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People going through payday loan problems. Take the following steps. You should be able to buy some time while you are learning about your rights and stand strong against the lenders.

Stop all the direct deposits with your employer.

Close the bank accounts after verifying the laws in your state.

Get your paycheck, go to a check cashing place, cash it and buy money orders. Pay your other important bills.

This will help you in getting some control over your money. Don’t let it eaten up by the loan sharks.

Once you have done this, the lenders will start sending emails knowing the fact that your account is already closed. You can imagine them losing control and nothing can be done now to harm you. Now, you can make them deal on your terms.

Put your point that your account was closed by the bank and you want to work out payment arrangements with them. Ask for the quickcollect info or the address where you will send the payments. Use the same strategy for all the pdl companies you owe money to.

There is a law that if you pay less than the promised amount, your account will be put into default, and they are not legally allowed to charge any interests on the account. Verify this law with your state first. Keep sending payments until you pay off the principal amount only, no interests. Your defense to be used here is that the original loan agreement was based on your payday bank direct deposit. Once the bank account is closed, the loan agreement got terminated. Now all you have to pay is the principal amount.

Don’t be tensed of the pdl collectors. They will only intimidate you on the phone. It will take them very long to get a garnishment against you because you have followed the contract by paying the principal amount. Most IPDL are not licensed in the borrower’s state, so they won’t take the matter to the court. If they do, question them about their license and turn the judge’s attention towards them.

Time the situation very nicely and with determination and strong will. And you can do this when you are putting something on the loan principal or have already paid it. If you are finding hard paying on your own, find some company doing pdl consolidation.

Posted: Sat Feb 03, 2007 7:06 pm Subject: consolidation payday loan

Brilliant!! Howard this is wonderful advice - it gives breathing and thinking room so that priorities can be set. Great work!

Posted: Sat Feb 03, 2007 7:56 pm Subject: payday loan consolidation

Excellent advice, Howard. The only thing I would do differently is not do quickcollect, since that is very costly, but would stand fast and send payments through the mail.

Posted: Sun Feb 04, 2007 6:14 am Subject: paydayloan consolidation

Very good advice Howard! I would definitely second your advice, kscornell - always send payment through the mail, never by quickcollect or moneygram.

Posted: Fri May 11, 2007 8:05 pm Subject: paydayloanconsolidation

Hi Howard, I think that the first most important thing that you can do is close the current bank account that you gave the pdl companies access to and open up a new account at a different bank. These places won't stop taking out money just because they are asked to. There have been stories of people opening up new accounts at the same bank and the pdl companies getting access to them and debiting the account.

I think that this is an excellent thread and perhaps should be made into a sticky. You have given some great advice. I do agree with suebee and kscornell-I refuse to pay money doing Western Union or Quick Collect/Moneygram because these places don't want to give out their addresses. If they want my money, they will take a money order!!!

Posted: Sat May 12, 2007 2:09 pm Subject: consolidation of payday loan

I would never send payment thru Western Union for the simple fact it is almost untraceable from your end.You have no proof they got it. Cashier's check or money order would be best in my opinion.

Posted: Sat May 12, 2007 3:00 pm Subject: payday loan consolidation

Giving these companies access to checking account is not safe. Cajun puts a good point about Western Union are untraceable. I have a question in my mind. Do you think every company has a receiver code and they will accept money orders? Is there any kind of rule on this part? If we are sure about this, we will not feel lost if we are forcing the pdl company to accept money order. What do you say?

Posted: Sat May 12, 2007 3:04 pm Subject: payday loan consolidation

Actually somewhere buried in either the truth in lending or electronic transfer act is a statement that a borrower cannot be forced to just do ach,they must have options if ach is not possible.I do agree with you about not letting these sharks near a bank account.

Posted: Sat May 12, 2007 3:07 pm Subject: payday loan consolidation

Thanks Cajun, I will do some research on TILA Act. I got a direction. If you find something, please post it here. It will help a lot.

Posted: Sat May 12, 2007 7:33 pm Subject: payday loan consolidation

I believe it is part of the Electronic Transfer Act. Goudah just posted it in a thread the other day.

gues

please check into your state laws regarding closing account that a payday loan is written on.
some states, like missouri, have it written that it is considered a criminal offense to close the account it was written on, as well as putting a stop payment order on it. and if you do this, you can be put up on criminal charges for intentionally misleading a creditor to evade making payment. (something like that). anyways. just some additional info to check into.

gale · Posted: Thu Oct 09, 2008 4:04 pm Subject: voluntary wage garnishment

I appreciate your advice and help - but what can you do if you have signed a voluntary wage garnishment - can they enforce this or can you stop this process when you negotiate payments with them

Posted: Thu Oct 09, 2008 4:16 pm Subject: payday loan consolidation

Western Union Quick Collects are extremely traceable and trackable since they go directly to the CA.

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