PayDay loan advice

[atmo718]

I'm looking for some advice. I recently took out a loan with 2 internet payday loan companies.

One for 200.00 who charges 50.00 interest each time and another for 500.00 who charges 100.00.

This is the problem I became behind in some payments and I need to catch up before 30days. The 500.00

loan is asking for 217.00 in interest to roll over another two weeks. This pay period I can't afford to pay that

amount because I have to pay my other creditors. I don't know if I should just cloe my account and send them a money order each time I get paid for a lower amount. I'm so confused because I have to pay my other bills which Capital One, First Premier, Tmobile, DirectTV, and Seventh Avenue.

 

Another thing is I live in the State of New York and Payday lending is not allowed. I really want to pay these people off without the penalties in the contract. They want to charge all these legal fees and late fees. I can only afford to pay the 500.00, and the 200.00 in installments and nothing else.

[psp]

I'm afraid you're stuck with the fees. You've discovered predatory lending at it's finest.

[hegemony]

BT to a credit card?

 

ask a relative for a loan?

 

sell plasma?

[atmo718]

Eventhough it's illegal in the State of New York. Here's the informatio

 

 

New York State Information

 

Legal Status: Prohibited

 

Citation:

Licensed lender law applies but interest rate is that agreed to by contract. N.Y. Banking Law § 340 et seq. A check casher licensee cannot make loans nor cash or advance any moneys on a post dated check unless it is a payroll check. N.Y. Banking Law § 373. Criminal law sets the usury cap at 25%. N.Y. Penal Code § 190.40.

 

Small Loan Rate Cap

25% per year

 

Where to Complain, Get Information:

Regulator: New York State Banking Department

Address: One State Street New York, NY 10004

Phone: 1-877-BANK-NYS

Fax:

Regulatory Contact: Regina A. Stone, Deputy Superintendent

Regulator’s Website

Complaint Form

Complaint Instructions

Online Resources:

Consumer Help and Information – Informational Brochures

[atmo718]

BT to a credit card?

 

ask a relative for a loan?

 

sell plasma?

 

Well if you're not going to offer any good advice please don't reply. I can do without the sarcasm.

[hegemony]

BT to a credit card?

 

ask a relative for a loan?

 

sell plasma?

 

Well if you're not going to offer any good advice please don't reply. I can do without the sarcasm.

that was not sarcasm. if you can't BT it, ask a relative. If that is not an option then raising some quick cash would seem to be in order.

 

you also might want to check around with local CUs. The local CU I have my checking with offers payday loans for only 18% APR and a $10 fee. Perhaps a CU near you has a similar product?

[aescutie]

I don't think that heg was being sarcastic...

 

it was an honest answer....

 

Unless you're going to complain to the New York State Banking Department, you're probably stuck with the fees, as you have signed a contract with the loan folks. What's the interest rate on those loans?

 

I agree with Heg. You may want to try and sell or pawn off some items, maybe try a cash advance to your checking account if you have a card that has that much available credit at no fee, or lastly ask for a loan from family or friends...other than that....what can you do?

[shartreuse]

i don't think the poster was trying to be un-helpful. you are caught in a tough situation. balance transferring or getting a loan from a relative would be a more cost effective way to carry the debt. it would definitely stop the penalties. i'm going to assume from your reply those are not options for you. perhaps selling plasma was a joke on the poster's part but the point isn't. you've got to increase your cash flow--immediately.

 

i think the poster was trying to be helpful. i don't know your personal situation at all. but the bottom line is you need a jump in your cash flow. can you sell anything? can you get a second job even if only for a couple of months until you can get this under control?

[atmo718]

Well I decided to pay the fees and the loan when I get a chance. The interest on the loan is 504.50%.

[aescutie]

Well I decided to pay the fees and the loan when I get a chance. The interest on the loan is 504.50%.

 

Oh my God.

 

I didn't even think that rate was possible. That is criminal.

 

Are you going to file a complaint after everything's take care of?

[tconley]

Well I decided to pay the fees and the loan when I get a chance. The interest on the loan is 504.50%.

 

Please tell me that was a typo...

[brazen]

Do they have access to your checking/savings account?

 

You could close the account and attempt to make a payment arrangement with them that fits into your budget. Then send money orders for the payments.

 

I wouldn't go broke over these jokers.

[Misha]

Do EVERYTHING you can to pay this loan off. That means another debt may go unpaid for the month. Or two, or three. This is predatory lending and you have got to break this cycle or it is just going to get worse and worse. You absolutely should do everything you can, eat beans and rice, or just beans, to pay this payday loan off immediately and get out from under this burden that will only get bigger and bigger and BIGGER.

[atmo718]

I would like to apologize to heg. I'm sorry, I am just so upset that I let myself get into this jam. The 200.00 one I'm not worried about because it's only 250.00, but the 500.00 one is really irking me. I might file a complaint when I'm done to prevent me from going back. This place is located in Nevada.

[atmo718]

Do they have access to your checking/savings account?

 

You could close the account and attempt to make a payment arrangement with them that fits into your budget. Then send money orders for the payments.

 

I wouldn't go broke over these jokers.

 

That's what I was thinking too. I would love to eat beans and rice, but I can't I have a 2 year old and a 14 year old who constantly needs.

[atmo718]

Well I decided to pay the fees and the loan when I get a chance. The interest on the loan is 504.50%.

 

Please tell me that was a typo...

Alright, it was a typo. Do you feel better now? Good, because it's the real thing.

[hegemony]

I would like to apologize to heg. I'm sorry, I am just so upset that I let myself get into this jam. The 200.00 one I'm not worried about because it's only 250.00, but the 500.00 one is really irking me. I might file a complaint when I'm done to prevent me from going back. This place is located in Nevada.

no apology is needed. you are in a stressful bind that you need to extricate yourself from.

 

where are they in NV? I could go yell at them!

[atmo718]

Here's a copy of the contract. I deleted the company's name for legal puposes.

 

PERCENTAGE

 

RATE

 

The cost of your credit as a

 

yearly rate.

 

 

 

 

 

504.50%

 

 

FINANCE CHARGE

 

 

 

 

The dollar amount the credit

 

will cost you.

 

 

 

$ 214.24

 

 

AMOUNT FINANCED

 

 

 

 

The amount of credit

 

provided to you.

 

 

 

 

 

$ 500

 

 

TOTAL OF PAYMENTS

 

 

The amount you will have

 

paid after you have made all

 

payments as scheduled.

 

 

 

 

 

$ 714.24

 

 

 

 

 

 

Payment Schedule

 

 

One payment of $ 714.24 is due on 9/15

 

 

 

 

Prepayment: If you pay off early, you will be entitled to a

 

refund of the unused part of the finance charge.

 

 

 

 

 

Security Interest: You are granting us a security

 

interest in the deferred deposit referenced above.

 

 

 

 

See the Forms below and on the reverse side for

 

additional information about nonpayment and default.

 

 

 

 

 

Itemization of Amount Financed of $ 500 Amount paid directly to you $ 500

 

 

 

 

 

 

AGREEMENT

1. Deferred Deposit: In this Deferred Deposit Agreement (“Agreementâ€), the words “you†and “your†mean each person signing as a borrower, the words “weâ€, “usâ€, and “our†mean Mr. Cash LLC. The boxed disclosures above are part of the terms and conditions of your agreement with us.

 

2. Promise to Pay: You promise to pay us the “Total of Paymentsâ€, which includes interest, on the due date shown in the “Payment Schedule†disclosed above.

 

3. Repayment: Automatic withdrawal from your personal checking “Bank Account†provided by you to . We will deduct the “Total of Payments†from your “Bank Account†through the Automated Clearing House (“ACHâ€) on the due date shown in the “Payment Schedule†above. You will receive an email notifying you of your payment and due date. This contract is notice of due date. However, if we do not hear from you regarding your desire to payoff or extend, the loan defaults to an extension on the said due date and will automatically rollover for another pay period. You may call within 72 hours after loan is due to request the remaining balance to be deducted if you did not want an extension. After 72 hours you will be required to pay additional fees for the extended period in which the loan was held open.

 

4. Other Terms: Pursuant to this agreement you authorize us to defer deposit of our draft on your “Bank Account†to pay the obligations you are entering into in this Agreement until the Deferred Deposit Date set forth above. The fee for the deferred deposit is set forth above expressed both in US currency and as an annual percentage rate (“APRâ€). You acknowledge receipt of the “Amount Paid Directly to You†shown above. You agree not to close the “Bank Account†the contract, check, draft or electronic debit is drawn on, or take any other action to forestall the payment of the check, draft or electronic debit. If after deposit, our draft or your payment is returned to us unpaid for any reason ;(1) you agree to pay us a returned check charge of $25 and $15 in late fees, these fees are applied by state and the highest amount allowable by state is applicable (2) you authorize us to initiate multiple electronic or paper debits to your “Bank Account†in order to collect the funds due to us. If your “Bank Account†is closed by you or your bank, you will be charged $100 service fee. If you stop payment or freeze payments that you have agreed to make or that we may rightfully access your will be charged a $50 service fee. This authorization remains in full force and effect until “Bank Account†balances are paid in full. If we must take action to collect your loan, you agree to pay any collection fees, reasonable attorney fees and other costs to collect the loan.

 

5. Credit Reporting: You agree that we may make inquiries concerning your credit history and standing, and may report information concerning your performance under this Agreement to credit reporting agencies.

 

6. Arbitration Agreement: (a) Dispute Resolution by Arbitration: Any and all claims, controversies, or disputes arising out of or related in any way to this Agreement shall be subject to binding arbitration pursuant to the Commercial Arbitration Rules of the American Arbitration Association (“AAAâ€) under the Federal Arbitration Act. This includes, without limitation, (1) all issues concerning the transaction in connection with which this Agreement has been executed; (2) initial claims, counterclaims, cross-claims, and third-party claims, whether arising in law or equity, and whether based upon federal, state, or local law; contract; tort; fraud or other intentional tort; constitution, common law, or statute; (3) any issue as to whether any such claims, controversies, or disputes are subject to arbitration; and (4) any claims, controversies, or disputes that would otherwise be subject to class actions. This means that all claims, controversies or disputes that are the subject of class actions will also be subject to binding arbitration under this Agreement.

 

( Consent to Arbitration: You and we understand and agree that we are choosing arbitration rather than litigation to resolve disputes.

 

You and we understand that we have the right to litigate disputes, but that you and we prefer to do so through arbitration. THEREFORE, YOU AND WE UNDERSTAND THAT BY ENTERING INTO THIS AGREEMENT, YOU AND WE VOLUNTARILY AND KNOWINGLYWAIVE ANY RIGHTS WE HAVE TO A JURY TRIAL TO HAVE A COURT RESOLVE ANY DISPUTE UNDER THIS AGREEMENT.

 

© Procedure: Any claimant under this Agreement must submit to the other party a written explanation of the claim and a demand for resolution by arbitration. If either party fails to do so, that party shall be liable for all costs and expenses, including reasonable attorney’s fees, incurred by the other party with respect to compelling and pursuing the arbitration. Arbitration may be heard, at the claimant’s election, by AAA, JAMS/Endispute, National Arbitration Forum, or any other arbitration forum as we may agree. The Arbitration shall take place in the federal district of your residence. If you demand arbitration, we will advance the initial filing, administration, and hearing fees required by the arbitrator, who will ultimately decide who will be responsible for paying those amounts.

 

(d) Enforcement of Award: The award of the arbitrator shall be binding and final, and judgment upon the arbitrator’s award may be entered in any court having jurisdiction.

 

(e) Small Claims Court: Notwithstanding any other provision of this Agreement, either you or we shall retain the right to seek adjudication in Small Claims Court of any matter within its jurisdiction. Any matter not within the Small Claims Court’s jurisdiction shall be resolved by arbitration as provided above.

 

7. Privacy Policy Disclosure: recognizes that your financial information is personal. We only use and share information that affects your deferred deposit loan and for related purposes, or as permitted or required by law. We are careful to use only accurate, current and complete information. We will correct any erroneous information quickly if you so request. We are also careful to protect the security of your information from third parties and unauthorized employees. This privacy policy is subject to change. Please contact us at 1-800-646-2274 if you have any financial privacy concerns.

 

8. Additional Terms: sends weekly notifications during the period of time in which you have your advance. These notifications are to inform you that your loan is due, and that it is your responsibility to contact Mr. Cash LLC in a timely manner regarding whether you intend to pay off your loan or extend it for the appropriate fee until the next payday date. If we do not receive a response to these notifications at least three (3) day prior to your due date, we will debit your “Bank Account†for the extension fee only. This is only a fee and it will not reduce your balance, but merely extend your balance for another two week cycle. There is a three (3) day grace period, including weekends, after an extension fee is taken in which you may request the remaining balance of your loan be taken from your “Bank Account†without incurring additional fees. For example, if your loan were for $300 your extension fee would be $45. If we took $45 and you wanted the entire amount taken out instead, then we would debit your “Bank Account†for the remaining $255. extends these notifications as a courtesy to our valued customers. It is your responsibility as the receiving party of these loan, to make sure your payments are received on time, and that your loan is paid in full according to the terms of your contract. takes no responsibility for notifications that are disregarded, deleted or left unread. By signing this contract you are indicating to us that you understand the terms and conditions of the agreement.

 

 

 

Caution: It is important that you read the deferred deposit and arbitration agreements

 

 

 

You must read and understand each one of the following for your application to be complete:

 

You understand that charges its fees every pay cycle ( usually two weeks or 14 days ) for the life of the loan. These fees do not reduce your principal balance.

 

You are certifying that the “Payday Dates†you entered on the front of this agreement are the actual dates you receive a check or automated deposit from your employer.

 

 

 

You understand that shares information with Teletrack in order to make a determination of your loan request and you authorize to share your personal information with Teletrack. You understand if you refuse to grant such authorization that you will not be eligible for credit with .

 

 

 

You understand that unless you instruct of your intention of paying off the loan on the due date, will automatically extend your loan until your next payday date and charge an additional fee for the loan extension.

 

 

 

By typing your full name in the following box, you acknowledge that you have read and agree to the terms of this agreement.

Edited September 7, 2006 by atmo718

[CardCollector]

Have you looked into a loan through Prosper? Interest rates would be much better, and you would be spreading everything out over 36 months, much better than all at once.

 

Whatever you do, don't fall behind on your credit cards or anything else reporting to the CRAs. That will cause even more trouble down the road.

 

Good luck!

[atmo718]

I would like to apologize to heg. I'm sorry, I am just so upset that I let myself get into this jam. The 200.00 one I'm not worried about because it's only 250.00, but the 500.00 one is really irking me. I might file a complaint when I'm done to prevent me from going back. This place is located in Nevada.

no apology is needed. you are in a stressful bind that you need to extricate yourself from.

 

where are they in NV? I could go yell at them!

 

Thanks, I really wish you could.

[tconley]

Well I decided to pay the fees and the loan when I get a chance. The interest on the loan is 504.50%.

 

Please tell me that was a typo...

Alright, it was a typo. Do you feel better now? Good, because it's the real thing.

 

Sorry, atmo, didn't mean to offend, it's just that rate is simply heinous. I thought there were laws place to cap interest rates....

 

Anywho, everyone's suggestion that you kill this payday loan monster NOW is my thought, as well.

 

Can you ask for a pay advance from the company you work for... just so you can get ahead of this wave of debt? Also, someone mentioned letting some other bills slip in order to pay this off, though it's not ideal, it might be necessary. I'd start with the non CC bills like DirectTV and Tmobile. Or maybe disconnect them until you get out of this situation...

Edited September 7, 2006 by tconley

[atmo718]

Have you looked into a loan through Prosper? Interest rates would be much better, and you would be spreading everything out over 36 months, much better than all at once.

 

Whatever you do, don't fall behind on your credit cards or anything else reporting to the CRAs. That will cause even more trouble down the road.

 

Good luck!

 

You're right I refuse to let my creditors go unpaid. I'm just going to take a chance with these people and close my account and take the consequences. I did apply for a loan through Prosper but it was taken down and not funded because of my credit grade HR I received an email please see below a copy of the email which was sent.

 

 

Your listing has expired

Your security is very important to us. To ensure that this email was actually sent from Prosper, please verify that the information included in the footer of this email corresponds to your account.

 

 

Sep-06-2006

 

Dear capricia,

 

Thank you for your placing a listing with Prosper. Your listing has expired without being matched with a sufficient number of bids to enable us to provide you with a loan on the terms requested.

 

Listing title: PayDay Loan Mistake

Listing number: 35294

Listing created: Aug-30-2006 8:05 AM

 

Your credit grade that was posted with your listing is based on a credit scoring system that assigns a numerical value to the various items of information from your credit history. These numerical values are based upon the results of analyses of repayment histories of large numbers of consumers. As you know, individual bidders on the site decide whether to offer to have your loan funded based on the information you provide, your credit grade, and the interest rate you request.

 

The most important factors affecting your credit grade were:

 

Number of accounts with high balance-to-limit ratios.

Number of recent inquiries.

Number of recently opened accounts.

Available credit on open revolving accounts.

The generation of bids for your listing was based in whole or in part on information provided to us by Experian, a consumer reporting agency. Experian played no part in the bidding process for your listing and is unable to supply specific reasons why your listing was not matched with a sufficient number of bids to allow you to obtain a loan. You have a right under the Fair Credit Reporting Act to know the information contained in your credit file at Experian. You also have a right to a free copy of your report from Experian, if you request it no later than 60 days after you receive this notice. It can be obtained by contacting Experian at www.experian.com, toll-free telephone no. 1-888-397-3742. In addition, if you find that any information contained in the report you receive is inaccurate or incomplete, you have the right to dispute the matter with the reporting agency.

 

If you have any questions about this letter, you should contact us at:

 

Prosper Marketplace, Inc.

111 Sutter Street, 22nd Floor

San Francisco, CA 94104

Telephone (800) 208-0103

Facsimile (415) 362-7233

support@prosper.com

 

Notice: The federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (with certain limited exceptions); because all or part of the applicant's income derives from any public assistance program; or because the applicant has in good faith exercised any right under the consumer Credit Protection Act. The federal agency that administers compliance with this law concerning this creditor is the Federal Trade Commission, Equal Credit Opportunity, Washington, DC 20580.

 

Sincerely,

Prosper

 

 

This email was sent to deleted, registered as capri718 at Prosper. We will never send you an email which does not contain the full name and screen name that you registered with. Learn about email security.

This message was sent from Prosper based on your communication preferences. Change your communication preferences. (Note: some messages require at least on-site message delivery.)

 

Copyright © 2005-2006 Prosper Marketplace, Inc. All rights reserved.

Prosper is located at 111 Sutter Street, 22nd Floor, San Francisco, CA 94104

[BrandyLynn]

OMG is all i can really say to that. I can't believe anyone is allowed to get away with blatantly ripping off anyone in such a horrendous way. I guess I can stop complaining about my 29% CC APR, huh? I'm really sorry you're having to deal with this. I assume you've probably already cut your monthly payments to the other companies down to the absolute minimums, but if you haven't, you should, at least until you get this other stuff paid off. Also, I'd advise visiting the money management forum here for some great tips on freeing up just a smidge of extra money every month. Desperate times call for a LOT of work just to squeeze out a few extra bucks. It may not seem worth it to you, but you won't get anywhere without busting your butt to take care of this.

 

And if it's illegal in your state, I'd definitely file complaints. You may get all your money back, or barring that, you may set a precedent for anyone else in the future, so they don't get blindsided. Karma goes a long way, too. I wish you much luck.

[atmo718]

Well I decided to pay the fees and the loan when I get a chance. The interest on the loan is 504.50%.

 

Please tell me that was a typo...

Alright, it was a typo. Do you feel better now? Good, because it's the real thing.

 

Sorry, atmo, didn't mean to offend, it's just that rate is simply heinous. I thought there were laws place to cap interest rates....

 

Anywho, everyone's suggestion that you kill this payday loan monster NOW is my thought, as well.

 

Can you ask for a pay advance from the company you work for... just so you can get ahead of this wave of debt? Also, someone mentioned letting some other bills slip in order to pay this off, though it's not ideal, it might be necessary. I'd start with the non CC bills like DirectTV and Tmobile. Or maybe disconnect them until you get out of this situation...

 

I wish I could let the cable go and the cell phone, but I did that last month and recently put them back on because everyone in the household was complaining. My directv bill is only 24.28 past due for this month, so I will pay it. As far as the cell phone that's our only communication so I need that too. Thanks for all the replies.

[NAN101]

Caution: It is important that you read the deferred deposit and arbitration agreements. You must read and understand each one of the following for your application to be complete:

 

 

By typing your full name in the following box, you acknowledge that you have read and agree to the terms of this agreement.

 

Although it's illegal in NY (as it is in a lot of states, you are probably bound by the laws of Nevada or wherever this company is located). It would be illegal for a NY company (i.e. cash checking place to offer payday loans), that's why these out-of-state or out-of-country places exist. They prey on the desperate.

 

Your best bet is to do what you have to do to get this paid ASAP. I'm not being sarcastic, but I've been in your position - it's not fun. And, most important - learn from this experience. Stay away from payday loans in the future (I'm sure you've already figured this one out ). As you mention, while the kids may want things, you need to make this a priority and get rid of it first. Then, examine your budget and see what led to the payday loan trap to begin with. Maybe a temporary part-time job might be a solution?