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

Just wanted to give a quick update on my issues. I spoke with a debt consolidation counselor (the company????????s name is ???????Springboard???????) and the gentleman on the phone suggested I contact the company who handles my 401k plan, and he suggested that I withdraw money from my 401k plan. I can????????t believe I never considered this, but I thought that I had to quit my job before I could get into those funds. I contacted my retirement brokerage company and they are going to try to give me a hardship withdrawal which would incur no fees or taxes. If they finalize the agreement, I will be able to withdraw up to $10,000 from this account!

Another idea I wanted to give to people which got me out of this mess (so I thought) last time was I obtained a loan through the website prosper.com Prosper has a system where people bid on your loan, so your loan is split amongst a certain amount of people. If your credit score is about 600ish, I would say you have a good chance of getting a loan through that site, but below that, I doubt it. It????????s just something to consider. I will keep you posted as to whether my withdrawal from my retirement account works out!

rob, oh, I just hate to see you have to use your 401K money. However, if this is the way out for you, then you do whatever is best for you. So, you got one of those Prosper Loans? I've read about them. Some people on here had gotten one and it did help them out. Now, as for getting stuck back in they cycle, I honestly don't believe that pdls are "addictive" (my personal opinion). I just think that they are just so easy to get and they are a quick answer. Hell, you're out of money? Drive 5 minutes away and walk out the door with cash! That's what's awful about them. They're too easy and they're too tempting. Whatever you decide to do, rob, just let us know. We are behind you no matter what. I just want to see you escape from this dark hole and be "normal" again! Please let us know the outcome! :wink:

well crap, I just got off the phone with my 401k people and they said they don't allow taking out money until you either quit working at the employer the plan is under, or until I turn 59. So that sucks. And I am getting really nervous about missing any mortgage payments, so I don't know what I'm gonna do now...

The prosper loan helped me out at the time because it allowed me to pay off the amount I owed on payday loans and pay it off over time with a much lower interest rate. I got one at 25% interest rate, and I'm still paying $158.00 a month on it until next year. So it did help me out at the time and I would be fine right now had I not gone back into the PDL trap! If I could get another prosper loan right now I don't think it would help me because I would just incur another monthly bill, although it would be far less than the $575.00/month in fees I am currenltly paying.

Well this has been eating away at me. I can't figure out what to do. I think instead of not paying my mortgage, I am going to not pay these payday loans (for right now). I am going to reloan one more time and then starting next month I am not going to repay them at my own pace. I just can't risk getting foreclosed on over some stupid payday loans. Or maybe I won't reloan one more time, because that means I will have to reloan at one additional place to cover the fees. Ugh! what do I do?

Okay, rob. I totally know where you're coming from. I'm sorry, but your home comes first. Sorry about everyone's luck. You need a friggin place to live and food on your table and gas in your car to get to work to make some money. Crap! Now, is there a way that you can try paying ONE off? I know it'll hurt. Maybe just do one at a time? I honestly understand that there is no way you can pay them all off at once. No one can. Can you do one? If you can do one, that's one off your list. Then do one more. Let me look at your laws again. Hang on.

Okay, I'll be honest - I don't like your state pdl law! :lol: It's got too many "unspecified" things on it. I was wanting to see if there was a limit to the number of loans you can have (unspecified). I was wanting to know if any kind of criminal action can be taken against you if you defaulted on your loans (unspecified). Drives me crazy! I do know that quite a few of your pdls are members of the CFSA. Can you MAYBE try doing the EPP with one or two of them and carrying the others over? At least this way you're working on one or two at getting them paid in full. Carry the others over again (hate to say that). Then when those EPP ones are done, do another one or two with the EPP, carry over the remaining ones until those EPP ones are done. Can you try that? Other than that, if it's not possible money-wise for you to do this (and I understand completely), we need to find out what kind of "action" could be taken against you if you default on your loans. In the states where it is specified that criminal action is prohibited, it's a bit easier. At least they know they will not be criminally prosecuted. They can go to CIVIL court if it comes down to that, but not CRIMINAL court. Let me know where you stand regarding any type of repayment plan (if it's possible). Maybe we can get some help in finding out what happens in your particular state when a person defaults on a pdl. I mean, like it's never happened! You know it has. We just need to know how far they can pursue action against a person who does.

doesn't this site:

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

state that criminal action is prohibited? I was in court on an unrelated civil matter and I saw a payday loan company rep. at the court with a huge file. I think they can only pursue civil action. If they all went to collections I could repay them over time, or they could garnish my wages one at a time, which would be better than the situation I'm in right now!

rob, oh my God! I was looking at the laws for DC! You are absolutely correct! You do know that this is good news! Okay, you're thinking right here. I know it sucks to say "Default on your loans." However, in some cases that's the only way to get them paid. And, of course, they're going to get paid. I had to default on a few of my storefronts just so that I could get them taken care of. You're so right though. If they turn you over to collections, you can make payments. If they do decide to go so far as civil court, then you can show up, sit down, and make payment arrangments. I don't know about you, but I'm feeling some relief here. How do you feel about the whole defaulting thing?

I feel much better defaulting on my payday loans than I do about defaulting on my mortgage, that's for sure. But I am worried about closing my bank account. I don't have all the check numbers from the loans I recently did, so I'm afraid when I close my bank account, all 7 of these checks are going to bounce, which my bank charges $35.00 a peice, and then each PDL place can charge an extra $25.00 apiece. So that would add on an extra $420.00, and then if they do take me to court, I would have to pay up to $200.00 in attorney fees for each of them. Is there any ammo I can use when I go to court to fight these that a judge may take into consideration? Should I send a letter to each PDL company requesting a payment plan? I think if I request a repayment plan, no matter how small, it would go a long way in court. I could find out exactly how much money I have paid the PDL branches over the past year and bring those figures to court, but how does that play into my state's PDL laws? I'm sure on a few of them I have paid back more than the principal I have borrowed, but I really didn't keep that good of records.

rob, why are you afraid of closing your bank account? If you don't close the account, you would have to do a stop payment on each check (and you don't know the check numbers) and you would still have to pay their stop payment fee for each one. If you close the account, the checks will be turned in to the bank and returned to the pdl as NSF/CLOSED ACCOUNT or something along those lines. I think mine said account closed. However, I wasn't worried because they can't pursue criminal action. So, you can close the account. This way, if it's possible for you to do, even if the storefronts do put the checks through, it's closed. No bank fees, no nothing. It's just closed. The checks will be returned to the storefronts. Honestly, that's your cheapest option. Just close it and open a new one. Deny your head off to the pdls that you have a bank account or they will try to force you to re-write. Deny, deny, deny. You do NOT have a bank account. And, yes, write them each a letter. I would say call them; however, there would be no documentation. You want all the documentation you can possibly have. Write them each a letter, acknowledge your debt, tell them you've fallen on hard times, tell them you lost your job, tell them whatever you want. Tell them YOUR BANK closed your account and you no longer have a bank account. Tell them that you need to set up payments as you can not pay them in full, have no bank account, etc. Then maybe even slip in a "payment plan" to see if they will agree to it. Hell, go for it! Keep copies of everything. And, if you do find records for your loans, drag all that out. Just keep it handy. Make sense here???

Oh, that makes sense. I was afraid if I closed my bank account I would have to still pay the bank NSF fees when the checks started rolling in. I do have a separate checking account, but with the same bank. Will those be able to be linked in any way? Should I open up a bank account with a completely separate bank, or will my other account with the same bank be safe?

You need to just have a talk with your bank customer relations person or manager. They will expel any reservations you have about closing your account. I found that out. I am still mopping up the mess and suspect I will be for sometime...but NSF charges with the bank over the PDL's are not one of them.
Those internet PDL's will charge you an arm and a leg...$30 per $100 you borrow every debit...not a good trade off. Forget that. Please.
I fear you will have to be like me, just taking things one step at a time.
I opened another account with the same bank. No problem so far.

thanks for that egypt! I am going to talk with my bank tomorrow after work. I also found out my school is sending me a refund check of $1,000 so I will put that money to good use. I will be sending out letters to the PDL stores in the next couple days certified. I'm sure if I send them each an offer to pay $20.00 per month until they are all paid off, and they still try to take me to court, the judge will take my offer into consideration instead of just automatically ruling in their favor.

Also, I do not know what mortgage company you are with and even if they say they will do a forbearance, I would not trust them to do so? That is an even scarey-ier propostion.
Besides, like me, if these PDL's take you to court they can only make you pay what you have available. If you show the amount of income, the monthly living expenses.. then what is left is what you can pay? Right or wrong? I would say half of what I make is going to PDL's...how sick is that.
You are not addicted to PDL's...probably like me...you wanted to pay everyone and keep them paid?
I am beginning to feel like I made a pact with Lucifer himself. Your soul for the money to pay your bills?
I think all we can do and trust me, I am in as deep as you, is to become addicted to this site and those who have been here and dealt with it....BREATH and take one step at a time.

I need some advice. I have 10 payday loans with a total amount of $5000. I am looking into Langhorne, but am unsure. Does anyone know if I can go to jail or be sued in the state of PA for closing my checking account so the ACH debits are stopped?

payday companies:
Soniccash
Netcashusa
Cashnetusa
Paychecktoday
Mypaydayloan
Paydayone
Oneclickcash
littleloanshoppe
cashcentral
eastside lenders
webpday loans

are any of these licensed in PA?

Jon - please check the other thread you started with this info for more help. We try to keep responses down to one thread per subject to keep all your information in one place. It's easier for you to find your answers that way! :-)

wondering if anyone can help me get started with this battle. I live in MN and have 4 internet PDLs that I am soon not going to be able to pay.

sjuber, I can post your state pdl law for us all to see. Once we do this, can you please state for us who your pdls are, if they are storefront or internet loans, the amount borrowed (principle amount only) and how much you have paid them total so far to date. We can see where you stand and go from there! :D

Minnesota State Information

Legal Status: Legal

Citation:
Minn. Stat. ???? 47.60 et seq.

Loan Terms:
Maximum Loan Amount: $350
Loan Term: Max: 30 days
Maximum Finance Rate and Fees: $5.50: $0-$50; 10%+$5: $51-$100; 7% (min. $10) + $5: $101-$250; 6% (min. $17.50) + $5: $251-$350 (After default: 2.75% per month)
Finance Charge for 14-day $100 loan: $15
apr for 14-day $100 loan: 390%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: None (cannot repay with proceeds of another loan by same lender)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: $30 NSF fee
Criminal Action:

Where to Complain, Get Information:
Regulator: Minnesota Department of Commerce
Address: Division of Financial Examinations, 85 7th Place East, Suite 500 St. Paul MN 55101
Phone: (651) 296-2135
Fax: (651) 296-8591
Regulatory Contact: Kevin Murphy,, Deputy Commissioner

I am sure it doesn't help any, but I have 11 PDL's (that I know of!) and I owe taxes too! 2K!!!! ARGH. I can't see the end of the tunnel at all yet.

mittens, I promise you, the light is there. I know it sucks right now; however, soon you will be free. I can speak from experience. :wink:

I have three payday loans I cannot keep up with paying them. They are not internet loans they were taken out in person. What will happen if my Checking account closes on those checks? What can I do?

I have been forced to take out 8 PDL's to not have my car repo'd and be evicted due to job loss. I now cannot pay these fees that has cleaned out my bank account with NSF charges before deposits were made into my account. They keep changing names and running my checkes thriugh to now I have a -625.00 in NSF that I can't pay either. Can I be thrown in jail. I have called these people to stop and went tothe bank to stop all ACH. But that did not work. What can I do? Are the PDL assistance programs legit. So far everyone wants these "sign up fee's? If I had the money to begin with whats with the start up fees? I understand a monthly.

is there help to reduce the cost of the loans without them taking it out of you account

I owe 2500 in payday loans. What company is reputable to consolidate.

Hello, I have several (at least 6) payday loans out - all internet. I am trying to figure out how to get out from under these things quickly. I am trying to understand what exactly my options are. Can someone help?

I see you are in Florida.

Brini we need the names of the loan companies, if they are internet or store front. Also how much was the loan for and how much have you have paid including fees.

You may want to create a new thread as this one is old.