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Posted: Mon Jul 02, 2007 11:29 am Subject: Payday Loans + Divorce = Drowning

I am a 36 yr. old father of 2, ages 10 & 6. I am recently separated and going through the process of a divorce. I have made several attempts to secure a loan from local banks, my bank, which is Teacher's Credit Union and a few others. Every time I get a response back telling me that my debt to income ratio is high to get approved. The main reason being that I am still on the mortgage of the house my wife and children still live in. In the divorce decree, she has 1 year to refinance. Anyway, without being able to secure a loan, I resorted to using cash advances to pay for legal fees and other things, like for security deposit and rent for an apartment, along with Christmas items from this past year. That is how long I have been carrying some of the payday loans. So with that all said, I need to find out what I can do to break the cycle of the payday loans and/or find a way to get a loan to pay the payday loans off, they are costing over $400 a pay check. I am drowning. One thing I thought would work was that I coach basketball at a local high school in the area. I get paid seasonal, roughly $3000. I thought the bank would use that income as collateral for a $3000 loan but they said that future income cannot be used as collateral. I researched every option I could, I have a minimal 401k that I stopped contributing to since the separation so I can't take a loan out on that and I have no family members that are capable of loaning me the money I need. I am a computer tech for a local hospital, been here for 5+years and just looking for a little help.

Posted: Mon Jul 02, 2007 11:41 am Subject:

I'm really sorry to hear about your situation. Can you give us more information about your situation, so we can help you? What state do you live in. How many payday loans do you have, what are the names? Are they storefront or internet. Also, it will help if you can tell us the original amount of the loan, and how much you have paid so far. Teacher's Credit Union...do you live in IN by any chance?

Posted: Mon Jul 02, 2007 11:42 am Subject:

Are they internet payday loans, or storefronts? Let us know where they are from and for how much...oh, and what state you live in. Some of them may be operating illegally in your state, and you may have paid more than allowed in your state. Also, include the amount you've paid to them so far. There is a light at the end of this tunnel. We've all been through this, so take a deep breath and realize that you're not alone in this mess. Smile

Posted: Mon Jul 02, 2007 11:47 am Subject:

Yes, I live in Indiana, near South Bend. I have 6 payday loans. 5 internet and 1 store front.
INTERNET:
MTE FINANCIAL 300.00
SJM MARKETING 300.00
PARAGON LOAN 300.00
3-MIDLAND MARKET 300.00
AIP PROCESSING 200.00
STORE FRONT:
CheckSmart 500.00

I have recently taken out 2, that are included on the list to help pay for other bills. I am getting into a state of panic.

Posted: Mon Jul 02, 2007 11:49 am Subject:

How much have you paid to each of those. Someone else will be by with the max allowed in your state, or I think there's a link on here somewhere that gives you that info.

Posted: Mon Jul 02, 2007 11:50 am Subject:

MTE, AIP and Midland I have paid off several times but then would have to turn around and get another a week or two later. The storefront Checksmart, I have been with and paid off 5 times I bet.

Posted: Mon Jul 02, 2007 11:53 am Subject:

MTE and Midland, on $300 loans, I have paid at least $900 each. AIP, on a $200 loan, probably $1200. and CheckSmart, $2500.

Posted: Mon Jul 02, 2007 11:54 am Subject:

Grovesc, below are the lending laws for Indiana. I think they are really cracking down on payday loans there too. I think there was something on these forums about them. Do not panic, even if you default. They cannot arrest you or charge you with check fraud...these are idle threats! Trust us, many us have been there, including myself. Ok, we also need to know how much you've paid on these loans as well...that way we can figure out if you've overpaid any of them already.

Posted: Mon Jul 02, 2007 11:55 am Subject:

I have used the store front and AIP the most, so that is why they are the highest, the others are fairly new to help me get through the cycle. I have develope anxiety and heart palpatations becasue of all the stress it is putting me under. Toppled with a divorce, I am hurting in both mind and spirit.

Posted: Mon Jul 02, 2007 11:58 am Subject:

I am currently at work and don't have a lot of time I can spend on the message board but I do appreciate any information you can provide me with. I will be checking back in occasionally through out the day and tonight. I appreciate it, Craig.

Posted: Mon Jul 02, 2007 12:06 pm Subject:

It look like you have way overpaid MTE, Midland and AIP. You need to file complaints with the AG, BBB, and FTC, so you can at least get some money back. Some people on this board have had luck getting money back from AIP.

Here is a link where you can check if these internet lenders are licensed in your state or not. If you don't see the name, they aren't licensed:

http://www.paydayloaninfo.org/

Posted: Mon Jul 02, 2007 12:14 pm Subject:

You need to work out a payment arrangement with Checksmart, as they are licensed. The other internet pdls you have leverage because they are not license to operate in your state, I don't care what crap they say. You need to close your current checking account and open a new one, preferrably at a new bank. Also you need to file complaints against the internet payday loan companies. Be prepared for the onslaught of illegal threats, just know this......they can not charge you with fraud and you won't be arrested. Just make sure you work out a payment arrangement with Checksmart and stick to it. You will get out of this mess.

Posted: Mon Jul 02, 2007 1:08 pm Subject:

Indiana just passed a law that states these types of lenders must be licensed in your state to loan money. I heard this from another Indiana resident.

Posted: Mon Jul 02, 2007 1:14 pm Subject:

Check out indianaconsumer.com. This is where you can file a complaint Smile

Posted: Mon Jul 02, 2007 1:30 pm Subject:

Mishele is right. I think that once you get your complaints in against the unlicensed internet payday loan companies, you are done with them. You only need to work out a repayment agreement with the licensed storefront payday loan company, CheckSmart. You are going to come out of this pdl hell ok. Very Happy

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