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Leneah · Posted: Thu Jun 26, 2008 7:12 pm Subject: 8 pdls between my Husband and I....

My husband and I live in Washington and we have 8 different payday loans between us.....

Fast cash Loans
Amount: $700 Paid: $95 interest every two weeks

Advance America
Amount: $700 Paid: $95 interest every two weeks

Money Tree
Amount: $700 Paid: $95 interest every two weeks
Amount: $600 Paid: $85 interest every two weeks

Dollarwise
Amount: $500 Paid: $75 interest every two weeks
Amount: $500 Paid: $75 interest every two weeks

Check N Go
Amount: $700 Paid: $95 interest every two weeks
Amount: $625 Paid: $87.12 interest every two weeks

We have had all of these going for several months (some more than 6 months)but we have had all for at least 2 months, it started with 2 and just kept going up and up to make sure we could pay each payday loan and not jepordize our other bills. Now we are paying over $700 in interest every 2 weeks and that is after we just paid off another $700 on on "their" payment plan . I really want to close out the account and force them to do payment plans with me that I can afford(more than splitting into 4 payments), but I want to make sure it is done right. Can you help me PLEASE!! Please tell me what steps need to be done in what order and any concequences that might follow. I thank any help you can give me.

Posted: Thu Jun 26, 2008 7:27 pm Subject:

Leneah, welcome! I can't answer your questions about your PDLs, but I'm sure that someone with more knowledge in this area will be along shortly to advise you. Hang in there!

Posted: Fri Jun 27, 2008 5:26 am Subject:

Is the Check N Go a store loan or their installment loan that you get online.

Posted: Fri Jun 27, 2008 7:17 am Subject:

It's most likely a storefront . . .

Per your state laws:

Repayment Plan: A company and a borrower may voluntarily enter a payment plan at any time. A borrower, however, has a right to convert a small loan to a statutory payment plan after four successive loans and prior to default on the last loan.

If you've reloaned at least 4 times, then you can convert the payday loans and enter into a repayment plan.

Leneah · Posted: Fri Jun 27, 2008 8:34 am Subject:

Yes all these loans are in stores but my only problem is the repayment plans they have are all 4 payment and with 8 PDLs I cannot afford to pay out over $1000 every two weeks. This is why I was thinking of closing my bank account or putting stop payments on them and push them into making payment arrangements that I can afford. Your thoughts?

Posted: Fri Jun 27, 2008 8:38 am Subject:

You could do that. Washington prohibits criminal action for stop payments on checks for payday loans, so you wouldn't have the fear of facing a bad check charge.

Here is the full Washington law on the repayment plans:

RCW 31.45.084
Small loan payment plan — Terms — Restrictions.

(1) A licensee and borrower may agree to a payment plan for a small loan at any time. After four successive loans and prior to default upon the last loan, each borrower may convert their small loan to a payment plan. Each agreement for a loan payment plan must be in writing and acknowledged by both the borrower and the licensee. The licensee may charge the borrower, at the time both parties enter into the payment plan, a one-time fee for the payment plan in an amount up to the fee or interest on the outstanding principal of the loan as allowed under RCW 31.45.073(3). The licensee may not assess any other fee, interest charge, or other charge on the borrower as a result of converting the small loan into a payment plan. This payment plan must provide for the payment of the total of payments due on the small loan over a period not less than sixty days in three or more payments, unless the borrower and licensee agree to a shorter payment period. The borrower may pay the total of payments at any time. The licensee may not charge any penalty, fee, or charge to the borrower for prepayment of the loan payment plan by the borrower. Each licensee shall conspicuously disclose to each borrower in the small loan agreement or small loan note that the borrower has access to such a payment plan after four successive loans. A licensee's violation of such a payment plan constitutes a violation of this chapter.

(2) The licensee may take postdated checks at the initiation of the payment plan for the payments agreed to under the plan. If any check accepted by the licensee as payment under the payment plan is dishonored, the licensee may not charge the borrower any fee for the dishonored check.

(3) If the borrower defaults on the payment plan, the licensee may initiate action to collect the total of payments under RCW 31.45.082. The licensee may charge the borrower a one-time payment plan default fee of twenty-five dollars.

(4) If the licensee enters into a payment plan with the borrower through an accredited third party, with certified credit counselors, that is representing the borrower, the licensee's failure to comply with the terms of that payment plan constitutes a violation of this chapter.

[2003 c 86 § 12.]

Notes:
Effective date -- 2003 c 86 § 12: "Section 12 of this act takes effect October 1, 2003." [2003 c 86 § 20.]

Leneah · Posted: Fri Jun 27, 2008 8:53 am Subject:

Ok, so when you mean if I put a stop payment on the checks they can not press criminal charges correct? Also if I do it this way, as far as I understand as long as you are making "reasonable payments" on a consistant basis they cannot turn this over to collections, is that right?

Posted: Fri Jun 27, 2008 9:00 am Subject:

Yes, they cannot press criminal charges for the bounced check.

No, they could still turn it over to collections. Most places won't because you are making payments, but legally you've still broken the contract and the company can still take steps to collect on the debt even though you are making payments. But it's rare.

Leneah · Posted: Fri Jun 27, 2008 9:12 am Subject:

Thank you soooo much for all your help!!! We will save hundreds and hundreds of $$ this way. Also you have a lot of good help on this site, it is really appreciative, I am glad to know I am not the only one in this prediciment. Thanks again!!

Posted: Fri Jun 27, 2008 9:13 am Subject:

Anytime! Good luck! Let us know if you have anymore questions!

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