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Payday loan options

Date: Fri, 05/05/2006 - 09:42

Submitted by anonymous
on Fri, 05/05/2006 - 09:42

Posts: 202330 Credits: [Donate]

Total Replies: 3


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Hey everybody, first of all this is a great site and thanks to those that make it possible. I've got a problem with payday loans that I could use some help with. I live in Kentucky and I have 4 payday loans through internet companies ( worldwide cash now, ameriloan, united cash loans, and cashnet 500). The bottom line is that I can't keep paying all of them. I would be more than happy to work out arrangements but I've had no luck in that department. Also closing my bank acount is not an option. I checked Kentucky law and it states that the maximum of interest is $15 per $100 borrowed and there is absolutely no renewals or rollovers. Obviously all 4 companies violate this but I believe they have disclosures saying all loans are made in the state the lender is located, so does Kentucky law even apply? Also how do I check to see if they are licensed and what do I do if they aren't? Finally if I stop payments on these what can I expect and what are my options? I know this is long and thanks for the help


Well, first thing is yes, check the State laws and such. It looks like you've already done some research so that's good to hear. If they are violating the law, you can go ahead and send them a debt validation letter stating that you want a list of payments that were already made and go from there. If you've already paid the amount that you should owe based on your State laws, then you can basically stop paying them and let them know based on your State laws everything is paid for. YOu can even ask for a refund if you think you have overpaid what they should've charged you. You're not necessarily guaranteed a refund but at least they might stop calling you.


lrhall41

Submitted by quesik on Fri, 05/05/2006 - 09:56

( Posts: 108 | Credits: )


The loan companies have to be licensed in the state where you have taken the loan. Besides, they have to go by the permissible interest rates and fees set as per the laws in your state. If you think that the laws have been violated in your state, you can report the conduct of business to the attorney general office in your state. You can also send copies to the FTC and the BBB.

Check from the local AG's office if the said company is licensed in your state. They have this information about all the lending companies licensed in your state.

If you stop making the payments and perhaps, close your bank account, the company will try to contact you for the balance amount. Ask them for an itemized statement with all the calculation of interest charges and fees along with the principal amount. This statement must also show the payments made by you in the past. After you have done a thorough analysis, you will like to work out an arrangement with them.


lrhall41

Submitted by john on Fri, 05/05/2006 - 11:58

( Posts: 1231 | Credits: )