Same old story

Took out a couple payday loans($1,050 total) to cover expenses related to moving into my new place, including the first month's rent. Problem is that the fees are kicking my butt. I bring home around 300 a week. 120 of that goes straight to the companies in the form of two sixty dollar payments. I hold myself at fault for this, but I could use a hand in getting out of this pit.

HI...welcome to the forum. Can you please give us a little more info so we can better help you to decide what to do. What state do you live in? Please list the name of the ipdl and the amount you borrowed followed by the exact amount you have paid so far.

I live in New Hampshire. The loans are as follows:

Loan Point USA/Geneva Roth: $200/$120 paid
Instant Loans Now: $200/$180 paid
ThinkCash: $250/first payment on 8/10
SJM Marketing/SSM Group: $200/$60 paid
500FastCash: $200/$60 paid

find your state info here http://www.debtconsolidationcare.com...pdls-laws.html


Rollovers/extensions are prohibited in your state. Which is what the pdl's are doing by charging you their "fees". I'm confused about your state's finance rate and fees, as it states "not specified". It's also stating "no limit" on a finance charge for a 14 day loan. Hopefully someone who can decipher the law better can come along. At least I can tell you that the pdl's are violating the rollover/extesions and that criminal action is prohibited.

Cannr....would that mean they could charge whatever they want...but after someone defaults it is set at 6%??

The way I'm reading it (and I'm no expert) is that they don't have limits. So, basically, it seems as though they're saying the pdl's can pretty much charge whatever they want. I would assume that is IF they are licensed/legal. The 6% part, I'm reading as "per year", so not total, but for the entire year. Like I said, I'm no expert, but they don't have any limits set as to what the pdl's can charge. No maximum. I don't like their state pld law!

They don't have any limits on what they can charge, and they can reloan to you as long as the old loan is paid off with the new loan. So the rollover thing is a bit tricky. I think technically they could say that the old loan is being paid off with the new loan, and get around that restriction, but I don't know.

I'm going to do some quick looking around and see what all I can find.

This is from NH consumer credit law regarding small lenders:

you will find NH credit law here http://www.debtconsolidationcare.com...efforts-1.html

And this:

http://www.debtconsolidationcare.com.../pdl-laws.html

And this:

you may also go through this site gencourt.state.nh.us

Please note that in NH is states in the law that if a business isnt' licensed then they can't collect any interest or fees. It doesn't say that they loan is uncollectable in entirety. So those that read other posts saying that if the company isn't licensed you don't have to pay back a dime legally, please check with your state first. In some states that is true, the loan is considered void and uncollectible, but that is not the case in all states

so in other words, I'm pretty much screwed.

No!!! Not at all - I've been comminucating with the NH banking dept this morning. Here are some emails I have back and forth from them:

you will find the banking communication here http://www.debtconsolidationcare.com...pdls-laws.html


So I was wrong - If the company isn't licensed they cannot collect. Period.

I still don't think he really answered wether or not a internet based company had to be licensed by NH, because he states that they have to have a physical location in NH to get a license. So I will keep working on nailing that down, but according to what he said they are going after internet lenders!

So please, file complaints against all the companies! ASAP!

Again, I just want to say that you are not screwed at all. When I was going through my pdl mess, I lived in a state with very similar laws - No limits! But they do have to be licensed. And that is where you will fight them.

Odds are very good that none of the companies you are dealing with will be licensed anywhere, much less in NH. Since NH law states that unlicensed companies cannot collect on their loans, you legally speaking would not owe them anything.

But file complaints! It sounds like your state may actually go after internet companies.

Also, I have to add, this is a really great response to get from a state. Most of the time they will say that internet companies are too hard to investigate, and that they will help mediate but not really go after the company. The fact that NH says they do go after these internet companies is a really great thing! You may get some really good help once you file those complaints!

As far as the rollover issue - There is sort of a loophole. They are allowed to use the proceeds of one loan to pay another. So the pdl could be writing the contract out in such as way as the "new" loan pays the "old" loan, even though you are only paying the interest. Does that make sense?

First complaint's been filed. Turns out the only address Geneva Roth has is a PO box in Kansas. In addition, neither them nor their affiliate LoanPointUSA(who I went through initially) are licensed in New Hampshire, or have any physical presence whatsoever. Here's hoping.