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Posted: Sun Aug 05, 2007 8:28 pm Subject: Pay Day Loan Craziness

I need help! I currently have 7 payday loans and am paying $780 in interest and fees alone. Two of the loans are internet loans. They are PaydayMax and 500Fastcash. Can anyone tell me if these are legal/licensed? Thanks so much for any help! I am struggling each month, but currently have not missed any payments and do not want to default or damage my credit. Any suggestions?

Posted: Sun Aug 05, 2007 9:48 pm Subject:

What state do you live in? Different states have different laws about payday loans.

Posted: Mon Aug 06, 2007 5:26 am Subject:

Welcome to the forums!! Please tell us where you live...and how much you have paid on each of your internet loans. The others are store fronts?? Those need to be handled differently as they will be legal.The internet pdls rarely if ever will report you to the credit b.

Amie · Posted: Mon Aug 06, 2007 8:29 am Subject: Payday loan craziness

Thanks for your help. I live in Colorado. The internet loans I have paid on are:
500fastcash: 300.00 loan, we've paid 270.00 in interest

The other one is a 500.00 loan and we've paid 180.00 in fees. Both are relatively new, within the last 2 months.

Thanks again for your help!

Posted: Mon Aug 06, 2007 4:37 pm Subject:

OK...I am posting your state laws. First go to your State Attorney General web page and check to see if they are a licensed lender...then also check in the state they originate from. The biggest problem is...if they have your bank info they will keep debiting with or without your permission.Looks like (in the last line) you need to talk with them before closing your bank account to them. You can go to your bank and ask them to block the lenders ID or put a hard debit block on your account...then no debits will get through. You can then send a cease and desist letter to each of them...and ask to make a final payment on your principal and appicable fee's. If they are not licensed you can also file complaints with the AG,BBB and FTC.

Posted: Mon Aug 06, 2007 4:50 pm Subject:

Hello. I have dealt with 500fastcash. They can be difficult, but I found that they were much easier to work with after my loan went into default. They offered to set me up on payment arrangements to pay everything off in 4 equal payments by moneygram, but the only way I could get them to settle for the legal amount was to send it in one lump sum. Either way, the good thing is that the interest and rollover fees stopped accruing.

Posted: Mon Aug 06, 2007 6:52 pm Subject: loans

500fastcash will not show up as licensed anywhere. Paydaymax is not licensed in Colorado. However, noting on your Colorado state law regarding pdl's, it does permit ONE rollover. Rollovers are not prohbitied; however, only one is allowed (the extension/rollover fees they charge). However, before you take any action regarding your bank account to handle these pdl's, look at your state law under criminal action. It states the consumer must not close their account before the loan agreement is fulfilled (basically).

Posted: Mon Aug 06, 2007 8:22 pm Subject: payday loan craziness

Thanks so much for your help. I just contacted T&C Acceptance and was approved for debt consolidation. Should I let them take over, or should I contact the PDL companies first to let them know what is going on? I don't want to necessarily close down my checking acct., but will if I have to. By the way, T&C seems too good to be true. They offered to pay off my debtors and reduce my monthly payments, including other debt I have, from over 1100.00/month to 255.00/month. Is there a catch?

I SO APPRECIATE YOUR HELP! Information is power and I feel like I may have control over our finances soon!

Amie

Posted: Mon Aug 06, 2007 8:26 pm Subject: aimee

aimee, if you're using T&C and these pdl's contact you, all you have to do is tell them that T&C is handling it, give them their telephone number, and hang up the phone. You're paying T&C. Let them take care of it. Don't call your pdl's and tell them T&C is taking over, blah, blah, blah. They'll just argue your head off. Let T&C do it. And, like I said, if they contact you, give them T&C's telephone number and tell them to contact them. You're paying to be left alone!

Posted: Mon Aug 06, 2007 8:39 pm Subject: pdl craziness

Okay...Should I send them cease and desist letters (for the internet pdls) so they cannot debit my account or should I wait for T&C to deal directly with them. Do you know if there's a catch to T&C? They sound like a lifesaver!

Posted: Mon Aug 06, 2007 8:51 pm Subject: response

Your pdl's are probably going to hit again. According to your Colorado law, criminal action is prohibited UNLESS you close your account. Meaning, if you close your account, you could get into trouble. I'm thinking they're going to hit your account again since it's open and active. However, you really don't want to close it since your law states this fact. I don't even know if a hard debit block on the account would work here. Your state law definition isn't real, real clear to me. I would try to find out. Maybe even ask T&C. A lot of forum members use T&C. I personally don't, but they obviously can't be too bad if so many people use them. I'm just concerned about your bank account. I do believe your pdl's will hit again. But, geesh, it doesn't sound like you can close it. You definately need to send the letters revoking their debit authorization. Now, most pdl's will hit your account anyway. It's like they never got a letter from you. They pretty much ignore them. But you need it for documentation to show your bank or anyone else if you need to fight to get the unauthorized pdl debits reversed. So, do send the letters revoking their privilidge of debiting your account. However, remember, they probably will anyway. But you'll have the documentation you need that you told them to stop.

Posted: Mon Aug 06, 2007 8:59 pm Subject: Amie

Okay. I'll send the letters to the two internet companies. What about the four storefronts? They have checks in hand. Is there an out for me there?

Posted: Mon Aug 06, 2007 9:07 pm Subject: store fronts

Your store fronts are most likely operating legally. The best advice for store fronts is to communicate with them. You need to contact each store front, tell them "a story" or whatever and that you can not pay your check in full. Some store fronts will have to turn your check in to the bank and get it returned NSF before they will set up a payment plan with you. Some store fronts will hold your check and let you pay on it and then give the check back to you. Some store fronts will hold your check for another couple of weeks until you can pay it. The only thing you can do with the store fronts (and it's embarrassing to do) is call them, tell them what's up, that you can't pay it, and what should you do. Some will be willing to hold the check longer for you. Some will let you pay on it each week until it's paid off. Some will turn it in to the bank. That's why you have to call them, let them know you can't pay it, and that you need to make payments on it. It's hard, but it's what you have to do with the legal pdl's.

Posted: Mon Aug 06, 2007 9:13 pm Subject: storefronts

I can do that. It sounds better than hiding from everyone. Do you think I can legally freeze my account without getting into trouble? That might be an answer. Again, thank you for helping!!! This forum is a lifesaver and such an amazing blessing!

Posted: Mon Aug 06, 2007 9:18 pm Subject: state

In my state, I can put a block on my account. This way the account is still open and active; however, no debits can go through. However, regarding your state, I'm not quite sure what to say. My state law doesn't have that stipulation regarding criminal action. I don't know if they would consider putting a block on the account as "closing" it, even though it would still be open and active. I would find someone who could actually answer that question for you to be on the safe side. Criminal action scares me! But contact the store fronts. They might not even turn the checks in. I've called on some here in my state, and they all do it differently. Some of them won't even turn the checks in at all. But, like I said, some will to get the NSF before working with you. I'd hate to see you get into trouble if one of them turns the check in. Call the store fronts and see how they handle it. Each one might be different.

Posted: Tue Aug 07, 2007 4:44 am Subject:

Since you are working with T&C I would ask their opinion on what you should do next...I know some times it takes a while to get everything in motion but at least you know that soon...a few weeks at most and you will be clear. I am in a debt management program too with another company but have a similar situation with the monthly payments being so much lower than what I was paying on my pdls...the more you can send them the quicker you can pay off your debt...it does work..I have been in it now for 3 months.

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