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Legal Payday loans and lines of credit

Date: Wed, 01/09/2013 - 19:37

Submitted by tjarrett
on Wed, 01/09/2013 - 19:37

Posts: 5 Credits: [Donate]

Total Replies: 6


I have found lots of info on this site about illegal payday loans but not much about legal ones. I have multiple payday loans I am trying to get paid off. Most were taken out at storefronts but a couple were done online. All have defaulted and I'm getting collection calls. I'm going to have some extra money pretty soon and want to negotiate paying these off and preventing them from being listed on my credit or being sued. Are there any links that have info on how to negotiate with legal PDL's? I want to send DV letters to the collection agencies, but need to know more info about my rights and the laws before I do it. Like am I entitled to just pay the principle back on those as well? Also a couple of them were "lines of credit". One was online and one was in a storefront. So the interest is constantly accruing. The storefront one is now almost double the original amount I borrowed and I paid several payments. So can I negotiate that they apply those payments to the principle and then offer a settlement? So basically I end up paying back just what they loaned me. The online one was with cashnet usa. Is a line of credit legal with them online or is it governed the same as a regular payday loan? Thanks and any help or direction is much appreciated!


I plan to work with the collections on getting the legal ones paid off. It was CashNet Usa. But it was their "line of credit" not a payday loan.


lrhall41

Submitted by tjarrett on Sun, 01/13/2013 - 11:12

( Posts: 5 | Credits: )


I live in Kansas. Storefront loans:
Ace Cash PDL $500
Quik Cash PDL $325
Checksmart PDL $450
Speedycash flex loc line of credit...Borrowed $725, Paid $300, balance with interest is $1090
Online loans:
Check N Go PDL $350
Zip 19 PDL $700, paid $300, not sure of the balance
Cashnet USA line of credit: borrowed $1200, will need to check my statements but I paid at least $600

All the storefront loans I took out, paid, and re-loaned for several months. The amounts listed above are the amounts borrowed. The interest on all of them is $75 per 500 loaned. I know they are legal. I'm just wondering if now that they are in collections it will give me a little leverage to offer a settlement, especially when I can make a lump sum payment. but you see the total I defaulted is pretty high so I would like to cut them down as much as possible. if the collection agencies are debt buyers I think that will help me negotiate a lower payoff as well.  The lines of credit especially. All the letters I'm finding on here are for illegal internet loans. Zip 19, cashnet may fall in that category but the others are completely legal.


lrhall41

Submitted by tjarrett on Thu, 01/10/2013 - 00:46

( Posts: 5 | Credits: )


A line of credit is a totally different animal than a PDL, so the rules would be different. I can tell you that each state has legal interest rates/amounts for PDL's, so the lender can legally only charge that amount to their customers.
This does not mean that a storefront that loaned $500 plus a $50 fee to you can charge $100 in interest. However, this does mean that the storefront can charge you $500 plus $50 each time you reloan. The clock is reset each time you reloan, which is why so many people get into a hole with PDL's.


lrhall41

Submitted by kscornell on Sun, 01/13/2013 - 14:43

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Zip 19 is an illegal loan. Is the other ONLY cashnet, or is it CashNetUsa? The former is an illegal lender, the latter is legal.

I suggest you consider EPPs/default with the other ones and trying to work with collections. Legal loans suck but sometimes default and working with collections is the absolute best route.


lrhall41

Submitted by waffles on Sat, 01/12/2013 - 21:58

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Ok...so i understand there is no "getting out of these" which I feel I have a moral obligation to pay  them back. I'm self employed and when I took them out we were short on work and barely making ends meet with some unexpected bills to boot. My business is on the upswing now and I recently received a small inheritance so I'm in a good position to get these taken care of. I don't care if I am not in good standing with them to re-loan because I will never do this again. But any advice in negotiating payoffs would be great. When the collection agencies first were calling they were offering small payments over an extended period of time. Would offering a lump sum settlement give me leverage to maybe pay off less than the balance? For example if I owe Checksmart $575 on a $500 original loan, do you think I could offer to pay $400 or $450 all at once and they call it good? Also a few of them are now with 3rd party collection agencies. Should I DV those CA's first to be sure they legally own the accounts? I have charged off credit cards that are with junk debt buyers and been working on improving my credit so I'm very familiar with the pennies on the dollar purchases they make of old debts. These loans were all defaulted on within the last 8 or so months so they are no where near being out of SOL. Anyone have experience negotiating a similar situation? Would i have better results negotiating with the CA's or going back to the original payday loan companies?


lrhall41

Submitted by tjarrett on Sun, 01/13/2013 - 17:23

( Posts: 5 | Credits: )