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 Posted: Mon Jan 21, 2008 9:24 am |
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I have gotten myself into the terrible payday loan cycle and am extremely ashamed and embarrassed! It all started in September when I needed to get a new clutch put into my car and it spiraled out of control until now. I just got paid on the 15th and my entire check went to the rollover fees for the loans...and some didn't even go through, and now my account is in the whole. This is getting bad and I want to stop it before it gets even worse.
All of the loans are from internet companies:
Zip19.com: $300
Cashnetusa: $500
Ameriloan.com: $250
Usfastcash.com: $250
American Consumer Credit (thecashspot.com): $300
Big Payday Loans: $200
Zipcash: $500
I live in Michigan.
I would really love to get these taken care of asap. I looked into getting a debt consolidation loan (I know about all the warnings here but feel I would be able to make one payment easily/month) but have a terrible credit score and don't qualify.
From everything I've read, I can't include these loans in a debt management program until they have gone into collections.
Do I just let them go into collections and deal with them that way (my credit score can't really get worse, so I'm not worried about that). If so, how long does it take for them to go into collections? I really do not want to have my next paycheck to be eaten up by all the fees again, as I will need to pay rent and bills!
Help!
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aestrasser
Joined: 20 Jan 2008
Posts: 4
Debtcc Points: 149
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| Posted: Mon Jan 21, 2008 9:28 am |
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i will post the laws for your state. Please let us know how much you have already paid to each.
Off the bat I can tell you that BIG is not a legal company and therefore you only owe the principle amount borrowed. You will need to read the stick regarding closing yiur account. It is the only way to work thru this and gain control of your money.Here are your state laws.
| Quote: | Michigan State Information
Legal Status: Legal
Citation:
Mich. Comp. Laws 487.2121 et seq.
Loan Terms:
Maximum Loan Amount: $600
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: 15% of first $100, 14% of second $100, 13% of third $100, 12% of fourth $100, 11% of fifth $100, 11% of sixth $100 + any database verification fee
Finance Charge for 14-day $100 loan: $15
apr for 14-day $100 loan: 390%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: One with licensee or more than one with any other licensee
Rollovers Permitted: None (cannot renew; lender may extend only if it does not charge a fee)
Cooling-off Period:
Repayment Plan: Yes
Collection Limits:
Collection Fees: One $25 returned check charge
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Michigan Office of Financial and Insurance Services
Address: P.O. Box 30220 Lansing MI 48909
Phone: (877) 999-6442
Fax: (517) 335-4978
Regulatory Contact: ,
Regulator Website
http://www.michigan.gov/cis/0,1607,7-154-10555---,00.html |
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kashzan
Debt Samaritan
Joined: 11 Jul 2007
Posts: 5458
Debtcc Points: 38911
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| Posted: Mon Jan 21, 2008 9:31 am |
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Can you tell us how much you have paid on each one so far? You will have to close your account or have a hold put on it if you want to gain control of the situation. See if your bank can put your account on deposit only. Get you payroll do do a live check from now on so you can cash it and pay your living expenses.
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frogpatch
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Joined: 09 Apr 2007
Posts: 3768
Debtcc Points: 31152
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| Posted: Mon Jan 21, 2008 9:34 am |
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CashNetUSA is the only one I recognize as being legal in your state. We have a couple of people from Michigan who may be able to provide more info.
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frogpatch
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Posts: 3768
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| Posted: Mon Jan 21, 2008 10:02 am |
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I have paid basically nothing on any of these loans so far, as I have just fallen into the big trap and this was the first payment due time. All of the companies have just automatically "rolled-over" my loans and attempted to debit the refinance fee. As far as I can tell from my banking account right now, these fees have gone through but my account is now $500 negative and I am thinking that some of these debits may be returned.
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aestrasser
Joined: 20 Jan 2008
Posts: 4
Debtcc Points: 149
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| Posted: Mon Jan 21, 2008 10:02 am |
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where do I go to find out which of these companies are legal in Michigan?
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aestrasser
Joined: 20 Jan 2008
Posts: 4
Debtcc Points: 149
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| Posted: Mon Jan 21, 2008 11:11 am |
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aestrasser, all of the above advice is great advice. Close your bank account if you can or make it deposit only. The so called fees you paid count towards what you have paid them, please list all of the fees you have paid these people. Once you get your bank account under control the people here can help you to write letters and file complaints against these payday loan sharks.
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stargzr
Joined: 26 Nov 2007
Posts: 270
Debtcc Points: 2690
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| Posted: Mon Jan 21, 2008 11:43 am |
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how do i get them to stop debiting my bank account? I am thinking about calling them and arranging payment but how can I ensure that they will only debit the payment amount that I arrange with them?
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aestrasser
Joined: 20 Jan 2008
Posts: 4
Debtcc Points: 149
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| Posted: Mon Jan 21, 2008 1:44 pm |
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aestrasser, they won't. I'm being perfectly honest here. They will debit you until the cows come home and you've paid $1,000 on a $200 loan. You are dealing with some unlicensed/illegal lenders here. As long as they have access to your bank account, they will debit. The only way to prevent them from debiting any longer is to get rid of the bank account they have information on. You need to regain control of your money. If your account is in the negative, see if they can put a hard debit block on it so that nothing goes through any longer causing NSF fees to make your account go even further in the red. Read this regarding closing your bank account. I swear, you can beg and plead with these people about not debiting; however, they will. And they will continue until they feel as though they are done. Read the following, please.
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cannr
Moderator
Joined: 07 Jun 2007
Posts: 9372
Debtcc Points: 124815
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| Posted: Mon Jan 21, 2008 1:46 pm |
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| Quote: | Before you close your bank account due to payday loans eating away at your paycheck, please read this.
Some banks have a policy regarding ach transactions that allows them to force open closed accounts if any ach transactions go through within a certain time frame after the account is closed. This can leave you owing a legal bank $1,000's and reported to chexsystems, instead of owing barely legal (or not at all legal) payday loan companies. Not a good thing. Ask your bank what their policy is on ach transactions on closed accounts before you close the account. It's best to go in person and talk to a branch manager.
If your bank does have this policy, tell them your situation. Don't be embarrassed. Take letters with you showing that you have revoked authorization for each of your payday loan companies to debit your account. Tell the bank to put your account on deposit only, an ach block, or a hard hold before they close the account. Your bank can do one of those, don't take no for an answer. This will prevent any payday loan ach's from reopening the bank account.
It'a always best to close your bank account. Leaving it open gives ways for the payday loan companies to continue to take money out. These companies have many different dba's, so blocking them won't work. They will also produce paper checks and run them through your account. Closing the account is the best way to prevent these companies from taking money out of your account.
Some state laws do allow for prosecution if you close your bank account, but that is usually in cases of fraud. But it's always best to check with your state's attorney general or department of financial institution before you close your account. You want to make sure you are not causing more heacaches! |
Last edited by goudah2424 on 17 Jul 2007 15:25
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cannr
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Posts: 9372
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| Posted: Mon Jan 21, 2008 9:35 pm |
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Aestrasser, please take the advice and close that account. Those vultures will bleed you dry. I ended up with 23 EFT NSF charges because when my bank tried to block them, they changed id numbers and submitted new debits. They also send through demand draft checks when debits aren't available. Read the info cannr posted above and get that account closed ASAP.
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annie340
Joined: 08 Dec 2007
Posts: 96
Debtcc Points: 2155
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| Posted: Mon Sep 01, 2008 10:23 am |
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what are my state laws in va i have 3 loans i have defaulted on payday loans
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sexyone27
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Debtcc Points: 100
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| Posted: Mon Sep 01, 2008 10:31 am |
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can someone please answer my questions
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sexyone27
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Debtcc Points: 100
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| Posted: Mon Sep 01, 2008 12:02 pm |
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sexyone27 it might be better if you posted your own thread. That might make it easier for someone who could help you to see it. You can start your own thread and include your state, how many loans you have, what kind (store front or Internet), how much you paid and how much you still owe.
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annie340
Joined: 08 Dec 2007
Posts: 96
Debtcc Points: 2155
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| Posted: Mon Sep 01, 2008 1:28 pm |
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sexyone27, I am going to post your pdl laws, if you need further assistance please start a new topic and list the names of the pdls, whether they are Internet or storefront, how much you borrowed, and how much you have paid back so far. 
| Quote: | Virginia State Information
Legal Status: Legal
Citation:
Va. Code Ann. § 6.1-444 et seq.
Loan Terms:
Maximum Loan Amount: $500
Loan Term: Min: 7 days
Maximum Finance Rate and Fees: 15%
Finance Charge for 14-day $100 loan: $15
apr for 14-day $100 loan: 390%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: None (cannot refinance, renew, or extend)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: $25 NSF fee; Court Costs; Reasonable Attorney's Fees (not to exceed $250)
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Virginia Bureau of Financial Institutions
Address: State Corporation Commission, 1300 East Main Street, Suite 800 Post Office Box 640 Richmond VA 23218
Phone: (804) 371-9657
Fax: (804) 371-9416
Regulatory Contact: Susan E. Hancock,, Deputy Commissioner, Consumer Finance |
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Ohio Payday Loan Laws
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Shazzers
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