Lawyers Advice sound correct? Please advise me!
Date: Thu, 10/07/2010 - 14:54
[COLOR=#0000ff]*PayDay1One (Still owe most of the original loan of $800 after 2 payments and have refinanced once on the principle I had built up....plus they charge an extension/rollover? fee each month)
*First Bank of Delaware (Still owe most of the original loan of $800 after 5 payments on a 12 month installment loan. At the end of the 12 months, on a $800 loan, I will have paid $1400 in Interest)
*elastic (still owe approx. $300 of the original $500 loan)
I cannot borrow from a Bank, Family (asked Cousin she said no) or obtain a Credit Card with a 2K limit. I took Bankruptcy 5 years ago and you can see a gradual shifting from the poorest of credit, to fair. I tried for a Walmart Discover the other day, but got a Walmart with a $600 limit instead. I do not want to just go crazy and start applying for as many as I can because I know that only hurts my chances of being approved, and will stay on my Credit Report for a couple of years. I thought a friend of my Father's was going to say yes, but he said no instead. He did add that he spoke to his Lawyer and was told to pass this information on to me:
*Close Bank Account
*Send Certified letter stating I would pay $25 per month via
money order.
He said to tell me that these were illegal, and it was illegal to charge the rate of Interest they were. Since I did not speak to him personally I did not get to ask him about the Interest. Surely he would not have told me the Interest and fees would stop once I sent them the letter and started paying the $25
Is he crazy, or am I?
BUT I cannot pay anymore on these loans beginning 11/1. Having over $500 taken from my SSI check ($674) each month, and a handful of that going towards the principle. I just can no longer suffer without food, toiletries, etc. when I am getting no where. Today, I still have not paid the Electric (due the 9th), or the Cable/Telephone (due the 15th). It's getting harder and harder for me to walk to the bus (no car) I have Osteoarthritis and am just a hair away from having to finally have the left knee replaced, and the right one in a couple of years. So I had hoped to be able to maybe get a small car of some type one day.
[COLOR=#0000ff]Please read this next part carefully. I have been reading these postings for days and I have seen many times, people being told that the same companies I have listed above will accept EPP. That is completely false. I called all 3, made them aware of my situation, asked to speak to a Supervisor, etc. I was very polite, and they were also, and they all said no.....EXCEPT:
PayDay1One said (this is so crazy) because I had a previous loan with them and paid it off in 2 payments. And counting 10/1's payment, I have made 2 on the present loan. And that when I make 12/1's payment that will be 5 payments. Then starting 1/1, I can pay off the still original $800.00 loan out over 5 payments with no fees, or interest!? What?
What I really need to do, because stress does lead to strokes and heart attacks is default on them. Close my Banking Account (checked, they do not charge overdraft fees), Phone number, and just let it go.
If I choose to do that, will 1, 2, or all 3 be reported to the Credit Bureaus? The same Lawyer that said pay $25.00, said no to that also. He said as long as I was paying something, they could not turn in a negative on my reports.
I'm sorry this is so long. I'm just so tired of going to sleep with this on me, and waking up to it still there.
Quote:He said to tell me that these were illegal, and it was ill
Quote:
He said to tell me that these were illegal, and it was illegal to charge the rate of Interest they were. |
No, he is incorrect, they ARE legal lenders, FBD is a bank, Elastic is backed by the bank FBD. They aren't required to follow the payday loan laws due to the fact that they are a bank.
Quote:Please read this next part carefully. I have been reading
Quote:
Please read this next part carefully. I have been reading these postings for days and I have seen many times, people being told that the same companies I have listed above will accept EPP. That is completely false. I called all 3, made them aware of my situation, asked to speak to a Supervisor, etc. I was very polite, and they were also, and they all said no.....EXCEPT: |
I don't know where you found this information, I would like to see it myself, because unless it was a guest or a inexperienced member who posted this our knowledgeable members would NEVER post such information, because it is incorrect, to say the least. What you may have found is a suggestion to ASK for the EPP which in no way would mean they are required to provide it.
FBD and Elastic are NOT payday lenders. Yes the interest rate and fees they charge are exorbitant, but that doesn't mean it's illegal, because as I stated before they are NOT a payday lender and are NOT required to follow the payday loan laws.
Yes, you will most likely be reported to the credit bureaus.
Yes, you will most likely be reported to the credit bureaus.
PayDayOne is generally easy to work with regarding getting an ex
PayDayOne is generally easy to work with regarding getting an extended or alternate payment plan.
Quote:Originally Posted by ShazzersYes, you will most likely be
Quote:
Originally Posted by Shazzers Yes, you will most likely be reported to the credit bureaus. |
What if I some how can continue to pay FBD, and elastic, but default on PayDay1One? Will PayDay1One report to the credit bureaus?
Quote:Originally Posted by OhioGal1PayDayOne is generally easy t
Quote:
Originally Posted by OhioGal1 PayDayOne is generally easy to work with regarding getting an extended or alternate payment plan. |
Could you read again what I wrote about PatDay1One's response to and EPP? It just sounded so crazy!
Thanks
I received your PM, so I am responding to your questions here: I
I received your PM, so I am responding to your questions here:
I can't make heads or tails out of the explanation Paydayone gave you for not extending the EPP. I do know that usually the EPP can only be requested once per year, perhaps that is what they were trying to tell you? I have no clue, just a guess.
As far as reporting you to the 3 major credit bureaus, let me put it this way, if that's a concern for you then the only way to completely prevent that from happening is to pay those loans off as the contract reads, but based on the information I am receiving from you, you aren't able to afford that, so, one way or the other you are eventually going to end up defaulting on some of these loans, if not all of them, so, why not just pay what you can afford and forget about your credit rating for now, because it seems to me, the important thing is to get out of this mess.
Not sure what your financial situation is but you really need to work out something you can afford, send them all a letter with your plan to pay them back outlined, and with that letter send a good faith payment, then continue to do so until these loans are paid off. Unless you are able to meet their payment requirements or pay them off in full now, I am not sure what other options there are. I am just making some suggestions, it's up to you to decide whether to use them or not.
I agree with Shazz. I reread PDO's response and I honestly can'
I agree with Shazz. I reread PDO's response and I honestly can't figure out what they're trying to tell you. Shazz's theory makes sense because you'd be starting over on 1/1. If you can't afford what they're offering you, I would forget about the credit rating and just work out something you an afford - regardless.