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What happens if I don't pay the payday loans

Date: Sat, 06/24/2006 - 15:10

Submitted by anonymous
on Sat, 06/24/2006 - 15:10

Posts: 202330 Credits: [Donate]

Total Replies: 383


i have 3 payday loans of 600 each I have been paying on them for 1 year 400 per month of interest. I cant see to ever have money to pay them off. what happens if i dont pay them and then just start making payments? Will I go to jail? I live in Houston TX


Hi.. wow I am so glad to see their is help.. I had a payday loan that is over a year old.. I got behind when I lost my job. (due to the economy) anyway I had a loan through Upfront Money and stopped paying them.. about 3 weeks ago Kim Black from Sterling and King called me she is really really rude and now threatening the authorities what rights do I have, as do they??? I live in Utah and got the loan while living in Utah it was done online. thanks


lrhall41

Submitted by on Wed, 02/18/2009 - 07:57

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i have like 9 or 10 store front payday loans,what happens in Colorado,if i dont pay them or go on a payment plan?


lrhall41

Submitted by on Fri, 02/20/2009 - 05:56

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i have 9 or 10 store front payday loans,what happens in Colorado,if i dont pay them or go on a payment plan?


lrhall41

Submitted by on Fri, 02/20/2009 - 06:00

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emtigurlee, the only thing they can do is try and file a claim in civil court and get a judgement to garnish your wages.

erika P, what are the names of the loan companies. They may be members of CSFA and if so then you can request an EPP, Extended payment Plan, if you have not defaulted yet.


lrhall41

Submitted by nohiogal on Fri, 02/20/2009 - 06:18

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PDLOwner - I'm sorry but your information is incorrect.
I live in Oregon and received information from the Oregon Division of Finance & Corporate Securities that it doesn't matter where the Storefront locations are, they must be licensed in the state that you reside in and they have to abide by those laws. Check your individual state's laws to clarify any questions.
I hope that helps.


lrhall41

Submitted by on Fri, 02/20/2009 - 20:43

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I live in NC in which I think PPDs have been made illegal I have 2 store front loans with check mate in SC what can be done if I don't pay them


lrhall41

Submitted by on Thu, 02/26/2009 - 07:24

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arkenbee

I have not had any interaction with OR new regs, so I would have to assume that based on your call to the DFI that you are correct. In most states, the PDL follows the regs set forth by the state that they operate in. A goo example of this is in South Carolina. When Georgia and North Carolina eliminated PDL's in thier states, the former customers drove across the stateline to borrow in SC making some of the biggest stores in SC exist along the line with GA and NC.


lrhall41

Submitted by PDLOwner on Thu, 02/26/2009 - 09:22

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Just to add, I cannot see how Oregon can regulate a business that is not under thier oversight.

Regarding WV, if I remember correctly, they made it illegal to collect from residents of WV if the company was not registered in WV. By doing this, it created a situation where it was too big of a risk for stores in neighboring states to loans to WV residents.

That is off of the top of my head, so take it for what it is worth...


lrhall41

Submitted by PDLOwner on Thu, 02/26/2009 - 09:26

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Again, Ace Check is calling me and telling me that I have a hot check with them and they are filing charges. Called my husband at work today. Please let me know if they can do this or not.


lrhall41

Submitted by on Mon, 03/02/2009 - 09:52

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I live in Texas by the way!


lrhall41

Submitted by on Mon, 03/02/2009 - 09:52

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i dont know who you have a check out with but i used to work for check into cash and all we could do is call everyday for 30 days then we turned your check over to collections and that was it no court or jail but the people i worked with would threaten that they could but they cant i hope this helps


lrhall41

Submitted by on Thu, 03/05/2009 - 12:45

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I recently filed for chapter 7 bankruptcy and all of the payday loans and two out of my three personal loans took it very calmly and gave no trouble. However, one of the personal loans demanded the items back that I listed for security. I gladly gave them back, all but one, which was an oil portait. given the ammount of the loan, the items I was surrendering were equal to the ammount owed, but they said if I did not give the oil painting they would have my bankruptcy claim dismissed. My lawyer was of absolutely NO help, I was stuck talking to his secretary who was more interested in when I would be making my final payment. My question is this. How can I fight this finance company so they will just take the other items that are equal to what I owe and leave me alone. They want me to give them everything on the list, which would mean that I paid them back more than they ever lent me, or for me to resume payments with them, even though everything else would be listed under my bankruptcy.


lrhall41

Submitted by on Fri, 03/06/2009 - 16:53

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I live inhouston, tx and have four payday loans that i am no longer able to pay. Ace $720 w/ a $147 fee, Firstcash online for$450 w/ $115 fee, EZ payday loan fro $500 w/ a $101 fee and one from Payday Advance for $500 w/ a $110 fee. What can i do and can they take me to jail for not paying. I plan on making payments but will only be able to afford payments of $25-$50 to each one of them each time i get paid.


lrhall41

Submitted by on Tue, 03/17/2009 - 08:20

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Welcome kaye06, first off they cannot take you to jail over a debt. That is a civil matter not a criminal offense. Looks like you have a couple of LEGAL lenders listed there. Some are registered in texas as Credit Service Organizations which allows them to charge certain interest rates. Stand by help is on the way :)


lrhall41

Submitted by Cool_Abyss on Tue, 03/17/2009 - 08:27

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Just looking at the fees for each loan would suggest that these are legal lenders. If this is the case, you need to contact thier Corp Office immediately to make arrangements. When you call, be very upfront and honest about the situation and your budget.

Someone will be along shortly to confirm status and post TX regulations...


lrhall41

Submitted by PDLOwner on Tue, 03/17/2009 - 08:28

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Well the EPP will break the principal balance plus finance fee into four equal payments. If you cannot afford that, I suggest calling the corporate offices as PDLOwner stated and try to propose some sort of repayment plan that is more affordable to you. Be honest and let them know what works best for you. I am looking for more information on these companies, stand by.


lrhall41

Submitted by Cool_Abyss on Tue, 03/17/2009 - 08:42

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Just to jump off topic for a minute based on kaye's response...

Many time people suggest to a poster to ask for an EPP without thinking the scenario thru. Most people do not get into trouble until they can no longer afford to pay the fee on a PDL. Based on this, an EPP is an even less effective option because it means that the borrower would have to pay more on the payments. Typically, the best option to get out of the loan is to buy-down the loan. This means to pay the fee plus an additional $25-$50 towards principal. As you work the process, the loan amount goes down and you ultimately have more cash each payday to devote towards the principal of other loans. It is a slow process at first, but within about 4 or 5 paydays, the process speeds up quickly.


lrhall41

Submitted by PDLOwner on Tue, 03/17/2009 - 09:10

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Well that refinancing the loan does nothing but buyback the loan with the fee plus a principal payment of $25-$50 is what you are suggesting is what kaye06 is trying to avoid. Overall every payday he/she will still end up paying that refinance fee plus a small principal payment versus paying off the total balance. That will be more costly. I been there :? But I see your point in what you were suggesting. On the other hand, if the poster has no money to pay even the finance fee then he/she really is not going to have any money to do this as suggested, or even the EPP as they stated.

I merly suggested the EPP as a last option to try an stay in good standing with the company versus defaulting with a LEGAL lender and having to be harassed. I would hate for that to happen, we see it all to often. Every situation is not the same, but every situation must be handeld different. In this case if an EPP and buyback is not possible then I suggest the kaye06 contact corporate in a last attempt to try and workout a payment more feasable to him/her. This can be done, I have seen it in the past. If they are not willing to work with you then I suggest sending them small payments when possible untill the balance is paid off. Like I stated earlier you can only do what works best for you :wink: Any more suggestions would be helpful, thanks!


lrhall41

Submitted by Cool_Abyss on Tue, 03/17/2009 - 09:26

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I'm not arguing against you, just placing an option out there. Also, remember that legal lenders do have the ability and right to use small claims. My scenario would keep a borrower out of small claims and avoid the huge cash outlay that would be required with the EPP. If a borrower can use the buy-down process for a few of their loans at the beginning, they would maintain the good standing with the lender to use the EPP at a later date when thier cashflow increases and can afford 4 equal payments.

This would keep control of their finances in the the borrowers hands and not the PDL or courts hands.


lrhall41

Submitted by PDLOwner on Tue, 03/17/2009 - 09:48

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I never stated you argued. Where did you get that? :P

Anywayz, I stated I understood your suggestion, but buying back a loan costs more money in this situation simply. I agree with your suggestion for kaye06 to contact corporate an try another route. Buybacks and EPP works, but they are simply too exspensive for kaye06 at this point.


lrhall41

Submitted by Cool_Abyss on Tue, 03/17/2009 - 09:56

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I have some payday loans and i can't keep up with them so I closed my account and now they are contacting my work and threatening me with garnishments can they do that? Here are my lenders:

500 cash was for 200.00 - online - already paid 525.00
Payday one was for 634.29 - online - already paid 1056.51
E Payday loan was for 300.00 - online - paid 715.00
1000cash was for 300.00 - online - paid 550.00
Payday Services was for 250.00 online - paid 450.00

I am not sure what I owe yet.


lrhall41

Submitted by sandi2949 on Wed, 03/18/2009 - 08:35

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You need to revoke the wage assignment that you signed with them when you took out the loans. There is a letter on this site that can help you do that. You also need to tell them in writing that you are not to be contacted at work. The other thing is that it looks like you've paid them above and beyond the state max they are allowed to collect.

Again, what state do you live in?


lrhall41

Submitted by sassy_lil_brandy on Wed, 03/18/2009 - 08:44

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Ugh, unfortunately PA is one of those states that allows a lender to lend into PA as long as they hold a valid license in ANY US state. That is the law last time I checked. Hope that has changed.

What I suggest you do is draft letters to all the lenders demanding they send you a valid license number and state they are licensed to do business in. PAYDAY One is a licensed lender, but they are easy to work with. Hopefully someone comes along with some more helpful advice.


lrhall41

Submitted by Cool_Abyss on Wed, 03/18/2009 - 09:06

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Here is a sample letter you can send each PDl company.
[quote]
PDL COMPANY NAME HERE

I hereby revoke any and all ACH authorizations with your company from debiting any of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I have closed my account with the YOUR BANK to protect my interest in this matter, per instructions from The YOUR STATE Department of Finance. I also revoke any and all wage assignments I may or may not have signed with your company, I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for your collection purposes. I have notified my employer about this matter so any attempts to do so on your part will be rejected.

I demand that any contact be made through US Postal mail or email only. I will need everything in writing to keep accurate records of all communication as per instruction from my Attorney General's Office.
I prohibit you or your affiliates to contact me via telephone at my place of employment or my home
telephone number. I also prohibit you from calling my references listed on my loan.

I am requesting that you send me your license number which enables you to offer loans to YOUR STATE residents.

I must also inform you that I will be filing complaints with the Better Business Bureau, the Federal Trade Commission, and the YOUR STATE Attorney General's Office.

I expect a response from your company no later than 5 days from the above date regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted. Be advised that I consider any contact not in accordance with the Fair Debt Collection Practices Act a serious violation of the law and will immediately report any violations to my State Attorney General, to the Federal Trade Commission and, if necessary, take whatever legal action is necessary to protect myself. Be advised that I tape record all phone calls and violations of the FDCPA can result in you or your company being personally fined up to $1,000 per incident.
Sincerely,

------ -------
CC:
Better Business Bureau
YOUR STATE Attorney General
Federal Trade Commission
[/quote]


lrhall41

Submitted by Cool_Abyss on Wed, 03/18/2009 - 09:14

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A "wage assignment" is a voluntary document that can be revoked at any time. This may have been included in any documents that you may have signed when applying for the loan. They usually will sneak one in as their backup plan, you can never be too sure with a PDL compnay. This is way different than a garnishment.

So this is why you want to revoke them just in case you may have signed one. If you do not it can be sent to your payroll department without you knowing and they can do damage to your paycheck.

The correct process is to draft a letter send it to your payroll dept FIRST then the PDL company ASAP. :wink:


lrhall41

Submitted by Cool_Abyss on Wed, 03/18/2009 - 09:23

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This letter is just a formality and sets the cornerstones for your repayment plan. Well that is a plus you are in your own Payroll Dept :wink:

Next you will need to research and find out if these companies are licensed. An easy way to find out is to do a search in the box uptop on each company. You can type their name in and read up on them. Or you can wait for someone to come along and give you more information on them. Or you can wait for them to respond with their license number and state they are licensed in.

PayDay One is licensed I believe. You will need to call them and work out a reasonable offer. Maybe they might consider your loan paid in full considering all the fees you have paid them. It is worth a shot. Trust me, last year I had 17 PDL loans and now I am PDL free. It took me a lil over 3 months. Most of my loans were way overpaid just like yours.


lrhall41

Submitted by Cool_Abyss on Wed, 03/18/2009 - 09:32

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I've had two collection companies call me - One is National Attorney - I have three outstanding payday loans in Arizona

Ace Case Express: licensed $600 and some change

Allied Cash Advance: $600 and some change

Checkmate: $600 and some change

so about $2,000. I stopped paying in October of 2008 and now I have two collection companies calling me - National Attorney is insane they called me 15 times today starting at 5:22am and until 6:30pm. about every thirty minutes with some hours of breaks in there.

My question is - has anyone gotten to this point before? is it better to contact the corporate office at this point or to deal with collection agency.

Thanks much

namaste


lrhall41

Submitted by on Tue, 03/24/2009 - 19:35

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I am going some of the same scenario that I have read on this site. I currently have 5 pdl one in which was sent back. I want to resolve this matter just because it will stay with me and they will continue to harass. Can someone please help


lrhall41

Submitted by on Wed, 03/25/2009 - 03:59

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