatening prosecution for the post-dated check is a big one.

They're also more likely to work out an installment repayment plan with you- it's sometimes required by state law. (which is why we're curious which state the OP lives in)

Everything about the payday lending business is carefully designed to keep you in debt. Their business model wasn't created to "help the consumer in between paydays". It was the work of financial and human behavioral consultants, who created a model that tends to keep people in debt for months- and months- and months as they roll over loans they cannot fully repay.

Talking "honor" and payday lenders in the same breath is an oxymoronish thing to do. They exist for one reason- to screw you.

Jen23514 · May 22, 2008

Well, what is your definition of a contract? Why is what I wrote judgmental by any stretch? If you sign a contract, the honorable action to take is to fulfill the terms you agreed to.

I'd like you to take that POV/attitude and head over to the KB forum and tell all those people they are "less than honorable" by not fulfilling their contracts. The people who are posting at 2am in the main forum because they will probably lose their home? Go ahead.... let them know how since they signed a contract for their home, their only choice is to honor it...

I was in deep with multiple PDLs and I was simply sharing with the OP what worked for ME and was INFINITELY less painful than trying to keep up. Secondly, I live in a state that is VERY anti-PDL and has good consumer laws.

Why don't you get off your moral high horse?

Jen23514 · May 22, 2008

The B&M "storefront" lenders are normally legit and tend to follow the law more closely, but they are often the worst offenders when it comes to violating collection related laws- threatening prosecution for the post-dated check is a big one.
They're also more likely to work out an installment repayment plan with you- it's sometimes required by state law. (which is why we're curious which state the OP lives in)

quite a few states won't allow prosecution under a post-dated check (the PDL took the check knowing it wasn't good ), but to the average consumer who finds anything about the law intimidating..... they will believe these places and will think they are going to jail, when many times, it all started with needing an erxtra $150 for food or floating daycare.

Radi is right, "honor" and pay-day-loans do NOT belong in the same sentence.

Forget_the_Odds · May 24, 2008

I think my point is being missed here. I am not on any 'moral high horse'. I am glad that you brought up mortgages. This is another example where someone made a 'deal with the devil' and can't stay in when the time comes to pay up. These people are scrambling to find a way out. Some, perhaps many, do walk away and face the consequences of that choice (although I am not sure they would recommend it to others). From what I have seen, many are looking for ALTERNATIVES. Be it a refi, short sell, etc. They are DEALING with the issue and walk away as a LAST RESORT. I parallel this to payday loans. There are ways to DEAL with the issue. I outlined my ideas (and what worked for me) in my original post. Please advise what is objectionable, so that I can learn.

I don't believe I represented the PL industry as honorable. They are scum, just like the loan officers that encouraged homeowners to borrow too much or sold products the client could not afford. However, if I sign a contract it is on MY honor to fulfill the contractual agreement that I signed and make darn sure I understand what I am signing. I apologize if this is not clear. It would be sort of interesting if you could just walk into a place, take cash and then disappear.

Please understand that I am in no way disrespecting you or your point of view. We disagree, but I still respect you (that is what the US is about).

radi8 · May 24, 2008

However, if I sign a contract it is on MY honor to fulfill the contractual agreement that I signed

Are you certain the contract the OP signed is even legal and enforceable in their state? Is it your opinion the consumer needs to honor "contracts" that violate their state laws?

May 25, 2008

However, if I sign a contract it is on MY honor to fulfill the contractual agreement that I signed

They cannot ask the law to uphold a contract that was not written under the guidelines of the law.

I had payday loans. I stopped payment on the checks and never heard another peep from them. YMMV

Edited May 25, 2008 by Bree82

Uncle Leo · May 25, 2008

I'd like you to take that POV/attitude and head over to the KB forum and tell all those people they are "less than honorable" by not fulfilling their contracts. The people who are posting at 2am in the main forum because they will probably lose their home? Go ahead.... let them know how since they signed a contract for their home, their only choice is to honor it...

I've read this several times. Did you mean BK forum?

Jen23514 · May 27, 2008

I'd like you to take that POV/attitude and head over to the KB forum and tell all those people they are "less than honorable" by not fulfilling their contracts. The people who are posting at 2am in the main forum because they will probably lose their home? Go ahead.... let them know how since they signed a contract for their home, their only choice is to honor it... :rofl:

I've read this several times. Did you mean BK forum?

yes ty leo

Sign In

Pay Day Loans

Recommended Posts

stacyppl

vampireluck7

stacyppl

radi8

hlburi

54regcab

Jen23514

flower

KarenFla

pennypoor

Forget_the_Odds

DyBunny

Jen23514

Forget_the_Odds

pennypoor

Jen23514

Forget_the_Odds

radi8

Jen23514

Jen23514

Forget_the_Odds

radi8

Guest Bree82

Uncle Leo

Jen23514

Join the conversation

Member Statistics

About Us

Pages

Browse

Activity

Important Information