logo

Debtconsolidationcare.com - the USA consumer forum

Dialogue with Lenders

Date: Wed, 12/22/2010 - 03:47

Submitted by Kelly Byrd
on Wed, 12/22/2010 - 03:47

Posts: 8 Credits: [Donate]

Total Replies: 12


I am about to get lots of calls from payday lenders who I am unable to pay. I have signed up with a settlement agency but I need to handle my creditors until they step in. Can someone offer me a dialogue in dealing with these companies on the phone.


Are your payday lenders even legal? You may not need that settlement agency. Don't waste your money paying someone else to handle something you can easily handle yourself.

What state are you in?
Who are your loans through?
Were your loans obtained via the internet or through a storefront location?
How much did you borrow from each lender?
How much have you paid back thus far? (not how much they say you owe, but how much you've actually paid)


lrhall41

Submitted by OhioGal1 on Wed, 12/22/2010 - 06:19

( Posts: 5253 | Credits: )


Missouri
1 internet - $700
4 storefront - $500 each
As well as 2 high interest loans that are not payday - which this agency is going to help me with also. I have already determined that the internet loan is not licensed in my state and understand that I am only obligated to pay the principle.

There are a few things that I am not knowledgeable. I generally pay off my loans and take out a new ones when it is due because it saves me money. My state says that on every rollover, the borrower can take out a loan only if it is 5% then then the original principle. Am I a rollover if I continuously take out new loans? None of these store front lenders have ever told me I cannot take out the Maximum $500.

My original request was for dialogue with the lenders. Any suggestions? I don't know if I am supposed to say I have involved a third party- or what I should say to stoll until the third party steps in.


lrhall41

Submitted by Kelly Byrd on Wed, 12/22/2010 - 06:53

( Posts: 8 | Credits: )


Do you realize that debt settlement companies are a bone of contention right now with government officials? For example, the Government Accountability Office did an investigation of debt settlement companies and found that before any money was put aside to settle debts the debt settlement companies kept the first four months of payments instead of distributing it among the creditors, that leaves a window of 4 months for the creditors to either turn it over to a collection agency who will harass you day and night, accrue interest & fees and possible lawsuits! Meanwhile, in that 4 month period you could have settled that debt yourself!

There are other options available to you for your store front lenders but since you did not name them, we are unable to help you plan a course of action, and we wouldn't charge you a dime!

One more thing, illegal lenders do not negotiate, and the fact of the matter is you (or anyone else including a debt settlement company) should not be negotiating with one anyhow! They should meet your terms, period.


lrhall41

Submitted by Shazzers on Wed, 12/22/2010 - 07:15

( Posts: 17344 | Credits: )


Hi, Kelly. This helps a great deal.

I wouldn't include the illegal, internet lender with your consolidation efforts. It's pointless to do so. Deal with them on your own. How much have you paid them back thus far?

Regarding your 4 storefront loans, what you're doing is not considered a rollover. If I understand you correctly, you're paying your loan in full on the due date and then obtaining another loan. It's a vicious cycle. There doesn't appear to be a cooling off period or a cap on the number of loans you can obtain in your state either. The rollover rule you're referring to states that if the customer rolls over the loan (making an interest only payment), then they must also pay at least 5% of the principal balance as well. This is MOs attempt at keeping your from paying a $90 rollover fee every 2 weeks for the rest of your life because nothing is applied to the principal balance of the loan.

If your intent is to stop paying and let this company handle the accounts, please be sure that you have secured your checking account prior to letting the lenders know. After the account is secured, you may want to just call each of the lenders and let them know you're working with a consolidation company and that they should contact them to arrange payment.

Are any of your lenders members of the CFSA? That could also be an option for you, if you want to handle some of these on your own. If they are members, they should offer an extended payment plan. They will break your balance due into 4 equal payments and no further interest/fees will accrue.

I hate to see you spend money on something you could do for yourself. Especially since many of these companies take your money and aren't able to get the results you need. Why not give us the names of your lenders and see if we can help you (for free, I might add) instead?


lrhall41

Submitted by OhioGal1 on Wed, 12/22/2010 - 07:17

( Posts: 5253 | Credits: )


Advance America - late
Check into Cash - late by 2 days Told them I would talk to them on Monday
Check n Go - installment loan already 1 month late.
Check Casher - late
Quik Cash - late by 2 weeks. Told them I would talk to them on Monday.

I already signed something with Oakview but haven't paid them any money. Is it possible to get out of it?


lrhall41

Submitted by Kelly Byrd on Wed, 12/22/2010 - 07:30

( Posts: 8 | Credits: )


You should be able to cancel it especially since you haven't given them any money. Look at your contract. Also, if you already gave them your checking account information you should close it before they clean you out. There is no guarantee that this company will be around in 3, 6 or 12 months. A lot of the settlement companies take your money and run.

By reading the posts about PDLs on this site, you will be able to negotiate on your own and save money that you could use toward settlement. I've settled 5 pay day loans last year and moved on to settle my credit card debt this year.

I actually have extra money in my checking account now. You too, can get to that point, and it's a really good feeling.


lrhall41

Submitted by aubrey on Wed, 12/22/2010 - 07:39

( Posts: 1203 | Credits: )


Advance America, Check into Cash and Check 'n Go are all CFSA members. They will generally offer you an extended payment plan even after you've defaulted (or are late). An EPP stops interest from accruing. Your current amount due will be divided into at least 4 equal payments. You can ask for monthly payments and stagger them so you're only paying one or two per payday rather than all of them every 2 weeks.

Quick Cash and Check Casher are not CFSA members but that doesn't mean they won't work with you. Most LEGAL lenders WILL work with you. They just want their money, really so, if you are up front with them and work out an arrangement and stick to it, they're usually pretty easy to work with.

Don't worry about the illegal one until you've handled these first :)

What does your contract with OV say? If you've not yet given them money, it's likely you can cancel it, as aubrey pointed out. How long ago did you sign it?


lrhall41

Submitted by OhioGal1 on Wed, 12/22/2010 - 07:46

( Posts: 5253 | Credits: )