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Posted: Tue Jan 01, 2008 4:50 pm Subject: PDL Help!

My mom has several pay day and "installment" loans which are basically the same concept as pay day loans..I think maybe 8 plus is the number of loans she has so far
We try to swap money to help each other out as she gets paid on the opposite week as we do. Well, it's is to the point that we are "sharked out". I no longer have a pay check stub coming in so I cannot go to any more lenders so she keeps borrowing from more loan places to cover the interest of the other loans.
On top of all this she has a serious hernia that needs operated on but she cannot miss work because she cannot afford to miss paying on these loan sharks or they will cash her checks. We are in IL.
HELP!! I am so stressed out as I know she is too.
HELP HELP HELP!
Do these loans have to be in default before a credit counselor can help?

Posted: Tue Jan 01, 2008 4:56 pm Subject:

Hang on...someone with more experience than I will be along to assist you Confused

. You have come to the right place for help. I know that things seem really bleak right know but we are all here to help you. Please follow the advice given as alot of us have been in a similiar situation. Laughing

ladybug

Posted: Tue Jan 01, 2008 5:02 pm Subject: thanks ladybug!

Thank you for responding so promptly. It is so depressing when every conversation with your family has to be centered around money. This has been going on for quite some time.
God Bless ya for your help and support!

Posted: Tue Jan 01, 2008 5:10 pm Subject:

I have an advice for you and your mom. Stop her from taking any new loans from the lenders. She is not paying any interests by taking new loans because the interest rates on the pdls are sky high and next month it will add more than what you both can afford to pay. Not to forget, she is creating more debts with the new pdl companies. You don't have to be in default to get started in a debt settlement plan. Speak to a financial coach and he will assist you in planning a repayment with the pdl lenders.

Posted: Tue Jan 01, 2008 5:31 pm Subject:

Andi, can you tell us whether these are store front or internet, who they are with, how much you have borrowed from each and the total of how much you have paid to each company? Listing this information will give us a starting point to help you. Please hang in there. I know the stress is overwhelming, but you have come to the right place. Many of us have been where you are and understand your situation. Hang in there.

Posted: Tue Jan 01, 2008 6:10 pm Subject: RoxyNY

They are all store front loans from lenders in IL
Here are the ones I know right off the top of my head and these are the principal amount borrowed:
The Cash Store = 900 (nationwide company)-old loan
Advance America = 400 (nationwide company)- old loan
Emergency Cash Center = 200 (local merchant)- new loan
Sun Loans = 200 (Nationwide company)--new loan
United Fast Cash = 500 (local merchant)--old loan
Ace Cash Advance = 400 (national company)--had for about 2 months

I know she has paid thousands of dollars in interest as she pays on them until she has a cooling down period for a week then has to borrow against them again. I bet she has paid enough money to have bought a brand new car by now. This has been going on for almost 3 years now that I think back on it.

Posted: Tue Jan 01, 2008 6:43 pm Subject:

andi...are these all store fronts?? The reason I ask is because the United Fast Cash I had was an internet lender. In any case...she needs to contact them and explain the situation. If they are members of the CFSA she can contact them at least 3 days before payment is due and invoke the EPP. I am quoting some info below for you in re: to this:

CFSA Best Practices and Guidelines for Extended Payment Plans

Subject to applicable state laws, each member shall provide an Extended Payment Plan (â€œEPPâ€) for customers who are unable to repay a loan. The member shall adopt a plan that offers the customer at least the following provisions:

You [the customer] may opt into an EPP to pay an outstanding loan if you are unable to repay your loan when due. Any outstanding fee will be included in the amount subject to EPP.

You must invoke the EPP by close of business on the last business day before the loan due date by returning to the office where you obtained the loan or by using whatever method you used to obtain the loan. To invoke the EPP, you must sign an amendment to your loan agreement reflecting the new payment schedule.

You may pay the transaction balance in four equal payments coinciding with your periodic pay dates.

We will not begin collection activities while you are under an EPP as long as you meet all obligations under the EPP.

There is no charge for you to enter into an EPP. However, if you default on an EPP, we may charge you an EPP fee and accelerate payment on the balance remaining, as authorized by applicable law.

She must stop taking out loans immediately, even if it means defaulting. Once you default, at least the interest will stop and most places will make payments arrangements with you. You both need to get control of your finances again...and she needs to have her surgery. Worse case senerio....housing, food and health need to be taken care of first before unsecured debt. Also as a registered member you can take advantage of the free consult here at DCC.

Posted: Tue Jan 01, 2008 7:09 pm Subject: Is it confidential

Is there a way she can keep the information confidential? If my dad were to know he would probably divorce her. He works his tail off and doesn't know about these loans.

Posted: Tue Jan 01, 2008 8:52 pm Subject:

She can totally keep this confidential. If for some reason they call her house and disclose the debt she could probably go after them under the fdcpa.

Posted: Wed Jan 02, 2008 7:45 am Subject:

Which ones are installment loans? They will need to be treated differently then the payday loans.

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