payday loan HELP!!!!

Lynda, plesae, both you and your husband try not to stress...We will do our best to help you. Can you tell me whihc storefronts you have loans with and if you still have the paperwork...on there anywhere does it say the store is a Credit Service Organization. I will find the Texas Laws and post them but if they are a Credit Service Organization, they do not have to follow the PDL law. So please, post who the storefronts are and if you are current.

Here are the Texas Laws:

Texas State Information here
http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html

first loan is from Ace Credit Services for $1000 ---we owe them a payment as of the 1st of Dec. so right now of $200 They have not bothered us yet but I know they will call in a day or so.

The second loan is from EZ Money for $700 ----we owe them a payment of $143 right now, which is just intrest and then in a couple of weeks the payment is supposed to increase to $200 to cover some of the principle. My husband tried to talk to them today and arrange something --they gave him till Saturday, Dec 8. We still will not have the money then.

The payments on both of the loans are due twice a month at my husbands pay intervals --so we are paying out over $800 a month. I just can not keep on top of it. This pay period ---on the first, I has to choose between the rent or the payday loans. ---I paid the rent.

My husband is sick with worry. EZ Money is already calling friends, work etc. I don't know what to do. I have the original papers --where would it state if they were a credit service organization???

thank you for any and all help.

Lynda, not sure where it would be on there, I have not seen one personally. Just read over it see if it mentions CSO or anything like that. Worst case...we wait until tomorrow when one of the Moderators who is very familiar with Texas is on. I will go search the site and see what I can find.

Lynda, I just searched the site and found where the Moderator I was talking about listed both ACE and EZ Money as CSO's...this would mean that the laws I posted do not apply. NOw let us see what the next course of action would be.

I just found on the Ace Credit loan --the promissory note is actually from the lender-- True Financial Services. It states further down that "CSO" refers to Ace. It states "you must pay in care of the CSO at the location that you arranged this loan."

Also I found on the Easy Money paper "the term CSO mans EZ money loan services, a registered Texas credit services organization ...


I hope this was what you were looking for.

The annual intrest rate on the EZ money loan is 496.68%

The annual intrest rate on the Ace Loan is 739.97%

Yes, that is exactly what I was looking for. As I stated above these companies do not have to follow the laws above. In Texas, these companies do this to get around the pay day loan laws...I am continuing to research. You said your husband tried to work out a payment plan with them? And they were not helpful?

My husband called EZ Money and told them that he could not pay the loan right now. He wanted to work something out with them to take care of it, and what his options were. They told him that they would give him until Saturday to pay either the whole thing or the bi-monthly payment. Then it would go into collections or something.

If I could come up with the bi-monthly payment --I only see that as a temporary fix. and would still owe the other loan.

So if the companies, are getting around the law by operating as a CSO. What does that mean, if I default?

Lynda, more than likely, if he can not pay, it will go to collections, they could also take you to civil court. I know you said they are calling work and references, try to keep talking to them to keep them from calling work. I would suggest your husband keep going up the chain of management in these stores. If he is not getting cooperation from the store clerks, ask to speak to a mananger, and their mananger and on up the line. And I do not know if it will help but he may want to try going there in person.

thanks so much for your help. I just talked with my husband and he is going to try to call them tomorrow or go in to the store. Do you know how long it will stay in collections before going to civil court? Would it be better to deal with the collection agency and try to barter down the amount owed?

Do we need to close our bank account or tell the bank to not accept a draft from these places? Will they try to take them money from our account. Which has nothing in it at the moment --but our paycheck is direct deposited.


thanks for everything. We do truly appreciate all the help.

Lynda, please both of you please hang in there. My opinion is...and this is just an opinion, if your credit can take it, I would deal with the collection agency. I do not know which way the store will go with the loan..if they will go to a CA or straight to civil court. I am afraid to advise closing your account right now. I am going to pm our Moderator Goudah and ask her to read this thread. She is familiar with CSO's and hopefully can advise you further. Biggest thing, do not give up. Again, please hang in there. We are always here...if he has questions or trouble or you just need to vent. We will be here.

thanks any advice anyone can give us in dealing with these people is very much appreciated. I know my husband it trying not to stress to much but I know he is worried sick. We are here in TX with no family to help us----so we need to dig out of this. He is worried of how it will affect us -his family kids etc.

I am also in Texas and dealing with store front loan.
I closed my bank account and defaulted. I talked to the store manager and she was extremely helpful. She talked to her manager and called me back and told me she couldn't do anything at her level. It will go to the corp office next and they will call me. She said that interest stops when it defaults and I will only have to pay principle. She said corp will try to get me to refinance but she said off the record that I should tell them no and let them know I don't have a bank account and I want pay arrangements. She said they will probably except this and not prosecute.Hope this gives you some insight.

yes, it does give some insight into the situation. Thanks so much for posting your experience thus far. I hope that all will work out for you. Please, let me know what happens or anything you found helpful in dealing with corporate.

It's been awhile since I have been on this site and posted anything but I see the song remains the same. It just saddens me to see good hard working people get caught up in the Payday loan scam, it was getting hard for me to read all these stories. Let me put my two cents worth in here.
First, lets look at the stress you are under. You are making payments equivelant to a monthly mortgage and have nothing to show for it and are making no progress, it is hurting you financially in other areas as well. Next, the PDL administrators are now calling friends, family, work, etc, causing you further stress and embarrassment in an attempt to shame you. Your husband is also sick with worry. All this over a measely $1800.00.
My suggestion is to cash out any and all things of value you own and get out of this ASAP. You are married, sell the wedding rings. I gaurantee that the stress of the PDL is far greater than the sadness of selling items of sentimental value and selling them will do far less damage to your relationship and social status. My point is here is that I think you should aggressively get your hands on cash you do not need to repay to anyone and get out of what you are in at all costs. You can replace things with new and improved ones when times get better.
Awhile back I swallowed my pride and took my own advice, boat, car, sled, all sold. It wasn't easy, not in the least, but that decision has repayed me many times over. So take it for whatever you think it is worth, I wish you great wisdom.

There are two options with the bank account. I have heard of people that were taken to court for bounced pdl checks, so you have to be careful.

You can keep the account open, take all the money out of the account, stop any overdraft protection, and let the checks bounce. Warn the places before hand, and let them send you to collections. Then you can make payments. The bad part is that you do run the chance of being taken to court for a bad check.

Or you can go to your bank and tell them that you lost your purse and your checkbook was inside. They will close the account. Don't open a new one at that bank. Call your places, tell them that you lost your purse and your bank account has been closed. Write them a letter with the same info. Ask to make payments. They will probably say no, but then they may also send you to collections, where you may have an easier time setting up payments. This way if they try to prosecute you for a bad check, you can show that you had a valid reason for closing the account, and that it wasn't just to avoid payment.

There are quite a few storefront places that don't use outside collection agencies. So it is not a sure bet that your debt will go to a collection agency.

Thank you Goudah. That was my concern, I read conflicting posts about whether you will go to court or not.

Thanks for the info. How does it work if you did not write the place a check but authorized them to take the money out ----does that work on the same bases as a bad check?

My husband is going to try to talk with the places today. I also am trying to get a loan from our bank to hopefully cover everything. I doubt that we can get the loan but it is worth a shot. I just hope we can work all this out easily.

We just did not realize how much of trap these loans are! It is really such a visious cycle.

lynda, what? You have storefronts, but you didn't write them a check? Exactly how did you do the transaction? Do they have a check from you at all?

my husband had to show them a check --one place EZ money gave him back the blank check and copied down the account info and there is an authorization clause in the loan papers that they can EFT the money from our account ..here is the paragraph as written.....in the Ez pay

"PROMISE TO PAY: You promise to pay $702.88 in 1 payment on the due date indicated and other charges, if any, as provided in this note. If the name of your depository and checking account are inserted in the note you authorize us to initiate one or more EFT debit entries to your checking account for payment of the loan and any fees that may be due and owing hereunder on or after the due date. You may revoke authorization to Lender's address specified above by making a payment to us in care of the CSO at the CSO location where you recieved your credit services for this loan. If there are insufficient funds on deposit in your checking account the effect EFT debit entry or otherwise pay the sun of $702.88 on the due date, you promise to pay all sums you owe by mailing a money order to us at the lender's address specified above or by making payment to us in care of the CSO at this CSO location where you recieved your credit services for this loan. Payments you make in care of the CSO are binding upon us as lender."





The other place ACe Credit services took my husbands blank check not signed --and he said they stamped void all over it and then kept the check. In that contract it states...."You agree to provide us SCH authorization to debit your checking account at your bank. If you do not pay us on time, either directly or in the care of the CSO, you authorize us or your agents, to initiate an ACH debit to your account for any amount due to us with regard to this loan. You are not authorizing us to initiate ACH debits on your account to recur at substantially regular intervals. However, lender or its agent may resubmit an SCH debit up to three times if the debit is not honored by your bank. You will maintain a balance of available funds in your account at least equal to the amount due and owing under this agreement. You understand that your bank may impose charges for each SCH debit that is not honored by your bank. You agree that an ACH debit authorized under this agreement may be combined with an ACH debit that you authorized you CSO to make in regards to this loan."





Would this count the same as say writing a bad check???

lynda, the way I am reading what your loan documents say - the first one clearly states that:
If there are insufficient funds on deposit in your checking account the effect EFT debit entry or otherwise pay the sun of $702.88 on the due date, you promise to pay all sums you owe by mailing a money order to us at the lender's address specified above or by making payment to us in care of the CSO at this CSO location where you recieved your credit services for this loan. Payments you make in care of the CSO are binding upon us as lender."
To me it's saying that you can revoke their debit authorization and make payment to them.

The second one states:

You agree to provide us SCH authorization to debit your checking account at your bank. If you do not pay us on time, either directly or in the care of the CSO, you authorize us or your agents, to initiate an ACH debit to your account for any amount due to us with regard to this loan.

To me, this means if you don't go in there and pay it, they will debit your account.

Now, I'm leaning towards goudah's second suggestion for your situation. The suggestion of going to your bank and telling them that your checkbook was stolen. The bank will close the account and open a new one for you. This way (as goudah stated), they can not say that you closed your account to "get out of paying". The account was closed by the bank because of potential identity theft. Texas pdl does not specify "criminal action", so I get paranoid. However, another member posted that they did close their account. I'm just afraid to say "close your account" with storefront loans unless the state law specifies "criminal action PROHIBITED". Unfortunately, yours does not. If you opt to use goudah's suggestion (which is a good one), then you would need to get the bank account closed, open a new one, and then immediately notify each storefront that the bank closed your account due to potential identity theft and that you will have to make payments. The first one obviously states that you can revoke debit authorization. The second one is just saying that you'll have the money in the account if you don't go in and pay. Well, if your account was closed by the bank for a legit reason (stolen checkbook), they can't scream "fraud" at you. Also, as roxy posted, if they do just send you to collections, it's almost easier to deal with them. I am not in Texas; however, I defaulted on storefronts and found it MUCH nicer to deal with their corporate office regarding making payments. They are much nicer than the storefront managers. Think about it and let me know your thoughts.