Payday loan advice needed for father of 4

Hi Jon - welcome to the site!

Can you list out how much you borrowed from each lender and how much you have repaid each one?

In the meantime, here's your state law for PA regarding payday lending:

Quote:

loan = amount owed still

Sonic cash
loan = 500, paid = 300 in interest
cashnetusa
loan = 400, paid = 200 in interest
netcashusa
loan = 400, paid = 100 in interest
paydayloan
loan = 500, paid = 400 in interest
paydayone
loan = 650, paid = 400 in interest
oneclick cash
loan = 500, paid = 150 in interest
cash central
loan = 200, paid = 50 in interest
little loan shoppe
loan = 300, paid = 180 in interest
webpay day
loan = 975, paid = 243 in interest
eastside lenders
loan = 650, paid = 350 in interest

sorry - the loan = amount of orginal loan...

thanks Suebeehoney.... I cant sleep because of this.

Jon - this is going to take a little time, but let me do some research on these companies to see if they are allowed to lend into PA. PA law is a little tricky, because even though it says payday loans are prohibited, some lenders are still allowed to lend into the state.

By the way, Jon - are all of these internet lenders, or are any of them storefront?

If any other Mods or members want to jump in and help out, feel free!

they are all internet payday loans..

thank you!

I forgot 1 more loan

mycashnow for $400. I have paid about $200 in interest already.

Jon -

let me thank and credit our Mod and friend Goudah for the following post and research she did on the payday loan laws:

[quote]Emails to and from PA Banking Dept

Hello,

I have a question about payday loans in Pennsylvania. Does the small loan rate cap of $9.50 per $100 per year discount or 24% per year apply to these loans? I took out a few on the internet and am trying to figure out how much I legally need to pay. For instance on a $200 loan would I be legally responsible for paying back only $248?

Thanks!

Response:

Dear Ms.:

The 9.5 discount and the 24 % simple interest refer to calculations that can be used by companies that are operating in Pennsylvania and are licensed under Pennsylvania????????s Consumer Discount Company Act. With a number of exceptions, a lender that is located inside of Pennsylvania and who does not have any special lending authority (i.e., a special license or charter) who is making smaller loans not secured by real estate can only charge interest at a rate of 6% simple.

A lender that does not have a physical presence in Pennsylvania but who has lending authority from some other state can generally charge the interest rate and finance charges allowed by that other state.

The Department may or may not be reviewing this policy and I would not count on this e-mail as an interpretive opinion before starting any lending or business operations.

James Keiser | Administrator Non-Depository Institutions

17 North Second Street, 13th Floor | Hbg PA 17101
Phone: 717.783.8242 | Fax: 717.787.8773
jkeiser(at)state.pa.us | www.banking.state.pa.us

What does this mean?

There are no storefronts in PA. They are illegal.

Internet lenders can lend legally to PA residents as long as they are licensed in another state. They would need to follow the laws of the state in which they are licensed. _________________
[/quote]

Suebeehoney -
Does this mean that lenders who do not have a license in PA can still give loans, but those loans are governed by the state the company is located? I am a little confused.

What are my options to get out of this mess? I already emailed the lenders to try and setup a payment plan w/o the interest. Should I close my checking account?

thanks for your help.

Jon - here is what I came up with. (Goudah, or any other Mods who have other info than what I have on these companies, please post it with some backup so we can help Jon out! Thanks!)

Sonic Cash - licensed in Idaho, so they are allowed to lend into PA under that license
Sonic cash
loan = 500, paid = 300 in interest

Cashnetusa - licensed
cashnetusa
loan = 400, paid = 200 in interest

Netcashusa - licensed as ZipCash in NM
netcashusa
loan = 400, paid = 100 in interest

Paydayloan - need a little more info on this one - is that the company name??
paydayloan
loan = 500, paid = 400 in interest

Paydayone - licensed
paydayone
loan = 650, paid = 400 in interest

Oneclickcash - can't get a good bead on this one as to whether they are licensed or not (anywhere) - anyone else?
oneclick cash
loan = 500, paid = 150 in interest

CashCentral - Licensed
cash central
loan = 200, paid = 50 in interest

Little Loan Shoppe - licensed
little loan shoppe
loan = 300, paid = 180 in interest

Webpayday - Anyone else have ideas on this one? I don't see them being licensed anywhere, but please chime in if you know.
webpay day
loan = 975, paid = 243 in interest

Eastside Lenders - Licensed (?)
eastside lenders
loan = 650, paid = 350 in interest

Mycashnow- (offshore company? Not licensed?)
mycashnow for $400. I have paid about $200 in interest already.

Jon - sorry some of this information may seem vaugue, but the hour grows late and my eyes grow bleary. Many of these internet based companies hide behind MANY DBA (doing business as) names, which makes them hard to find, but Goudah and other members of our site have done a lot of hard work to find them and associate all their names to the right companies.

If I have mis-spoken on any of the above companies, I'd really appreciate it if someone could post the correct info for me - even edit my post if you have to, in order to correct it. Thanks!

Quote:

sorry -

the paydayloan company is mypaydayloan

the interest paid is the total amount I have paid toward the loans... its been interest each pay period because thats all I can afford. I have my next round of payments due on 4/25 and I can't afford them as I have to pay my mortgage.... any help would be appreciated.

For half of these loans its the second go around, I paid them hundreds of dollars over the initial loan then go another one - stupid me!.

Should I call the lenders and try to work out a payment plan? If so, do I need to pay the interest? Or should I just tell them I will pay the amount orginally borrowed?

Jon -

As far as I can tell, mypaydayloan.com may not be licensed, but I'm sure one of the other members with more experience in this area will come along with a better answer.

For the time being, you need to try and set up payment arrangements with the licensed lenders. Since they are licensed in their own state, they are allowed to lend into PA, even though payday loans are prohibited in PA. It's a loophole in the law that I hope PA decides to close soon, as it's caused many residents there a lot of problems.

Offer to pay the principal back and see what happens - all they can do is counter with a different offer - you're no worse off for asking. Have any of them responded to your requests for payment arrangements?

As I mentioned before, you may want to consider a consolidation program for the legal lenders - you have quite a bit of debt with these lenders, and it might be easier to pay it off that way. Once you default on these loans, the lenders will start calling you at home and work.

Lastly, Jon - you're not stupid. Many of us came here in the same situation as you are now - some with a smaller amount of debt, some with more, believe it or not. And all due to payday loans. We were offered a "quick fix" for our cash shortage and believed we could pay it off and get out of it right away - but then something else came up - a doctor bill, vet bill, car repair bill, home repair bill, loss of job, etc - and suddenly you need more money and take out another loan, and another to pay that one off, and then another to get by until your next payday....it never ends until you make an effort to end it yourself and get them paid off. It's not easy - it takes time and effort - but it's definitely worth it in the long run to have your paycheck back!

Again, if there are any other Mods or members around that know more about these lenders than I've been able to find, please post it so we can help Jon out.

Do you have any links to debt consolidation for payday loans? I keep hearing T&C, but cant find a link to their site.

Jon - here you go:

Quote:

Is there anywhere I can go to see reviews or feedback on T&C? How are they different from Langhorne?
thank you

T&C will work with pdls and other debt. Langhorne focuses on pdls. I don't believe that T&C has a website. I'm not positive though. But many, many people here have used T&C. If you go to the top right hand corner of the screen, you will see a 'search' box. Type in T&C or Town and Country and many posts will come up regarding them. You can read what others have to say about them.

I've never been able to find a website for Town & Country - if anyone else has that info, please feel free to post it.

I read some shady reviews on both Langhorne and T&C. A few people on here got ripped off from both. I dont want to lose any more money. I am going to contact the payday loans and try to work something out. In the meantime, I am closing my checking account and will open one with another bank. This is a precaution!
If the lenders can work with me - then I can send the money via money order. If not, then they need to wait because my mortgage is my #1 priority right now.

Jon -

your mortgage should definitely be your #1 priority. The lenders, being licensed, should definitely be willing to work with you on payment arrangements. I understand if you choose not to go with a consolidation program - but I offered that choice to you because it seemed you had quite a heavy debt load due to the PDL's, and a consolidation program might be helpful to resolve it without jeapordizing your other obligations. I understand your concerns, however - you have to do what is best for you in your own situation.

What I would definitely do is advise every PDL company when you discuss payment arrangments with them that you have closed your bank account, so they don't attempt to debit it. Make sure they are aware of your actions, and explain that you've done this in order to get back on your feet, and that you intend to pay them off.

Locking this thread to avoid any further confusion as to whether lenders are licensed or not - see the following thread for more info on lenders mentioned in this thread.

Any further responses to the original post should be directed to the following thread.

http://www.debtconsolidationcare.com/paydayloan/about44576.html