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I stupidly got in a cycle with payday loans

Date: Wed, 11/15/2006 - 11:10

Submitted by anonymous
on Wed, 11/15/2006 - 11:10

Posts: 202330 Credits: [Donate]

Total Replies: 16


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.


LA state laws is as follows.

Quote:

Legal Status: Legal

Citation:
La. Stat. Ann. ???? 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.


lrhall41

Submitted by keystrokes on Wed, 11/15/2006 - 11:19

( Posts: 495 | Credits: )


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.


lrhall41

Submitted by irishstory-d1 on Wed, 11/15/2006 - 11:46

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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..


lrhall41

Submitted by natdust20 on Wed, 11/15/2006 - 11:54

( Posts: 1345 | Credits: )


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


lrhall41

Submitted by KYSIDE38 on Tue, 11/21/2006 - 09:28

( Posts: 2477 | Credits: )