| Message |
Author |
 Posted: Wed Nov 15, 2006 12:10 pm Subject: I stupidly got in a cycle with payday loans |
|
|
I stupidly got in a cycle with payday loans and they are eating my lunch. At this point, I'm considering just closing my current bank account and starting a new one, to stop the ACH withdrawals, and then setting up payment plans with the lenders. Does this plan sound that disastrous, or is there another way to go? I am in Louisiana and have six of these right now, all at varying degrees of being repaid. Thanks.
_________________
Register today to encash debtcc points.
|
|
Needinghelp
Guest
Debtcc Points: 100
|
|
|
| Posted: Wed Nov 15, 2006 12:16 pm Subject: |
|
|
That is what everyone else is doing. Have you checked the laws of your state??
|
|
natdust20
Joined: 19 May 2006
Posts: 1344
Debtcc Points: 14935
|
|
|
| Posted: Wed Nov 15, 2006 12:19 pm Subject: |
|
|
LA state laws is as follows.
| Quote: | Legal Status: Legal
Citation:
La. Stat. Ann. ยง 3578.1 et seq.
Loan Terms:
Maximum Loan Amount: $350
Loan Term: 60 days
Maximum Finance Rate and Fees: $5 documentation fee + the greater of 16.75% of check or $45 (After default: months 1-12: 36% per year; months 13 and beyond: 18% per year)
Finance Charge for 14-day $100 loan: $25
apr for 14-day $100 loan: 650%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: None (cannot renew or rollover but licensee may accept partial payment of 25% of amount advanced plus fees and enter into new loan)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: One NSF fee of actual bank charge (if disclosed) + the greater of $25 or 5% of check (if disclosed); Court Costs; Reasonable Attorney's Fees
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Louisiana Office of Financial Institutions
Address: P.O. Box 94095 Baton Rouge, LA 70804
Phone: (225) 925-4660
Fax: (225) 925-4548
Regulatory Contact: John J. Braud,, Deputy Chief Examiner
http://www.ofi.state.la.us/ |
Before closing the account, find out how much is paid on these accounts. Your state mentions the legal charges that can be added on the principal. If you figure out paying more than what your state allows, go ahead and close the bank account. If there is an outstanding balance, call the lender and offer your plan. If you request them not to use your checking account for withdrawing money, they may do arrangements through money order. First know the situation of your account before taking any move.
|
|
keystrokes
Joined: 13 Jul 2006
Posts: 501
Debtcc Points: 7286
|
|
|
| Posted: Wed Nov 15, 2006 12:26 pm Subject: |
|
|
Yea, like keystrokes said, be sure to see if you have overpaid what your laws allow.
|
|
natdust20
Joined: 19 May 2006
Posts: 1344
Debtcc Points: 14935
|
|
|
| Posted: Wed Nov 15, 2006 12:46 pm Subject: |
|
|
OK. I don't want to have to pay collectons fees to attorneys. But I get my check Friday and will only have 60 dollars left after these guys get through with me. I don't know what to do. I have to wait for this check to go into my direct deposit. If I close my account now, the DD won't go through and it will make things worse. I'm thinking of blocking the ACH on two of them, and then maybe closing my acount next week.
Thanks for the advice.
|
|
irishstory
Joined: 18 Oct 2006
Posts: 3
Debtcc Points: 119
|
|
|
| Posted: Wed Nov 15, 2006 12:54 pm Subject: |
|
|
I would just let your bank know that you want to place stop pays on them and then just go in Friday after your check deposits and withdrawal everything, of transfer it into a new account. Be SURE to ask if your bank allows companies to debit using your social security number. My bank did this, and I had to change banks..
|
|
natdust20
Joined: 19 May 2006
Posts: 1344
Debtcc Points: 14935
|
|
|
| Posted: Wed Nov 15, 2006 1:09 pm Subject: |
|
|
Call the lender and tell him that you are experiencing some financial problems this month. They may do some extensions on your account, you won't need to put a stop payment and bear the fees. See this option if it works.
|
|
onelamb
Joined: 25 Jul 2006
Posts: 436
Debtcc Points: 2736
|
|
|
| Posted: Wed Nov 15, 2006 5:43 pm Subject: |
|
|
I am from LA as well. I've contacted the Office of Financial Affairs in Baton Rouge. While there is nothing that they can do with the internet PDLs, they can do something about the storefront ones. Which ones do you have and if so, are they storefront? Are you registered with the website?
_________________
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 7:12 pm Subject: |
|
|
Be careful in defaulting with the storefront ones. They are normally licensed and will take you to court. With the internet ones, most of them are not even licensed.
|
|
natdust20
Joined: 19 May 2006
Posts: 1344
Debtcc Points: 14935
|
|
|
| Posted: Wed Nov 15, 2006 7:12 pm Subject: |
|
|
It was with the website lenders. I have no storefront loans.
_________________
Register today to cash in debtcc points.
|
|
Guest
Debtcc Points: 100
|
|
|
| Posted: Wed Nov 15, 2006 7:15 pm Subject: |
|
|
The internet lenders will tell you that you have to abide by the laws of where they are, but you don't. The laws are in the state of the consumer, and they are supposed to follow them.
|
|
natdust20
Joined: 19 May 2006
Posts: 1344
Debtcc Points: 14935
|
|
|
| Posted: Tue Nov 21, 2006 10:24 am Subject: |
|
|
Well, I tried to call and work it out with them. They all threatened me to various degrees. None would accept an alternate payment plan. I can't even sleep I'm so worried about this.
_________________
Register today to cash in debtcc points.
|
|
Guest
Debtcc Points: 100
|
|
|
| Posted: Tue Nov 21, 2006 10:28 am Subject: payday loans |
|
|
Guest check with the secretary of state to see if they are licensed. Also call the AG office consumer and antitrust division. File the complaints and maybe your state will take action. Please register here and have a debt counselor contact you. There are legit companies that consolidate payday loans. KYSIDE38
_________________
RYDERS OF THE NIGHT
|
|
KYSIDE38
Joined: 19 Jun 2006
Posts: 2502
Debtcc Points: 37316
|
|
|
| Posted: Tue Nov 21, 2006 11:39 am Subject: |
|
|
I have signed up for this site. How do I get a counselor to contact me? Thanks for all your help.
_________________
Register today to cash in debtcc points.
|
|
Guest
Debtcc Points: 100
|
|
|
| Posted: Tue Nov 21, 2006 12:06 pm Subject: |
|
|
Me too, I need a counselor to call me please.. thank you
Teresa
|
|
resa
Joined: 21 Nov 2006
Posts: 3
Debtcc Points: 92
|
|
|
| Posted: Tue Nov 21, 2006 3:48 pm Subject: |
|
|
You will hear from a counselor in your area soon. In case, you want to call the counselor first, check your email. You will get the details and the phone number.
|
|
ArDeN
Joined: 28 Jun 2006
Posts: 501
Debtcc Points: 6819
|
|
|
