Can't afford payday loans - in Colorado

I'm the one who posted the message above.

If I talk to my bank about these PDLs will they give me a hard time about closing my account?

Thank you,
Casey

First of all, I wouldn't advise you to close your account, because your payday loan state laws say:
Criminal Action: Prohibited (Unless the consumer's account was closed before the agreed upon negotiation date)
See the link below to read your payday loan laws:
http://www.paydayloaninfo.org/

I am assuming that all of these are store front lenders and you wrote a post dated check to obtain the loans?

Some of the lenders are members of the CFSA (The Community Financial Services Association of America), see the link below:
http://www.cfsa.com
The ones below are members of the CFSA, so, that means you would be eligible for an extended payment plan, I will give you a link in a minute so you can read about it.
Advance America
Ace Cash Express
Checkmate
Check Into Cash
Rent-A-Center
EPP at the link below:
http://www.cfsa.com

Thank you for the information, but now I really don't know what to do. Should I ask my bank to only accept hard deposits? Should I just let the chacks come to my back and fight it out with them? I feel like my only option is to get some internet payday loans to pay off the store front ones, then be in this position with the interent payday loan places.

Do I have any options that you would suggest?
Casey

Also, I have already poened a bank account at another bank, thinking I was going to close this one that has the payday loans drawn from it.

Casey

Hi Casey,
It seems you really cant afford these loans, why not declare bankruptcy?

First, I want to thank Shazzers for such a quick response and great info! I was all ready to close my bank account this morning until I read your replies. Instead I went into the bank, a different one from my local branch since there was a woman there that had been so rude to me, first I removed all my money from my account except for a few dollars, then I went to speak to the Branch Manager. The Branch Manager wasn't in, which may be a great thing, because instead I spoke to the VP of Loans for the bank - he just happened to be there filling in!

I broke down and told him everything, including that I had a medical emergency over a year ago and tried to take out a Bank Loan thru them but was turned down, and since I was turned down, I turned to payday loans. I told him how much I've been paying monthly, about $800 a month, and how deep I was in. He was so nice, he had me fill out a new loan application and will let me know on Tuesday if they're going to give me the loan, and since he's the VP of this dept he'll handle the application himself....I just have a bad feeling I won't be approved for the loan, but I'm crossing my fingers that they'll realize a loan is their best choice here, and mine!

He's also aware that a few checks might come thru to be paid, so he said he'd keep an eye on my account for that and hold them off until he knows if I can get the loan.

I then had to call all the PDL's I couldn't pay today, two of them were so mean, with one calling me back within seconds of hanging up to threaten court, Check Into Cash. I told her if that's what she had to do then I was sorry. I was shocked, I'd had loans thru Check Into Cash for about 2 years and had never been late, but when I needed them to wait until Tuesday, it was NO! One place, Mr Money, said they would only hold the check one day, not until Tuesday!

I was shocked when I called the other 6 how nice they were! I told them that I was trying to get a bank loan and wouldn't know until Tuesday and they all said they'd hold the checks until they hear from me on Tuesday...shocking!

I don't know what trouble I'd be in if I hadn't posted here last night and gotten a response so quickly! Thank you so much! Now I'm crossing my fingers that the bank does the right thing....wish me luck!

Casey

I thought about bankruptcy, but I have a Care Credit loan that my brother co-signed for, so I'm worried I'd get him in trouble. Other reasons, too. One reason, I've had one bankruptcy when I first got sick in 1993 or 94 and had just started to get my credit back in shape when I got sick again and had to ask the bank for a loan, a loan I was turned down for, then had to turn to PDL's. But the main reason, I really do want to pay these PDL's and all my bills. I've never been late paying my credit cards (except for one lately because of PDL's), car payment, rent, phone, etc, so don't want to file bankruptcy unless it's my last option.

Casey

Well, just as I thought, the bank does not want to give me a loan because my credit score is too low and the bank is not thrilled with my debt to income ratio. What's nuts is that I've been managing to pay these payday loans, I just can't pay $800-$1200 a month anymore, but easily paid $400 to 4 PDL's, so as much as I understand, I still think that stinks when I've been so super open and honest with the Bank VP, I've never been late with rent, car payment, credit cards, it's mostly medical bills that show late, so they can't do anything to help me!

I've asked my brother to co-sign, but I'm not sure if he will...again, crossing my fingers!

Something INTERESTING...I received a call from the Colorado Attorney General Office and was told that the laws in Colorado are changing in August, so much so that many will end up going out of business! She did say that because of this, if I'm not able to pay one of the PDL's and the bank returns it to the PDL company, and if they are one that may go out of business, that they might really start with the harassment to try to get their money before they actually go out of business. If they do harass, I can file a complaint and they will contact the PDL company regarding the harassment.

She also said that I can not be arrested for these checks that are going through and being sent back. I think I want to call and get a different person and ask that question again, because it really seems that they could arrest you for a bad check.

What she said most PDL's do to get their money is either use a collection agency to try to get paid, some will go to county court instead of just using small claims court, or if it's a nice one they might make payment arrangements with me.

Casey

Hi Casey,

Gosh, I am so sorry to hear that the bank turned you down. I can tell you what I would do if I were in your position and had no other choices, but ultimately it's your decision how to handle this.

I would send a letter (certified, return receipt requested) to all the lenders with an explanation of the hardship I was enduring, in that letter I would outline my plan to pay them back, I would make sure the plan would be something I could afford, and not a penny more. even if it's only 20 bucks a week, something is better than nothing, and you will have proof that you TRIED to resolve this. I would send money orders and not checks, with the letter, I would include a good faith payment.

I would continue to do this until the loans were paid off, I figure if it would go to court, at least I would have proof for the judge that I was trying. If it goes to a collection agency, I would go through the process that the FDCPA outlines for debtors and creditors.

Thanks again, Shazzers, that's a great idea! I'm going to work on that this weekend. Something else I'm going to do...

I've contacted Consumer Credit Counseling of Northern Colorado and have an appt on July 17th in an office nearby. I never tried a credit counseling place before because choosing one online is too scary for me, but my brother used this one many many years ago and they got him out of debt in about a year. I'd appreciate it if you'd pass along any information you may have about this company, if you don't have any than I'll be sure to pass along what I find out.

I guess my big question for them is if they handle PDL's? I figure if the PDL's go to collections then they absolutely will be able to help with the ones that do.

The other great information I got from this site was to go to the bank and be honest with them about the situation. Even though I was unable to get the loan, I really lucked out when I went in and by sheer luck got the bank VP because the Branch Manager swapped days with him! He really seemed to feel bad that he couldn't help me get a loan and since he couldn't do that for me he is going to try his best to limit the number of NSF's/fees I get.

I was also very worried after reading that the bank could file charges against me for writing bad checks, I told the VP that I was terrified I could get arrested, and he assured me that since I told him about my situation he would not let that happen!

I guess knowing I wasn't going to be approved for the loan, stumbling upon the bank VP and opening up to him was the best second choice I could have hoped for! Thanks for posting here that we should go in, don't feel bad, and just be honest!

I have one PDL that is already calling because my check came back to them and the message was to call them regarding collections.

Question: Should I do all my contact with the PDL's that I'm defaulting on by mail and not over the phone? Or, phone and follow thru with mail? It's very hard for me to speak to some of them because they are so rude/mean, so I'd rather just have contact by mail!

Casey

I would opt to contact via mail.

As far as a CCCS, I used one many years ago and had a positive experience, so I hope it works out in your favor, it did for me.