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 Posted: Thu Dec 06, 2007 6:42 pm Subject: payday loan HELP!!!!
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ok we got into some trouble and my husband took out a payday loan. We hit another hard spot and he took out another one. He thought he was helping. ----Now we are sinking in these two loans and can not get ahead --it is putting us further behind financially in our other bills. We have 2 loans from store front places $800, $1000. I am willing to pay them and agree that I owe the money. I do not have the money to pay them off and I can not keep up the $400 bi-weekly payments for them both ($800) a mth. total! That does not even touch the balance owed!
What are the laws in Texas regarding this if we default on the weekly payment? My husband is so stressed over this, that they can arrest him, take him to jail etc. He had to give them our checking account information when he took the loans. Any suggestions, please help!!
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lynda
Joined: 06 Dec 2007
Posts: 8
Debtcc Points: 389
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Posted: Thu Dec 06, 2007 6:50 pm Subject:
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Lynda, plesae, both you and your husband try not to stress...We will do our best to help you. Can you tell me whihc storefronts you have loans with and if you still have the paperwork...on there anywhere does it say the store is a Credit Service Organization. I will find the Texas Laws and post them but if they are a Credit Service Organization, they do not have to follow the PDL law. So please, post who the storefronts are and if you are current.
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RoxyNY
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Posted: Thu Dec 06, 2007 6:54 pm Subject:
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Here are the Texas Laws:
| Quote: | Texas State Information
Legal Status: Legal
Citation:
7 Tex. Admin. Code § 1.605; Tex. Fin. Code Ann. §§ 342.251 et seq. and 342.601 et seq.
Loan Terms:
Maximum Loan Amount:
Loan Term: 7-31 days
Maximum Finance Rate and Fees: $10 per loan + 48% annual interest
Finance Charge for 14-day $100 loan: $12
apr for 14-day $100 loan: 309%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified ($500 aggregate loans outstanding to all licensees)
Rollovers Permitted: None (if renewal charge is less than maximum interest rate permitted; otherwise convert to declining balance installment note)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: Not Specified
Criminal Action: Not Specified
Where to Complain, Get Information:
Regulator: Texas Office of Consumer Credit Commissioner
Address: 2601 N. Lamar Blvd. Austin TX 78705
Phone: (512) 936-7600
Fax: (512) 936-7610
http://www.occc.state.tx.us/
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_________________
In life it doesn't matter
how hard you hit, it matters
how hard you get hit
and keep moving forward.
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RoxyNY
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Posted: Thu Dec 06, 2007 7:02 pm Subject:
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first loan is from Ace Credit Services for $1000 ---we owe them a payment as of the 1st of Dec. so right now of $200 They have not bothered us yet but I know they will call in a day or so.
The second loan is from EZ Money for $700 ----we owe them a payment of $143 right now, which is just intrest and then in a couple of weeks the payment is supposed to increase to $200 to cover some of the principle. My husband tried to talk to them today and arrange something --they gave him till Saturday, Dec 8. We still will not have the money then.
The payments on both of the loans are due twice a month at my husbands pay intervals --so we are paying out over $800 a month. I just can not keep on top of it. This pay period ---on the first, I has to choose between the rent or the payday loans. ---I paid the rent.
My husband is sick with worry. EZ Money is already calling friends, work etc. I don't know what to do. I have the original papers --where would it state if they were a credit service organization???
thank you for any and all help.
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lynda
Joined: 06 Dec 2007
Posts: 8
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Posted: Thu Dec 06, 2007 7:06 pm Subject:
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Lynda, not sure where it would be on there, I have not seen one personally. Just read over it see if it mentions CSO or anything like that. Worst case...we wait until tomorrow when one of the Moderators who is very familiar with Texas is on. I will go search the site and see what I can find.
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In life it doesn't matter
how hard you hit, it matters
how hard you get hit
and keep moving forward.
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RoxyNY
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Posted: Thu Dec 06, 2007 7:10 pm Subject:
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Lynda, I just searched the site and found where the Moderator I was talking about listed both ACE and EZ Money as CSO's...this would mean that the laws I posted do not apply. NOw let us see what the next course of action would be.
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In life it doesn't matter
how hard you hit, it matters
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and keep moving forward.
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RoxyNY
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Posted: Thu Dec 06, 2007 7:14 pm Subject:
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I just found on the Ace Credit loan --the promissory note is actually from the lender-- True Financial Services. It states further down that "CSO" refers to Ace. It states "you must pay in care of the CSO at the location that you arranged this loan."
Also I found on the Easy Money paper "the term CSO mans EZ money loan services, a registered Texas credit services organization ...
I hope this was what you were looking for.
The annual intrest rate on the EZ money loan is 496.68%
The annual intrest rate on the Ace Loan is 739.97%
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lynda
Joined: 06 Dec 2007
Posts: 8
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Posted: Thu Dec 06, 2007 7:20 pm Subject:
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Yes, that is exactly what I was looking for. As I stated above these companies do not have to follow the laws above. In Texas, these companies do this to get around the pay day loan laws...I am continuing to research. You said your husband tried to work out a payment plan with them? And they were not helpful?
_________________
In life it doesn't matter
how hard you hit, it matters
how hard you get hit
and keep moving forward.
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RoxyNY
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Posted: Thu Dec 06, 2007 7:28 pm Subject:
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My husband called EZ Money and told them that he could not pay the loan right now. He wanted to work something out with them to take care of it, and what his options were. They told him that they would give him until Saturday to pay either the whole thing or the bi-monthly payment. Then it would go into collections or something.
If I could come up with the bi-monthly payment --I only see that as a temporary fix. and would still owe the other loan.
So if the companies, are getting around the law by operating as a CSO. What does that mean, if I default?
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lynda
Joined: 06 Dec 2007
Posts: 8
Debtcc Points: 389
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Posted: Thu Dec 06, 2007 7:34 pm Subject:
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Lynda, more than likely, if he can not pay, it will go to collections, they could also take you to civil court. I know you said they are calling work and references, try to keep talking to them to keep them from calling work. I would suggest your husband keep going up the chain of management in these stores. If he is not getting cooperation from the store clerks, ask to speak to a mananger, and their mananger and on up the line. And I do not know if it will help but he may want to try going there in person.
_________________
In life it doesn't matter
how hard you hit, it matters
how hard you get hit
and keep moving forward.
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RoxyNY
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Posts: 4112
Debtcc Points: 11516
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Posted: Thu Dec 06, 2007 7:43 pm Subject:
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thanks so much for your help. I just talked with my husband and he is going to try to call them tomorrow or go in to the store. Do you know how long it will stay in collections before going to civil court? Would it be better to deal with the collection agency and try to barter down the amount owed?
Do we need to close our bank account or tell the bank to not accept a draft from these places? Will they try to take them money from our account. Which has nothing in it at the moment --but our paycheck is direct deposited.
thanks for everything. We do truly appreciate all the help.
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lynda
Joined: 06 Dec 2007
Posts: 8
Debtcc Points: 389
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Posted: Thu Dec 06, 2007 7:50 pm Subject:
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Lynda, please both of you please hang in there. My opinion is...and this is just an opinion, if your credit can take it, I would deal with the collection agency. I do not know which way the store will go with the loan..if they will go to a CA or straight to civil court. I am afraid to advise closing your account right now. I am going to pm our Moderator Goudah and ask her to read this thread. She is familiar with CSO's and hopefully can advise you further. Biggest thing, do not give up. Again, please hang in there. We are always here...if he has questions or trouble or you just need to vent. We will be here.
_________________
In life it doesn't matter
how hard you hit, it matters
how hard you get hit
and keep moving forward.
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RoxyNY
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Posts: 4112
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Posted: Thu Dec 06, 2007 8:05 pm Subject:
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thanks any advice anyone can give us in dealing with these people is very much appreciated. I know my husband it trying not to stress to much but I know he is worried sick. We are here in TX with no family to help us----so we need to dig out of this. He is worried of how it will affect us -his family kids etc.
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lynda
Joined: 06 Dec 2007
Posts: 8
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Posted: Thu Dec 06, 2007 8:35 pm Subject: Payday loan help
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I am also in Texas and dealing with store front loan.
I closed my bank account and defaulted. I talked to the store manager and she was extremely helpful. She talked to her manager and called me back and told me she couldn't do anything at her level. It will go to the corp office next and they will call me. She said that interest stops when it defaults and I will only have to pay principle. She said corp will try to get me to refinance but she said off the record that I should tell them no and let them know I don't have a bank account and I want pay arrangements. She said they will probably except this and not prosecute.Hope this gives you some insight.
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msgreen
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Posted: Thu Dec 06, 2007 9:39 pm Subject:
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yes, it does give some insight into the situation. Thanks so much for posting your experience thus far. I hope that all will work out for you. Please, let me know what happens or anything you found helpful in dealing with corporate.
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Posted: Thu Dec 06, 2007 10:57 pm Subject: It has been awhile........
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It's been awhile since I have been on this site and posted anything but I see the song remains the same. It just saddens me to see good hard working people get caught up in the Payday loan scam, it was getting hard for me to read all these stories. Let me put my two cents worth in here.
First, lets look at the stress you are under. You are making payments equivelant to a monthly mortgage and have nothing to show for it and are making no progress, it is hurting you financially in other areas as well. Next, the PDL administrators are now calling friends, family, work, etc, causing you further stress and embarrassment in an attempt to shame you. Your husband is also sick with worry. All this over a measely $1800.00.
My suggestion is to cash out any and all things of value you own and get out of this ASAP. You are married, sell the wedding rings. I gaurantee that the stress of the PDL is far greater than the sadness of selling items of sentimental value and selling them will do far less damage to your relationship and social status. My point is here is that I think you should aggressively get your hands on cash you do not need to repay to anyone and get out of what you are in at all costs. You can replace things with new and improved ones when times get better.
Awhile back I swallowed my pride and took my own advice, boat, car, sled, all sold. It wasn't easy, not in the least, but that decision has repayed me many times over. So take it for whatever you think it is worth, I wish you great wisdom.
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jimbeem
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