Internet's first get-out-of-debt community - 134,000 members

I need some help on trying to get out of this PDL debt. I currently have 5 loans out with online lenders:

One Click Cash
Apple Payday
Zip Cash
ameriloan
and United Cash Loans

I do not know what to do, my paycheck is practically gone before I even see it! Does anyone have any advice? Crying or Very sad

Posted: Wed Aug 16, 2006 12:05 pm Subject:

Brooke...
What state do you live in?
How much are your loans for and how much have paid into them so far?
If you could give us a little info, we can help you get started in resolving this...

Posted: Wed Aug 16, 2006 12:06 pm Subject:

Welcome to the forums,Brooke!I'm glad you are here. You have definately come to the right place.A credit counselor should be calling you soon and discuss the programs it has to offer. Consolidation should be of great help to you,lower interest,etc.Keep us posted Very Happy

...Karen

Posted: Wed Aug 16, 2006 12:12 pm Subject:

I live in Indiana and I'm not really sure on the laws here. I owe about 300 on each plus the rollover amount, and I feel like I've been paying into them forever now. I would actually have to sit down for about an hour and figure out how much exactly on each loan.

But for the most part, it was a 300 advance, plus a 90 rollover fee. So every payday I'm paying about 140 on each loan once they start automatically taking out for the paydown on the balance.

Posted: Wed Aug 16, 2006 12:47 pm Subject:

Brooke...
It might be a good idea to sit down and do just that!
I did it when I had pdls, and really was shocked to see how much I paid.
Also...Some info regarding payday loan laws in your state:
Indiana 14 days min. $50-$500 ( but may not exceed borrower's gross income) 15% on amounts <$250; 13% $251-$400; 10% $410-$500 Indiana permits payday lenders to operate and charge any interest rate or fees which the borrower agrees to pay. Lenders must comply with other provisions of the state's small loan act. Indiana (permits the charging of $33 rather than the 36% per annum applicable to other loans). The apr for a 14-day $100 loan is 390%

Arm yourself with this information above, and on what you've paid so far on each one.
These guys are also required to be licensed in your state! They probably aren't if they are internet lenders.
Go here:
http://pollyandsay.yesdebtfree.org/template-letter/
and write a letter using the information from your state lending laws.
Send one to each of them via UPS and/or email.
It may take some research and digging on your part, but the outcome will be worth it.
I'd start with United Cash Loans..they are the worst violators of licensing laws, and many states have filed lawsuits against them!

Posted: Wed Aug 16, 2006 12:51 pm Subject:

Thank you! I will need all the help I can get! Smile

Posted: Wed Aug 16, 2006 12:53 pm Subject: GARNISHMENT

I just got a call from checksmart and they said they are going to start garnishment on my paycheck as of today ??

It just defaulted and i have it under debit consolidation company now what ???
they said they take 25% of my pay check!!

Is that true ???

Posted: Wed Aug 16, 2006 12:56 pm Subject:

Read this adobe file for the payday loan laws in Indiana.

http://www.indianajustice.org/Data/DocumentLibrary/Documents/105543678 0.16/0105payday%20loans.pdf

Posted: Wed Aug 16, 2006 1:01 pm Subject:

POHLC

As per the state laws, no company can do wage garnishment without court orders. It is not legal to send the letters to your employer without notice from the court. Inform your employer about this action so that the payroll does not deduct money from your wages to them.

Report any illegal action to the state AG's office, FTC and the BBB. Fill their complaint form and they will investigate on the matter.

Posted: Wed Aug 16, 2006 1:07 pm Subject:

POHLC..
If your debt consolidation company is handling the payments, I'd certainly give them a call and tell them what happened.
No one will garnishee your wages without a court order, they may try a wage assignment, but that's strictly voluntary...you can revoke this type of authorization with your human resources or who ever does your paychecks.
However, if this a storefront lender, they can and will obtain a court order. Most storefronts are licensed and legal in your state.
Definately start with calling your consolidation counselor!! They should be handling this.

Posted: Wed Aug 16, 2006 1:09 pm Subject: GARNISHMENT

They people who called me to threaten this said they dont deal with consolidation companys!! Im so upset now

Posted: Wed Aug 16, 2006 1:15 pm Subject:

Pohlc- you definitely need to do what Erzeke1 suggested and call your consolidation company to let them know what's going on so you don't end up double paying someone. Ex: One PDL has been calling me and harassing me about payments and threatening, so I called my consolidation company and found out that the PDL was accepting their payments, and just trying to get extra money out of me. Take a deep breath- if they genuinely won't deal with a consolidation company (which is something your counselor can tell you if that's always been true or not) we are more than willing to help you deal with this.

Posted: Wed Aug 16, 2006 1:20 pm Subject: GARNISHMENT

I called them left message im freaking out i though that everyone dealt with consolidtaion company they told me to call my consolidtaion company on three way so they can tell them while im on the phone .. And they the dont take payments they want the full amount !! This is a storefront lender too

Posted: Wed Aug 16, 2006 1:22 pm Subject:

I heard of people actually closing their bank accounts so no more automatic deductions from PDL can come out. When can or are you supposed to do this?

Posted: Wed Aug 16, 2006 1:32 pm Subject:

POHLC..calm down.
You can't make good decisions when your freakin' out!
Not every payday lender will deal with the consolidation companies, especially the store front lenders. The best thing to do is ignore their calls..no you won't go to jail!..and call your consolidation company asap and find out if this particular lender accepted a proposal from them.
If so, ask the counselor to call them for you because you're being harrassed.
If not, then you will have to make some payment arrangement with the lender.
Brooke:
You can, and probably should, close your checking account. Once the pdl's get wind of your intentions, they will attempt all sorts of debits, and not necessarily in the correct amounts.
This will be a stressful fight for you, but hang in there, it will get better.

Posted: Wed Aug 16, 2006 1:40 pm Subject:

Okay - What happens after I do that then? I know they will start to frantically contact me since they cannot get it out automatically. What should I do after that? Make payment arrangements with each one?
Can they take any type of legal action if I close my checking account?

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