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PDL nightmare in MN

Date: Mon, 04/06/2009 - 22:33

Submitted by kuhlmanalex
on Mon, 04/06/2009 - 22:33

Posts: 5 Credits: [Donate]

Total Replies: 5


Hey everyone, I am in the middle of PDL hell like a lot of people on here and it seems like some of you have some legit ways of getting out of it. As my subject line says I am out of MN and these are the loans that I have, all online:
Paydayone: $500
Cashnetusa:: $1100
Mycashnow: $1000
Do I have to close my bank accout, and if so can I re-open a new account at the same bank? From reading other posts it sounds like I may only have to pay back the amount I took out? If I have had previous loans with these same companies and have paid the usual fees would that apply to my current loans? If someone could help me that would be great, step by step directions would be amazing since I am new to all of this! Thank you so much.


Yes, I think that you should close down the bank accounts which you have provided while applying for the payday loans just to prevent the payday loan companies to withdraw money directly from your account.
As far as I know, you need to pay only the loan amount if the PDL is illegal. But if it is legal, you need to pay the interest and other charges along with the principle amount as agreed between you and the creditor.


lrhall41

Submitted by novice on Tue, 04/07/2009 - 02:28

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Payday One and CashNet Usa are both legal loans. You do owe them the entire loan but closing your account will at least stop the payments for now. Once the account is closed both of those companies are pretty good at working out payment arrangments to pay back the loans.

I did not find MyCashNow in the MN license database so I am going to say they are unlicened/illegal. For this loan you would only owe the amount borrowed. Any fees or rollover charges go towards that amount.

Most people close there account and open a new one.

For the legal lenders putting a stop payment usually works but for the illegals they sometimes change names and amount making it harder to block their withdrawls.


lrhall41

Submitted by nohiogal on Tue, 04/07/2009 - 02:30

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They usually don't make arrangments until they can no longer get their money. You can try to send them a ACH revocation statement but some do not follow it and won't make the arrangments until they can not debit your account.

I believe that when you use a debt consolidation place they require you to close your account anyway.


lrhall41

Submitted by nohiogal on Tue, 04/07/2009 - 06:07

( Posts: 2582 | Credits: )


Yes, so long as the payday lenders can debit your checking account, they will not be willing to settle the debt for less. But if you close the account, the creditors will not be able to debit your account and so they will have no other option but to agree to a settlement plan to get their money back.


lrhall41

Submitted by novice on Sat, 04/11/2009 - 05:15

( Posts: 290 | Credits: )