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Posted: Thu Jan 05, 2006 3:17 pm Subject: Okay, here's what's happened so far...

Today I put stop payments on four checks to the PD loan companies and sent T&C my startup fee payment. I began to call my first PD loan company (who they know my very well because I have been a customer for so long) to let them know what was going on. I told them I was consolidating and they want to work out a payment plan with me so I don't have to consolidate. However, whats done is done. I wonder if I should call the other three and let them know or just wait for them to call me? I am not so sure the others will be so nice to me.

Posted: Thu Jan 05, 2006 4:09 pm Subject:

Hi skrying

Some lenders extend benefits on your repayment if you call them first. They get an idea that you are taking the responsibility to pay off the debt and hence will be co-operating with you.

Do not wait for the creditors to call you. If you receive a call from them, you can assume some strong collection tactics from their end. Don't wait for this situation. Just place the call.

Posted: Thu Jan 05, 2006 4:23 pm Subject:

Whew, well, all my payday loan creditors now officially know. Only one called to see if I was still coming in today to make my payment or rollover the loan. At that point I told them what was going on. The other three I called and informed them that I was consolidating my loans. I feel much better now since they know. I think that was the hardest part of all of this, knowing I had to contact them. I had no idea what their reaction would be. I honestly thought I would get yelled at or something. So far, so good. We'll see how things go in the near future. I will keep everyone posted.

Posted: Thu Jan 05, 2006 4:23 pm Subject:

skyring

Congratulations on taking the step into the consolidation program. My question is, why are you wanting to consolidate on loans that haven't even gone through yet. If one is willing to work out a payment plan with you, then maybe they're all willing to work something out.

Also, I want to let you know that putting a stop payment on a payday loan payment does NOT stop them from putting a hit to your account through. It only stops them today. ACHs are very tricky. Because there is no check number involved, they could attempt to hit your account at anytime. If you come across a company that is NOT willing to work with you, be on the look out with your account.

Regards-
Mike

Posted: Thu Jan 05, 2006 4:24 pm Subject:

The stop payment through my bank is good for 6 months.

Posted: Thu Jan 05, 2006 4:28 pm Subject:

Posted: Thu Jan 05, 2006 4:30 pm Subject:

Thanks Mike and Ben for your support. I realize these companies can be very tricky. I know that I have to keep my guard up and my eyes open. At this point, this was my only option. I am also consolidating an old medical bill and a credit card bill which previously was handled thought a less than satisfactory consolidation company.

Posted: Thu Jan 05, 2006 4:30 pm Subject:

Words changed! Laughing

Scenario changed Laughing

Posted: Thu Jan 05, 2006 4:30 pm Subject:

skyring

I understand a stop payment is good for 6 months, but it's an ACH. ACH's don't exactly identify what it is for. That's how payday loan companies can still get their money.

I would contact your financial instituion and and ask them to clearly explain to you the procedure for an ACH. Make sure they are aware that the payment you are stopping will stop ALL ACH's.

Payments made through debtconsolidationcare are made through ACH. They are coming through the Federal Reserve.

If you have 4 pending paybacks, I would be extremely cautious if you are wanting to protect whatever funds you have coming in.

Regards-
Mike

Posted: Thu Jan 05, 2006 4:32 pm Subject:

That is correct Mike. The stop payment through my bank for the certain checks I put a stop to is good for six months. I am sure there are other ways that they (the PD loan companies) could swindle around this but if they try using the checks that I posted with them, then they should not succeed.

Posted: Thu Jan 05, 2006 4:34 pm Subject:

I will check with my financial institution about this just to be sure.

Posted: Thu Jan 05, 2006 4:48 pm Subject:

Skrying, the company won't be able to cash the checks after you have done a stop payment on it. If any company tries to do this activity, it will be a violation of the laws in regards to banking.

Posted: Thu Jan 05, 2006 4:57 pm Subject:

I'm going to have to check my resouces again. As far as I knew, doing a stop payment on an ACH can only stop it ONE TIME. They can still hit your account the following payday. If you had the check number, then it would be different. Then the check becomes invalid for 6 months, which are correct on that.

Regards-
Mike

Posted: Thu Jan 05, 2006 5:11 pm Subject:

I am stopping payment on certain check numbers. The person at my financial institution said that if for some reason, the creditor tried to process the debt like a check card (electronically) and the bank missed it, then that would be a way they could try to get through. I am not sure if that makes sense. Anyway, I told him I was consolidating my debts and wanted to make sure the current money as well as future money in my account was protected. He was very nice and said that if there were any problems to call and they would take care of any issues I had. He did verify that the stop payment of the checks I put a "stop payment" on were in fact good for six months.