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Posted: Mon Jul 23, 2007 7:50 pm Subject: I live in Colorado, and

I live in Colorado, and by reading the other posts, I see I haven't been the only person thinking, when I started taking out payday loans, both online & storefront; unfortunately, they are at a 7 count. I am scared and don't know what to do. I tried getting a loan to have one payment with much lower interest, but I can't even get a loan. The payments have gotten all my pay and now I can't even pay my car payments or my rent plus everything else. Please, help me figure out what I can do. I have talked to a debt management firm and they said payday loans are hard to deal with. I don't want to file bankruptcy, as I did that just a mere 2 years ago. My monthly expenses aren't that much either and I SHOULD have $400-$500 left over, but now it's going to the payday loan sharks! The APRs are 211.21%, 782.14%, 240.00% ,443.21%, -- They most will be coming due again on the last day of July. Help!!!!!!!!!!!!!! I want to pay but can't catch up on anything.....sorry to ramble....and Thanks for anyone in the community for any advice and I will await responses.

Posted: Mon Jul 23, 2007 8:58 pm Subject:

First thing, could you tell us who you have your loans through, how much you have paid and how much you borrowed. It will be a start for us to help you get through this. Then start checking out the do it yourself section, it will show you letters you can send to these companies.

Then you need to contact the storefront lenders first, because they are licensed in your state and they can take you to court. So call them and tell them your situation and try and make payment arrangements with them. I would leave the internet ones to pay for last because 99% of them are not licensed. But you need to close your checking account so you will have money for your rent and car payment, because if you don't pay those you won't have a place to live or any way of getting to work. Check you laws on closing your checking account though before you do.

Posted: Tue Jul 24, 2007 7:01 am Subject:

Close your bank account and open a new one at a different bank today otherwise you will lose all of your next pay check. Always pay your important bills first which include rent, utilities, car payment, food and any other secured debt you have. Pay unsecured credit cards next and pay the PDLs last. They will start harassing you over the phone but this is the only way to break the cycle. Worst case scenario they might eventually sue but if they ever do it will reset your interest rate back to a normal rate that is set by your state (usually around 10%)and it will not be 782.14%. Do not be afraid of any threats they make over the phone. You can not go to jail over this. Basically you are uncollectable and they know it so they will try to threaten you or scare you into paying them. Do not apply for new PDLs or new credit to cover this because it only makes the debt larger. Just let this stuff bounce and rot until you save up enough money to settle it.

Posted: Tue Jul 24, 2007 8:49 pm Subject: Advice

Please listen to these people. Close your bank account BEFORE the next round of debits hit. There goes your entire paycheck again and you won't be able to pay your bills you need to live on. As dollars stated, pay your bills first, pay your secured debt second, the pdl's can sit on the back burner. You can post and tell us what pdl's you have and we can better help you. But your store front ones are more important than the internet ones. Store fronts are licensed and legal. You need to contact them ASAP and make payment arrangements so that you won't get into trouble. Don't try to hide from them, as they can take action against you since they're legal. The internet ones are more than likely not legal. Don't worry about them just yet. Please close that bank account before they hit it again. You need to pay your bills. That's the most important thing. Get your life back under control. Please post what pdl's you're dealing with and what you borrowed (principle only) and what you've paid them so far. We are all here to help you, so please feel free to post any questions!

Posted: Tue Jul 24, 2007 9:03 pm Subject:

Thanks for having such a great place to find a wealth of information from people who have been there and who are also going through the same thing. Just after reading some posts and the information given all over this place, I felt better & perhaps there is a way out of this mess I am in.
#1 - the info rec'd from the new info on state laws are a BIG help. However, after reading about Colorado's payday loan laws, it seems that
it would be hard to close the bank account due to this information included in the laws:
Lender can charge fees maximum $25 + Court Fees + reasonable Attorney’s Fees (shall not cross total loan amount).
No criminal charges can be brought against the customer unless check returns due to account closure before the scheduled date of negotiation.
So I am confused about how & when to close the account at the bank, if the above should happen. I haven't been to the bank yet so find out their opinion. I bank at JP Morgan Chase.

#2 - Puddlejmpr - here's the info you requested:
1) Local storefont : Amt. Financed $350, 211.21%apr, Finance Charge $60.75 = due $410.75 (I pay once a month on this)
2) Local storefront (Check Into Cash) -Amt. Financed $350, 443.21% APR, Finance Charge $63.75 = due $413.75, (I pay this on the 15th & last day of month)
3)Local storefront (Mister Money-USA) - Amt. Financed $350,$443.21% APR, Finance Charge $63.75 = due $413, (I pay this on the 15th & last day)
4)One I am not sure of APR, done over the phone B.I.B, I borrowed $200, and have to pay back $280.
5) 500fastcash, Amount Financed $250.00, APR 782.14%, Finance Charge $75.00, due $325.00. I have made two $75 payments
6) Cash Net USA, Amount Financed $300, finance charge $60, I pay this on 15th & last day of month.

So there you have it. I hate even thinking about all of this. Not sure what to do first. You people are great! Thanks for everything!!!

Posted: Tue Jul 24, 2007 9:20 pm Subject:

Ok, what you are going to have to do is contact your storefronts, tell them your situation. You will probably have to have these checks go back NSF before they will work with you. But let them know this first. Then they can make payment arrangements with you. But I will tell you that most of them will want at least $100 or more per month. You may have a problem with Mister Money (unless they have changed) I had defaulted on one of their loans a couple of years ago, they wouldn't take payments, they wanted it all at once. So I told them that I needed to save up for it. Then they told me to bring in something to pawn, I told them to go to hell and either take my payments or I will set them aside and come in and pay you when I have it all saved up but now remember I am many states away and this was a couple of years ago, so they may have changed.

But call the storefronts asap. The sooner you inform them about this the better they will work with you. I wouldn't worry about the internet ones. Pay them last. But make sure you get caught up on your regular bills first. That is a MUST.

I would open up another checking account at a different bank NOW. If your checks are direct deposit then have it switched there. Then you won't have to worry about closing your account until all the storefronts put their checks through. Yes you will have extra fees for this. But then you can pay the bank the nsf fees and close the account. But it is better to do this than have no money after the payday loans taking out.

Please keep asking questions until you feel comfortable with what you are doing. I had 10 storefront loans and 10 internet loans out at the same time. And if it wasn't for this forum I would still be paying them. I have made arrangements with the store fronts and have most of them paid off now. Still working on some of the internet ones. Yes it does take time. But it also took you time to get into the situation you are in. So take your time and get informed and we will be here to support you all the way to being payday loan free Smile

Posted: Tue Jul 24, 2007 9:26 pm Subject: sand

I'm no expert, but you can try contacting the store fronts BEFORE the due dates of your loans. I know the laws vary from state to state. However, if you explain your situation (you don't have to go into full detail) that you can not pay the loan amount off and need to work out payment arrangements, they may tell you that they have to turn the check in once and have it returned before they can make payment arrangements. If that's the case, you can try to "play the game" and suck all your money out of your account so that there's nothing there and the check will be returned. But then you run the risk of having the internet pdl's hit and cause your account to get ugly. If you can not close your account, you can put a hard debit block on it. A hard debit block will prevent any debits from hitting the account - ACH debits, paper checks, electronic checks, etc. However, your account will not be closed. It will still be an active open account, so the store fronts can't claim your account is closed. It would not be. But it would have a block on it. You can explain their check will not clear. If they press as to why (besides just saying you don't have the funds in the bank - you're broke)you can tell them the bank put a block on it because of fraudulent charges against your account (the pdl debits). If you feel more comfortable, just call your bank and ask them. If they can put a hard debit block on it due to unauthorized debits, go for it. The account is not considered closed. Like I said, I am no expert, but I am trying to keep you out of trouble. If your law states you could get into trouble if your account is CLOSED before your due date, then don't close it, but put a block on it. The check will be returned, if that's how they need to handle it. Some store fronts have to turn it in once and have it returned in order to make payment arrangements while other store fronts will go ahead and just make payment arrangement with you if you tell them you're unable to pay the loan. Like I said, if you feel more comfortable, contact your bank. But I personally feel calling the managers at the store fronts and explaining BEFORE your due date that the check will not clear and try setting up a payment plan with them would be a step in the right direction. They will tell you if they have to turn it in once and get it returned or they will tell you that you can go ahead and make payment arrangments without them turning it in. Best advice, communicate with the store fronts before the due date. They want their money back - period. So they may just work with you. Please post as to what's going on. And let me say again, I'm no expert! But I'm all for contacting the store fronts and seeing if they'll just work with you. You might find out that some of them are willing to do that.

Posted: Tue Jul 24, 2007 9:30 pm Subject: puddle

puddle beat me to the post! Very Happy

And with excellent advice!

Posted: Tue Jul 24, 2007 10:07 pm Subject:

cannr........you're right, great advice from puddle and YOU too! I will have to print this stuff out, for my reference as to what I MUST do.... puddle was right...it took me a long time to get here, so I guess it's going to take awhile to get back.

3 more questions...how much does this changing banks, nsfs, etc., affect your credit rating? Not that mine is so hot, but the thought came to mind.
AND, will I be needing any of these letters yet?
AND, are the apr% okay, or have I been getting screwed?
I am going to sign out, I'm tired and have to get som needed sleep. I will check back tomorrow! Have a good nite everyone!

Posted: Wed Jul 25, 2007 7:06 am Subject:

Also, read this thread:

http://www.debtconsolidationcare.com/paydayloan/close-account.html

It's got some other ideas for different holds your bank can do for your account to stop the pdl's. Since you do have storefronts it may be best to not close the account, at least wait until the checks have come back to the storefronts NSF.

The good news is that once you default you will be able to make arrangements with the storefronts to pay off your balance. You won't be paying the rollover fees every payday!

Changing banks doesn't affect your credit rating at all. Some banks pull credit reports to verify new accounts, but it is usually a soft pull, so it won't affect your score.

I would start sending the letters to the internet loans companies you have asap. You need to get the ones revoking authorization to debit your account and the wage assignments ones out immediatly.

Yeah, you are getting screwed with those apr's, but legally screwed. Colorado allows apr's up to 520%.

Also, I recommend you do a search for the companies you are dealing with on this site. That will give you a pretty good idea of what to expect once you default.

Guest · Posted: Wed Jul 25, 2007 7:43 am Subject:

Thanks goudah! Everyone is giving me such excellent information!!!
RE: your info....where are the letters to send to the internet loan companies that I can send??
Are there templates somewhere?

So, let me get this right. I don't close the bank account but ask to put account into deposit only status. Is this correct? Then wait for storefronts to get NSF back and try to negotiate with them for payment arrangements? Right? Will that consitute fraud in Colorado. Reading some of the laws is somewhat confusing to me.

I have direct deposit, so maybe I should still open a second bank account at another bank or same? and then either way have my money deposited to new. Is this correct??

Then should I just let it all (both storefont & internet) go NSF??

Then I send out the letters to the internet loan companies or do I send out letters to internet before payment is due, before NSF or after?

I'm sorry, I not sure what order to do this and I am getting very anxious as my payments come due on the 31st and I work and I don't have alot of time here to work this out, I feel, before then. I can't think, read, go to banks, write letters, learn all this in such a short time.

I know this is lengthy and I have asked alot of questions, but this is so critical, I want to get it right so as not to create more problems for myself! I couldn't handle it!
Thanks folks!!!

Posted: Wed Jul 25, 2007 7:53 am Subject:

I don't believe it would contsitute fraud, but the best advice I could give you would be to contact your state's banking dept first and ask them.

Yes, you want your account to be on deposit only, or a hard hold or some other freeze. The important thing is that NO debits at all can go through the account. An ach block wont work because it will only stop the internet companies. The storefronts have checks.

Open an account at another bank, and get your direct deposit switched to the new bank.

Let them go nsf.

I would send the letters now, and call the storefronts on the day you are due and let them know you will be nsf. Keep up communication with the storefronts, that is key.

There is a template letter for the internet companies at Polly's blog here, but there aren't really sample letters of the revokation stuff. But you just need to inculde the following:

I herby revoke any and all authorization I gave Company X to debit in any way any account I may be a signer on.

I herby revoke any and all wage assignments I may have signed with Company X.

Posted: Wed Jul 25, 2007 7:58 am Subject: goudah

Take goudah's advice. She is very knowledgeable. Reseach on this site the companies you're dealing with. And get those letters out to the pdl's ASAP. That way you're covered. Also, make sure you file complaints against the illegal internet companies. But first, get your bank account in order and those store fronts taken care of. Anything legal comes first.

Posted: Wed Jul 25, 2007 8:05 am Subject:

Yes, your first priority is these storefronts, and Cash Net USA, as they are legally licensed to lend in CO. So you need to set up payment arrangements with them too.

So your other internet companies are 500 Fast Cash and what? BIB? I'm trying to see if they have licenses too . . . .

Posted: Wed Jul 25, 2007 9:09 am Subject: sandi

sandi, the one you stated you did over the phone - you said is B.I.B. Are you sure it's not BIG? And this was a "verbal agreement" for $200, correct? No loan documentation? I'm thinking it's BIG, but a new pdl by the name of B.I.B. could pop up and I wouldn't be surprised. Do you have any contact information on the one you did over the telephone?

Guest · Posted: Wed Jul 25, 2007 9:10 am Subject:

Sorry it was B.I.G....no paperwork ont them...email i rec'd was big-int.com, phone #1-877-282-5450.

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