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Using state law to get out of your debts!

Date: Tue, 06/06/2006 - 05:38

Submitted by KittieKat
on Tue, 06/06/2006 - 05:38

Posts: 308 Credits: [Donate]

Total Replies: 28


I read Clay's blog and really needed to add my two cents here. I used my state usury laws to request a refund or, request my pdl's get paid in full notations because:

I have paid so much into them that I paid them twice over in reality. Some are almost one year old! When I requested a refund, I deducted the amount of the original loan and I even gave them the percent of interest that my state allows and then asked for the remaining to be my refund. I felt that was the right thing to do.

Now, if you have any pdl's that you are thinking about sending letters too, be sure that you at least have the amount of the loan paid. Otherwise that is mucho bad karma and will come back to bite ya! I don't know anyone who will back that request up if you have only made only a payment or two. Be fair about this and you will feel better. If you took the money, you should pay it back. The interest rate is the real devil in all of this. The laws will protect you as long as you don't abuse them :lol:

You don't want to be the one getting into trouble so do the right thing when using your state laws.


I agree, Linnie. :)

A lot of my payday loans were refinanced or rollovered....my state does not allow that. However, I kept paying refinance/interest fees before I could pay down the principal. Now I am looking back at my old bank statements....I shuddered to think of all the money I lost! It's ridiculous! How embarrassing....the high fees or refinance fees I kept paying would have paid off my daughter's medical bills easily!


lrhall41

Submitted by sapphiredreams on Tue, 06/06/2006 - 06:31

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I also agree with Clay's blog and the other comments made here. The one's that we had that were forgiven had been WAY overpaid and we are still paying on some. With the interest paid on some of them I also could have paid house payments and car payments. I know I borrowed the money and am committed to paying back what I borrowed but no more than allowed in my state. Don't try to get out of what you've borrowed just because you don't think you should have to pay them back if they aren't licensed in your state, be honest - pay back what you've borrowed.


lrhall41

Submitted by CycloneFan on Tue, 06/06/2006 - 06:36

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This is all very true.

It's kind of the same thing as borrowing from a family member...If they loaned you $50, would you pay back $30? No, you pay back what you borrowed. Grandma is probably not licensed either. ;-)~

When you borrow from a PDL, licensed or not, you have to pay back what you borrowed. But use your state laws to your advantage...But make sure that YOU are following the guidelines as well. If you haven't paid what's allowed in your state, you will not be taken seriously.


lrhall41

Submitted by Jessi on Tue, 06/06/2006 - 07:21

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there ya go, you said it perrrrrfectly

Not be taken seriously. If you are going to quote your state laws, you will want to sound professional doing it. You want to apppear as though you know your rights inside and out and will have no problem doing what is in your letter. You are more likely to get a refund, it your principal is paid


lrhall41

Submitted by KittieKat on Tue, 06/06/2006 - 07:34

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After reading all your posts, a quick thought came in my mind. Now, we are getting aware of the State laws and we want to pay within the permissible rates. So, what happened to all of us when we were not aware of these laws?? Payday loan is in business since a long time and so are the state laws. But, we, as consumers were not aware of our rights and paid lenders excessively in the past. With the same thoughts of making money, these PDL lenders came up again with their fees. But now, they can't get a penny more from us.

I am trying to focus the point that we are a fraction of people who have just become aware of the legal structure. But, there are still a vast proportion of people who know nothing about it and are paying excessively. Education needs to be spread through the internet and the local authorities about the Truth in Lending Act so that more and more people know about the state laws and do not waste their hard earned money.


lrhall41

Submitted by Justme on Tue, 06/06/2006 - 10:36

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I completely agree with you. There needs to be some sort of an "advocate" service with people who use/used payday loans especially internet ones who charge excess fees etc. Is there a way to get this started or do we just continue to educate those that come to this board and hope that more and more people find it (maybe some out of desperation like me) and help themselves? I guess I don't know what the answer is except to get the information out somehow.


lrhall41

Submitted by CycloneFan on Tue, 06/06/2006 - 11:44

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Any suggestions, you all can give?? :D I guess the government should have run some programs for awareness. But we have to visit them to get the info. It doesn't come out from the shell.

The thing that we can do from our side is to get periodical updates from the law enforcement agency. Get in touch with the local AG's office so that we come to know about the latest activities. We can spread message within the people at our reach so that it keeps growing further. My sister's friend was not aware of the state laws and she was paying high charges towards the principal. Now, she knows the facts and she will spread the message to few others. No one remains in the dark forever! We have to take initiative!!


lrhall41

Submitted by Justme on Tue, 06/06/2006 - 12:29

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My concern is if we all were this ignorant of our rights and laws, then there must be thousands (millions--who knows?) more just like us. And I agree (can't remember who posted it) that some type of advocate should be in place for "victims" of these scams.

Here is my question---how many of you actually read ALL of the fine print on those pdl contracts we signed? I know I didn't, (at least not very carefully) and to tell you the truth I was usually pretty desperate for money, so I don't know if I would have cared. I now wish I had read them and maybe been smart enough to take them out. But, that was in the past--


lrhall41

Submitted by Lorri on Tue, 06/06/2006 - 12:54

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I know I haven't read ALL of the fine print. I was in the mindframe of "gimme me the money now! I need it to pay those other fees!" so I did not really stop and think of what I was doing.

Aha...like you said, that was in the past. Lesson learned and I am dealing with the consquences. Things will get better.


lrhall41

Submitted by sapphiredreams on Tue, 06/06/2006 - 13:37

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I also never read the fine print. Interestingly just lately I was going through some of the papers and found some old loan documents from UCL (I believe) and they do actually have/had a statement about state licensing on a statement. I also agree that was the past - I've learned my lesson, the hard way unfortunately...


lrhall41

Submitted by CycloneFan on Tue, 06/06/2006 - 13:41

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Yeah, I recalled reading something like that too. LOL! Let's make a trip down to NM to take out loan and blow 200 dollars on gas (which could have been easily budgeted in the finance....defeats the purpose of getting payday loan right?) LOL!

Why can't they adhere to the consumer's state laws? Because they will NOT make money...that's why. NM, Delaware, and UT have the worse payday lending laws , so I am not surprised we got most of the loans from lenders "licensed" in those states.


lrhall41

Submitted by sapphiredreams on Tue, 06/06/2006 - 13:48

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SO if I have a payday loan here in Tx for 300 and they charge me 90 a week for that loan at what point could I argue the fact I cant afford to pay the principal since I currently have 4 PDLS out there and was thinking about closing my bank account


lrhall41

Submitted by on Tue, 06/20/2006 - 08:59

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You can always argue with that outrageous fee! register with this site, and I can pm you some helpful info on TX laws. I am in TX too! Also, tell us which PDL's you have. That helps in the sense that we have dealt with so many and they might be the same as yours. We can tell you exactly how to fight them!


lrhall41

Submitted by Seeing_the_Light on Tue, 06/20/2006 - 09:01

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Quote:


SO if I have a payday loan here in Tx for 300 and they charge me 90 a week for that loan at what point could I argue the fact I cant afford to pay the principal since I currently have 4 PDLS out there and was thinking about closing my bank account


Ethically, you can never argue you cant pay the principal. The point of this thread, and my blog post was that if you take a loan, understand what you are getting into before you do it and have a solid understanding of your financial situation and your ability to repay the loan(s).

I understand people are desperate and they want the money now (hey, I have been there to). Maybe later when you go th the restroom and need reading material you may actually read the fine print ( which is a good place to read that, since it will probably scare the poop out of you ).

If you borrow money, you have a legal responsibility and ethical obligation to re-pay the principal and what ever fees or interest are allowed by law. Don't look to the laws to undo the mistakes you have made, look to them to protect you from further damage from those mistakes.


lrhall41

Submitted by LCW on Tue, 06/20/2006 - 11:23

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I'm willing to pay off my loans since I requested them but with interest rates that are affordable and very legal. Seeing_the_Light please send me the Texas laws to help me get interest rates on these loans that are fair please. I have a loan here in Texas where I borrowed 1000. and my payment is only 90. monthly not every payday. I greatly appreciate your help but most importantly knowing we all have this one thing in common. Peace


lrhall41

Submitted by on Tue, 06/20/2006 - 18:18

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