Payday Loans have taken over my life
Date: Fri, 03/17/2006 - 08:57
Submitted by scaredsillybydebt
on
Fri, 03/17/2006 - 08:57
Total Replies: 34
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I've done it. I live in Mass, and have payday loans with: Magnum Funding ($500), Sonic Payday ($1000), AmericaCash Advance ($1000), Mr. Cash ($300), Apple Payday ($650) and Payday Connection ($850).
I had payed off some of the loans before the holidays, but quickly got behind the eight ball and went back to the "old faithful" method. I realize now what a mistake I've made.
I am now in at a point that my entire paycheck is going to the interest on these loans. At Magnum, I actually was due to pay them off this payday, but it was returned and now they've extended it, including fees, until 4/15 for two debits of $245.
Is there anything I can do here? I don't know how to get out of this. I have an infant at home and am scared. Has anyone been in this situation? Is there any recourse for someone who has made such a horrible mistake? Is bankruptcy an option?
Someone, please give me sound advice! I am desperate to know what I can do!
Mass does not seem to have any payday lending legislation, howev
Mass does not seem to have any payday lending legislation, however they do have a 20% cap on interest rates, and anything beyond that is considered usurious.
Find the exact legislation on Mass webisite, and copy it into a letter. Inform them that per WDPA (which you can find an excerpt of in one of my letters), that their claim of governing law is unsubstantiated. Also find out if these companies are licensed in the states that they are incorporated in. If they are not, which is highly likely, they are operating illegaly. You can do this!!!!
Thank you for your advice. I am a bit scared to just stop paying
Thank you for your advice. I am a bit scared to just stop paying. I do not want to be sued, or lose my job because they constantly harrass me at work.
Are there any companies that consolidate or negotiate with payday lenders?
I think your fears are unfounded. Write these letters before yo
I think your fears are unfounded. Write these letters before your next payday and fax them. I have settled with every company except Cash Today. I had results within 24 hours after I faxed the letters. I actually got a refund from Rio Resources!
Store front lenders are more tricky, but these internet lenders 90% of the time are operating illegally.
Polly -- That's the kind of gentle nudge I need! Can you offer m
Polly -- That's the kind of gentle nudge I need! Can you offer me a bit more advice -- I am new on this site. Where do I go to find the legislation, and what letter do I use as a sample?
http://www.mass.gov/legis/laws/mgl/271-49.htmPART IV. CRIMES
https://malegislature.gov/Laws/GeneralLaws/PartIV/TitleI/Chapter271/Section49
PART IV. CRIMES, PUNISHMENTS AND PROCEEDINGS IN CRIMINAL CASES
TITLE I. CRIMES AND PUNISHMENTS
CHAPTER 271. CRIMES AGAINST PUBLIC POLICY
Chapter 271: Section 49. Criminal usury
Section 49. (a) Whoever in exchange for either a loan of money or other property knowingly contracts for, charges, takes or receives, directly or indirectly, interest and expenses the aggregate of which exceeds an amount greater than twenty per centum per annum upon the sum loaned or the equivalent rate for a longer or shorter period, shall be guilty of criminal usury and shall be punished by imprisonment in the state prison for not more than ten years or by a fine of not more than ten thousand dollars, or by both such fine and imprisonment. For the purposes of this section the amount to be paid upon any loan for interest or expenses shall include all sums paid or to be paid by or on behalf of the borrower for interest, brokerage, recording fees, commissions, services, extension of loan, forbearance to enforce payment, and all other sums charged against or paid or to be paid by the borrower for making or securing directly or indirectly the loan, and shall include all such sums when paid by or on behalf of or charged against the borrower for or on account of making or securing the loan, directly or indirectly, to or by any person, other than the lender, if such payment or charge was known to the lender at the time of making the loan, or might have been ascertained by reasonable inquiry.
(b) Whoever, with knowledge of the contents thereof, possesses any writing, paper, instrument or article used to record a transaction proscribed under the provisions of paragraph (a) shall be punished by imprisonment in a jail or house of correction for not more than two and one half years, or by a fine of not more than five thousand dollars, or by both such fine and imprisonment.
(c) Any loan at a rate of interest proscribed under the provisions of paragraph (a) may be declared void by the supreme judicial or superior court in equity upon petition by the person to whom the loan was made.
(d) The provisions of paragraph (a) to (c), inclusive, shall not apply to any person who notifies the attorney general of his intent to engage in a transaction or transactions which, but for the provisions of this paragraph, would be proscribed under the provisions of paragraph (a) providing any such person maintains records of any such transaction. Such notification shall be valid for a two year period and shall contain the person's name and accurate address. No lender shall publicly advertise the fact of such notification nor use the fact of such notification to solicit business, except that such notification may be revealed to an individual upon his inquiry. Illegal use of such notification shall be punished by a fine of one thousand dollars. Such records shall contain the name and address of the borrower, the amount borrowed, the interest and expenses to be paid by the borrower, the date the loan is made and the date or dates on which any payment is due. Any such records shall be made available to the attorney general for the purposes of inspection upon his request. Such records and their contents shall be confidential but may be used by the attorney general, or any district attorney with the approval of the attorney general, for the purposes of conducting any criminal proceeding to which such records or their contents are relevant.
(e) The provisions of this section shall not apply to any loan the rate of interest for which is regulated under any other provision of general or special law or regulations promulgated thereunder or to any lender subject to control, regulation or examination by any state or federal regulatory agency.
I found this in a different forum...does this mean that because
I found this in a different forum...does this mean that because I am a Mass. resident, online payday companies can not lend to me? If so, then maybe I have some recourse...
"After going through few online articles and browsing net vigorously, I have prepared the list of states that have banned payday loans. Check it-
Arkansas
Connecticut
Georgia
Maine
Maryland
Massachusetts
Michigan
New York
New Jersey
North Carolina
Pennsylvania
Vermont
West Virginia
Texas has set some limit of payday loans. It has capped apr and loan amount too.
However, payday lenders are still operating in these states as a partner of some out-of-state financial institutes. Few states have started working on these lenders specifically.
If anyone knows something more on this, please post it here. Thanks
This is the link to one of my letters that I have wrote. If any
This is the link to one of my letters that I have wrote. If any on your company's are located in New Mexico, this will be a good letter to use, just replace the Michigan law with that of Massachusetts.
http://forums.debtcc.com/forums/paydayok-letter.html
based on some info on the mass. state website, it may be or ther
based on some info on the mass. state website, it may be or there maybe little restriction. I would contact the state attorney general's office and ask that simple question.
So are you all saying that the lenders must adhere to the payday
So are you all saying that the lenders must adhere to the payday laws in the state in which we live and not in the state that they are located in or operate from?
depends. In general more and more states are saying that their p
depends. In general more and more states are saying that their payday loan laws apply to anyone doing business with their residents... now the lenders will say that your contract stated that you agreed to abide by whatever laws are on the books in the state that they operate.. and guess what both are true.. you may have agrreed to something that is perfectly legal in your contract, but that does not necessarily mean that the loan it self is legal in your state.
letter to payday companies
pollyandsay I clicked on your link to view a letter and it said url not found any help would be appreciated on to write that letter.
raffi, it is in this forum, and it is called paydayok letter.
raffi,
it is in this forum, and it is called paydayok letter.
Raffi, The link is working nicely. Do you still have any prob
Raffi,
The link is working nicely. Do you still have any problem watching this? Let us know.
raffi, i posted a similiar letter in your ameriloan posting.
raffi,
i posted a similiar letter in your ameriloan posting. take out the references to michigan, and replace it with florida law.
JJ, You bring up a good point here. Most websites will say t
JJ,
You bring up a good point here. Most websites will say the loan takes place in the state of the lender, therefore those laws take precedence. By signing their contract, we agree to this. Check out some of your contracts with these lenders. Yet, there is a Catch 22 if your state requires the lender to be licensed and registered which mine does. I've decided to go full force on the rest of mine. I'm done playing games right now. I also found on some new information today which might be a big asset with one of the companies who keep hitting my closed checking account. They have known it's closed since I entered into debt consolidation. I have letters from them stating the additional charges they have applied to my account because of this. I need to do further research on this. :wink:
Mishele, The WDPA 1997 ruling is also applicable, because it sq
Mishele,
The WDPA 1997 ruling is also applicable, because it squashes the governing law clause in those contracts. Basically, if a company accepts business from a consumer they need to follow the laws of where the consumer resides.
Polly, Could you pm me the link for this? I just checked thi
Polly,
Could you pm me the link for this? I just checked this so I'm very excited about this news. Thanks so much. :)
TIME STEALING EMPLOYER=PAYDAY AVENGER
edited by vikas:
Deleted the post by ipaymybills.
Please read my response to ipaymybills post on:
http://forums.debtcc.com/halloffame/shirley.html
It was a similar post and I did not want to waste my energy replying to him again over here.
Warning to ipaymybills:
Please do not test our patience. One more of such posts and we will have to ban you.
Payday Loans are taking over my life
I've been searching for Northway Credit or Debit but only come up with First Bank. I have read the letter containing legislation referring to payday loans. I will be using it since I've had one bank account completly ripped off by the same company over the course of two pay periods. I've since changed accounts but due to the rip offs I had to return to payday loans to get me by. I live in Texas and being a single parent of two and a working college student it seems ashamed that we have to result to payday loans when the banks we place our money in won't offer us loans due to a low credit score or not so good credit history. I'm not making excuses but you see I am 50 years old have been banking well over 27 with my current bank but if I apply for a personal loan the answer is always no. We need help from banks
Geneva Roth
anyone know how i can contact them. i lost their number. they keep taking funds from my account and i can't get hold of them
scaredsillybydebt... Hello I reside in Massachusetts as well. No
scaredsillybydebt... Hello I reside in Massachusetts as well. Not only is it illegal to lend to a Mass. resident,they can't even advertise in this state. I am
at work at the moment. However,when I am home I will send you an interesting Article.
I Need Help As Well
I am in the state of Texas and trying to figure out how to get myself out of debt with these god awful companies. Is there any other information someone may have to help me. I hate pay day loans.
re
I would say your best bet is to close your checking account. Get a new one and close the old one and then deal with the loans on your own. What else can you do? You have to pay rent and buy food. I had to do the same thing.
1st step. Educate yourself and deal with them using that knowledge. Be nice, cordial but don't let them push you around.
I cannot post links here so do a search and lookup all collection practice laws at both the Federal and State level. Some of those PDL's may even back off once they know you are an informed client.
As pointed out there is nothing they can legally do to you so they follow very aggressive collection practices. Every place except for Sonic settled with me for far less than what the interest/fees would have built up to.
Be prepared for a lot of harrassing phone calls and all kinds of threats. The worst thing they can do is call you at work and possibly contact your employers to see if they can send though a wage assignment.
Sonic will do this. They are probably the worst on your list. You do have rights, they cannot contact you at work or your employers if doing so would cause deress but they will anyway. Find these laws and inform them that you know of them and will file complaints and take legal action if they do not comply.
If it helps - most of us here have been where you are now and we have all survived. You have taken the 1st step to getting your paychecks back.
dd
I thought I read somewhere where Sonic backed down and was going out of business so how is it that she should have something to worry about if they are closing down shop - how can they call your job or even threaten you with a wage assignment - does anyone have the loan document that Sonic sent - is there a wage assignment on that document
Read the threads given below. Sonic tried similar threats on oth
Read the threads given below. Sonic tried similar threats on others and garnish the wages. If they follow within the legal lines, wage assignments can be revoked by law. They can't garnish the wages after a revocation letter is sent to the company as well as the payroll dept. If you have a loan with Sonic, the wage assignment clause should be clearly mentioned. Sonic has no rights to frame the points in a different way.
http://forums.debtcc.com/forums/sonic-garnishment.html
http://forums.debtcc.com/forums/wage-assignment.html
payday loans
ok hello everyone i am so excited to find this web site. I am in critical need of help i am $3000.00 in debt with payday loans and am getting deeper i dont know what to do? i cant get my head above water!! I go to bed crying every night that it is never gonna go away please someone help i am a washington state resident thank all of you for any help you can provide
Kristy, people with similar problems are registering in this web
Kristy, people with similar problems are registering in this website and taking a discussion with the counselors of your area. You can also give a shot by registering here and talk to one of the consultants. Relax! Don't strain yourself. Trust me, there is a solution and many people here are coming out of this payday loan mess. Make the first move and register at the homepage. You will get a call back from the counselor soon.
help im confused
so im a bit upset and confused i joined this site a few days ago and was told i would be able to get help with my payday loans. Well the only phone call i have recieved was a phone call from back east from a debt consolidation company that said my info was forwarded from this site. I was so excited until he told me that he cant help me with payday loans and that no company can that when it comes to payday loans there hands are tied. I keep seeing notices about on this site about becoming debt free from payday loans can someone give me some good advice please thank you so much!!
Kristy Log in the forum with your email address and the pass
Kristy
Log in the forum with your email address and the password. I will be able to send you some helpful information through PM. If the company that contacted you doesn't do payday loans, it doesn't mean nobody does. I have read some consolidation companies affiliated with this website and doing payday loans. I might be able to help you after you log in.
believe this or not we had over ten payday loans before we could
believe this or not we had over ten payday loans before we could STOP THE MADNESS. We were advised by an attorney to stop payment on these "loan sharks". Your bank will charge you, but not as much as they do. There is a reason they are called sharks. They smell "blood in the water" and they come cruising offering a false easy answer. Then they chew up your money and spit you out. At first they seem like an easy fix, then comes payday and you have to pay your bills, so you get another to pay that one, and on, and on.....It is the most humiliating thing ever. We get calls they talk nasty, but if you offer to pay them a monthly payment and they decline it, in Texas, the most they can do is send it to a collection agency. It could ruin your credit for a few years, but the burden is gone. The lower dollar ones can be taken care of by a monthly or bi weekly pre paid credit card. Do NOT let them back into your checking account and do NOT get any more payday loans. The last one we got had an interest rate of 914%! That is nothing more than piracy and usary. Horrible. Ameriloan, Cashnet, Cashspot, United Cash Loans, Ace Cash Express (they are bad), United Cash Loans, etc...BEWARE BEFORE YOU ELECTRONICALLY SIGN YOUR NAME. There is no easy fix to anything. If it sounds too good to be true, it is. Write a letter, "This is an attempt to pay a debt" and outline what you can pay (ex: 25 dollars bi weekly or monthly) and enclose a money order, stating if it is cashed they have accepted your terms. Also you MUST tell them to cease and desist trying to collect from you by calling your home or work and harrassing you. Make copies of these letters and keep them. It is against the law if it is written to them for them to harrass you. Do not tell them why you want their address other than you want to send a payment. Keep paper records and jot down times you are called, even keep recordings. Because this is a war. Believe me. And we are not the only ones fighting it. they try everything. But not since the civil war has there been anyone imprisoned in the united states for non payment of a debt. I hope things work for you. Stay at it. This is all so new to us, but we have changed our bank of thirty years and are trying our best to stand strong. We are Christian, so to Pray is a given. But we also have to work at it. We'll never see things the same way again. And when we pass these places or get them in emails (yes we STILL get at least ten offers a week) and Montel Williams is even advertising for one on TV, well, we look at each other and know that somewhere someone is going to go for it and God help them.