Payday Loans + Divorce = Drowning

I'm really sorry to hear about your situation. Can you give us more information about your situation, so we can help you? What state do you live in. How many payday loans do you have, what are the names? Are they storefront or internet. Also, it will help if you can tell us the original amount of the loan, and how much you have paid so far. Teacher's Credit Union...do you live in IN by any chance?

Are they internet payday loans, or storefronts? Let us know where they are from and for how much...oh, and what state you live in. Some of them may be operating illegally in your state, and you may have paid more than allowed in your state. Also, include the amount you've paid to them so far. There is a light at the end of this tunnel. We've all been through this, so take a deep breath and realize that you're not alone in this mess. :)

Yes, I live in Indiana, near South Bend. I have 6 payday loans. 5 internet and 1 store front.
INTERNET:
MTE FINANCIAL 300.00
SJM MARKETING 300.00
PARAGON LOAN 300.00
3-MIDLAND MARKET 300.00
AIP PROCESSING 200.00
STORE FRONT:
CheckSmart 500.00

I have recently taken out 2, that are included on the list to help pay for other bills. I am getting into a state of panic.

How much have you paid to each of those. Someone else will be by with the max allowed in your state, or I think there's a link on here somewhere that gives you that info.

MTE, AIP and Midland I have paid off several times but then would have to turn around and get another a week or two later. The storefront Checksmart, I have been with and paid off 5 times I bet.

MTE and Midland, on $300 loans, I have paid at least $900 each. AIP, on a $200 loan, probably $1200. and CheckSmart, $2500.

Grovesc, below are the lending laws for Indiana. I think they are really cracking down on payday loans there too. I think there was something on these forums about them. Do not panic, even if you default. They cannot arrest you or charge you with check fraud...these are idle threats! Trust us, many us have been there, including myself. Ok, we also need to know how much you've paid on these loans as well...that way we can figure out if you've overpaid any of them already.

your Indiana State info here http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html

I have used the store front and AIP the most, so that is why they are the highest, the others are fairly new to help me get through the cycle. I have develope anxiety and heart palpatations becasue of all the stress it is putting me under. Toppled with a divorce, I am hurting in both mind and spirit.

I am currently at work and don't have a lot of time I can spend on the message board but I do appreciate any information you can provide me with. I will be checking back in occasionally through out the day and tonight. I appreciate it, Craig.

It look like you have way overpaid MTE, Midland and AIP. You need to file complaints with the AG, BBB, and FTC, so you can at least get some money back. Some people on this board have had luck getting money back from AIP.

Here is a link where you can check if these internet lenders are licensed in your state or not. If you don't see the name, they aren't licensed:

http://www.paydayloaninfo.org/

You need to work out a payment arrangement with Checksmart, as they are licensed. The other internet pdls you have leverage because they are not license to operate in your state, I don't care what crap they say. You need to close your current checking account and open a new one, preferrably at a new bank. Also you need to file complaints against the internet payday loan companies. Be prepared for the onslaught of illegal threats, just know this......they can not charge you with fraud and you won't be arrested. Just make sure you work out a payment arrangement with Checksmart and stick to it. You will get out of this mess.

Indiana just passed a law that states these types of lenders must be licensed in your state to loan money. I heard this from another Indiana resident.

Check out indianaconsumer.com. This is where you can file a complaint :-)

Mishele is right. I think that once you get your complaints in against the unlicensed internet payday loan companies, you are done with them. You only need to work out a repayment agreement with the licensed storefront payday loan company, CheckSmart. You are going to come out of this pdl hell ok. :D

If you find out that any of these internet payday loans are not licensed to operate or collect in your state, then you need to file a complaint with your state's attorney generals office, and they will vanish from your life. Loans may be legal in your state, but are the companies legal to operate in your state? I see good things for you if you follow what I say.

None of the internet payday loan companies are licensed to lend in Indiana. COMPLAIN, COMPLAIN, and COMPLAIN AGAIN!

How do you know what companies can operate in your state and which ones can't? If they are not eligible to operate in your state, are you telling me that I do not have to pay anything back?

I have been posting here since early June..I am in Indiana and have found some very interesting things. 1. Currently no internet payday loans are licensed here. I have been over the list several times since I am fighting 10 of my own. 2. As of 07/01/07 they all have been ordered to cease and desist offering loans to Indiana residents UNLESS they become licensed and obey the Indiana Laws. 3. If they do loan and are not licensed the loan become null and void and non collectable. I can send you my copy if you like or you can find it on the Indiana DFI page of the AG website. Take care of the licensed ones first..those you must pay. Follow what some of us have done here with the others to protect ourselves and get out of the cycle. Please feel free to PM me if you need anything else or can't find info on Indiana...

You have a right to ask the companies for their license number, the one issued for your state. If they do not possess one for your specific state, then they are illegal to do business in your state. If you don't wish to contact them directly, you may find out through your states consumer protection organizations. Trust me, if they are not licensed in your state, then you legally do not have to pay, because they have already broken the law. A contract is not binding if it was made under an illegal umbrella. Keep in touch.

Anthony is right. And if they are not willing to give you the license information to operate in your state, that is a red flag, meaning, they don't have one.

Send this letter via certified mail to the payday loan companies who say you owe. This is an easy way to see if they are licensed in your state.
Sample debt validation letter/ Cease and Desist Letter. Do not pay a collection agency any money without first sending this letter. If you have any questions, please contact Anthony. Just change the wording to what fits your situation.

DV letter format http://www.debtconsolidationcare.com/validation.html

Anthony is exactly right. None of my could cough it up. I also filed complaints and that was a true blessing. I'm filing more now to see if I can get some of my money back.

Man, this is all pretty intense...are you sure this is ok to do?

It will be okay guest. If a PDL is not licensed in your state to issue PDL loans there is not much they can do legally in a court to get that money. That is why they contract with certain collection agencies to try and get the money back. They know they will not be able to get a judgment in court so they rely on intimidation and threats to try and get the money back.

What happens when the account is turned over to a collection agencey?

We have all been there! Take the good advice listed above and you should come out of this ok! First thing to do though is close that checking account! Take care of checksmart first. If you have already paid the internet ones off by your state laws, send them a letter stating this and demand they mark your account paid in full. Be persistant and do not back down! Also in your letter, put a line in there that says: I also revoke any voluntary wage assignment I may have signed. Then you need to notify your payroll dept of this so that they do not try to take your paycheck! If you feel uncomfortable telling them the truth, then tell a little white lie and say that you are the victim of identity theft. This is what I did and my payroll put the note in my file so that no one could take my check :) best of luck to you!

Leah, I apprecaite your info. but I am so leary of getting thrown into jail or having my wages taken away. I am so nervous about this all, am I doing anything illegal?

First you need to check the laws out in your state. Some states make it a criminal act to close a checking account.

State of Indiana.

It will only be a criminal act if you write a check or draft for payment and "voided" checks do not count. For a criminal charge to occur there would have to be a stamp or other written notification from the bank on the actual check or draft stating why the payment was refused. Then the payee would have to send notice in the U.S. mail, not e-mail or a phone call stating that specific check number such and such was denied, which they cannot do with ACH's. Automated debits do not fall into that category. For automated debits its different and most banks would probably advise you to close the account if someone is debiting your account without your permission. As someone said earlier, inform the company that they may no longer debit your account. Also tell the company that you do not have money in your account. Then close the account. Also, to put your mind at ease if your still not sure, Indian law states that if the payee, in your case the PDL know you do not have the funds then you have not broken any laws.

No one goes to jai. Also, they are operating illegally by allowing you to borrow money in a state that does not allow it. Plus, they are not licensed in your state.