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I got into a bind with Payday loan troubles

Date: Thu, 01/12/2006 - 07:39

Submitted by gosunsplease
on Thu, 01/12/2006 - 07:39

Posts: 8 Credits: [Donate]

Total Replies: 10


Hello i got into a bind with payday loans. Make a long story short i have 6 loans out but cannot repay them back at this time. i talked to a debt consolidation person and they recomened that a close my checking acct. and stop direct deposit?stopped the deposit but know i cant close out checking due to overdrafts. What is the best way to deal with the loan companies and how can i get them to stop calling my work.on the verge of losing job due to them. I also plan on paying them back when i get my income tax in. honest truth, thanks everybody


You need to clear the overdraft charges with the bank before they can allow closing your checking account. After you have closed the checking account, the payday loan companies will not be able to debit money from your account.

It is certain that the lenders will contact you because of not getting money from your account. They will force you to pay the debt perhaps, pressurizing you legally.

Try to avoid all these upcoming harassments by contacting your lenders now. If you do so and explain your present financial situation, they will try to understand your problem. Keep negotiating with them on a serious note so that you are able to set a payment plan with them. Once they get assured that you will pay them in easy monthly installments, they will extend some benefits to you in the course of time. The total charges and the interest rates might be eliminated from the total debt amount.

Take the step first and contact your lenders before they do. You will be in a beneficial situation and cut the deal. Keep in mind that you also have to arrange some money and pay the overdraft charges.


lrhall41

Submitted by david on Thu, 01/12/2006 - 08:23

( Posts: 1229 | Credits: )


Hey thanks for the info. Yeah im gonna pay them back but it will not be until income tax comes in. I guess i was just afraid to talk to them but now i need to cuase they are bugging my work. Is there anything i can do about that And does anybody know the laws for New Mexico about payday loans and harassement. Thanks


lrhall41

Submitted by gosunsplease on Thu, 01/12/2006 - 08:47

( Posts: 8 | Credits: )


gosunsplease
Don't be afraid to talk to the lenders, they may try to scare or threaten you, but in reality - they want to be paid. They are calling your job in an effort to talk to you, or get you to call them. If you aren't allowed to take calls of that nature at work, you may send a CMRRR letter to them asking that cease contacting you there, and provide a number and time that they will be able to reach you. If you send them notice to stop calling your job, they should.
In the meantime, call them and be firm in your negotiation. Explain what you can send on what date and stick to it. The sooner you make a show of good faith with a payment, the sooner the collection calls stop.
Best of Luck to you!


lrhall41

Submitted by a freeman on Thu, 01/12/2006 - 08:54

( Posts: 44 | Credits: )


gosunsplease

My recommendation would to be keep your business at your financial instituion. You can easliy have them just change your account number, and nothing would be able to go through under the new numbers. Having direct deposit is a better way of managing your money, because it also saves time. Slowly, any overages you have will start to disappear with each payday. As time goes on, you can deal with each lendor and have one paid off every other 2 weeks. Hoepfully this information will help you.

Regards-
Mike


lrhall41

Submitted by Teleport on Thu, 01/12/2006 - 09:03

( Posts: 1388 | Credits: )


Mike, you have put in a good point. If it's not possible to close the account altogether, changing the account number can be helpful.

So, my question to you is that if there are overdraft charges still unpaid, the bank will not allow you to close that account until they are paid. But, will they allow you changing the account number? The reason I am asking this is that the default can still be avoided if wanted by the customer. And the chexsystem will be reporting them negatively for as long as the person pays it. I think I can still avoid paying the overdraft charges as long as my purpose is getting fulfilled by changing the account number. Just a thought!


lrhall41

Submitted by david on Thu, 01/12/2006 - 09:32

( Posts: 1229 | Credits: )


Hi gosunsplease, CMRRR stands for 'Certified Mail with Return Receipt Requested'. When you send a certified mail to a certain address, the company will acknowledge receiving your letter by signing in the green slip which will be mailed back to you.

All the dates and time will be listed in the receipts. This is a valid proof that states that you have done your correspondence with a certain company and they have received your letter. Now, it will be their turn to reply you back with a suitable reply. Basically, you are able to cover your basis if you send letters through CMRRR


lrhall41

Submitted by john on Thu, 01/12/2006 - 09:37

( Posts: 1231 | Credits: )


If all varies by each financial instituion. Credit Unions are usually more helpful when it comes to that. They're all about first names, but certain banks as well will treat you the same. I guess it depends on how long you've been a member/customer and your current standing. You can just explain the situation and tell them you feel uncomfortable because someone has access to your old account. Start your payrol direct deposit back up, and rebuild you balance.

Regards-
Mike


lrhall41

Submitted by Teleport on Thu, 01/12/2006 - 09:37

( Posts: 1388 | Credits: )