Help for Getting out of Payday Loans
Date: Mon, 11/26/2007 - 07:51
1. I have a loan with BIG for $275. I have paid their fees now and in total have paid back $290.00 in fees.
My1 Direct I have paid way over the amount as I had an original loan with them of $250 and I was paying them $75 a paycheck and then I paid back $150 and have paid several $30 fees to them since I have paid the original loan down to $100.
For my cash now I have a loan of $700 and I keep renewing it each month so that I can pay all of the fees for the loan ( $286) coming out of 1 paycheck.
Here are my questions.. I know that the cap on interest rates in NC is ( I believe ) 39% and payday loans are illegal in NC. Can anyone tell me how much interess I would have to pay to BIG on $275 since September 10th? I have paid them a total so far of $290.
For My Cash Now I have saved $500 that I can apply to them when they come calling on the 15th of December and I will also have their $286.00 fee. Can someone tell me if a total of $786 paid back to them is enough to cover the original loan and the interest NC for a 30 dat loan?
I also know several people mentioned some letters that I could fax and I need to see if anyone can help me with the letters as well as the fax numbers, if anyone has them.
I think I am going to close this checking account down and have my direct deposit changed to my new account.
Am I on the right track? I want to do this the right way and I feel that I have paid them what they are owed and I really don't want to have any more fees hit my checking account on Friday if they have been paid.
You all are great and thanks in advance for all of your help!
You would not need to pay them any interest, as pdl's are illega
You would not need to pay them any interest, as pdl's are illegal there. Illegal loans cannot charge interest.
Angela, if pdls are prohibited in NC, It is acceptable to pay ba
Angela, if pdls are prohibited in NC, It is acceptable to pay back only what you borrowed. As for closing your account please read the following so you are aware of what to ask when you go to your bank...
Quote:
Before you close your bank account due to payday loans eating away at your paycheck, please read this. Some banks have a policy regarding ach transactions that allows them to force open closed accounts if any ach transactions go through within a certain time frame after the account is closed. This can leave you owing a legal bank $1,000's and reported to chexsystems, instead of owing barely legal (or not at all legal) payday loan companies. Not a good thing. Ask your bank what their policy is on ach transactions on closed accounts before you close the account. It's best to go in person and talk to a branch manager. If your bank does have this policy, tell them your situation. Don't be embarrassed. Take letters with you showing that you have revoked authorization for each of your payday loan companies to debit your account. Tell the bank to put your account on deposit only, an ach block, or a hard hold before they close the account. Your bank can do one of those, don't take no for an answer. This will prevent any payday loan ach's from reopening the bank account. It'a always best to close your bank account. Leaving it open gives ways for the payday loan companies to continue to take money out. These companies have many different dba's, so blocking them won't work. They will also produce paper checks and run them through your account. Closing the account is the best way to prevent these companies from taking money out of your account. Some state laws do allow for prosecution if you close your bank account, but that is usually in cases of fraud. But it's always best to check with your state's attorney general or department of financial institution before you close your account. You want to make sure you are not causing more heacaches! (posted by Goudah) |
Do this quickly if the fees are coming out on Friday. Do not tell them you are going to close your account before you do so or they will try to get their money before they are scheduled.
Angela, you are on the right track. I will pm you a letter to u
Angela, you are on the right track. I will pm you a letter to use to send to the companies. DO you know how to use pm?
I,too, would get with your bank asap and try to get this done. Y
I,too, would get with your bank asap and try to get this done. You want to give them several days to make sure they have taken care of your account, and also read the post about what to do before closing it..good luck..karen--I moved this to Pay day loan Forum :D
I can check with the bank on their policies. I know in some ins
I can check with the bank on their policies. I know in some instancs an automatic credit will force an account back open. So as far as my cash now... Since I have renewed the loand and paid the $286.00 fee each time I assume I will still need to pay them the entire $700. Is that correct? Do you guys know what I need to put in a letter to them and where I need to send them? I apologize for seeming so needy but I have been paying on these things for so long that my head is spinning.
I believe that you only need to pay back what you borrowed. Add
I believe that you only need to pay back what you borrowed. Add all the fees that you have paid, deduct that from the balance and that is all you need to repay. You have already paid a part back to them. these loans are not legal in NC.