Payday Loan Nightmare in Kansas

mark...welcome to our forum...can you please tell us in they are internet or storefront...also how much has been paid on each...not what you think in principle but just what on each has been paid in fee's etc..ie:loan =500/300 paid...I will print your state laws.

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

paying on the three of these since January. They are all storefront loans. I renew them every 2 weeks when I get paid. I figure I have spent $3600 in interest on $1500 in loans.

They're store fronts. More than likely operating legally/licensed. On your state pdl law, it says rollovers/extensions - unspecified. Huh. Okay. Don't know exactly what that means. However, it also states criminal action is prohibited. Your best bet, since these are store fronts is to contact each one. Tell them a story. Make something up. Hell, lie. Tell them you cannot pay them in full and re-write. Tell them you lost your job, whatever. Tell them you will need a repayment plan. Tell them you intend to pay them; however, you do not have the funds to pay them in full and re-write. Because they will want you to do that. Some store fronts will just hold your check until it's paid off and then give you your check back. Some store fronts have to turn it in to the bank at least once and get it returned for NSF fees before they can work out a re-payment plan. Honestly, you need to contact them though. Some might be easy to deal with. They might hold it for 30 days for you to PIF. They might let you pay on it each week until it's PIF. They're all different. But you have to stress that you do not have the funds to pay it in full. They usually insist you pay in full and re-write (and the cycle never ends). Or you can take the risky way and let them turn the checks in and get them returned NSF. They will contact you and then you'll be able to work out a payment plan. My advice is to try to contact them first. You might be surprised at how they react. They might just let you make payments. It's an endless cycle if you keep paying and re-writing. Believe me, I know. The reason I say "tell them a story" is because they will try to get PIF out of you. If you "lost your job", you certainly don't have the money to pay them! Try calling them and giving them a story and see what they can work out with you.

You need to get control over your finanical situation. You should close your checking account so that you can gain control over your financial situation. But before you close your account read this thread first: http://www.debtconsolidationcare.com/paydayloan/close-account.html . Follow all of the advice given on this thread (morningstar and Cannr) as everyone has been there. If you have any other questions please don't hesitate to ask. Do not re-write another check, like cannr said they want to keep you in paying them and the cycle never ends. They tried to do that to me and I refused. I notified them before hand that I was unable to pay the checks in full and needed to set up a payment schedule. One told me they had to present the check to my bank so they had record of NSF, well I had closed the account prior to this but I also notified them beforehand. As soon as they received it back they agreed to payment arrangements.

Make sure that you maintain contact with them because if they are store-fronts they are most likely licensed to operate in your state and could sue you if you do not pay. Keep the lines of comminication open with them.

I also drafted a letter and sent it to them certified/return receipt requested stating the situation and a payment agreement that they signed and sent back to me. Make sure that when you set up payment arrangements they are affordable to you in your situation so you don't over extend yourself.

ladybug

Ladybug - I fixed the link so that it will work. Goudah

ladybug, I like the idea of sending the letters to the store fronts. Now, when you did this, what did you say? And what kind of payment arrangement did you offer them? And you had them sign it and return it to you? Did they try to hound you via telephone every day? Let me know. I really like that idea. And, did you send a payment with the first letter sent? Or wait until they agreed before sending any payment? Also, (I know a lot of questions!) did you just mail them payments or go in there and make payments?

Hi ladybug, thanks for the info! I tried your link but it doesn't work. I would like to know exactly what steps you took to resolve your situation if you have the time to tell me. I need to get on top of this asap because I am due this Friday and want to end it NOW!! Thanks alot to all of you for your help and I the best for all of you who make this site the great help that it is!!!!

ladybug might come along later. In the meantime, I'm going to tell you about the bank since the link didn't work for you. If you want to, close your account. Do it now. Your state law prohibits criminal action. It also states one NSF fee, so they can only turn your check in once to the bank. If you close it now, before Friday, you might be okay. But some banks are different. Some will close it, but it might get forced open by pending debits. However, if you have no pending debits (as these are store fronts loans - they have the check),you might be okay. Ask while closing it, ask for them to check if anything is pending. Do this ASAP so that by Friday it'll be totally closed. The store fronts may not immediately turn it in to the bank on Friday. They may wait a few days before actually turning it in. Then it'll be returned as "closed" or "NSF" or whatever. Then they will have to make payment arrangements with you. They have no other way of getting the money since the account is closed. I really like ladybug's idea of writing them a letter and stating that your check will not clear, you had to close your account due to fraudulent charges (or whatever), that you are unable to pay it in full and must make payments on it. Ladybug will be around to go into detail some more. But I just wanted to jump in here real quick and leave a note. Because if Friday is your due date, have your bank account taken care of by then - before then. Ask your bank if you close the account, will it REMAIN closed. Ask them if the account would be forced open in any way. Make them tell you that it is completely closed and will not be forced open. Open a new account. I'd go to a different bank. You do whatever you like. But ask all these questions at the bank when you go to close the account. And if they hassle you regarding closing your account (banks hate that) tell them you're moving, you lost your job, whatever. Just tell them something to shut them up. You just want it CLOSED. :D Hopefully ladybug will come along and give more detailed information on her experience regarding the letters. I am also interested in her procedure.

Here is the letter that I sent. We are having a thunderstorm so hopefully I won't be electrocuted (lol). Here it goes feel free to use it:

Quote:

I really appreciate the help from both of you. I know it will cost me some more money, but I'm going to stop-payment on the checks and then when everything has cleared my account by early next week I am going to close the account and open another. I wish I could just close it now, but I must cover my first month rent on the home I have to move into on the first since my home is in foreclosure and I must be out by 9/15. I am also having my only vehicle (the family vehicle) repossessed because of my financial situation. Not to worry though,..I think these baby steps will get me on the right track at some time in the future. Now all I have to do is get an agreement on a $8000 credit card debt which in collection and I will have everything pretty much worked out. WOW,..what a mess life can be!!

mark, you said it perfectly - "baby steps". You are on the road to recovery. It takes time and it's one thing at a time. You get this taken care of and your bank account taken care of, get some money coming in again, and you can work on that credit card crap. I'm sorry to hear about your house being foreclosed on and your car being hauled away. That really does bite. But, look, you're here. You're looking for help. You're willing to do what it takes to fix all this. You're strong and working towards your goal. You've got it going on! Hang in there! And we're here to help you. Whenever you have a question or a problem, just post. Here we are! :D
And, ladybug, thank goodness you didn't get electrocuted!!! I would miss you! Plus, I really wanted that letter so I could print it out for myself! LOL! Really, I'm glad you're still alive! Awesome idea and awesome letter, girlfriend!

Well I sent out the letters and they received them today. One store called me and left a message asking for me to discuss the letter. Should I speak with them or not? The letter is self-explanatory in my opinion and there isn't really anything to discuss, but should I maintain contact with them?

I would absolutly maintain contact with them. Communication is the key to not getting sued.

If anything, call them back to see what they are going to say.

I agree with Goudah, the more willing they see you trying to take care of this matter, the more willing they are going to work with you.

ladybug

I am going to call them. I appreciate the help!!

mark, please post as to what the store fronts had to say. I pretty much thought they would call you once they got "the letter". LOL! :lol: But I'm just hoping they don't try the "Well, pay us and re-write and then you'll have money again." I've gotten that story myself from store fronts. Crazy. That's why I suggested the "little white lies" of losing your job, etc. Whatever gets the point across that you are unable to pay them! Please keep us posted. If it takes a few "little white lies" to get you on a payment plan and out of this vicious cycle, I'm all for it. Please let us know how this turns out.

Well I got my first call from just one of the three stores. They ask me if I could have it paid off by Oct. 4 or they would have to send it to collection. I told here it just wasn't possible, so do what you have to do if my plan is unacceptable. We'll see what happens from here! Haven't heard anything from the other two stores yet.

mark, okay, they're doing what I think the majority will attempt to do. They're holding it for 30 days (which is usually the maximum according to pdl law). If you can't pay it by October 4th, I guess they'll just turn it over to collections. At least you can make payments on it! The other two will probably try the same thing. The most I ever got out of a store front was 30 days. Most of them just wanted to give me a week. Uh, okay! But, at least now you know what's going to happen. They'll turn you over to collections. Okay. So you make payments them. Now, they'll probably add on a NSF or something to your total amount. And, hopefully, they'll just turn it over to a collection agency and not an attorney. If someone turns it over to an attorney, then they'll add on the attorney cost to your total amount. Wonderful. But, hey, now you know what's the worst that's going to happen! :D Collection agency - make payments. Which is what you wanted to do the whole time! Thanks for letting us know what's going on. If you hear from the other two, come on back and let us know what they said.

The only thing that concerns me about store front loans, is what Goudah said, they tend to sue! So please keep in contact and try to work something out with them..KAren :D