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@#$% Payday Loans · Posted: Fri Sep 05, 2008 1:37 pm Subject: My Path to Freedom From Payday Loans

Six months ago I had a problem with payday loans, mostly of the online variety. These are the actions I took, and I highly recommend these actions to people in similar predicaments.

Step 1: Determine which payday loans are legal in your state, and which are illegal.

Step 2: If you have loans with legal payday loan companies, I would highly recommend a debt consolidation group to help you negotiate with the LEGAL lenders, as those are the ones that can hurt you with wage levies, etc. I used one and they were great, as I got no harrassing phone calls at work and I reached a 50% settlement with Cash Central.

Step 3: If you have loans with illegal companies, find the template letter on this website and email or mail it to all of those companies. All of the illegal companies to which I sent that letter backed off IMMEDIATELY.

Step 4: There are several credit card companies who will lend to just about any body with a pulse. Those include Orchard Bank, Continental Finance, or First Premier Bank. Keep in mind, though, that the fees for subpime credit cards are initially very high, but once you pay the initial fees, you will then have a credit limit usually at around $300 to use in case of an emergency.

Step 5: I pay the full balance of my credit cards every payday, which is twice a month. Interest rate grace periods are 25 days, so I never pay a dime of interest. This is a hell of a lot different from continually rolling over payday loans. I'm not paying interest and these credit card payments are upping my credit score, which is something that payday loans NEVER do.

Step 6: This is THE MOST IMPORTANT step of all. You MUST open a savings account and deposit a portion of your paycheck in that account and LEAVE IT ALONE. If you lose your job and you have a balance on your subprime credit cards and you default, you will burn bridges with the few banks left on earth that are willing to do business with you. Your savings account, along with UE compensation, if applicable, should help get you through to your next job.

I am not with the credit card companies, I am just a guy who despises the despicable payday loan industry, and I'd like to do what I can to try and kill it. Follow these steps and you will never need another PDL again.

@#$% Payday Loans · Posted: Fri Sep 05, 2008 2:14 pm Subject:

PS: Referring to Step 5 in the plan, I NEVER max out all of my cards in any given pay period. That would defeat the purpose of using credit as a lifeline in case of unexpected expenses. However, I do try to use all of my cards at least once a month for credit report purposes.

Posted: Fri Sep 05, 2008 2:23 pm Subject:

that is great advise! But how do you find which IPDL'S are legal? most of them do not have addresses and of course will not give this information freely. is there a website for this? I currently have loans with.
cash central
one click cash
geneva roth

and one company is threatening to sue me called cash net.
oh and I live in california

@#$% Payday Loans · Posted: Fri Sep 05, 2008 2:31 pm Subject:

The terms of your loans will always help you to determine whether a loan is legal in your state. Every state has different laws regarding loan rollovers, maximum loan amounts, etc.

CA, where I live, allows a maximum loan of $255 with a $45 interest amount, and NO ROLLOVERS. If your loans don't look something like that, chances are they're illegal.

I can tell you that Cash Central is legal, so try and settle with them. THEY WILL TAKE 50%, trust me. You

@#$% Payday Loans · Posted: Fri Sep 05, 2008 2:35 pm Subject:

Also, a good way to know if a business is licensed in your state is by running a business entity search at your state's Secretary of State website.

Posted: Fri Sep 05, 2008 3:12 pm Subject:

so if they are not licensed in my state that means they are not legal? does this mean that they cannot collect money from me?

Posted: Fri Sep 05, 2008 3:23 pm Subject:

Great post and good advice, @#$% Payday Loans !!

Guest · Posted: Fri Sep 05, 2008 3:46 pm Subject:

"so if they are not licensed in my state that means they are not legal? does this mean that they cannot collect money from me?"

You are correct. The ethical thing to do would be to pay them the principal amount. Whether you choose to do the right thing is entirely up to you.

These illegal payday loan companies know that they'll never see the light of day in most court systems, and once they know that YOU KNOW the law they'd be happy to even get the principal back.

Susan1977 · Posted: Sat Sep 06, 2008 7:56 pm Subject: cashnetusa??

I took at loan out at cashnetusa which has a apr of 460.16% for a 14 day loan of and Arizona (where I live) legal rate under this amount, I think 459%. I am new to this but isn't that illegal, that cashnetusa is charging more interest that my state allows. I have heard from friends, who have spoken to lawyers, that you shouldn't even pay off the loan because the interest is illegal.
Is this correct?

Posted: Sun Sep 07, 2008 8:37 am Subject:

The way to see whether a company is legal in California is to go to the Dept. of Corporations website, where there is a section to check on business licenses. Do a search for your PDL and if it doensn't come up, it doesn't have a license to do business in CA and is illegal.
Also, there are several PDL's which are banned in CA (Thank God). You will also see the section of the site which covers that.

susan1977 · Posted: Sun Sep 07, 2008 11:21 am Subject: cashnetusa

I live in Arizona...I will try to look it up. Does anyone know about cashnetusa and their apr??

Posted: Sun Sep 07, 2008 12:34 pm Subject:

Wow is this really the percentage that these payday lenders can charge? I seen like 400% and can not believe things like this is even legal. I live in PA and they are now changing the laws surrounding these companies. It will make most illegal and put a cap on the interest charge starting in Feb. 2009

meme · Posted: Mon Sep 08, 2008 3:41 pm Subject: online loans

can u tell me how to find out about these illegal loans here in alabama?

cher · Posted: Tue Sep 16, 2008 9:04 am Subject: payday loans

I have 6 payday loans out on the internet right now, how do I found out if they are legal? What will happen if I put stop payments on my account?

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