How to handle past and current PDL loans?
Date: Wed, 12/26/2012 - 11:04
Hello Everyone,
I am caught in the cycle owing numerous PDLs and am trying to pay them off. In some cases I pay off current loans in full only to have to re-borrow to pay basic bills. I am stuck in an endless cycle of paying interest rates which are outragous. I live in NYS and now realize that these loans are illegal and that I owe the principal on each and not the excessive interest. Yes, I know how stupid it is, but it is a slippery slope and once you get into the trap the only way it seems to get out, or just to even survive, is to keep paying and borrowing to just meet normal needs of life (rent, food).
The question I have is this. With two lenders which I repaid and took out numerous loans, can and should I ask for a refund of those interest payments on the past loans? If there is an outstanding balance does my pass excessive interest payments cover that amount? Here is an example:
Peppercash
Past loans - 7-2011 to 2-2012 (5 total loans)
Total Amount Borrowed - $3600
Total Repaid - $5733.75
Lastest Repaid - 2-2012 to 12-2012
Orig Amount Borowed - $1000
Total Repaid - $4737.50
Current -
Orig Amount Borrowed - $1500
Repaid - $0
In this example I want to request a refund for the interest. But more than likely they won't return it. But should I pay the principal of the current or cover it with the owed amount from the interest from the latest loan just paid off (and perhaps the loans prior to that also?). Any info is appreciated.
Thanks
caught in the cycle
Payday lending is prohibited in NY. All lenders are illegal in your state. So you owe principal only. Ask them for a refund as you have already overpaid them. Close down your old bank account and open a new one to stop debiting money from your account. If the lenders don’t pay back the rest amount, then try to cover it with the owed amount from the interest from the latest loan just paid off.