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I have 4 payday loans. I am 2 months behind on my house payments because of them. My checking account is so messed up. I lent my boyfriend some money from the payday loans and he can't pay me back. I feel like this is the end for me. The payday loans are too easy to get. They ruin people's lives. The clerks are always so friendly. I don't owe them the money. I've paid the loans off too many times. They are worse than loan sharks.

Posted: Sat Aug 12, 2006 7:00 am Subject:

You are absolutely right on the comment of the pdl industry being worse than loan sharks. Many people have lost alot do to these types of loans. What pdls do you have and are they store front or online? Many of us here have experienced what you are going through. Check out pollyandsays blog, she has alot of information in regards of state laws and other information.

Posted: Sat Aug 12, 2006 7:28 am Subject:

Don't let your house payments get behind because of payday loans, it's not worth it. Try to make arrangements with them and if they are online loans, Tammy gave you some great advice about pollyandsay's blog. Many of us have been in the same boat and we can help! Good luck and keep us informed.

Posted: Sat Aug 12, 2006 10:37 am Subject:

Hi mkalbie

Give priority to your house payments first. I feel they are more important. Many internet loan companies violate the state laws by charging excessive interests and fees. They are bound to follow the laws followed in the borrower's state. If you check out your lenders, you might find them doing some violations you are unaware about. This is causing excess flow of your money towards them leading to shortage of funds in making house payments.

Review the laws of your state on payday loan lending. If you find the loan company charging more than the allowed interests, block them from debiting money out of your account. Later they will contact you when you can work out other arrangements.

Posted: Sat Aug 12, 2006 11:41 am Subject:

mkalbie..
Close your checking account immediately and take back control of your paycheck.
Pay your house payments! You've got to have a roof over your head, those pdl's will have to wait. The most they will do is harrass you on the phone. Some will try to make arrangements with you.
Also, like the posts above, check on your state's law pages for interest an fees allowable on loans and tell them pdl's you won't pay a penny more!

Posted: Sat Aug 12, 2006 12:42 pm Subject:

Will closing the checking account at this stage be a sensible move for mkalbie? Let's say if he/she closes the account now without having any proof of illegal activity against the loan company, the person will be held guilty of avoiding his/her responsibilities. It will be forced to believe that this person was intentionally avoiding the debt and closed the account. My take is that wait for some time before closing the account. See if the company is doing any illegal debits in the checking account. If you are able to prove with your bank that the specific debit is disputed, you have strong reasons to close the account after that activity. The loan company will then be held accountable for putting out clear facts.

Posted: Sat Aug 12, 2006 1:27 pm Subject:

Closing the checking account to any further debits or just closing it completely and opening a new is the only real solution to getting control over the pdl's.
If you wait and inform them you are having problems paying them back, most of them, if not all, will start to debit the account for the entire loan amount plus other "fees". Leaving the debtor with multiple nsf fees and charges. Many banks will not be sympathetic to this, and you can kiss your money goodbye.
Once they have their money, there's no legal leg to stand on after that. After all, there was a contract involved.
I'm saying once the account is closed, to call them all and start making alternate arrangements or condolidate, not avoiding them altogether.
It would be nice to think that the pdl's would be understanding to the situation and wait to debit. But unfortunately, my experience as well as others on here, have not had a positive encounters other than nipping this in the bud, so to speak.

Marcia Brady's Lovechile · Posted: Sat Aug 12, 2006 1:45 pm Subject:

Mkalbie . . .

Forget for a minute about whether these are payday loans or credit cards or any other type of unsecured debt and what anyone says about who is going to sue you or whether they can win. It's really irrelevant. Even if it was Citibank and American Express you owed - and even if they had rock solid cases against you - you still pay the house payment first. Just remember:

1) If you are successfully sued on an unsecured debt, all they get is a lien on your house that you'll have to pay if you sell it.; but

2) If your mortgage company forecloses . . . they get your house and you still owe them money if it doesn't sell for enough at auction.

If ACH debiting of your account is sucking away the money you need, then close the account and open up another one elsewhere. They'll call, they'll threaten, blah-blah-blah. But what is the absolute worst that happens?

1. You get totally wigged out by nasty phone calls and may end up changing your number . . .

2. Someone may get a judgment against you (I know most people don't believe it on this board, but it can happen) but so what. At least you've got a house to put a lien on . . .

3. Depending on how your own moral compass points you decide later - when your finances stabilize - to make some sort of payment arrangements or not.

Posted: Sat Aug 12, 2006 1:48 pm Subject:

Thank you MarciaBrady..
Like I said..You need a roof over your head first!

Posted: Sat Aug 12, 2006 2:24 pm Subject:

hmm... this topic gets the maximum hits for today's discussion. Smile

mkalbie, I hope you make good decisions after reading these inputs.

(good avatar, erzeke1)

Posted: Sat Aug 12, 2006 3:14 pm Subject:

Thanks Passionhunting, love the kitty too!
peace!

Posted: Mon Aug 14, 2006 12:20 pm Subject:

That is sound advice from Marcia Brady Lovechile. I did almost the same thing, and so far so good. I even got one to give me a refund and mark my account "PAID IN FULL" the three others just marked "Paid" and the other four haven't responded or even called again to harrass me after they received my letter.

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