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Payday Loan Nightmare Please HELP ME ! ! !

Date: Tue, 06/05/2007 - 18:17

Submitted by Ms. Drea
on Tue, 06/05/2007 - 18:17

Posts: 7 Credits: [Donate]

Total Replies: 8


TO start off I'm a 24 year old college student with a full time job. I'm currently a supervisor at Home Depot Direct and taking courses to obtain my associates degree in General Studies via Phoenix University online. I have 5 pdl's and 1 installment loan. I'm so deep in debt to these companies that a weekly paycheck where I'd normally see $650 take home is barely $200 a week. I feel like I've hit wits end and I must say I know I've come to the right place for help. I don't know where to begin. I've been reading threads on this site for 2 days now and have gotten a little insight, but this whole ordeal is a bit scary to me. I cuurently owe the following creditors:

PayDay Select $500.00 (principle) Paid $968.00
CashNetUSA $500.00 (principle) Paid $300.00
MyCashNow $200.00 (principle) Paid $500.00
United Cash Loans $150.00 (principle) Paid $45.00
Check N Go $1025.00(principle) Paid $660.00

I have seen what the small loan laws are in PA, but not sure how they work as it pertains to these pdl's. None of these are store front loans, all of them are via the internet.

I'm am so desperate, someone please help me, help myself !


Ms Drea,
I'm glad you came! And don't worry, you are not the only person here who got sucked in, myself included. The first thing I can tell you is not to pay the PDL's you've overpaid one more dime. You do need to payback the principal on the ones you haven't paid, however.
On the ones you've overpaid, demand that your accounts be marked paid in full, or you will complain to your state's attorney general's office. You also need to either close your bank account and reopen a new one, or block these companies from your account, if possible.
Most IPDL's are not licensed in your state, but you need to verify this.
Good luck, we are always here for you.


lrhall41

Submitted by kscornell on Wed, 06/06/2007 - 01:04

( Posts: 4407 | Credits: )


go to paydayloaninfo.org. This will show you the payday loan laws in your state. I'm not too familiar with them. I do agree with kscornell that you will need to send the ones you have overpaid a letter or e-mail stating to mark your account paid in full. I would definitely close your account and open a new one. If you can block the debits, go that route or whatever works best for you.


lrhall41

Submitted by Cow & Chicken on Wed, 06/06/2007 - 05:12

( Posts: 3571 | Credits: )


Here's some info about PA laws regarding payday loans (just select your state),

http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html

Emails to and from PA Banking Dept

Quote:

Hello,

I have a question about payday loans in Pennsylvania. Does the small loan rate cap of $9.50 per $100 per year discount or 24% per year apply to these loans? I took out a few on the internet and am trying to figure out how much I legally need to pay. For instance on a $200 loan would I be legally responsible for paying back only $248?

Thanks!


Reply

Dear Ms.:

The 9.5 discount and the 24 % simple interest refer to calculations that can be used by companies that are operating in Pennsylvania and are licensed under Pennsylvania????????s Consumer Discount Company Act. With a number of exceptions, a lender that is located inside of Pennsylvania and who does not have any special lending authority (i.e., a special license or charter) who is making smaller loans not secured by real estate can only charge interest at a rate of 6% simple.

A lender that does not have a physical presence in Pennsylvania but who has lending authority from some other state can generally charge the interest rate and finance charges allowed by that other state.

The Department may or may not be reviewing this policy and I would not count on this e-mail as an interpretive opinion before starting any lending or business operations.

James Keiser | Administrator Non-Depository Institutions

17 North Second Street, 13th Floor | Hbg PA 17101
Phone: 717.783.8242 | Fax: 717.787.8773
jkeiser(at)state.pa.us | www.banking.state.pa.us


lrhall41

Submitted by goudah2424 on Wed, 06/06/2007 - 07:43

( Posts: 7935 | Credits: )


Thanks everyone for the words and wisdom. I have begun to take action I'm going to close my account this Friday and open a new account with my bank. I have also began to send out emails and faxes to all of the pdls I have overpaid and am making payment arrangements with the ones I still owe a little money too.


lrhall41

Submitted by Ms. Drea on Wed, 06/06/2007 - 16:52

( Posts: 7 | Credits: )