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I'm in the payday loan trap. I took out one and that lead me to take out another one and so one. I have five that have unlimited refinancing and I contacted my bank to do stop payments. I tried to contact a lawyer and was basically told you took them out you pay them. What do I do? I can't close my account based on a negetive balance.

Posted: Tue Jul 03, 2007 6:53 am Subject:

Hi socaligal,

Welcome to the forums Smile

You are not alone here. We will need some more information to help guide you better. What state are you in? Are these storefront or internet lenders? How much have you paid so far?

Posted: Tue Jul 03, 2007 7:05 am Subject:

I live in CA. All internet
Loan Shop/Northbay: 450
Loan Shop/DMS: 540
Paragon: 270
Arrowhead: 270
Cashnet: 270
Each one is a $300 loan

Posted: Tue Jul 03, 2007 10:56 am Subject:

Here are the laws for Ca.

Posted: Tue Jul 03, 2007 11:15 am Subject:

You have way overpaid the two Loanshop ones. Is that Northway by any chance?
You must close that checking account immediately. That is the only way that you can deal with thes companies on your own terms. Write to the three that you still owe money and tell them what the laws of Ca. state and say you are willing to pay what you really owe. Which is approximately 353.00 minus what you have already paid them. Tell them you are not to be contacted by phone. Only by mail or email. If the others are Northway as I suspect you must send them a wage assgnment revocation letter right away because they will try to get the mmoney from you payroll. They will also call your references to intimidate you. They are an illegal company base in Malta and think they do not have to abide by US/State laws which is nonsense. Just remember that they have no legal means of collecting anything as they are unlicensed. Cashnet will work with you but they are tricky. Do not send them anything until you have it in writing. I have had a recent problem with them being deceitful. The others I have no experience with. Remember one thing, they can not have you arrested, charge you with bank fraud or any of the other things they may threaten you with. It is just a way to try to scare you into paying. You are in control. Not them.

I live in rhode island and i also have a negative bank acct balance. i have been paying on loans for month and it seems no end is in sight
payday select 500
paydayone 500
my cash now 150- this one i can handle
vc funding 300 plus 90 fee every 2 weeks
geneva roth cap 400- plus 120 fee
payday services 250.
can someone help me please. i am a worry wart and this is driving me bonkers

Posted: Tue Jul 03, 2007 11:25 am Subject:

Hi and welcome! I'm just getting this mess under control myself, and trust me, you have to find a way to close that checking account. These companies don't want anything to do with you until they start seeing their debits coming back as "closed account." The should start to be a little more cooperative at that point because they want money. Just remember, like Frogpatch said, you are in control at that point. Also remember that the most they can do is bombard you with emails or phone calls. They may threaten you but they can't do a darn thing about it. Meanwhile, you will get to keep some of your hard earned money for things like...oh, I don't know...ROOD, SHELTER, CLOTHING. Smile

I tell you, it did a world of good for my self-concept to actually get to keep my money. I used to dread payday, but now I look forward to it. The same will happen for you...Just hang in there because it does get better. Smile

If your account has a negative balance, I would be very honest with the bank and have them place a hold or stop on any ach debits. Also ask your job to pay you with a live check and cash it at Wal-mart or some grocery store in your area. You should be able to get it cashed for a minimal fee. Good luck!

Posted: Tue Jul 03, 2007 11:27 am Subject:

Sorry...I can't seem to type today... I meant to say food, shelter, and clothing. :-O

Posted: Wed Jul 04, 2007 11:53 am Subject:

I did the same thing and boy did I learn the hard way. At first it's an easy way out but the fast money is hard to resist. I think all of us here were or are in the same boat as you. Keeps reading these boards there is a lot of very helpful and useful information here!

Posted: Wed Jul 04, 2007 11:56 am Subject:

Fast money is hard to resist, and I learned that the hard way. Socali, I also live in California and I can tell you that Arrowhead is definately not licensed in CA. I don't think that the others are either--but go to the Dept of Corporations website and you can find out there. You can also file complaints with the AG and the Dept of Corporations. They are cracking down on these loans in CA which I think is a good thing. Feel free to PM me if you have any questions.

Posted: Wed Jul 04, 2007 11:59 am Subject:

You are not alone. I started out the same way as you and ended up with 14 loans that were at the point of taking my entire paycheck and then some. I came here for help and while I first resisted I listened to the experts and CLOSED that checking account. It isn't easy but it is the first thing that has to happen - you need to get control of your paycheck again and then deal with the PDL's one at a time. Good Luck and ask away on here there is load of informative people.

Posted: Wed Jul 04, 2007 12:06 pm Subject:

Socaligal--

Posted: Wed Jul 04, 2007 12:07 pm Subject:

One thing i learned about payday loan companies, you are not going go hear from them until you close your account, and if they are illegal in your state they are willing to work out a payment plan. At least thats what happended to me, YesPayDay, and EPayday loan both set me up with 3 monthly payments and i was paid in full, but i had to close my account first. You have to be careful with these pay day companies because they will drain you dry.

Posted: Wed Jul 04, 2007 12:09 pm Subject:

Posted: Wed Jul 04, 2007 9:02 pm Subject:

We have all been there...best advice given to you is to close your account and get a new one at a diff bank as stated above. That really is the only way you will regain your control over your finances! Best of luck to y'all!