Payday Loan help

Payday loan Relief: What to do if you are in default?

Payday loans provide instant cash but a payday loan often has the highest rate of defaults. The rate of interest in case of payday loans are very high but it does not stop people from availing these loans. Since the rate of interest of payday loans is high, people often take them in emergency situations and then find it difficult to make payments at high interest rates as required by payday loans. As a result, they are in default and require payday loan relief programs to overcome the situation.

How to get relief from payday loan:
In the event a debtor has defaulted, and wishes to get payday loan relief; he may approach a debt consolidation firm. A debt counselor may also make things easy for the debtor. Depending on whether a debt consolidation agency is licensed or not, one may also opt for EPP or Extended Payment Plan to repay the loan balance.

Alternatively, the debtor may also take help from the creditor directly and work out a repayment schedule. All creditors do not agree for a payday loan consolidation. Nevertheless, there are debt consolidation firms which assist in the consolidation of payday loans. This will help debtors from unnecessary harassment by collection agencies if he fails to pay off the payday loan. But he can always take action for their misconduct. However, at times, debtors try to sell their car or home in order to repay the payday loans.

Licensed payday loan lenders are a better option:
Payday loans are available either online or in store fronts. Store fronts are usually licensed and as far as the online firms are concerned, one needs to carefully scrutinize their profiles.

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Posted: Wed Nov 15, 2006 4:27 pm Post subject: Payday loan Relief: What to do if you are in default?

I have about 10 payday loans out & I am trying to figure out a way out of the horrible mess I got myself in trying to pay for car repairs a year ago. I have defaulted on almost all of them & now am fearful of more credit issues & possibly even criminal issues now. My bank account is about to close with all the fees & problems it's accrued. I am young & do not know how to do this by myself. With my income, I would never be able to pay the balance due & the $1500 is monthly finance fees. Please someone provide me with some guidance in this area. I really feel like my self-worth has depleted since making such awful financial choices. I am really desperate for a solution!

sparklingashes

Joined: 15 Nov 2006
Posts: 7

Debtcc Points: 482

Posted: Wed Nov 15, 2006 4:27 pm Post subject:

What state are you in??

natdust20

Joined: 19 May 2006
Posts: 1344

Debtcc Points: 14935

Posted: Wed Nov 15, 2006 4:29 pm Post subject:

TEXAS

sparklingashes

Joined: 15 Nov 2006
Posts: 7

Debtcc Points: 482

Posted: Wed Nov 15, 2006 4:31 pm Post subject:

Have you checked your laws???

natdust20

Joined: 19 May 2006
Posts: 1344

Debtcc Points: 14935

Posted: Wed Nov 15, 2006 4:33 pm Post subject:

I don't really know where to go or who to check with. Online I checked & it appears only civil & collection avenues can be taken. But I am not for sure. I don't want to assume anything.

sparklingashes

Joined: 15 Nov 2006
Posts: 7

Debtcc Points: 482

Posted: Wed Nov 15, 2006 4:35 pm Post subject:

I was informed by one payday loan center that I would be turned over to the Attny Gen's office for bad checks & go to jail if I didn't pay them.

sparklingashes

Joined: 15 Nov 2006
Posts: 7

Debtcc Points: 482

Posted: Wed Nov 15, 2006 4:38 pm Post subject:

Here is a little info that I found, I hope it helps to explain things...

Quote:

Texas payday loan laws were first enacted in June of 2000. As with other states, Texas payday loan laws state that a lender must obtain a license before they operate. Under Texas state law, a company that engages in the business of payday loans is defined as any person(s) making cash advances in exchange for a consumer’s personal check, or in exchange fore the consumer’s authorization to debit the consumer’s deposit account. The licensing laws for payday loan lenders in Texas are the same as stated under the Texas Finance Code Ann. 342.
Texas payday loan laws have different requirements on fees than other states. Under Texas law a lender is allowed to charge no more than $1 per $5 that’s borrowed for loans under $30. For loans over $30 but no more than $100, a service fee of one-tenth the amount can be applied. And for cash advances over $100, a fee of no more than $10 can be charged.

Texas payday loan laws also permit handling charges in addition to service or interest fees. Under Texas law, a $3.50 handling charge can be added each month to the total amount as long as the amount of the loan doesn’t exceed $35. If the cash advance is over $35 but no more than $70, monthly handling charge of $4 can be applied. For loans over that amount, a $4 fee can be added each month for every $100 that’s borrowed.

Payday loan lenders in Texas must post a notice with a fee schedule along with a written agreement. The agreement must contain the name of the lender, the transaction date, the amount of the check, an itemization of fees, the earliest date the check must be deposited, and a total amount expressed in U.S. dollars and as an annual percentage rate. The agreement form should have the name, address, and phone number of the Consumer Credit Commissioner. Texas payday loan laws also require that the agreement form provide a notice that sates payday loans are intended for short-term cash needs.

Texas payday loan laws prohibit lenders from dividing one loan into two loans for the sole purpose of collecting higher interest fees. The maximum term limit for payday loans in Texas is 31 days. The minimal term limit for payday loans is 7 days.

Under Texas law, a lender cannot pursue criminal charges to collect on a debt. Also, a payday loan lender is limited as to how many times a loan can be renewed. Currently under Texas law, lenders are allowed to renew a payday loan one time each month.

paydayloanlaws.com/south/texas-cash-advance.html

natdust20

Joined: 19 May 2006
Posts: 1344

Debtcc Points: 14935

Posted: Wed Nov 15, 2006 4:45 pm Post subject:

Are there places that can help me consolidate this debt... because I have called a few & they all want a minimum & then threaten me at home & work because I cant agree to it.

sparklingashes

Joined: 15 Nov 2006
Posts: 7

Debtcc Points: 482

Posted: Wed Nov 15, 2006 4:50 pm Post subject:

thank you very much for help... i will log back in tomorrow. have a good night!

sparklingashes

Joined: 15 Nov 2006
Posts: 7

Debtcc Points: 482

Posted: Wed Nov 15, 2006 4:56 pm Post subject:

If one hasn't already, a debt counselor will be calling you to discuss what options are open to you. Also, a lot of people are going with Langhorne Law, who does PDLs. Most of the people going through this company are very pleased with their work.

dbaker6
Moderator

Joined: 25 Aug 2006
Posts: 1609

Debtcc Points: 13841

Posted: Wed Nov 15, 2006 5:26 pm Post subject:

First of all, calm down. PDLs will do those things to scare you. You can call them to make arrangements with them but you should wait for a debt counselor to contact you. I was just like you. I had eight of them, three storefront, and five on the internet. There are companies out there who will take PDLs. We have all been there and you have come to the right place for help. We all can help you. _________________ The Best Way To Be Is Debt Free and Alexandra is becoming free! http://alexandra.yesdebtfree.org

Alexandra
Debt Samaritan

Joined: 10 Aug 2006
Posts: 561

Debtcc Points: 9852

Posted: Wed Nov 15, 2006 8:01 pm Post subject:

Sparkling, First off, welcome! Alot of us have been or are where you are right now. A few things: First off, be very conversant with Texas state law regarding PDL's. In most states, this is not a criminal but a civil matter, meaning you CAN NOT go to jail. And bear in mind that these PDL's are desparate and will try anything and say anything to get you to pay up. And believe me, they don't care if it's true or not! I would contact Langhorne Law. Dennis Williams used to collect for PDL's and has made a complete 380. Give it a try! Take care and post back, OK?

kscornell
Moderator

Joined: 22 Jul 2006
Posts: 3589

Debtcc Points: 32736

Posted: Thu Nov 16, 2006 7:19 am Post subject: Payday loans

I live in minnesota and have 5 payday loans, I pay so much in the fees every two weeks that I can't pay my regular bills, I'm thinking I'm going to have to default on my payday loans but what will happen if I do?

jm
Guest

Debtcc Points: 100

Posted: Thu Nov 16, 2006 7:36 am Post subject:

you have to be firm and fight back!!! i'm in the middle of the same mess too and fighting like crazy!!

drowingindebt

Joined: 10 Nov 2006
Posts: 208

Debtcc Points: 1994

Posted: Thu Nov 16, 2006 9:45 am Post subject:

JN, are the payday loans storefront of internet? If they're internet and the companies aren't licensed in your state, that gives you a lot of leverage. Most storefront PDLs are licensed, so you have to negotiate with them. You can check to see if they're licensed by going to Pollyandsay's blog. To your right in the green section, you'll see "Corporations search by state." Select your state and see if the companies are listed. If not, then they are not licensed in your state. Also go to www.consumerlaw.org/action_agenda/payday_loans/content/NCLC_SUMMARY.pd f to check the laws of your state. Let us know if you need any help. Good luck.