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 Posted: Mon Oct 15, 2007 8:51 am |
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I have several pdls in Texas. Most online and a few in store. What would happen if I were to close my account and not pay these lenders back? Will this affect my credit? I know they don't do a credit check prior to giving the money but don't they use Teletrak?
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macastee
Joined: 15 Oct 2007
Posts: 20
Debtcc Points: 687
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| Posted: Mon Oct 15, 2007 8:53 am |
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I will post something for you to read before closing your account. Also I wil post the laws for your state please let us know who you have loans with, how much you have borrowed, how much you have repaid to each , and which are store front and which are internet
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kashzan
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Joined: 11 Jul 2007
Posts: 5461
Debtcc Points: 38903
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| Posted: Mon Oct 15, 2007 8:56 am |
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| Quote: | Legal Status: Legal
Citation:
7 Tex. Admin. Code § 1.605; Tex. Fin. Code Ann. §§ 342.251 et seq. and 342.601 et seq.
Loan Terms:
Maximum Loan Amount:
Loan Term: 7-31 days
Maximum Finance Rate and Fees: $10 per loan + 48% annual interest
Finance Charge for 14-day $100 loan: $12
APR for 14-day $100 loan: 309%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified ($500 aggregate loans outstanding to all licensees)
Rollovers Permitted: None (if renewal charge is less than maximum interest rate permitted; otherwise convert to declining balance installment note)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: Not Specified
Criminal Action: Not Specified
Where to Complain, Get Information:
Regulator: Texas Office of Consumer Credit Commissioner
Address: 2601 N. Lamar Blvd. Austin TX 78705
Phone: (512) 936-7600
Fax: (512) 936-7610
Regulatory Contact: ,
Regulator Website
http://www.occc.state.tx.us/ |
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kashzan
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Joined: 11 Jul 2007
Posts: 5461
Debtcc Points: 38903
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| Posted: Mon Oct 15, 2007 8:57 am |
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They do use Teletrac which will affect your ability to get other PDLs', rent to own furniture and certain types of very subprime financial transactions.
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volleyballmom
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Joined: 27 Aug 2007
Posts: 4178
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| Posted: Mon Oct 15, 2007 8:59 am |
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| Quote: | Before you close your bank account due to payday loans eating away at your paycheck, please read this.
Some banks have a policy regarding ach transactions that allows them to force open closed accounts if any ach transactions go through within a certain time frame after the account is closed. This can leave you owing a legal bank $1,000's and reported to chexsystems, instead of owing barely legal (or not at all legal) payday loan companies. Not a good thing. Ask your bank what their policy is on ach transactions on closed accounts before you close the account. It's best to go in person and talk to a branch manager.
If your bank does have this policy, tell them your situation. Don't be embarrassed. Take letters with you showing that you have revoked authorization for each of your payday loan companies to debit your account. Tell the bank to put your account on deposit only, an ach block, or a hard hold before they close the account. Your bank can do one of those, don't take no for an answer. This will prevent any payday loan ach's from reopening the bank account.
It'a always best to close your bank account. Leaving it open gives ways for the payday loan companies to continue to take money out. These companies have many different dba's, so blocking them won't work. They will also produce paper checks and run them through your account. Closing the account is the best way to prevent these companies from taking money out of your account.
Some state laws do allow for prosecution if you close your bank account, but that is usually in cases of fraud. But it's always best to check with your state's attorney general or department of financial institution before you close your account. You want to make sure you are not causing more heacaches! |
Please forward the needed info , then we can start to help you
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kashzan
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Posts: 5461
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| Posted: Mon Oct 15, 2007 9:07 am |
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Apple Payday - Paid 80, owe 500
EZ cash - Paid 120, owe 300
Magnum - Paid 0, owe 650
Check n Go - paid 120, owe 300
BIG - paid 160, owe 300
Advance Cash America - paid 200, owe 250
I'm not as worried about my account as I am my credit score when I default on these loans. I read the laws for my state but don't really understand them. It appears that the interest rates are higher than allowed, but I'm not sure.
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macastee
Joined: 15 Oct 2007
Posts: 20
Debtcc Points: 687
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| Posted: Mon Oct 15, 2007 9:09 am |
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What was the amount that you borrowed from each.
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kashzan
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Posts: 5461
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| Posted: Mon Oct 15, 2007 9:11 am |
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Apple - 500
EZ - 300
Magnum - 650
Check n Go - 300
BIG - 300
Advance - 400
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macastee
Joined: 15 Oct 2007
Posts: 20
Debtcc Points: 687
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| Posted: Mon Oct 15, 2007 9:21 am |
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A lot of the pdl's in Texas operate as CSO's . . . Credit Service Organizations. This allows them to bypass any consumer protection laws put in place to limit pdl's.
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goudah2424
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| Posted: Mon Oct 15, 2007 9:29 am |
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I'm not sure what that means. I just want to ensure my credit won't be badly hurt if I default. I've worked hard for my above average score and would rather suffer another several months to pay these lenders back if my other option is to default and have a terrible credit rating for several years.
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Guest
Debtcc Points: 100
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| Posted: Mon Oct 15, 2007 9:35 am |
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Macastee/guest-as a matter of common practice, PDL's do not report to the credit bureau....
However, if they send it to a collection agency, it can be reported and you can dispute the living daylights out of it!
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volleyballmom
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| Posted: Mon Oct 15, 2007 9:37 am |
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I am on your coat tails again Volley.
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kashzan
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| Posted: Mon Oct 15, 2007 9:52 am |
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and I am behind you volley...LOL...
Macastee...check your loan application or the terms note ..that should tell you if they are working as a cso...then they would be legal and the chances higher that they would report you.
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Morningstarr430
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| Posted: Mon Oct 15, 2007 10:00 am |
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It seems I may be better off paying them one at a time. I can't risk my credit rating. Late fees are better than defaulting, I guess. I did try to get Apple to give me a few more days to make a payment and they said it was impossible. I know better than that, but when they have your account info, what can you do?
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| Posted: Mon Oct 15, 2007 10:38 am |
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I can certainly understand your concerns with that...honestly, I thought about that too, as I have decent credit, but I couldnt handle them taking any more of my $$. I will handle any illegal PDL Collection Agencies when the time comes....
I also, like most of us here, closed my checking account.
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volleyballmom
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| Posted: Mon Oct 15, 2007 10:45 am |
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If a collection agency for an IPDL reports you to the credit agencies, cant you have it dispued and deleted, being that the original creditor was illegal in the first place
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kashzan
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