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

Payday loan Relief - What state are you in??

Payday loan Relief - TEXAS

Have you checked your laws for payday loan??? These laws can give relief to you pdl problem.

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 for payday loan relief. But I am not for sure. I don't want to assume anything.

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.

Here is a little info that I found, I hope it helps to explain payday loan relief...

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

thank you very much for helping me understand payday loan relief... i will log back in tomorrow. have a good night!

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 for payday loan relief, who does PDLs. Most of the people going through this company are very pleased with their work.

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 for payday loan relief. 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.

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. State laws will give relief from payday loan debt. 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?

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?

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

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.pdf to check the laws of your state. Let us know if you need any help for payday loan relief. Good luck.

thank you all for your Payday Loan Relief help...this will give me a path in order to take for turning my life around. it is really sad that your financial situation can take an overwhelming effect on your emotional wellbeing. i was really depressed & now i have a positive outlook on the opportunities to correct my mistakes. thank you all again!!! i will be on soon to share & to seek out further advice as needed!

The best of luck to you.

sparkling last week i was feeling the same way, i read a lot on the forums ather all my strenghts and started emailig this Sons of B@#$&^ and as i result i got my first PIF letter today.

good luck to you do a lot of reading and you will see a light at the end of the tunnel

Congratulations, Drowning - that's great news! This will happen for you, too, Sparkling. Just hang in there.

Congradulations Drowning, It sure feels good to be set free dont it? Best Wishes KYSIDE38

I have a payday loan where they are holding a personal check of mine. If I don't go pay them back and I put a stop payment on my check can I go to jail. It is for $1,000. I am going to pay them half the loan amount back now and half back in two weeks. I just can't afford to make payment all at once. Do u think they will work with me?

If you are willing to make that kind of down payment, I would hope they do. Which state are you in? I know a few states allow criminal prosecution for defaulting but that is only if the debtor closes the account or stops payment on the check before it can be deposited.

OK I am in the same spot. How do you consolidate pay day loans in California and is it possible.

i am so behind on my bills its not even funny,so much stress right now i cant take much more.what should i do?

Lil wayne, can you give us more details? Why are you behind on your bills? Is it because of Pay day loans? If so, please list what state you are in, who you borrowed from, how much you borrowed from each company and how much you have paid back to each company in so called fees?

I currently have about $5,000 in payday loans due. They're four storefronts. 3 of them for $1,300, and 1 for about $1,000. All of them in Texas. My wife and I are serious aout paying them off, and can afford to do so, with a consolidation loan. Have you heard of any lenders willing to take that risk?

I'm in the same situation with these payday loans! I only have one store front which is working with me to pay back the rest are internet. I called Lanhorne (which they were very nice), but there were not able to help me since I live in Florida. Do you know of anyone else that I could go to for help?

sandy, I also live in Florida what PDL's internet do you have? and how much? the store front will usually work with you if they are licensed in the state which they have to be in Florida.

Between my husband and I we are stuck with 6 payday loans that total up to $2500. We both make decent money, but we are losing close to $800 in fees each month, so we are struggling to pay bills. I have just tried to apply for a loan at American General and they denied me for deliquent credit and no real estate (we rent). I don''t know what we are going to do! I have no doubt we couldn''t pay a small loan if I could just find some one to lend me the money to pay these @#^*& off! :( Any one have suggestions for Virginia residents?

how do u find out if the internet payday loans are licensed in your state or not? thanks

I am in CO and am in trouble with 5 payday loans I can't pay back. I went to Consumer credit counseling Services. They attempted to make payment arrangements with the lenders, but the lenders say they won't work with CCCS. I could have managed the plan CCCS presented to my lenders, but the lenders won't budge. What do I do?

I feel that PDL's are basically a horrible horrible addiction. I was in the same situation 1 year ago, and the way I got out of it was to obtain a loan through a company. I used this loan to pay off the 4 PDL's I had out (a total of $3000). So something else came up, (I don????????t even remember what started it) and I got another PDL. This one PDL turned into another one, and then another one, until now when I have 7 of the dang things out, for a total of $4675! These are all store front loans, and located in the state of Washington. I have tried everything now to get out of this, and then my adjustable rate mortgage adjusts to make my loan payment go up $300.00 more for my mortgage a month! I feel like I am literally drowning in debt right now and my stupidity of going to all these PDL places only compounded my situation. Any suggestions will be greatly appreciated???????next I am doing a garage sale to try to raise at least a little of the money???????then I????????ll sell my van, but I can only do so much with a huge load of monthly payments every month!!

(email removed for your safety. cannr)

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rob, can you list out for us who the storefronts are? We can check the CFSA member list and see if any of them are members. If they are, you can invoke the EPP (extended payment plan) and pay these loans off in 4 equal payments coinciding with your paydates. They may not all be members, but maybe some are. It might help.

Here they are:
Check into Cash Olympia, WA $575.00/
Express Financial Center Olympia, WA $575.00/ CheckMate, Olympia, WA $795.00/ Advance Til Payday,Shelton, WA $795.00/ Loans 4 U, Shelton, WA $795.00/ Money Depot,Shelton, WA $345.00/ Advance America, Shelton, WA $795.00/ Total owed to all: $4,675.00

Thanks so much for responding...I will do anything (legal) to get myself out of this mess, my family is suffering :(

Even if I did get them to agree to a 4 payday payoff, I don't think I could get any of them to agree to hold my check for the months that it takes to pay them all off! I've thought of doing that and because I have 7 of them outstanding, it will still kill me financially, so how would that work?

Advance America, Check Mate, Check Into Cash, and Advance Til Payday are all showing as members of the CFSA.

Express Financial Center - is that the same as Express Cash Advance? Or no?

rob, if you can do even one or two of the checks with the EPP (you have to go to the storefront at least one day BEFORE the loan is due), it might help. It's not like you have to do all of your loans at once. It's a process trying to get out from under pdls. We all know that! Can you try doing one or two with the EPP? And, I know this sounds insane, but you can keep carrying over a couple (I know, I know!) until you're in a position to pay them either in full or with the EPP. Or you could contact each one of the storefronts, speak with the manager, and swear up and down you lost your job (whatever) and can not pay these in full and tell them that you need to be put on a payment plan. I'm just trying to give you all the options I can think of to try to slowly get you out of this mess. If you can work a couple with the EPP, great! If you have to carry a couple over again, then oh well. You gotta do what you gotta do. If you can contact the storefronts managers and get them to put you on a payment plan and they agree, great! If you try that approach and it gets you nowhere or the manager is a jerk, call the corporate office. They are usually much nicer to deal with and will usually work with you regarding making payments. I hope this all makes sense to you. If not, just post any questions. I understand you can't pay all of these at once. Hell, I've been there. If you can do like two at a time, that's good. It's going to take awhile to get them all paid off. Please post if you have any questions.

Thanks cannr:

What????????s really killing me is my mortgage payment, combined with a car payment, a personal loan, and another loan my brother got for me which I pay him monthly.

My mortgage is 1300 per month, my car 300 a month, personal loan # 1 is 158 a month, and my brother????????s loan is 400 per month, and then $460.00 in just fees for the pdl????????s! I tried to refinance my house to cover the car payment and personal loans, but each one was turned down because my previous refinance over-valued my home, so now when I get an appraisal it comes in lower than what I owe on the loan. So refinance as a way out was nixed.

Next I thought ok, a repayment play through the pdl????????s. However, what happens with a repayment plan is I would first pay the fees for the loans the first month, then they would split the remainder into 3 equal amounts.

So I would still have to pay the fees the first month, and then my repayment of the loans would even be higher the next months. So if I did 2 of them, say the 575????????s, that would be 150 in fees the first month (they make you pay just the fees the 1st month and then split the principal over 3 months), then 3 payments of 166.00 each ($333.00 per month) plus the remaining fees on the others while I paid off the 2 575 loans. So then my total per month 75+75+95+95+95+95+45 for the first repayment month (480 per month) and then the remaining 3 months of the repayment period would be $333+425. ($768 per month!). That would leave 5 loans left, 795+795+795+795+345. Repeating the process to pay off 2 of them for the next 4 months, say paying the 795 and 345 loan off, would mean paying the fees of 95 + 45, and then splitting it into 3 equal payments (700/3=233 per month and 300/3 =100 per month ( $333.00 per month for 3 months, plus the remaining 3 795 loans would be 95+95+95=for a total of $618 per month for 3 more months). So far that would rid me of the two $575 loans, and one $795 loan and the one $345 loan, leaving me with three 795 loans to repay. So next I would start a repayment of two of those loans. Month one I would pay $95 fees X 3, for a total of $285. Month two, three and four would be 700/2 ($350.00) + 95 for a total for 3 months of $445 per month. That would leave me with just the one $795.00 loan to repay, which I would pay $95 in fees the first month and then $700/3 the next 3 months ($233.00 per month) and then finally after 24 months of repayment I would be free.

The problem with that is I would be paying such a huge amount in fees over the repayment periods that it would be impossible to fit into my budget. I am considering getting a paper route, have my wife do child care, sell my stuff, anything to get out of this mess, but the easiest route would be to have one low interest loan to cover the $4675.00 total of loans, or even like $3,000 would help. I am going to call my mortgage company and ask them if I can restructure my mortgage to avoid foreclosure, perhaps skipping 2 payments. That would free up $1100.00 (not including my taxes and insurance) for 2 months to pay off a few of the loans. Then the Federal tax rebate stimulus check of $1500.00 should come in May or June which I would apply to the other ones. You can see by the novel I wrote above that this is a huge mess! I hope you can decipher what I wrote!

rob, I can understand it just fine! Now, I understand what you're saying. Your money situation is to the point to where you have too much going out each month (as many of us do). Okay, when I'm talking about doing the EPP with the storefronts, what happens is no further fees are added on/no collection efforts will be taken. Say you owe $575 to a storefront that is a member of the CFSA. You go in and invoke the EPP. What would happen is the amount remains $575. You will be set up on 4 equal payments coinciding with your paydates of $143.75. I don't know if you can swing this either with all your other payments. But I wanted to explain that CFSA members will not charge you added fees/interest/etc. Nor will collection efforts start if you are making your payments. Now, on the flip side, with so much debt, have you considered calling the debtcc phone number? You can tell them about all your debts, and they can point you in the right direction that might be able to help you out. It never hurts to just call and see what someone has to say. If you want to call, the number is 1-800-601-1579. They might be able to give you some insight as to alternatives that you have. Also, there are a couple of companies that deal with pdls. I know you have to pay them money to handle them for you; however, many members here have used them for pdls. I'm just trying to give you all the options I can think of to help you out!

Thanks! I will call that number and try to find these companies that deal with PDL's. I'll keep ya posted.

rob, thanks! Please do let us know what's going on. There might be many options out there for you. I have my fingers crossed and wishing you only luck! Let us know! :wink:

Well I called a debt counselor and they recommended calling my Mortgage company to request a forbearance. I'm calling them tomorrow and going to ask them to let me skip 5 monthly payments and add the interest to my loan balance. That will free up $5500.00 to pay off the PDL's I hope they agree to do this, it's my best chance!

Oh, rob! At least they gave you advice and pointed you in a direction to go! I hope so much that your mortgage company will agree to this. You said it's your best chance, so I'm going to cross my fingers and pray to God that they agree. If this will help you out, then I'm certainly all for it! Please, please keep me posted as to how it goes.

Well I called my mortgage company and they basically told me that I need to be behind in my mortgage before they can offer a forbearance. If I skip 2 mortgage payments ($1300) each, they will send a demand letter, after which I need to contact them to work out a forbearance or they would proceed into foreclosure. I told them I would rather not miss any mortgage payments, and begged them to offer a forbearance without me resorting to missing mortgage payments. They wouldn't budge. If I skipped only 3 months mortgage payments, I would be able to pay $3900.00 on these loans, and then the stimulous check should come in May or June, which would be another $1500.00 to apply toward the PDL's. So that would be more than enough to pay off the $4675. But after another 3 months, wouldn't the amount I owe be more? trying to budget out how to go about the circus of paying these off one at a time gave me a huge headache!! I would reduce over 3 months the amount I borrow until it hits 0, but the math is insane!!

rob, here's what's bothering me about your pdls - will they even hold the checks for that long? That's a long time for a storefront. They might go ape sh** and send you off to collections or where ever. Here's my concern, if you can't pay these for months, what can they do? When I'm reading your state pdl law it says "not specified" under criminal action. I don't even want to think about them taking any kind of criminal action against you! Where do you stand with the storefronts? I mean, would they be willing to hold them and you make small payments to them as you can? Or are you thinking of just paying and rewriting until you have the entire amount to pay them off? I hope you can understand what I'm asking here. It's hard to type what you're thinking!

What I am considering is not paying my mortgage for 3 months. my mortgage is $1300.00 and that X 3 is $3600.00, and in May or June I will get the IRS Stimulus check of $1500.00 since I filed a joint return with 1 child. All of this money I would use to pay off the PDL's. So I would be 3 months behind on my mortgage, but then I would ask them for a forbearance because they would lose money if they foreclosed on my house, and foreclosure takes about 6 months if I am not mistaken. My other alternative would be to switch my storefront PDL's to internet loans using my alternate bank account, but then I would still be stuck in PDL's unless I defaulted and the loans I took out didn't comply with my state laws.

AAARRRGGUUUHHH!! Don't switch the storefronts to internets! Oh Lord have mercy! I think you just gave me a heart attack! :lol: You're trying to get out of this mess, not just turn it around! Okay, rob, I understand where you're coming from. You won't get into trouble for not paying your mortgage for 3 months? It just sounds pretty darn scary to me. And, again,my point being with the storefronts, will they hold them for that long? I know what you're trying to do. You're trying to pay everyone off. So, are you going to pay a couple a month? Instead of paying your mortgage? Is that your plan? Like pay 2 or 3 off a month? Please don't get into any trouble by not paying your mortgage payments. That's your house. You need a place to live!

I agree cannr, so should I go to the store fronts and tell them the whole story, or just the part where I need them to hold my check for a few months to get caught up? I am going to call back my mortgage company one more time to try to escalate to higher management before I skip my payments as well. What I would do when I skip my mortgage payment is pay off each of them over the course of 3 months. I would reloan less and less each of the 3 months until I owed $0.00 on all of them.

rob, that's what I was wondering. Because what you stated is possible. To carry them over (I hate to say that) for just a bit longer. The only reason I say to carry them over for a bit longer (and you have the right mind set - reloan for less and less until you can pay them in full) is because you have so many storefronts. Now, it's almost impossible to pay all these guys off at once. I can totally understand that. Unless you win the lottery here real soon! So, I've done it and advised others to do it. To try to pay off maybe one or two at a time. If you have to carry over some, then you have to carry them over (it kills me to even say that). But I'm being realistic. There's no way you can pay all of them off at once. I wish to God you could! But I see that we're on the same page here. You can ask the storefronts if they can hold them and if you can make small payments on them until you are in the position to pay them in full. If they refuse, you can just do what we're talking about. You can pay a couple, carry over the others. Slowly you'll get them paid off. Once one or two are paid in full, move on to two more, etc. It's a slow process and it hurts in the meantime (because you're out money), but eventually they will all be gone. I'm just not wanting to see anything bad happen regarding your house. That's your priority. I don't want to see rob out on the curb! If you can get results from your mortgage company, wonderful! However, if you have to tackle these things one at a time, carry the others over (oh, it kills me!) for a bit, then that's okay. Eventually, within a few months, you should be okay. You'll have some or all paid in full. It's up to you what you want to say to the storefronts. Some will be understanding and others will be real jerks. If they're jerks, then carry those ones over (for less money). If they are understanding, take them up on a payment arrangement. I know it's going to hurt for awhile money-wise. I lived it. But, damn, now that they're gone, it feels so good. It was kind of worth "suffering" for a few months.

That's my plan, cannr. I know all too well that I have to reloan to repay, but just making the amount that I reloan each time smaller and smaller until it hits the magic $0.00 is the best course of action. cannr, the reason I was considering switching to internet loans was because I already have an alternate checking account (although it is with the same bank: BOA) so I would give all the internet PDL companies that routing number to keep my primary account safe, as all I use this secondary account for is for my wife to have joint account access. I would then shut down this bank account and then repay the Internet loans on my own terms instead of giving them all the power to debit my account. Plus, wouldn't I have the added advantage of the internet PDL companies not being licensed in my state if I chose the right ones?

also, according to this website, criminal action is prohibited in Washington state regarding PDL's:

http://www.paydayloaninfo.org/state_detail.cfm?id=WA

You're correct, rob. And I do understand what you're saying. However, it's MUCH worse to have internet pdls than storefronts (believe it or not). I see there is a way "around the system", but actually it's not a good thing to do. It's like getting all these pdls on the internet knowing that they're not licensed and taking advantage of the fact that they're not licensed to lend to you. I mean, I understand it's a way out of your mess, but in the end, it would be a bigger mess. These guys can be ruthless. They can haunt you for years. There is always the chance of them tracking down your "real" bank account (and I know this for a fact!). The hassle of dealing with the letters, the phone calls, the complaints.... Oh, the agony of it all! I swear, I see what you're saying. Honestly, I do. But, in my opinion, it's better to deal with the storefronts. It's up to you, rob. But, me personally, I wouldn't do it. I would just stick with the problem I already had, try to deal with it slowly but surely, and get them done and over with. Once you're done with a storefront, you are honestly done. When dealing with internets, it's almost never over.

Well I guess that makes sense. My wife's 30th birthday is in 2 months, and her parents always give their kids a big check on their 30th birthday, so I am hoping that this "big" check is big enough to recover from this mess. The thing I can't believe is how I dug myself out of this same mess awhile back and then jumped right back in...it's like I am insane or something. Or are payday loans like an addiction or something?? Either way, I will never do this again!!