Looking for advice.. payday payments eating around
Date: Wed, 04/20/2011 - 07:52
To start with I must thank all members for some real great posts and it gives kind of relief to know that I am not the only one in this situation.
So here is the situation... I had taken couple of payday loans after coming to US around a year back to meet some sudden financial crisis. At the time of repayment I took another payday loans to close the previous ones and then few more to close those ones.
Now.. I am ending up paying around $700+ every 15 days towards these payday loans and none of them are getting closed soon. Four of the companies from whom I have taken the loans have the policy of auto renewal ($89 per pay period) and two companies have fixed payments for every fifteen days with amount of $150.
Now I am willing to get rid of these payday loans and after reading some posts I have few questions.
1. I have account with BOA and I stay in IL, can I simply close the bank account and let the payday companies call me for payments?
2. Are there any criminal charges I would need to face for doing this?
3. I am sure I will not be able to pay all of them completely with my 15 days salary. Are these companies easy to negotiate with so that I can get into some monthly fixed payments towards balances only.
4. Does it in anyway afect my credit score with 3 major companies (I am okay even if my teletrack score is bad).
1. To be honest I'm not sure on IL laws concerning these matters
1. To be honest I'm not sure on IL laws concerning these matters, but normally you can get away with closing an account, then once the loans default setting up a payment plan. Just do so by money order or western union or something like that, don't give them your new bank information.
2. Again, not sure, maybe some one in IL knows or you can research it through state websites.
3. No they are not easy to negtiate with, but stay strong and stand your ground. They will try and say you have to pay 50%-100% up front to set up a payment schedule, but don't fall for it. Try and reason with them and if it doesn't work get the address and mail them payments every month. As long as you are paying something, that shows good faith and they have less legal grounds against you should they try and file suit.
4. It can. They don't always, but they can report it, they can sell the debt to a collection agency which will report it.
Thanks, For the IL Laws: In one of the posts (http://www.d
Thanks,
For the IL Laws:
In one of the posts (http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html) I found below information about IL laws.
Illinois Payday Loan Laws
State Legal Status
Lending of payday loan is considered legal in the State of Illinois.
Loan Specifications
- Maximun Amount of Loan - Less than $1000 or 25% monthly gross income
- Term of Loan - 13-45 days
- Maximum Rate of Finance and Fees- $15.50 per $100
- Finance Charge on $100 loan for a 14 day period - $15.50
- APR for $100 loan for a 14 day period - 403%
Debt Limits
- Maximum Number of outstanding loans permitted at a time - 2
- Permissible number of Rollovers - None (Rollover cannot be done)
- Cooling-off Period - 7 days after a period of 45 consecutive loan days
- Repayment Plan - Yes
Limits of Collection
- Collection Fees Amount - One NSF fee of $25 (Presentment limit is equal to 2)
- Criminal Action - Prohibited
2. For reporting.. I agree. They may report to the credit bureaus if they sell it to a collection agency. However, what if I enter into a repayment plan.. would there still be chances of being reported?
I am guessing my best bet is talk to BOA guys first as why I want to close the account and then deal with payday companies..
Any thoughts?
So.. after posting yesterday's reply I met the bank manager and
So.. after posting yesterday's reply I met the bank manager and explained him the situation.
According to the bank manager I should put a hold on my account and then work with these companies. He assured that the bank account will not be reopened i.e. hold will not be removed even if they try to take the money. However if the account is closed and if the ACH debits come, the bank may reopen the account.
I guess I am better off putting a hold until I deal with these companies and then request bank to remove the hold once the payday companies have been taken care of.
On another note, I was reading some posts about the illegal lenders. Can someone tell me which from below are the legal lenders in IL and how to deal with those which are not legal.
Lender Name and amount debited per 15 days:
United Cash Loans - $150
Payment Direct - $89
Genesis Financial - $70.85
All Credit Lenders - 64.23
500 Fast Cash - $90
Eastside lenders- $47.50
Redstone Financial - $89
Advantage Cash Srv - $135
Integrity Advance - $ 140
Besides I also have one loan from check-n-go and I believe it is a legitimate company. If I put the hold on account what are the options to repay to this company.