Payday Loans took Over my life, can anyone help?

frog, i think there are three tgreads running for this.

Hang around this site and someone will give you advise. I am in the same boat...worrying about if I can pay the amounts they are requesting. I can already tell you that you must take care of your essentials first and give them what you can.

your post is in debt consolidation

http://www.debtconsolidationcare.com/settlement/about43861.html

I will delete that post and copy my reply to this one!
Kash could you copy your reply also?

Thanks - I did not mean any confusion. I would prefer this post to stay active. Can you please delete the others?

Langhorne from what I gather is one f the few that will work with payday loans, however being that those loans are not legal in NJ you might consider dealing with them yourself! You must consider closing your account and dealing with them in your terms! It sounds like these are all new loans, correct? There are none that you have been paying a long time on?

No, I have paid on these same companies for months at a time but than when I paid them off, I had no money for bills and took the same ones over again. I would never do that again and it crushed me to do so but my car was almost taken away due to lack of payments. On April 3, I will pay $226 on Magnum, than $25 on VIP. On April 16, $452 (out of the $551 I borrowed) will be paid to Magnum, $50 (out of $100) will be paid to VIP and $150 (out of $500) will be paid to Loan Point USA. Should I wait until than? Or even longer? I don't know what to do.. I am willing to pay what I legally owe, of course but these payments are going to put me right back where I was.

From Kashzan on your other post!
Frog is correct. You can do this on your own. If you can list the principle amount borrowed and what you have repaid to each lender we can help get you out of this mess. being that these loans are illegal in NJ, all you are morally obligated to repay is the principle amount borrowed.

Thanks for the help, here are my answers to the questions:

List the companies you have the loans with and whether it is a store front operation or an internet operation.

all online - Loan Point USA, Magnum Cash Advance, VIP Cash


List the original amount of the loan for each account

Loan Point USA - $500
Magnum Cash Advance - $551
VIP Cash - $100


List what you have paid so far for each loan.

I have not paid anything yet (but have been in this same cycle.. I took these loans to repay the same loans - yes, I'm that stupid) On April 3, $226 will be paid to Magnum and $25 to VIP. On April 17, $226 will be paid to Magnum, $25 to VIP and $150 to Loan Point USA.

List what state you currently reside in.

NJ

i thank everyone who has helped so far. I read over my state laws but don't understand them. I am willing to close my account and stop my direct deposit but am scared. i am scared of my bank not really closing (which happened at PNC last year before I declared bankruptcy) and I am scared nobody would want to settle with me. I have no idea how to do this and wish I handled this earlier when I was paying literally a thousand on a $300 loan. Do I have to wait to pay them some money first? Than close my account? I am scared to death and have no idea what to do. Homelessness has hit close to me before it scares me so bad. I sit at my desk at work crying and cannot sleep at night. These stupid loans have taken over my life.

Is there anyone here who knows how to help me? I am so lost and I have so many questions! I seriously feel so ashamed and helpless. Should I close my account? Would putting it on limited status help? I only have until tommorow to stop my direct deposit for my neck check. Can somone please help me? I know everyone here has problems and I am sorry for taking up someone else's time. I just really want to do this.

Do not feel ashamed and helpless - You are not!

These loans are not legal. If you have paid more then you borrowed, you are done paying.

Read this thread about the bank stuff:

http://www.debtconsolidationcare.com/paydayloan/close-account.html

With the info in the link above you will be able to protect your bank account from these places . . .

Next step once the bank account is taken care of is letters and complaints.

I can tell you now the NJ state won't give you much help. But that is okay, you don't need them.

The key thing to remember during all of this is:

These places can do NOTHING to you. They can't have you arrested. If they were stupid enough to sue you they would lose as long as you responded. They have no means of collecting unless you want to give them more money. They know this. They will try to scare you and intimidate and harrass the hell out of you. It's the only way they can get a cent. If you know this ahead of time, you can prepare yourself. Remember, they can't do anything to you. They are not legal loans. They cannot legally collect. Period.

This problem is absolutly fixable. Many have been in your shoes. It will take some time and some effort, but it will be well worth it.

that's the problem - i haven't paid anything yet =( (i'm bea2ls, i just cannot sign in for some reason). i have paid thousands on payday loans in the past but when i finally caught up i took more to cover the bills i haven't been paying. now stupid me is in the same boat again. should i make a few payments than close my account? I haven't paid anything just yet.. not this time around anyway. when should i close this bank account? I really don't know how to deal with this...

bea. . . please listen to these people on this forum and things will be okay. Trust me. I live in New York and PDL's are also prohibited here. I thought about going to Langhorne but when I figured out what it would cost me, I was determined to do it myself. That was just about 8 short weeks ago. I closed my account and took back control of my money and my sanity. As of right now, March 27, 2008, I have closed 3 of my 5 pay day loans, and all at the original amount that was deposited into my bank account. I still owe $30 to one (according to my accounting anyway) and the other is an offshore and currently among the missing. Once I signed on with this forum I felt like I was a new person. I wasn't scared any longer, I started sleeping again and I had a smile on my face for the first time in months. Please know that everyone here has been in your shoes. I am still not totally out of the PDL woods, but I am getting there. With each one I close I know that I made the right choice in coming here and handling this myself. With the "illegal" status in your corner, you have an edge. Please keep us posted. Have faith my friend, you can do this.

Wow, thanks so much to everyone for their advice and support! I literally had nobody to turn to and the truth is, I wasn't sure if I could really, really afford Langhorne Debt (I was also a little scared of it though I actually know where it's physically located, which made me feel a bit better..) I have some questions though. As I have said, I have not paid anything done. Should I let one or two "payments" run through my account and than shut it? Or should I shut it now and than make arrangements. I'm scared they will want the full amount owed up front and am not sure if I can do that so quickly.. I get paid next Friday, should I stop my direct deposit and close my account? Or wait it out until I put some money towards the debt? Thanks again - you have no idea how much the advice and support means to me. I really want to know how to do this (I have so many questions!)

Okay, so I am def. going to do this.. my plan so far is to let the payments run through on my paycheck next week. I didn't pay them a cent yet so this way they will some money from me. It will also give me time to stop direct deposit and close my account. Is this okay or should I close it all out this weekend and work with them before paying anything? I'm sorry for all the questions.. I just really don't even know where to start :/

I am no expert here; but my advice would be to go ahead and close your account and if you have time to have your direct deposit redirected I would do so. From my understanding with your pdls that they are illegal. But you would need to at least pay back the principle; as I see that's what is advicated here on this forum.

I would just let them know after you close/hard block your account. Let them know that you have found out it is illegal to lend in your state and you are only willing to pay back the principle.

I wouldn't wait...but that is my advice...Why wait; get it done and over with...

I am sure the experts may give you another...

Thank you for the advice - I really do not know what to do! I do not want to wait (expect for a slight fear that my payroll might need more time to stop it?) but I don't know if I should as I have not paid them anything at all yet.. I guess that's my main, most urgent question.. When I do close it, will they want the full amount at once? Because I am not sure if I can afford to give each one it's full amount at one time. Will they let me pay down? Will they really only allow me to pay the principal? I really don't mean to ask so many questions, I just have no idea what I'm doing =) I can say though that this forum has really helped me feel a bit more relaxed.

I believe that they will not let you pay down unless you default on the loan... Make sure that your direct deposit is safe first. If you are scared of your direct deposit; see if your bank will put a hard block on your account and only accept credits..then your money is protected from them debiting....but don't contact any of them until you know for sure your money is safe. Once they know you will be defaulting on the loan they will go out there and debit all of the monies..

Okay - so should I close my account ASAP (as in tonight or tommorow morning?) I was going to let one cycle go through because I haven't paid them anything yet.. than I was going to shut it down after that time went through. I am scared to close it without giving them any money at all yet. Would it be okay to close it first than settle? Or should I let them have some money than close it out and work with them? I guess I am asking if it's okay to close my account without paying them any money at all. I know I would wait to default before talking to them and I know I will pay them back what I have borrowed, I just don't know if I should close my account now or let them take some of the money first?

I had some I had just took out too to cover the fees i ws paying on others. I closed my account in spite of this. The cycle has to stop somewhere. You may not be able to redirect your direct depsite that soon, so you may have to go to your bank and do the hard debit block if you decide to gothrough with this.
I am a newbie here too, but in a month it has already opened my eyes.
You need to take care of you. Can that money you are paying in fees to them be used? If you stop now, you will have time to figure out what you actually owe, arrange another form of payment?
Just know that you are not alone in feeling scared by these companies.

AGAIN, THANKS TO EVERYONE ON THIS BOARD.. I HAVE NEVER FELT SUCH SUPPORT AND GREAT ADVICE FROM AN ONLINE BOARD (IT IS RARE IN PERSON THESE DAYS!) I WILL TRY TO PUT MY ACCOUNT ON LIMITED STATUS.. I BANK AT COMMERCE AND HAD THIS DONE BEFORE WHEN SOMEONE STOLE MY ACCOUNT INFO. IT WILL BLOCK DEBITS. I WILL TRY TO STOP MY DIRECT DEPOSIT ASAP AND WHEN I DO, I WILL CLOSE THE ACCOUNT. I REALLY AM NOT A GREEDY PERSON AND HOPE I DON'T SEEM LIKE IT. I NEED THE MONEY FOR FOOD, BILLS, RENT, ETC. WILL THEY REALLY LET YOU PAY IT DOWN? I DON'T KNOW IF I WILL HAVE THE TOTAL OWED UPFRONT..

Not hardly one of us can afford to pay all up front. That is the point...get educated on your rights, like I am doing...It will not take you long to get up to speed. I checked and re-checked what has been told to me on this Forum. From another popular Debt Counselors site (I am friends with someone who works for Dave Ramsey) and my locate magistrate at the sheriff's office... all have given the same advise. Close Account, work out repayment plans and turn a deaf ear to their complaints and threats.
It isn't easy...I am there now dealing with the storefront loans first. I am having a real hard time, but I believe what Cannr, Roxy, Goudah and all the others on this Forum have told me.
Quit beating yourself up...eventually you will realize you aren't the only to fall into this trap.
I do not know about you but I am ready to get on with my life rather than spend every waking hour worried about how I am going to get these guys paid week after week.

Sorry that is me...Egypt...I got logged out again

Thanks again to everyone (this is still bea2ls - I cannot sign in on this computer for some reason!) I am sure I will have many more questions in the near future but already feel so much better now that much of the burden has been lifted.. I have never been this confident in an online group before but it really helps me to speak with others in my shoes.. thanks again..

Hello, thanks for everyone's help! I had a bit of a family emergency this weekend so I wasn't on the boards very much. I have talked to my bank and since I won't be able to stop my direct deposit on time, I am going to put my account on limited status. they said that means I would have to approve everything coming in. Does this sound ok? I took a day off tommorow to tend to this and a few other things. Also, how do I do this? How do I make payment arrangements with them? Not to sound dumb I just am scared =) How much would they want per month? (would I pay monthly?) is this in my ballpark or will they tell me an amount? Thanks again for everything - you have no idea how much it meant to me.

Okay, so I am going to the bank tommorow to put my account on limited status.. I will close it out completely when my direct deposit stops. Has anyone ever opened a different account after their first one was close or won't that work? Also, does anyone have experience dealing with Magnum, VIP or Loan Point USA? Does anyone know what kind of payments I'm facing? Thanks again for everything <3

Hello, it's me again =) I put a block on my account. I was told nothing would come in or out but I am worried because I have to get my paycheck out on Friday! Tommorow's the day the money would have came out so I'm going to cross my fingers that it works out ok. I must have spoken to five or six people and have gotten five or six different answers.. I am scared they will be able to take it still.. or that when I do close it, the ACH would force it back open. I am honestly more scared now than ever. Can someone please tell me that this works? That I will be okay? I am really so scared. Tommorow's the day and I have no idea what to tell these people. I should have done this sooner - I am so ashamed that I was so so stupid..

Who have you talked too? People at your bank or on this site? Did you not ask your bank if ach transactions could open your account back up? Is your check still going to go into that account that is blocked? Did they say you could get your money after a hard block is put on? Please clarify...

I am sure someone else will be around shortly to give you more information....

I am sure you will be fine...

Please do not allow fear to stop you from doing what is in your best interest. I would have to have a firm answer from my bank that no debits will come through and that you can then close your account when they stop your direct deposit or redirect it.

Hello,
I went to the bank in person and have also spoken to several people on the customer service line. it is on limited status, which means that no debits, checks, etc. can come through at all. I couldn't stop the direct deposit soon enough so it will go through one last time. They said my paycheck would come in, since my account is basically set on deposit only. My check will take 24 hours to clear with this block than I can withdrawl it. At that point, I will close the account (which I am scared to do because it has to be on a permanate close, which one person at the bank said is impossible, but many at the 1-800 number as well as at the bank said is ok). I did ask the bank if nobody can take money out and they all said it will be fine (they even said that any checks I have written would be denied, which is fine since I do not have any checks out right now). I went in person and have called many times, but am a little paranoid I guess. One lady at the bank gave me an attitude (she went on the whole "well you promised them money" speel) I told her that these loans are illegeal and they cannot legally take this money from me. I will be glad to work out a payment plan, I am just so scared this bank stuff won't work.. :/

I would go above their head if necessary until you get the confirmation that you need. I do not know how all banks operate, so I am not going to say that what my bank did or some of the others was what all will do? Did you talk to a manager or customer relations person? Or just a teller?
Maybe someone else can reassure you better than I?

Hello, well I spoke to both a branch manager and a customer service supervisor. Because I was late to stop my direct deposit, the payday monsters got my money.. Magnum took $226 and VIP took $25. My direct deposit has been stopped completely and the block is on my account. I had complete confirmation that they will not get any more of my money. The only reason they got it today was because I had to have the block lifted to get my paycheck. I feel so defeated, I can't stop crying. I was one day too late for my direct deposit. I should have stopped it sooner but had so many other things going on. Next payday there will be no money taken out of my account. I just feel so lost and scared..

Dont feel lost or scared. We are all here for you. How great it will be when you finally have control of your money. We are here for help and support. Post whenever you need to.

thanks again, i just feel like such a loser because I didn't stop my direct deposit in time. :(

I am so happy I have found this group! Right now I am in the middle of stopping these payments. As I have said before, they were paid today. This was such a set-back for me as they took aprox. $250 that I could have paid other bills with. My bank blocked them but I had to re-open it for the direct deposit. I sat down, showed them everything.. all the deposits they were taking, etc. They agreed with me but than when it came down to it, I had to pay them anyway and I am so defeated. Don't get me wrong, I plan on paying them back -- just not like this. My payroll said my direct deposit will be stopped so my next check will be a live check. The account will stay blocked and I don't have to open it since I won't have a check. Will this even work? I was told by the bank if I close it, than the ACH would force it open. Therefore I must leave it on limited, which i feel uncomfortable with. I bank with Commerce and aren't sure if they are helping too much. They are great to talk to but I keep getting different answers. I thought that since my account was blocked they wouldn't get paid and now I am devestated. I pray I can get by for car insurace, food, etc. Does anyone have any tips for dealing with the bank?

Please do not beat yourself up too bad. You are not a loser and if you were, I think you are in good company? Meaning me and others who are going through and have been through this.
Just be glad that you, like me, found this site or this would have gone on and on?

At one point I banked with Commerce and the ach did not force the account open.Have the bank put a hard debit block on the account. That way nothing will go thru. If they keep forcing the account open you will get hit with tons of fees. You are within your rights to revoke any ach debits. .I will post something for you to bring to your bank.

Bring this to your bank. They should know the law!!!

Per the Electronic Funds Transfer Act:

Quote:
???? 205.10 Preauthorized transfers.

(a) Preauthorized transfers to consumer's account--(1) Notice by financial institution. When a person initiates preauthorized electronic fund transfers to a consumer's account at least once every 60 days, the account-holding financial institution shall provide notice to the consumer by:
(i) Positive notice. Providing oral or written notice of the transfer within two business days after the transfer occurs; or
(ii) Negative notice. Providing oral or written notice, within two business days after the date on which the transfer was scheduled to occur, that the transfer did not occur; or
(iii) Readily-available telephone line. Providing a readily available telephone line that the consumer may call to determine whether the transfer occurred and disclosing the telephone number on the initial disclosure of account terms and on each periodic statement.
{{10-30-98 p.7369}}
(2) Notice by payor. A financial institution need not provide notice of a transfer if the payor gives the consumer positive notice that the transfer has been initiated.
(3) Crediting. A financial institution that receives a preauthorized transfer of the type described in paragraph (a)(1) of this section shall credit the amount of the transfer as of the date the funds for the transfer are received.
(b) Written authorization for preauthorized transfers from consumer's account. Preauthorized electronic fund transfers from a consumer's account may be authorized only by a writing signed or similarly authenticated by the consumer. The person that obtains the authorization shall provide a copy to the consumer.
(c) Consumer's right to stop payment--(1) Notice. A consumer may stop payment of a preauthorized electronic fund transfer from the consumer's account by notifying the financial institution orally or in writing at least three business days before the scheduled date of the transfer.
(2) Written confirmation. The financial institution may require the consumer to give written confirmation of a stop-payment order within 14 days of an oral notification. An institution that requires written confirmation shall inform the consumer of the requirement and provide the address where confirmation must be sent when the consumer gives the oral notification. An oral stop-payment order ceases to be binding after 14 days if the consumer fails to provide the required written confirmation.
(d) Notice of transfers varying in amount--(1) Notice. When a preauthorized electronic fund transfer from the consumer's accounts will vary in amount from the previous transfer under the same authorization or from the preauthorized amount, the designated payee or the financial institution shall send the consumer written notice of the amount and date of the transfer at least 10 days before the scheduled date of transfer.
(2) Range. The designated payee or the institution shall inform the consumer of the right to receive notice of all varying transfers, but may give the consumer the option of receiving notice only when a transfer falls outside a specified range of amounts or only when a transfer differs from the most recent transfer by more than an agreed-upon amount.
(e) Compulsory use--(1) Credit. No financial institution or other person may condition an extension of credit to a consumer on the consumer's repayment by preauthorized electronic fund transfers, except for credit extended under an overdraft credit plan or extended to maintain a specified minimum balance in the consumer's account.
(2) Employment or government benefit. No financial institution or other person may require a consumer to establish an account for receipt of electronic fund transfers with a particular institution as a condition of employment or receipt of a government benefit.

[Codified to 12 C.F.R. ???? 205.10]

[Section 205.10 added at 44 Fed. Reg. 59471, October 15, 1979; amended at 45 Fed. Reg. 8265, February 6, 1980, effective May 10, 1980; 61 Fed. Reg. 19672, May 2, 1996]

Sorry, we posted at the same time. I think that someone who has banking experience, in particularly Commerce will have to advise you, but this sounds fishy to me...I am not sure how they can sneak those payments through when you just got out your money?
I mean, they have posting times, etc?

See Kash came to the rescue.

Thank you so much. I very much want to end this nightmare! I am going to pay these monsters off, I just can't afford to do it their way.. Thank you very much for the banking info. The block is on again. I had to have it lifted to get my paycheck because stupid me stopped the direct deposit too late. I am going to print that out and bring it to the branch manager. As of now, my block is on so I am assuming I will be ok? I do want it closed though.. I was told they can permantely close it than others told me they can't. I don't know, I have so much other stuff going on right now, too. I have no idea what I'd do without this board. In many ways, it's my lifeline and as soon as I get my own strenght up, I will try to be as good as offering support with others as you have done to me.

All ach debits are voluntary and can be revoked. bring a copy of the law to your bank. They need to do something to help you.

Thanks again, I am going back to the bank tommorow and will keep you guys posted. because of this set-back, I won't default on the loans until April 17.. I know I'll be back to get info on my next step. I am sorry for being so needy, I am just so lost..

Nah....your not lost...you have found your way? Just hang in there.

Thanks again.. my account has been blocked so no debits could come in.. On Monday, I will get complete confirmation that my direct deposit was stopped. This weekend I am going to relax.. the stress of this and other recent events is starting to take a toll on my health a bit so I am not going to concentrate on any of this until Monday when I get my confirmation for my direct deposit. Thanks again to everyone and have a great weekend!

Ok, so it was confirmed with my payroll that my direct deposit has been stopped. My bank said that since my payroll has been stopped, no more ACH will be taken out. i had several emergencies this weekend and have no money left from my paycheck. the money they took out to this pay (after my bank promised they wouldn't take anything out) really hurt me. I have two weeks left now until payday and no money. I thank everyone for their support.. I just don't know what to do

I am so sorry you are dealing with all of this mess. Is there not a family member or even a friend to lend you something until next payday?

I would just a ask a friend/family and tell them that you have identity theft and that your account has been compromised and you need a little help.

That's what I did; until I worked everything out...I actually had to ask my boss for $1200 loan; as during my mess; my hot water heater busted and the mess it caused..of course my insurance deductable was $1400..but she understood and I have already paid her back.

I know it's not much; but I wish you tons of luck and support to get you through this...

take care.

you say it's not much but the support on this board means the world to me :) right now, all i can do is wait. I had my direct deposit stopped and the bank says the ach debits will not be able to go through the block. but of course i am terrified that something will back-fire like last week. i think that as long as my direct deposit has stopped, i should be fine.. the bank said several times that the block will reverse all debits. i just hope/pray this works?