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 Posted: Sat Jun 24, 2006 3:10 pm |
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i have 3 payday loans of 600 each I have been paying on them for 1 year 400 per month of interest. I cant see to ever have money to pay them off. what happens if i dont pay them and then just start making payments? Will I go to jail? I live in Houston TX
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| Posted: Sat Jun 24, 2006 3:13 pm |
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Are they internet based lenders or a store front lender where you used a check to get the loan?
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polly
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| Posted: Sat Jun 24, 2006 3:18 pm |
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I have one with Advance America, one with a checking cash place called Ace and the third i dont know the name off hand. I just wish I could pay them in payments instead of 400 a month and I never finish. Because of this I am now following behind on other payments any advice I thank you
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denise
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| Posted: Sat Jun 24, 2006 3:27 pm |
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| Quote: |
Texas Administrative Code
Next Rule>>
TITLE 7 BANKING AND SECURITIES
PART 1 FINANCE COMMISSION OF TEXAS
CHAPTER 1 CONSUMER CREDIT REGULATION
SUBCHAPTER F ALTERNATE CHARGES FOR CONSUMER LOANS
RULE §1.605 Payday Loans; Deferred Presentment Transactions
(a) Definitions. For the purposes of this chapter, the following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.
(1) Check--A check, draft, share draft, or other instrument for the payment of money.
(2) Payday loan or deferred presentment transaction--A transaction in which a cash advance is made in exchange for the consumer's personal check, or in exchange for the consumer's authorization to debit the consumer's deposit account, in the amount of the advance plus a fee and where the parties agree that the check will not be cashed or deposited, or that the consumer's deposit account will not be debited, until a designated future date. This type of transaction is often referred to as a "payday loan," "payday advance," or "deferred deposit loan."
(b) Authorization. A licensee may engage in a payday loan or deferred presentment transaction under this chapter and subject to the provisions of Texas Finance Code, Chapter 342, Subchapter F. A payday loan or deferred presentment transaction is a loan of money. The check given in the transaction may serve as security for the payment of the loan. A person who negotiates, arranges, or acts as an agent for an authorized lender in a payday loan or deferred presentment transaction that has an effective annual rate of greater than 10% is required to be licensed.
(c) Maximum charge. A licensee may charge an amount that does not exceed the rates authorized in Texas Finance Code, §§342.251 - 342.258. The chart in Exhibit 1 provides examples of the maximum authorized rates for loans made under Texas Finance Code Subchapter F. Texas Finance Code, §342.254 which prohibits other charges applies to this section.
Attached Graphic
(d) Minimum term. A licensee may engage in a payday loan or deferred presentment transaction with a term of not less than 7 days.
(e) Procedures.
(1) If a check is accepted, the licensee must require that the check be made payable to the actual name of the company printed on the license and must be dated the day the loan is made.
(2) The transaction must be documented by a written agreement signed by the borrower and the licensee. The agreement must contain the name of the licensee, the transaction date, the amount of the check, a statement of the total amount charged, expressed both as a dollar amount and as an annual percentage rate (APR), and the earliest date on which the check may be deposited. The agreement must also contain a notice of the name and address of the Office of Consumer Credit Commissioner and the telephone number of the consumer helpline. Additionally, the lender shall provide a notice to the consumer that reads as follows: "This cash advance is not intended to meet long-term financial needs. This loan should only be used to meet immediate short-term cash needs. Renewing the loan rather than paying the debt in full when due will require the payment of additional charges."
(3) The borrower shall have a right to prepay the loan and redeem the check at any time prior to the due date. If the loan is prepaid in full, the lender must refund any unearned finance charges.
(4) A check may not be held for more than 31 days and then subsequently presented to the bank for payment.
(5) The licensee must post a notice of the fee schedule for engaging in a payday or deferred presentment loan.
(f) Conditions. A lender may accept a check to secure payment of a payday loan if the lender complies with the following sections.
(1) Duplicate and multiple loans. The provisions of Texas Finance Code, §342.501 and §1.851 of this title (relating to Duplication of Loans) apply to loans made under the authority of this section. In accordance with Texas Finance Code, §342.501 a lender and a borrower may renew a loan, but the loan must be converted from a single payment balloon loan to a declining balance installment note. Alternatively, the payday loan or deferred presentment transaction may be renewed without limitation to the number of renewals where the effect of the total amount of charge would not exceed the total amount authorized by §342.252 having due regard for the amount of the cash advance and the time the cash advance is outstanding. The result is that the acquisition charge may only be earned once in a month and the installment account handling charge may continue to be earned on a equivalent daily charge basis in accordance with the limitations of Subchapter F. In lieu of a renewal, a lender and a borrower may agree to extend the maturity date of the existing payday loan or deferred presentment transaction.
(2) Collection practices. A payday loan constitutes a credit relationship for all purposes, including collection. If a borrower defaults, including the return of the check to the licensee from a financial institution due to insufficient funds, closed account, or stop payment order, the licensee may pursue all legally available civil means to collect the debt. Collection practices must be in accordance with this chapter and with the Texas Debt Collection Practices Act, Texas Finance Code, §392.001 et seq.
(3) Fair lending. A lender must make a good faith effort to assess the borrower's ability to repay the payday loan or deferred presentment transaction under the loan terms. |
http://www.occc.state.tx.us/pages/Legal/Laws/reg/subf.html
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polly
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| Posted: Sat Jun 24, 2006 3:27 pm |
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Hi Denise,
I understand your situation. Don't fall behind in your utility payments, rent, food etc. You need to talk to your lenders and make them aware about your financial problems. Arrange some payment plans and stick to it. If you are unable to do it on your own, talk to a debt counselor for taking care of these accounts. He will negotiate with your lenders favorable for you. You can do a free sign up in this website and talk to a consultant for help.
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Gretchin
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polly
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| Posted: Sat Jun 24, 2006 3:32 pm |
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So, no you won't go to jail. I guess just ask them if you can set up a payment arrangement.
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polly
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| Posted: Sat Jun 24, 2006 3:38 pm |
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I will do so. As a matter of fact I will do that Monday afternoon. Should I notify my bank that there will be a total of 3 returned checks? I am so thankful that I was on the net and I came across the web sight.
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Denise
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| Posted: Sat Jun 24, 2006 3:53 pm |
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They may not cash your checks. You will have to wait and see what they will work out with you.
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polly
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| Posted: Sat Jun 24, 2006 3:54 pm |
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If you can explain the situation to your bank, they will be cautious before the checks get returned. Don't tense yourself over going to the jail. Legally, this is not possible. If the debt is legitimate, the company will try to file a case against you and recover the money through garnishment. It must be governed under the state laws. Try to talk to your lenders and assure your payments if some extensions can be arranged.
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andyyoung
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| Posted: Sat Jun 24, 2006 5:03 pm |
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Denise---Can you stop payment on your checks or automatic debits or withdrawals?
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Lorri
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| Posted: Sat Jun 24, 2006 5:25 pm |
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Good question, Lorri. I'm also in the same boat as Denise. My payday loans in Louisiana and Mississippi total 6 at $300 each. It seems as though I will never pay them off. My fees are totaling $400 month. One company is threatening to take my check to the DA if I don't pay 75% of the loan within 10 days. Now, once I have a total of $500 worth of checks turned in to the DA's office, can't I be jailed? Does anyone know anything about this? This one payday loan in particular is in Louisiana.
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crystalmoon1570yahoocom
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| Posted: Sat Jun 24, 2006 5:54 pm |
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My experience is the store front lenders will take you to small claims court. Internet lenders don't bother. I was able to set up payment arrangements with Advance America and ACE. They seem to be everywhere don't they. They want to work with you; they look bad when you default. If you can close your account and open another, do so. They cannot take you to jail. This is not fraud. Best of luck.
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guest
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| Posted: Sat Jun 24, 2006 8:07 pm |
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Crystal, which state do you live in? What companies are you dealng with?
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polly
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| Posted: Sat Jun 24, 2006 9:31 pm |
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This information has been helpful  Thanks guys!
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Katie
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