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 Posted: Fri Apr 27, 2007 11:50 am Subject: Pay Day Loan HELP! |
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Hi,
I am from massachusetts and I have a payday loan. I just read on this site that payday loans are prohibited here. Am I in trouble for taking one out?? I am having trouble making the payments, and the companies wont work with me. One place is telling me that if the money isn't available Monday they will "take action" whatever that means. What can they actually do to me if I do not have the money in my account on Monday?
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Jenn44
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| Posted: Fri Apr 27, 2007 11:59 am Subject: |
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| Quote: | Massachusetts State Information
Legal Status: Prohibited
Citation:
Small loan act applies. Mass. Gen. Laws Ann. ch. 140 § 96 et seq.;209 Mass. Code Regs. § 26.01. Check cashers are specifically prohibited from making loans unless licensed under the small loan act. 209 Mass. Code Regs. § 45:14( .
Small Loan Rate Cap
23% plus $20 administrative fee upon the granting of a loan
Where to Complain, Get Information:
Regulator: Massachusetts Division of Banks
Address: One South Station Boston, MA 02110
Phone: (617) 956-1500
Fax: (617) 956-1599
Regulatory Contact: Kevin McNamara, Supervisor
http://www.state.ma.us/dob |
You are not in trouble for taking out the loans. The companies would be in trouble for doing business in a state that doesn't allow them to. I would contact your state's attorney general's office and banking dept asap and file complaints about these companies.
The only action they can really take is harrassing you into paying. While not exactly legal for them to do, be prepared for all sorts of phone calls. You cannot be arrested, no matter what they try to tell you.
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goudah2424
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| Posted: Fri Apr 27, 2007 12:06 pm Subject: |
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Don't worry - you are not in trouble for taking the loan, but the lender could be in trouble for giving it to you. If the money is not in the account you will be charged an NSF fee from your bank and have an overdrawn checking account. The payday lender will probably say you owe extra fees for collection, returned check charges, etc.
The first thing you need to do is get more familiar with the laws in your state as goudah already stated.
To protect yourself and your account, I would go to your bank and open a new checking account with any funds you have and use that account from now on. Do this before Monday while your account is in good standing.
Once these companies know your checking account number it becomes hard to manage. This will help you gain financial control and make sure your most important bills can be paid first, then deal with the PDL companies and your other debts.
Good luck!
~b
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OutofDebtin07
Joined: 20 Mar 2007
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| Posted: Fri Apr 27, 2007 12:12 pm Subject: |
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Everything said above is right. You need to be proactive and deal with the company in the legal way. You are responsible to pay the principal amount though. How much have you paid towards the loan so far?
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fatb88
Joined: 20 Dec 2006
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| Posted: Fri Apr 27, 2007 12:28 pm Subject: |
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Thank You everyone! I am new to this payday loan thing, and I will defenitly look up the laws and try to educate myself. I will never take one out again. It seemed like a brilliant idea at the time. Anyway I have 2 loans, one i have paid 150 dollars, and on the other one I have just paid the 90 dollar extension fee.
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jnnkrklnd
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| Posted: Fri Apr 27, 2007 12:51 pm Subject: |
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I also suggest that you do a search on this site for the company names. That way you can get an idea of what kind of "action" to expect from them.
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goudah2424
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| Posted: Fri Apr 27, 2007 4:53 pm Subject: |
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I took out a payday loan in an emergency. I ended up taking out 2 more loans to by me time with the first one.My account is in the negative balance, when I called and offered to pay them with western union they said it was not possible. atahe money will be deducted from my account. The problem is now I can't cover all these fees and if I deposit into my account it won't be enough to cover the loams after the fees. What happends now?
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| Posted: Fri Apr 27, 2007 7:53 pm Subject: |
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Well what state are you in?
I would recommend opening a new account so you can regain financial control over your life and before your old account gets too negative
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Leah
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| Posted: Sat Apr 28, 2007 6:35 am Subject: |
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you definitly need to go talk to your bank and see about closing that account because they will continue to try to debit your account and you will keep being charged more and more NSF fees. You need to stop it now so it doesn't get out of control. As we have all learned, payday loans are not a good thing, one leads to two leads to three and so on and so on. Hang in there, both of you. It can and will get better with a little work on your parts
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2nband
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