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 Posted: Thu Apr 10, 2008 10:43 am Subject: Payday loan help
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Hello, I need help with 2 payday loan companys.
They are not harrassing me yet, but I am sure they will be soon.
Ameriloan- borrowed $300, have paid them $460 already.
EME Marketing- borrowed $300, have paid them $450
I live in North Carolina. I truly cannot continue paying them, it has gotten me behind on my mortgage already. Is there anything I can do to stop paying them without getting in trouble or hurting my credit?
Anyone's help would be GREATLY appreciated.
Jacki
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Jacki
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Posted: Thu Apr 10, 2008 11:27 am Subject:
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Hi. It looks like you have already repaid what you owe and if I'm not mistaken, pdls are illegal in NC, so you have more than met your obligation. Have you closed your bank account or blocked them from it?
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freakmeout
Joined: 28 Mar 2008
Posts: 98
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Posted: Thu Apr 10, 2008 11:28 am Subject:
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| Code: | North Carolina State Information
Legal Status: Prohibited (N.C. Gen. Stat. § 53-281 authorizing payday loans allowed to sunset in 2001)
Citation:
The consumer finance act applies. N.C. Gen. Stat. § 53-173
Small Loan Rate Cap
36% per year
Where to Complain, Get Information:
Regulator: North Carolina Attorney General (See also Commissioner of Banks)
Address: NC Attorney General's Office 9001 Mail Service Center Raleigh NC 27699-9001
Phone: (919) 716-6400
Fax:
Regulatory Contact:
Regulator’s Website
Complaint Form
Complaint Instructions
Online Resources: |
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kashzan
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Joined: 11 Jul 2007
Posts: 5463
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Posted: Thu Apr 10, 2008 11:30 am Subject:
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Please read prior to closing your account so you do not get into any problems.
| Code: | Before you close your bank account due to payday loans eating away at your paycheck, please read this.
Some banks have a policy regarding ach transactions that allows them to force open closed accounts if any ach transactions go through within a certain time frame after the account is closed. This can leave you owing a legal bank $1,000's and reported to chexsystems, instead of owing barely legal (or not at all legal) payday loan companies. Not a good thing. Ask your bank what their policy is on ach transactions on closed accounts before you close the account. It's best to go in person and talk to a branch manager.
If your bank does have this policy, tell them your situation. Don't be embarrassed. Take letters with you showing that you have revoked authorization for each of your payday loan companies to debit your account. Tell the bank to put your account on deposit only, an ach block, or a hard hold before they close the account. Your bank can do one of those, don't take no for an answer. This will prevent any payday loan ach's from reopening the bank account.
It'a always best to close your bank account. Leaving it open gives ways for the payday loan companies to continue to take money out. These companies have many different dba's, so blocking them won't work. They will also produce paper checks and run them through your account. Closing the account is the best way to prevent these companies from taking money out of your account.
Some state laws do allow for prosecution if you close your bank account, but that is usually in cases of fraud. But it's always best to check with your state's attorney general or department of financial institution before you close your account. You want to make sure you are not causing more heacaches!
Last edited by goudah2424 on 17 Jul 2007 15:25 |
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kashzan
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Posted: Thu Apr 10, 2008 11:32 am Subject:
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In addition to Kashzans' excellent advice re. closing your bank account, I would add do NOT let the PDL's know ahead of time that you'll be doing that. Otherwise, they're liable to try to get into your account and get whatever they can while they can. Good luck!
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wheadle
Joined: 27 Mar 2008
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Posted: Thu Apr 10, 2008 11:35 am Subject:
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Great point. Thanks
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kashzan
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Posted: Thu Apr 10, 2008 11:55 am Subject:
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Kashzan, just passing on the excellent advice that I received here! 
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wheadle
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Posted: Thu Apr 10, 2008 12:00 pm Subject:
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So, legally, I do not have to pay them back?
How do I find out if these companies are legal?
I just don't want to get involved in all of this and then find out that I am making it worse. I don't want to get into any trouble or ruin my credit.
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Jacki
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Posted: Thu Apr 10, 2008 4:52 pm Subject:
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Jacki, I don't believe either one of these pdls are licensed/legal. And, what do you mean you don't have to pay them back? You've already overpaid them. We advise to pay back the principle amount of the loan (even if the pdl is illegal); however, you have paid that back PLUS some. Illegal pdl's aren't going to ruin your credit. If, by chance, one of them hits your credit report, dispute the living hell out of it and have it deleted from your reports. It has been done. 
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cannr
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