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Posted: Sun Apr 20, 2008 8:29 am Subject: A little advice needed, Please

Hi everyone!

I'm new to this forum, found it a couple of days ago trying to find a way to get out of payday loan debt.

It all started around Christmas time, needed a little money, then blew up from there. Currently I have 7 loans out. I've been trying to keep up with the biweekly payments just to survive.

Now, I can no longer afford to pay the 'fees'. It's been driving me crazy trying to figure out a way to get out of this.

I want to close my checking account but, my tax refunds will be hitting the account within the next month. Is there a way to leave it open for the refunds to go in? I bank with Bank of America.

I'm in Arizona and all loans are actual stores, not internet.

Thank you in advance for any advice or knowledge shared.

Jon1972 · Posted: Sun Apr 20, 2008 9:10 am Subject:

you need to close your account....the tax rebate will try to hit your account, then will come back to the IRS as not open. They will then issue you a check in the mail. Dont worry! There are thousands of people who have either closed or switched accounts since they did their taxes and you will get them within the same timeframe because you used direct deposit to do them.
you need to close your account...

Posted: Sun Apr 20, 2008 9:17 am Subject:

I will go down and close my account as soon as they open. The payday loan companies will still try and debit my account, is that correct? Even though it's closed?

I've read on here that the bank will then reopen the account when the debits come in, is this correct?

I want to get the debts taken care of, but can't keep paying the fees. On most I've already paid more in fees than the original loan amounts!

Posted: Sun Apr 20, 2008 9:39 am Subject:

You actually need to check with B of A to see what their policy is regarding reopening a closed account when debits come in. Some banks do it, some don't, so I would check with them to make sure.

Posted: Sun Apr 20, 2008 9:42 am Subject:

Thank you for the reply.

I will ask B of A when I go down to the branch. Hopefully all will be ok.

I know I need to send the payday loan companies a letter saying they can't debit my account. Is there a form letter anywhere? I'm at a loss as to what to say.

I want to get this taken care of, I'm praying that the companies will work with me.

Posted: Sun Apr 20, 2008 11:22 am Subject:

Wenbren, also, you can ask them about placing your account on deposit only or placing a hard debit block on your account.

Here is some information to read about closing your account.

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

Since your pdls are storefront, they are going to be licensed and legal so you are going to have to work out payment plans with them. If you would list who your pdls are with we can check several things for you. We also need to know if you are current or if you have defaulted on them. If they are current, they may be members of CFSA and if they are, you can ask for an extended payment plan and they have to work with you....but if you list your informaiton we can help you determine what to do next. Also, many members have had storefronts so maybe one of them will have had a storefront you list and they can tell you what to do or expect.

Posted: Sun Apr 20, 2008 3:58 pm Subject:

Like Roxy said, you may want to find out first if you can make your account deposit/credit only first. That way you can still receive your tax return but keep the PDL lenders from being able to debit your account. You will still want to set up a new checking account in the meantime.

Posted: Sun Apr 20, 2008 9:21 pm Subject:

All loans are current. I have almost 2 weeks until they default.

Companies are:

Southwest Check Cashing
Ace
Cash 1
Cash N More
Quik Cash
Checksmart
Advance America

I will talk to the bank in the morning and see if they can help.

Posted: Mon Apr 21, 2008 4:07 am Subject:

Cash 1 is a member of the CFSA. I currently have an EPP with them. Advance America is also a member of the CFSA, and I have an "in-store payment plan" with them that is a little less strict than the EPP ( basicaly, as long as I answer my phone when they call for updates, I can pay them whatever amount whenever I can. )

Checksmart is also a member of the CFSA.

Ace is a member of FISCA. I do not know much about that organization, though, nor what kind of protection they offer consumers. You might want to look them up and find out.

I highly advise you at least call the ones that are members of the CFSA about setting up an EPP before you default on your loans with them. Once you default, your entitlement to a payment plan is pretty much void.[/b]

Posted: Mon Apr 21, 2008 5:45 am Subject:

You usually have to make EPP two days before payment due.

Posted: Mon Apr 21, 2008 5:48 am Subject:

be careful about closeing your account if you have checks out to store fronts.

Posted: Mon Apr 21, 2008 1:05 pm Subject:

one concern that i would have is that your tax check could reopen your account - at my bank, deposits and ACH could open a closed account if it is not done correctly.. than again, my bank also misinformed me of other things. confirm this with your bank and good luck.
be careful though - i am not an expert but i heard storefronts can be tricky. make sure you read that link about closing your bank account so you're legally safe..

Posted: Tue Apr 22, 2008 9:36 am Subject:

I do have another quick question.

When sending the companies letters revoking authorization to debit my account, do I send it to the store I physically went in to? Or to their 'main' corporate address?

Posted: Tue Apr 22, 2008 10:07 am Subject:

I think personally, and I am not an expert in this at all, others will be along to advise further, but to be on the safe side I would send them to both places.

Posted: Tue Apr 22, 2008 10:27 am Subject:

If it is a store front, they are operating legally. You need to go in person and try to make some kind of arrangements. they are different and operate differently than an internet PDL.

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