Payday loans...can these be consolidates?
Date: Sat, 08/21/2010 - 09:09
I have 4 payday loans on which I am only making the interest payments now for the past 2.5 months. I have a good salary but I see almost a third of it swallowed up by this! I have other expenses such as rent, food and medicine plus 2 major purchases bought thru HSN and QVC which swallow up another third each month. I have been foolish!
Since I did not work for a really long time I was told that my IRS debt will not catch up with me until they get wind in Jan 11 that I have been working and will start pursuing me for payments. Same with student loans...I desperatly need to buy a car so I must reduce/payback my payday loans thru consolidation or something because I cannot afford to pay one off at a time, etc. My purchases of 2 laptops thru HSN and QVC will be payed off by Sept & Oct.
Also just found out that I may have a major debilitating disease which will be costly in terms of treatment, etc.
So, I need to find a way....can the paydayloans be consolidated?
Help!
Bella
Please provide the state you reside in. There is a nice handy l
Please provide the state you reside in. There is a nice handy link here in the forums to payday laws by state, along with contact information for the regulating industries you can contact should you have concerns.
http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html
You should then Google the regulating authority in your state to determine if the lenders you are working with are licensed and legal in your state. If the lenders are practicing illegally, you are only responsible for the principle amount of the loan. If the lenders are practicing legally, you are responsible for the principle plus applicable fees since they will be within the guidelines of your state of residence. If you have sufficient credit, you could possibly obtain a traditional loan as a means to consolidate the debit you have outstanding with your lenders and pay down the debit in a much more favorable setting.
Otherwise, what I'd suggest you do is this:
1) Provide your state of residence
2) List the loans you have out, and indicate whether or not the loans were obtained online or from a store front. (Meaning you actually went into a physical location and obtain a loan)
3) List when the loans were originally obtained, the amount borrowed along with what you have paid (include interest, finance charges and fees - if you overdrafted your account because of payments to the lenders do not include these charges)
You need to take actions to secure your banking. Follow the steps outlined here:
http://www.debtconsolidationcare.com/paydayloan/illegal-pdl-dealings.html
You will need to revoke the ACH agreement you have with the lenders, and any wage assignments you may (or may not have) agreed to. (Entered only if you default on the loan and don't pay back) Like a garnishment, a percentage of your payroll checks would be taken out to satisfy your loan obligation to the lenders, legal or not. Please try to send this out at least a week prior to the scheduled pull from your bank account. Indicate in the letter what amount you originally took out, you've paid out to date and whether or not the loan was already satisfied as a result. If it was, and you've actually overpaid based on the laws in your state, request a refund.
Next, contact your bank's branch manager about closing your current account(s). If the loans are illegal, mention to the branch manager that you are closing the accounts because the loans taken out were not legal and indicate how much in principal you've already paid. Stress that you've already sent out a revocation letter to the lender(s) and you are not sure if they will comply with your request. Many banks will process the request right away, assuming you have no outstanding debits that are pending.
Make sure you have no outstanding payments with anyone, anywhere.
While the request is handled promptly, in most cases, there is a temporary hold placed in order to verify that all the transactions have been caught. After a period of time has elapsed (up to 72 hours in some cases) the account will be closed and no further debits can reopen the account. If your bank will not allow you to close your account, request that it be set up on deposit only.
Make sure you work with the lenders to pay them what is actually due to them. If for example you took out a $300 loan with an illegal lender and only paid $150 plus fees, you still owe $150. However, if you have paid $400 including fees on the loan you are due a refund of $100. This only applies to illegal lenders.
Don't pay a consolidation company for a service you can do for yourself. You'll find that after a few months, your finances will level off. Make a budget and stick to it, and cut out things if you find yourself overspending.
