defaulting on payday advance

[toastiegurl55]

I have gotten out of control with payday advances. Taking one out to pay another. I currently have 7 different payday advances out. I float money. I need to take control back with my paycheck. I want to make small payments to these companies and pay them all off. Can they go after my wages even if I make them small payments each month until they are all paid off.

[Snglmom]

OUCH.......I've done that (not with 7, but with 2) and about had heart failure when I realized how much I was paying those people every month just in fees.

 

Read your contract with these places to see what options you have. I don't know if they can garnish or not......best of luck!!!

[Feisty]

What state are you in? You need to check your state laws for bounced checks and see if they can press criminal charges. That would be my first concern.

 

They have to have a judgement against you before they can touch your wages.

 

 

Here is a link for you

 

http://www.lawdog.com/

[bouncingback]

What state are you in? You need to check your state laws for bounced checks and see if they can press criminal charges. That would be my first concern.

 

They have to have a judgement against you before they can touch your wages.

 

 

Here is a link for you

http://www.lawdog.com/

 

 

I am not sure what state you are in but it is highly unlikely that they can press criminal charges. Most state legislatures consider these places "predatory" lenders and most are regulated heavily and what they can and cannot due upon customer default.

 

In NC, they were shut down for awhile and then reached agreements with the state that they would disclose more (actual interest rate around 1800%), fees, etc. They also agreed that they COULD NOT pursue this through the criminal courts.

 

It is sold as a "loan." It is regulated as a "loan" company. You can't be put in jail for failing to pay a "loan." This is just a common thought or perhaps a scare tactic by the payday lenders because a check is involved.

 

As for the wages, that also depends on your state but at the least, they must get a judgment first as mentioned above.

 

I would just come clean and try to pay what you can. They have plenty of people who don't do that at all.

[neveragain]

I used to be in the same boat. I also had 7! I called all of the branches to get the highest corporate Phone # I could. Some let me pay a little each week with no interest. Some I had to let the check bounce, then work out a payment arrangement. In Nevada, they can not get a judgement against you if it is a check loan. They can get a judgement if it is a signature payday loan with no check. Read the fine print. Good Luck!

[liveandlearn]

Oh my, where to begin...

 

I've had personal experience with this, but more on that later.

 

First, you could try approaching the individual payday offices, talk to a supervisor/manager/owner and ask if they have any payoff plan for people who've gotten in over their heads. In my experience, this will be a big fat NO, but it can't hurt to try.

 

Second, is there ANY WAY you can take on extra hours, get any kind of a second job to get out from under these, one at a time?

 

Last, is there any way you could borrow from a family member or friend? You could pay them with high interest and still save a fortune.

 

 

:oops: My payday adventure started with a rough few months and a relatively minor bill I just couldn't see clear to pay at that time. So I took out a "one-time" loan, fully aware that the "fees" these places charge (not "interest" which is probably how they get around usury laws) can reach 700% annually. I was convinced I could stay on top of it.

 

Fast forward a few months, now with health issues, medical bills, change in job with lower pay, and I'm taking out one to pay another. At the worst, the "interest" alone hit $800.00 a month and I had begun to default on other bills. Months go by and I approach the payday offices who have made a ****load of money off me, explain my circumstances and ask if there is any way I can make some kind of arrangements. Nope. I checked with credit counseling places who told me they wouldn't touch those places with a ten-foot pole.

 

I'd probably still be paying on them, except as you probably know, you have to physically show up to buy back your check, pay the new "fees" and extend your loan or the check will be sent through. One sorry day, I got delayed getting to the office, the check was sent through....bounced....bank added returned check fees....which caused over the next couple of days every single payday check (from about 5 different companies) to bounce.

 

My BIG MISTAKE, if this ever happens to you, contact them RIGHT AWAY. For being totally unwilling to work with me before, one was great about setting up payment arrangements after the check bounced (for the amount of the check only, no interest); a few went to collections and I paid them off there over time. For the two that I didn't contact right away, I received summons to small claims court. I was able to borrow money privately to pay these off prior to the court date and get the cases dismissed but the attorneys fees/court costs added $1500 to the cost.

 

My main concern at that point was the bounced check issue. I later learned that in our state these checks might not fall under the same criminal penalties as regular bounced checks, but I kept a close eye on the SOL anyway, kept in constant contact with the creditors, and made absolutely sure all were paid off in full. Get advice from a lawyer (legal aid, free consultation, whatever) to see what your position would be in this case. Of course, there is also the Chexsystems/bank account issue.

 

It took me years to pay off my bills and begin rebuilding credit and it cost me thousands extra, not to mention the depression, stress, etc., this whole thing caused. So my advice,....

 

FOR THE LOVE OF G** GET OUT NOW.

[Feisty]

These places can put you in horrible shape before you even know what hit you. Let us know how it goes for you.

[sirrowan]

Here in Ohio, there is a particular payday advance company that is just aweful(they all are). I worked for the guy who owned this company.

 

The one way to get out from under these, is to file bk. Or just get an attorney and bk #. Once they get that bk filing #, they will leave you alone (from my personal experience of having to overhear all the abusive tactics performed by the collectors).

 

You can always talk to an attorney, then proceed until you get the file # for the bk (if it's cost effective), then call them and tell them that you've filed bk. Man, does this lemonade them off! Then you could always turn around and drop the bk. After this point the possibility of them following through with verifying the info would seem minimal. They don't pursue money that they don't think they're going to get.

 

Just an idea. And if you really want to file a real bk, you can go get a cash advance and use that money to pay the attorney for the bk. That REALLY pisses them off.

[CitrusSoda]

I vote for bankrutpcy too....7 different loans is a sign of dire straights, but consult an attorney.

 

I do not vote for taking another payday loan to file for BK....you can plan a bankruptcy...true, but you cannot take a loan for the purpose of bankrupting on it.

 

anyway its not necessary...

 

when I filed bankruptcy, it cost $190 or something, but even that I split out in payments to the bankruptcy court, they'll take payments if you have hardship....you'd think everyone would need to make payments....lol, not everyone...but I did, and it worked out fine.

 

that was a chapter 7...chapter 13's are more complex...

[Feisty]

I vote for bankrutpcy too....7 different loans is a sign of dire straights, but consult an attorney.

 

I do not vote for taking another payday loan to file for BK....you can plan a bankruptcy...true, but you cannot take a loan for the purpose of bankrupting on it.

 

anyway its not necessary...

 

when I filed bankruptcy, it cost $190 or something, but even that I split out in payments to the bankruptcy court, they'll take payments if you have hardship....you'd think everyone would need to make payments....lol, not everyone...but I did, and it worked out fine.

 

that was a chapter 7...chapter 13's are more complex...

 

 

That is a good idea.

[jen]

I used to work for one of those companies a few years ago. Worse job I ever had, but besides that-We had people who couldn't pay. We were to told to scare people about suing them when they said they could make small payments. That would scare them to come up with the money. In truth, we WOULD take payments when people knew the laws and knew that we'd rather take payments from them rather than spending the money going to court.

People that flat out didn't pay, we took them to court, even if it was for 200.00.

That job drained me and I only worked there for six months, it was horrible how these people take advantage of people, but then again, their in it to make money.

[hoapres]

1. You need to write a budget. Write out all your expenses and income. Perhaps you can get a second job ?? Are there any expense that can be cut ??

 

2. You probably won't face criminal charges on the payday loans which are post-dated checks.

 

3. I am surprised - given teletrack - that you are able to have 7 payday loans out at one time.

 

4. If your checks bounce then you face the risk of the bank closing your checking account and/or being placed on chexsystems making it difficult to find another bank.

[jensewspa]

I know a lot of people don't advocate using a credit agency such as CCCS, and for this it probably wouldn't work anyway, but the rep that we worked a couple of years ago did a fabulous job helping us to write up our budget and showing where every dime goes, including things you don't even think about. After you get the paycheck issue dealt with, if you aren't sure how to do a budget on your own, I do recommend from a really good firsthand experience, seeing a budget counselor (CCCS didn't charge for this) so you can get a better handle on what comes in and goes out every month. Then you hopefully have a better chance not going back in the hole you are in right now (it is hard, I know).

[SassyinAz]

How much in total are the payday loans, toastie?

 

Sassy

[Feisty]

Bumping for Toastie