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 Posted: Wed Aug 15, 2007 7:47 am |
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Hello, I'm stuck in payday hell right now in NH. The fees were killing me, I couldn't get ahold of the payday companies, so I went and closed my bank account and reopened another at the same bank after I explained that I couldn't get ahold of these companies to pay off. I have 5 payday loans. Here is a breakdown:
Company Orig Amt Pd to date
Impact Cash $300 $550
Fast Cash $300 $180
MTE Financ $300 $745
LoanShopDMS $300 $630
EPayday $300 $180
3 of them I have more than paid them back. Now, I'm wondering how to deal with them when they realize I've closed my account. I'm worried about my wages being attacked. I know that they cannot harrass me, and they can't send me to jail (NH can't be criminally prosecuted). How can I get them to start working with me? I'm not giving them my new account. I will only pay with money order. Any suggestions?? I've tried calling, emailing in the past - no luck. I'm hoping that they will call me, so I can at least try to work out a deal. They are pretty good at ignoring you when they are taking money. So, now it's fair play, now that they can't get at my money. I really want to pay them off and get them out of my life.
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marionsmith
Joined: 13 Aug 2007
Posts: 6
Debtcc Points: 297
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| Posted: Wed Aug 15, 2007 9:57 am |
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here is your payday law for NH, just for reference (it sounds like you've investigated it already):
| Quote: | New Hampshire State Information
Legal Status: Legal
Citation:
36 N.H. Rev. Stat. Ann. § 399-A:1 et seq.
Loan Terms:
Maximum Loan Amount: $500
Loan Term: 7-30 days
Maximum Finance Rate and Fees: Not Specified (After default: 6% per year)
Finance Charge for 14-day $100 loan: No Limit
apr for 14-day $100 loan: No Limit
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: None (cannot refinance, renew, extend; borrowers can renew to obtain additional cash but prior loan must be paid in full from proceeds of new loan and marked as such)Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees:
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: New Hampshire State Banking Department
Address: 64B Old Suncook Road Concord NH 03301
Phone: (603) 271-3561
Fax: (603) 271-0750
Regulatory Contact: Mary Jurta,, Director, Consumer Credit Division
http://www.nh.gov/banking/ |
Ok, let's tackle your loans!
-NH has a pretty consumer-unfriendly payday law. It allows for unlimited finance charge/interest rates, offers no cooling-off period between loans, and doesn't provide for repayment plans. That's a pretty bad deal for consumers!
-There may be a glimmer of hope here, though - NH law states "no rollovers" - unless you have renewed the loan for MORE money and paid off the proceeds of the previous loan with it. Did this happen with any of your loans? If they are not licensed, and didn't follow the law, then you have already paid in full, and in fact, overpaid on any that you have repaid the principal on.
-You will need to find out if these companies are licensed to do business in your state. That is going to be the one thing that is in your corner when you fight them. If they are not licensed to lend into your state, and you have already repaid the principal, I would request to be marked paid in full. Given the dollar amounts you've stated you've paid on some of them, you have far overpaid them, even if you consider that the state would allow 6% interest if the loan went into default - you've already surpassed that amount on some of them.
-Are these all internet loans or are some of them storefront? From the sound of your post, I assumed they were internet lenders, because you said you couldn't contact them.
-As far as worrying about what they can do about you closing your account - don't worry. NH prohibits criminal action on defaulted payday loans. All they can do is call and bug you, which some of them will. Stay strong, and if you have already overpaid them, just keep repeating that to them over and over...they will eventually give up.
-Send letters to the ones you have overpaid and request to be marked paid in full, and request a refund of the overpayment. Include a statement that revokes their ACH authorization (even though you've closed your account - it's good to have that revocation in writing) and revoking any voluntary wage assignment clause they have in their contract. Give a copy of the letters to your employer's payroll department - if the lenders try to hit you with wage assignment, it will be important that your payroll dept. has the revocation in hand. Send the letters via Certified Mail/Return Receipt Requested so you have proof that they received them. File complaints on the unlicensed lenderes with the New Hampshire Banking Department as listed in the law above.
Hope this helps! Let us know if you need additional help! 
_________________
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SUEBEEHONEY70
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Joined: 12 Oct 2006
Posts: 4390
Debtcc Points: 61073
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| Posted: Wed Aug 15, 2007 10:19 am |
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Hello, yes, I've been searching this website, this is where I got most of my information. To answer your questions: Yes, these are all from the internet. Every single one of them did rollover loans. Never paid in full, they just automatically rolled over. I knew they couldn't prosecute me criminally (thanks to this website  So, at this point, I need to locate mailing addresses and send letters (certified/return receipt - of course). File complaint if they are not licensed in NH. I still need to see if they are licensed. I have to admit, this website is awesome!! Thank you all for your information, I thought I was going to lose everything!! I've definetly learned my lesson. Any thing else I need to do??
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Marionsmith
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Debtcc Points: 100
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| Posted: Wed Aug 15, 2007 1:00 pm |
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Marion -
If you've closed your bank account and are sending letters to the ones you've already paid the principal on, you're all set.
The only other thing you need to decide is whether you want to finish paying off the principal on the two that you haven't paid the principal in full on yet. It's truly a personal choice. Myself, from a moral standpoint, I paid the principal amount I borrowed, plus my state's allowed interest. But it's entirely up to you - some feel if the lenders are illegal in your state (ie: unlicensed), that you are not obligated to pay them back at all, and others feel that the "right" thing to do, morally, is to pay back what you borrowed - at least the principal, since it was given to you in good faith, you accepted it, and you used the money. But again, it's up to you.
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A journey of a thousand miles begins with a single step...and becoming debt free is a journey!
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SUEBEEHONEY70
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Joined: 12 Oct 2006
Posts: 4390
Debtcc Points: 61073
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| Posted: Wed Aug 15, 2007 1:11 pm |
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Actually, I do want to pay off the other ones. I just needed to stop the constant withdrawals for all different amounts. One company was also taking out funds on days I didn't get paid. Thank god I had enough money to cover these transacations or I would have ended up with alot of NSF. Thanks for the follow up!
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