typical?

staffordworks -

Welcome to the forums! Trust me, you are not alone. We have all been there - we may not all make the same amount of money as you do, but we've all gotten sucked into the payday loan trap, just like you did. And we found our way out with the help of the advice on this site.

First, can you provide us some info, so we can offer you some advice:

-the state you live in
-what companies you have payday loans with
-are they online or storefront loans?
-how much was each original loan and how much have you paid so far?

If you can post that info, we'll gladly offer you some advice.

dont see my reply on the thread....

ugh, my post was lost, forum software seems a bit buggy.

Washington State
Magnum(online)1100 4x467 to pay off
Moneytree 700 5x159 to pay off
MoneyMart - DFG 700 95 fee rollover
CheckMasters 700 95 fee rollover
Allied Cash Adv. 700 95 fee rollover
Dollarwise 550 80 fee to rollover
usfastcash(online) one $65 payment left to pay off 300

Thanks!!!
-Dave

Hi Dave -

Thanks for posting that info, now we can get to work on this! :-)

Here is the payday loan law info for Washington State:

Quote:

Dave - here's what I found on the payday lenders you listed:

Magnum (internet) - not licensed in WA.
Moneytree - LICENSED
Moneymart - not licensed in WA.
Checkmasters - not licensed in WA.
Allied Cash Advance - LICENSED
Dollarwise - not licensed in WA.
US Fast Cash - not licensed in WA.

Now, with all that information gathered, let's work on what to do with it.

You need to find out if any of those unlicensed storefront lenders are doing business under another name, or are licensed under another name. It looks like most storefront lenders in Washington State are licensed - but it's possible the names you've given me to search on might be a D/B/A name, and they may be licensed under a parent corporation's name instead. You might want to check into this - look at the paperwork you signed for all the storefront lenders and see if there are any other company names on them (especially in the fine print).

Now, let's tackle the amounts loaned to you and the amounts you've paid:

Magnum - Loan amount $1100 - this company has exceeded the maximum loan amount set by the state of Washington. They are also exceeding the allowable interest rate set by the state by charging you $768 (based on your statement of "4 x $467 to pay off - 4 x $467 = $1868 - 1100 original loan amt = $768 interest charged)

Moneytree - Loan amount $700 (legal) - fee $95. Is this a rollover fee, or the interest charged? Rollovers are prohibited per Washington State law.

Moneymart - Loan amount $700 (legal) - fee $95 - again, rollover fee or interest?

Checkmasters - ditto the two above.

Allied Cash Advance - ditto again.

Dollarwise - $550 loan amount (within legal limits), rollovers prohibited in Washington State.

USAFastCash - $300 loan, - how much have you paid on this one so far?

The legal storefront lenders will need to be paid off, as they are operating within the law and will proceed with collection activity against you if you default. Talk to them, and explain your situation - pride aside - and ask for a repayment plan.

The internet lenders are another story. With USAFastCash, we need to know how much you have paid them so far - in interest and pricipal. Internet lenders are notorious for making you think you've paid in full, then demanding more money because "you only paid interest, not principal". With Magnum, we need to know how much you have paid them so far - they are overcharging on interest, according to your state's law.

I hope this helps!

I assume that the reason for this is that there is some way I would not have to pay them back if they werent properly licenced to lend to me in the 1st place? its a long shot, I think all the places that I deal with are very legit, especially the online one, I have applied for some online that right away say they cant lend in my state.

I think what I really need is consolidation, there was a google add on this site for someone who sounded shadier than the lenders (maybe just a poorly made site) who would 'fight' the lenders and get your debt reduced by half but then take a fee of half again themselves, leaving you with a 25% gain on the whole thing.

That didnt sit well with me, so far none of them have tried to rip me off, in fact on 2 occasions one of them got my check sent back to them, I called and told them there was nothing I could do until next payday, they only charged me the $25 nsf fee, essentially for re-borrowing the money for another 2 weeks instead of $95 and as soon as I showed up and took care of my obligation they let me re-loan.

anyway, I saw some posts on other companies that do consolidation of payday loans but for some reason there is a rule that you cant post their names on the forum? so one of the posts said you had to sign up and ask someone, I think thats what I really need.

thanks!
dave

Dave - since you have registered with the site, a debt counselor will be contacting you soon for a free consultation, based on the information provided when you registered here. You will be able to discuss the consolidation of your payday loans with them. Many companies that consolidate debts do charge a fee for their services - the choice is yours as to what company you choose to use. We do have a ranking chart of consolidation agencies on the site listed by state:

http://www.debtconsolidationcare.com/ranking-chart/

Also, please check out the benefits of debt consolidation here:

http://www.debtconsolidationcare.com/benefits.html

If you have any questions or concerns, please let us know - we're here to help!

I do have to say, Dave, the fact that some of the online lenders told you upfront that they could not lend in your state is very encouraging. Would you mind posting the names of those companies, if you remember them? It tells us that the online companies are starting to get the message that they cannot continue lending illegally and get away with it.

sorry, posted my last post at the same time you were giving me more info

yes, they are all very likely licenced under a different name, moneymart is DFG from Delaware for example

I have no true "rollover" loans entirely because of the laws in washington, I think someone actually thought this would protect consumers but it actually puts me in great physical danger and makes it far more likely that I will have greater financial problems: I have to take out $1000 in cash every payday, walk through the worsts parts of town PAY OFF, my loan, count to 3, borrow again, then pay the next guy, carry the money overnight and go to 2 more places.

Magnum might be outside the law but even though their rate is a tad higher its a much much smarter loan, they steer you very strongly toward a payoff plan, if you try to 'rollover' you end up without all of your money for a week then pay the same fee for a much shorter time, or, you can do a 4 payment plan, that is very hard to pay but when you are done, you are done.

USAFastCash was a 300 loan, there is only one payment left of $65 so I dont need to worry about that one. I know what you mean by tricking you with interest only, but I am one of those read the fine print kind of people, this on let me pay interest only for 5 payments then take 5 payments to pay off.

so, this one is the only rollover but its about gone anyway

the rest are $95/$80 fees, borrow 700 write a check for $795

Magnum I have just started with, the first payment of 467 will come out on tuesday, I have done one 4 payment plan and one full pay off at once loan with them previously.

so lets go under the assumption that they are all somehow within the law, very likely how do I consolidate them?

if magnum should not have lent me that much or charged me that much interest doesnt that just get them in trouble? dont I still owe them the money I borrowed?

thanks
dave

sorry dont have their names, many months ago and they turned me a way in seconds so I didnt get the names.

Hi again, Dave - not a problem at all about the posts - that happens sometimes. I just wanted to be sure you got all the info you needed.

As far as Magnum lending outside the law in your state, I would recommend paying them off as quickly as possible, or getting them into the same debt consolidation plan as the others, if you decide to go that route. With consolidation, you would definitely be saving money in the long run, because this cycle could go on forever, if you don't get out of it soon. We've all been there and we all know exactly what you're going through. What you don't want to do is default on any of these loans, because that's when it becomes particularly viscious. The fees and charges start piling up, and the next thing you know, you have no paycheck left at all.

And I understand your point about the weekly run through town to pay all the loans back - won't it be nice not to have to do that anymore?

I think consolidation would be a good idea for you - definitely talk to the consultant when they call you about that, but if you feel another program would be a better fit for you, see if you can contact one of the ones listed on our Ranking Chart in your state.

Keep us posted on your progress!

Thanks for your help, I do think consolidation is the best way, even without a reduction in fees, even if it cost some on top of that I could have a clear clean plan to follow, managing these loans is an incredible job, takes a great deal of my time and energy and every time I make a mistake it costs me dearly, I have a plan to be free from these by may but one tiny bump in the road (like my cat needing to go to the vet last month for $700) and it all comes tumbling down.

thanks
dave

Not a problem, Dave, keep us posted on your progress, and stay around to help others with your experience! :-)

I dont see a 'chart' on that page, after some digging I did come across a list of local companies but it was more like ads for them, with 2 user postings each that looked very scripted. perhaps there are just no companies on the chart in my state? the page just goes straight from talking about the chart below to a related links section at the bottom, nothing in between.

like this:

We have done the groundwork for you. Also check our special Ranking Chart Listed Companies Representatives Section
******************expected to see the chart here*****
Subcategories


thx

Dave---Are you saying you saw the sub categories? I went to the ranking page and clicked on US and all the states came up. Is that what you did?

I also wanted to mention in reponse to your initial post, that getting caught in the PDL trap has nothing to do with how much money you earn or what credit cards you have or don't have----Don't feel bad and beat yourself up about it. It is about people getting in a bind,going to these places thinking it will get them out of the bind and it doesn't. It just causes the vicious cycle to continue. We ALL can relate!

yes, went to the sub categories then the state then just had a list of local places, guess thats all there is. The place that I was refered to was not on that list and is in florida. ok, well just confusing guess thats all there was.

as for getting into the pdl trap, I guess my situation just proves that having the knowledge, wisdom/experience to 'know better' makes no difference. if the power is going to get turned off, the car repossessed the cats going to die, one thing after another month after month, you do have a choice, you can let the power get turned off, the car repossessed, the cat can be allowed to suffer and die and with those simple choices you can avoid the pdl trap.

thats the giant problem, in fact a rep from the pdl industry in defending their position said something dead on, 'there are no alternatives out there, we have no competetion' and the reason for that is legislation, their fees are exempt from usery laws, so the very next level up from where they are can only charge me 25% in the state of washington for lending money to a 'high risk' borrower. What I wouldnt give for a loan that charged 100%apy and automatically came right out of my bank account every payday for 6 months. Considering my rating, the amount of money I would need, etc.. that would be a fair and reasonable relationship. but it would be illegal.

so, I really did know better, I knew I was only delaying and increasing the problem but I still feel like I didnt have other choices I should have made.

I say all of this because I know there are others out there who feel the same, wait, I read the fine print, I fully planned on re-taking out that loan next time, I read the part that said 'this is not a long term solution' that they have to put on the forms, and laughed, knowing it very well would be.

I actually think that nothing could solve this problem better for this country than the very capitolism that created it in the first place. someone out there need to figure out that there are billions of dollars changing hands here, 'these people' clearly have money, I gave pdl people 16 THOUSAND dollars just in 'fees' last year but I cant get a $300 credit card. clearly something in the market is being held back that shouldnt.

just my 2 cents :)

dave

Dave - you make some excellent points in your last post. I do hope you are able to find a company that will work with you on consolidation.

Personally, I think the entire payday lending industry as a whole should be eliminated. It's a trap, pure and simple, and the states are so varied in the way they regulate this industry that someone living in Utah can really get hammered with fees and interest, and really not have any recourse or help from their state, while someone in a PDL-prohibited state can at least file a complaint with their state regulator or attorney general and hopefully get some help. Without strict, across-the-board regulation, the payday lending industry is just running amuck and having a great time, making a lot of money doing it.

I wouldnt be in this trap if this was not one of my options, as a provider when there is 'some way' to keep the lights on, you have to. I also paid $3350 in nsf fees for my 'right side of the tracks' bank to provide the same service, short term financial solution, up to $300 they dont return the checks.

I think if there were national regulation that said that loans that are for less than 45 days can charge up to 75% interest, you would find that pdl places would fold in droves, bigger places like moneytree would only lend to higher end customers with perhaps a credit check and essentially a whole new business would be formed. Lower end custmomers have a different problem, they are underemployed, they must have a job to get the loan but I really feel for someone living on minimum wage trying to get out of this, there's no way, I feel very fortunate to have a high income, at least I have options, painful ones, but options none the less.

dave