Payday Loan Help in New Jersey

Here are the Payday loan laws for New Jersey (just select your state), Hang in there, someone will be along to help you shortly.

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

It looks like pdl's are illegal in your state, which means you are only obligated to pay back the principal amount, but please hang in there until someone with more knowledge about this comes along to verify it.

Alston, I too just started on this site about a week and half ago I also live in NJ and have 10 payday loans. I got great advise from a couple of people that like shazzers said it is illegal. They will better explain how to go about getting out of this mess. I also have some of the same payday loans as you have The Loan Shop, B&L Marketing and PayCheck Today. I received my first 2 calls yesterday about defaulting and I will be on this site everyday until it all goes away, I morally only owe 1 out of the 10 loans I have since I paid the rest way over the amount of the original loan+fee. Hang in there this site has been my savior.

Shazzers is correct , these loans are indeed illegal in NJ. The only way to get these companies to stop debiting your account is to close it. I have posted above something to read prior to doing this. Open a new account and do not give the info out. You are only obligated to repay the principle amount borrowed. There is light at the end of the tunnel. After your account is closed you can send these companies a letter(we can send you a sample). DONOT contact any of them before your account is safe or they will go in and take everything.

You also need to send out letters revoking any wage assignments that you may have signed. Wage assignments are voluntary and can be revoked at any time. Also give a copy to your payroll person.

Thanks so much everyone for your support!

I opened a new account online with Wachovia this morning. They are due to debit my account again tomorrow. Should I let them or try to put an ACH block on the account tonight?

Thanks
Christine

Actually, payday loans are not illegal - This is another state where they just capped the interest rate at such a low rate that it makes payday lending not profitable. But the loans themselves are not illegal. Check Cashers cannot loan on postdated checks. As long as the business is not loaning on a post dated check, they can still do a payday loan. But they can only charge 30% interest.

Goudah, please clarify!!! Why do the laws say they are illegal ? Is there an update list of state laws.

Many state's have enacted laws that cap the interest rate so low that it makes it unprofitable for payday lenders to do business. That doesn't make it illegal for a lender, it just means they can only charge pennies for the loan. In the practical sense, no lender will loan under those laws, as they won't make any money. But they stil could, as long as the interest rate was 30% or less, and were not a check casher using a post dated check.

Laws like this drive all the payday loan companies out of the state, making it seem as though they are prohibited. It really just makes it totally unprofitable, and no one is going to lend money as a business if they can't make some money on it.

I don't want to confuse anyone - None of the loans posted above are legal because none of them will be charging less then 30% interest, and are not going to be licensed by NJ.

Laws capping interest rates like above effectivly make payday loan businesses gone. No legit company would loan for those rates.

Here is some text from an email received:

Quote:

Why is it profitable in Florida at 10 percent but not profitable in NJ at 30 percent. It is true that there are no payday stores in NJ. I am from there and they are all over in Fla. where I live now! I would loan money all day long at 30 percent if I had it! I am a little confused? On my way home now I will read tomorrow!

I think I answered my own question. It is the check casher regs.

I signed on a payday loan 8 months ago. I made the first two payments, and than lost my job. I closed my account at the bank. Months later, still not working, collecting 580.00 a month, and these calls from a attorney's office ( not very pleasant people) demanding money, or else i could face jail time. But the firms were all out of state, eg. New York/PA. And both told me they did not know what the NJ laws were with cases like this. I did research- got another call- told them a few things (was not pleasant neither) and it chilled off for almost three months now. I told them if i had intentions not to pay the loan off, than why did they get two payments from me with no problems!!!! Adam From ??? New Jersey

Payday loans are prohibited in NJ. You only owe what you borrowed.