Payday loans what happens when I default

The lenders might start calling you and will continue to try to debit your account.

cmhumiston

If you default on the loan, you could he charged fees. For each attempt they make to get their money back (which is usually 2 attempts per payday) they could attach a $29 NSF fee. That's $60 extra dollars that will be added to your loan.

Make your very best effors to get this loan paid off on your pay date. This will eliminate the loan entirely, and you won't be stuck paying the high inerest fees.

By the sounds of it, you haven't defaulted yet. Is there a reason you won't be able to pay back on your pay date?

Regards-
Mike

I have lost my job and I know that my past pay check I get will have to go to rent and utility bills. I don't know what to do!

Guest

Your best bet is to pay the loan off, and get that of the way. If not, then you'll keep racking up fees from your bank everytime they attempt to get it back. Talk to your landlord about the situation. Perhaps they can give you an extended time period to pay the rent.

My advice would be to seek out temp work till you can find a permanant job. During the interview process, they'll test your typing skills and what programs you know how to use. Usually you'll get placed on assignment within 4-5 days. Signing up for 2-3 temp agencies doubles your chances of finding work, and getting those weekly paychecks.

You can also talk to the unemployment office. They have special programs with the state you live in to help with rent and food.

Regards-
Mike

Contact your lenders and let them know the facts. They might help you find some solution. If you name the companies you have borrowed from, PDL Associates might help you on how to proceed.

I know what you are about to go through, I have been there. See my recent, and very long post about ameriloan..

Unless you can pay them off right now, you will probably never get away from them.

Understand one thing, when they tell you that it is "ok" to pay late or miss payments, what they really mean, and won't tell you, is that you are going to pay through your ass...

I would, as soon as possible, close your current bank account. Even if they tell you on the phone that they will not debit you, they will probably doit anyways, even if you have a 0 balance in your account. You will rack up HUGE NSF charges with your back, and the only way to stop them is to shut off the account. It is easy, and will only take a few minutes at your bank. Tell the payday lender that you are out of work and have no income coming in and had to shut off your bank account for personal reasons, you don't owe them any explaination for that.. And let them know that all future transactions will have to be by check or MO. They can't say no, and if they do, f*ck em, and don't take any crap from them.

Listen, you are the one who is out of work, you are the one in trouble, you need to control the situation, not the foolish loan shark.. Don't let them.

Also, when you talk to them, DO NOT give them any info on your new account, or where you are working when you get a new job. Thats none of their business and you don't want these dummies calling you at work anyways, so don't give them the chance.

[quote=PDL Associate]Guest:

I think before you just run right out and close your bank account, you should contact your lenders and explain the situation. Be prepared to fax them your release papers to back up your claim of unemployment. A lot of companies will be willing to work with you (waiving fees, extended extensions, or even forgive the loan if you have had it for a while, etc.). It usually depends on your approach. I just feel that closing your account altogether should always be a last resort. Do you mind if I ask who your lenders are? That may give some insight on what your next best step should be.[/quote]

People can not say something and later say I did not say it-Roxette

Cash N Advance, Advance America, Check N' Go, Fast Cash Loans, Checkmate, Advance Til Payday, Loan Mart,

[quote=PDL Associate]Are these all storefront lenders? If yes, you should contact all of them before closing your account. Storefront lenders are usually the easiest ones to work out payment arrangements with. I would definitely leave your account open until after you have talked to each one of them.[/quote]

People can not say something and later say I did not say it-Roxette

Yeah they are store front lenders. I have contacted T&C because I heard that they consolidate payday loans and I don't know if I feel confortable with going through them. I guess I just keep thinking of the worse. I can do payment plans with these places the thing is that I don't have enough money to make payment plans on everyone at the same time.

CM, are you in Washington State? if so, you should be able to work with all but fast cash loans and advance till payday. I would consider changing my checking account to insulate you from bank NSF fees. I am in Washington state and have been there with the payday loans,

PDL associate is correct, call or stop in to your store for each one and tell them what is going on. Most of them will work with you as long as they can. MOst places will keep the check in house (one it has been returned) for 30 days. So if it is going to ba awhile until u can get htem paid off, let the loan default (make sure they know). AS far as payment plans, try this, figure out what your total amount is that you can spend a month and divide it evenly. Also don't forget that if you have any loans that are your fourth or more consecutinve (with no more than 3 days between) by law they have to give you a payment plan.

One note about Fast Cash Loans, they have been fined by the state (2005) for im proper collection practices. If they in any way get nasty, make sure you file a complaint.

I will help you however I can. Just let me know

Thank you for that information jj. I really needed someone to tell me what places were the worse at dealing with. What is the worse thing that could happen if I did default? And they wouldn't work with me on repayment.

they would sned you to a collection agency, or try to file suit directly. However if they sue they can only collect an additional $40 dollars, no attorney's fees or penalties.

I would be a little more pro-active in your own interest first. Remember, these people will hit your bank account that you gave them access to until you are beyond negative funds. And it will happen, it has happened to me and so many others here. It's a really great thing when you can call them and work things out, that is in their favor, which is almost never. They will continue to try to debit your account wether you have money in there or not, and you bank, who you DO have to take care of will continue to hit you with NSF charges. I had some of these companies hut my account 2 or 3 times a day, hundreds of dollars in NSF charges, that you have to payin order to use your account again. You are in trouble and need to take control of the situation so things are in YOUR favor. That starts with closing your account so they cannot control you funds anymore. Do it now! As a case in point for this action, I was out of work, with nothing coming in. I called the payday loan company, ameriloan, and Platinum B. Ameriloan told me they could not stop the ACH on my account, even though we had no money in the account. So we got hit with NSF charges from the bank as well as Amerloan's own late fee's. Plat B said (lied) that they would stop the charges, they hit our account anyways.. Again, tons of NSF as well as late fees inccured. When you close that account, you take the control they have over you away, and give yourself alot of leverage to deal with them more effecively. Here is a real tough pill to swallow, and will make you see my way even more.
I like I said, was out of work, I found a new job, but did not start for an additional 2 weeks. I didn't close the account, I figured, like they told me, that they would,"work with me". Since funds were so low and we needed food and money to pay real bills like rent, car, insurance, FOOD, utilities, ect. We had relaitive who sent us a check, as a gift for some money so we could buy food as we were almost starving.. I deposited the check in the bank on my lunch hour and then went to the grocery store that night to load up on food, the total at the register was approx 1\3 of what the check was for, so I had no worries when I pulled out the debit card to pay in the grovery line. DENIED!! WTF? I did not understand?? Ok, maybe they needed a business day to apply the funds to the account? So I thought, my wife had an emergency credit card with a small amount on it and we put a few things back, embarrased, and paid with the CC and left.

I got home and looked at my bank account online and shit my pants! Paltinum B and Ameriloan wiped my account out!! No sooner had I deposited the funds my family had donated to us to buy food and the payday loan companies wiped it out!! And this was not during one of their regularly scheduled pay days. They were literally watching my account for funds, and when the funds became available, they grabbed them. Now you all can see why I have the take no shit tough as nails stance that I do with these people.. My family was starving, desperate, for food none the less, and they wiped us out. When you give your account information over to these payday thieves, you give them control of you financial life, and you loose control of it on your end. The only way to regain it is to close your account and start over.

Again, I can not say it enough! Take charge of the situation, don't let them push you around. Shit happens to all of us. Don't buy into their lies, they will tell you anything you want to hear to keep you on the hook and drain more money from you. And they will never stop. Don't let them.

Hey, don't take my word for it. Find out for yourself. Go right ahead, give them a call, work it out with them, if you can't pay off your entire balance as we speak right now, you are wasting your time..

I'm not trying to knock the other persons advice here, which is good, but you are giving in and empowering them. DONT.

Cm, Jerkball is right on when he talks about protecting yourself, by that I mean do change bank accounts ASAP to protect your finances. WHen i did it, I went in and sat down with my bank manager ( now I am luck in that I use a relatively small bank, but your home branch shoudl have a manager or at least a customer service person who can guide you along. The key is to be up front and honest with your bank, do this before the lenders hit your account.

Jerkball, just fyi, but Cm is lucky in that the State of Washington has some fairly strong regulations and most of the store front lenders will work with you. At a minimum, you can string them along for a while and get stuff together to take care of it but you are correct in your thought that you do have to look out for yourself, because they won't.

The key to my success was that enough of them were willing to work with me, that i could slowly knock em down. By the way, the ones that worked with me got paid first. The nasty ones got paid last.

JJ..that's exactly what I've done. Went into the bank and explained my situation, it also helps if you start crying! LOL
Got my account frozen, then started calling. All of the ones that worked with me will be paid first, the rest will get the minimum.
In the meantime, I'm filing complaints with all the AG's offices in those states as well.
Since I've done this, my stress level has come down and I feel more in control of my situation.