Defaulting on loans...what to do

What kind of loans are these?

Sorry did not mention that, they are all payday loans. There are about 6 of them and i just can't keep up with them anymore. Im just a little nervous of the consequences...kinda scared of all the things im hearing.

Hi Raven

Welcome to the forums.

Payday loans are risky cash and the lenders seem to be agitating. You need to take precautions before they can harm you later. I understand that you might be having some financial troubles in paying it now.

Can you make small payments now to keep the loan rolling? Doing this, you will be able to keep it current and prevent it further from going into collections. Also, if you have authorized them for the debits, then your bank information might not remain safe from them. It is better to arrange a payment plan with them rather than defaulting it.

Also, if you delay, the interests will be rolling higher along with all the fees. Later, it will be almost impossible to catch up with the fees and there won't be other way than filing bankruptcy or taking some settlement programs.

Today, you can take control of it by paying slightly larger payments towards your debt account. Later, when your financial situation improves, you can make bigger payments.

Also, you can think of getting a second job so that you are not under pressure. My opinion to you is that it will be better paying off now than making it painful later.

Any thoughts??

Regards
Roxette

Try calling them,I have 3 payday loans and two of them have said they will work with me.Im still waiting to here from the last one.They gave me thier address and Im going to send the payments by money order.I had to put a stop payment to them on my checking account.Some will work with you and some wont,but its worth a try,just call and speak to a supervisor.Good Luck

Thanks for the response. I can try to make small payments every two weeks or so to them, i dont' think i can get a second job. I just got divorced, and i have 2 young kids and i attend college part time. Im a little frightened because i don't want to lose my job with them calling so often. I heard of the cease and desist letter but is that something i send to them or if it goes to collections. I dono't mind if they call me at home but not at work. I am going to call them and find out if i can make arrangements but i am frightened that they will call all my references and my boss. Also will the finance charges keep adding each time how will i ever pay anything off? I now have made a budget on what i can afford to pay them but if they continue to add more charges i feel like i will never get it paid off. I had to close my account yesterday becuase i knew i wasn't going to have enough money in my account for rent, my car payment and childcare, when they try to debit my account there won't be one. Thanks for the info. Any other ideas?

Raven,

This is the time when you should approach your creditors and show your willingness to pay the debt. Since you have planned a budget for each month, they will be willing to work with you. It is the right time for putting a stop to all the financial charges that might be added later.

Once they have accepted your payment plan, they should not call you at work or even at home unless you default in your payments. If they call you at work after you have mentioned it specifically, it will be a violation of the fdcpa law. However, please be sure to continue with the agreed payments otherwise, you will lose these benefits in the future.

As per the FDCPA law, cease and desist letter is sent to the collection agencies in order to get the debts validated. The creditors also work under the set guidelines of the FDCPA and hence they can be asked to produce the statement of your total debt.

Be confident approaching the lenders and stick to your payment plan. Most of them are willing to work with the consumers as long as they can get money.

Regards
Roxette

Raven,
I too am a divorced mom, but with only 1 child. I have had similiar situations with debt, but not payday loans, my problem was credit cards and an ex-husband who liked to charge things without me knowing it. I know it is tough, the kids always need something, and usually a second job is not an option due to day care hours, day care costs, etc.. My best advice is to call the lenders to discuss payment plans, all they can do is say no, it can't hurt to ask for some help. I also know that as a single mother, it can be difficult to ask others for help, but in the long run, taking care of this problem now will save you serious heartache and worry later.

ALL MY BEST!!!! HANG IN THERE!!!!!!

Raven:

I too was in the exact same position. Here is what I did and I maybe it will help you out.

I closed my bank account (actually it got so overdrawn they closed it on me), I suggest you close it, and immediately if you need a bank account, open another one (do not disclose the new account to anyone nor make any payments via check. Make all payments via money order to certified check).

Ok, then the scary part begins, but if you know whats going to happen you will be prepared.

i could only afford to pay off one lender at a time. I had about 6 as well. I dealt with the most aggressive ones first. You will know them right away. Initially, most of the loans will stay with the origional place you took them out with, some stay there for a long time, some go to collections about 3 months after defaulting.

Ok, so after i closed my account, I awaited the phone calls to rush in. I have a home phone number, but is off and i have no answering machine. If they contact me at work, i politely asked them to call me on my cellphone and to not call me at work because i am monitored. Determine who you wish to work with first, and make a plan, and stick with it. If they are unwilling to work with you, tell them its all you can do. If they will not work with you then your money will go to pay someone else off first. They want the money, be honest and be nice.

Now most suggest that you do not talk to the people on the phone, and check if its legal in your state, and if so, record them. You can buy a good gadget at radio shack.

Who do you have loans with, we can probably give you insight on what type of collection tactics they have, and some people can give you names of people with certain companies who were kind.

And thats how you do it, one by one if thats all you can do.

its been over 1 year since my total breakdown, and I still have 2 outstanding. It takes time.

Also, some people here have worked with a credit counseling agency. Most do not help with payday loans, but read up on the board a bit and you may see some names.

Lastly, when they go to collections, it is a whole different dragon. That is where people tend to be quite threatening and do illegal collection practices. COntinue to read this board so you can learn your rights. Knowledge is power.

Lastly (sorry so long) I cannot tell you how good it felt the day opened up a new bank account and made the decision to face the problem then continue to slip into payday loan hell. You will feel better, You WILL get out of this, and you have many, many people here who are or have gone throughthe same thing!


STAY STRONG!!!

You guys are great. Thanks for all the advice. Im a little frightened but i will get through it. Im going to contact them all today and see what i can do. This is a great place Thank you all and i will see more advice when i need it. Thanks again...im glad to know you guys are here when someone needs help.

Here are the ones i have loans with. Let me know if you have any ideas on how to approach them.
quickpayday
cash2day4u
starlightfs (starlight financial)
worldwide cash
cashnet and paydaymax. Thanks again, any information would be great. I appreciate all your help.

The only one I dealt with out of your list was quickpayday. And they worked with me, and were very very nice about it. They kept it internal and did not send it to a collection agency. There were one of the last ones I dealt with-- they were very nice

Raven, I understand your situation. I went through a divorce back in 2003 and have 4 children with my ex. The state takes the childsupport directly from my check every two weeks and on occassion I have had to use one of these companies. I go to school full time at night and work full time in the day. I also try to do some side work to help pay off some of my debt. You can do it!! It is not easy but it is worth it! Just stay current with the minimum payments and cut out as much as you can and stick to your budget. Good Luck!

Hi raven

As all lenders are interested in getting their money back, they show more interest when you approach them first. Present your payment plan and show your willingness that you have every intention to clear this debt fast. Inform that you wish to work on the payment plan set by you for your convenience and this will save you from getting defaulted.

Due to your willingness, they might extend you some benefits and make your repayment process easier. Make sure, once you have been granted the benefits by your lenders, do not default in your payments otherwise, you won't get them again.

In addition, get a second job to increase your monthly income. You don't have to pressurize yourself in making the payments if you have an increase in your monthly income.

Regards
Roxette

raven,

i too am in payday hell. i had 9 out and out of your list the cash2day4u is also known as cash today which operates its main office out of the U.K. PLEASE, PLEASE make this one your first priority. these people are ignorant and will call you non-stop at work and threaten you. i just mailed a $378.00 m.o tot he reno nevada mail drop on tuesday and talked to brian in "investigations" and told him that this was PAYMENT IN FULL. take it from me hun, get this monkey off of your back first. the other company that i have a loan out with is world wide cash. i spoke to a lady by the name of lauran last week and told her i would not be able to make a payment until this week, she was very nice and said before i make the payment call back and speak to andrea. this loan is for $200.00 and like all the rest (besides those lousy cash today people) i pay the face value of the loan. all the interest and extension fees these companies charge is how these companies make a profit. i do have a number for lauran, let me know if you need it. again, please for the love of god, get cash2day4u (aka cash today, ltd) off of your back first. believe me once you pay 1 off you will have such a sigh of relief. i had one with cashnet for $350.00 and just paid the balance of $150.00 on monday. i know how you are feeling, my fiance lost his job last month and just returned back to work and believe me we are sacarficing everything just trying to get $2600.00 in these loans paid along with rent, car payment, food, utilities, insurance and a 13 and 11 year old. for the last 2 weeks i thought i was going to have a nervous breakdown, collection agencies were calling me at work left and right along with the actual payday loan companies that have not gone off to collections. after i found this site (i came acrossed it when i was researching allen, lewis & associates) i have found so much useful information that has helped me significantally. i praise the moderators and all the people for telling their heart wrenching stories and nightmares that they have experienced. just remember that you defaulted on a loan, you are not a mass murderer or a convicted felon and you should not by any means be treated in such a way. if you do start going to collections try and pull that agency up online and read up on the history of their practice, that is what in did on the couple of mine that are in collections. if these people threaten you with arrest or prosacution find out where they are located then file a report with that states attorney generals office. i have filed 2 complaints on coll. agencies out of jacksonville florida (allen, lewis & associates and national processing). the assistant attorney general sent me a package that i received 10-22-05 (i filed the complaint online on 10-17-05 for allen, lewis & associates) which you document everything that has happened from the 1st phone call and make copies of all receipts or letters that you received from the agency. after the attorney generals office receives your information they will investigate. these agencies break all the rules under the fdcpa and their money collection practices are cruel and intimidating. just let the collection agency, if you do go to collections, that you are having problems with know your intent is good and you want to make good on your debt (request a validation of debt in writing from this agency) but because of continous harrasment and threats made by employees of their office they have left you no other choice that you have filed a complaint with the attorney generals office of that state. this will put the scare in them, like they do to us, and watch the calls drop. if you make arrangements with these companies, stay true to them and get them paid off. you will feel so much better and a weight will be lifted. as the saying goes, LIVE BY OUR MISTAKES........lol, that is what i have done and by reading this forum so have alot of other people. stay strong and know that there is light at the end of the tunnel, it may seem very bleak right now, but there is a light.

debbiec
baltimore maryland

Thanks for the heads up debbie

I have 6 payday loans and it has become too much. If I close my checking account, how long does it take for it to close. Also, will I receive NSF's against the old account?

Thanks!

Hi JimR

Welcome to the forums.

The bank will not take much time to do the processing after they receive your form of closing the checking account. Before you close your checking account, please check the following:

• Go thorough your checkbook and see if the entire outstanding checks haven been cleared.
  
  
• Before you close the old account, open a new one.
  
  
• If the direct deposits or other benefits are going to your old account, don't close it until the next scheduled payment is sent to the new account.
  
  
• If automatic deductions are arranged to your old account, make arrangements for the future payments through your bank and the biller.
  
  
• Your address and phone number should be updated in the system.
  
  
• Take the valuables out from your vault and return the keys to the bank.
  

I closed my checking account and set up payments with each payday loan association that I had. All of them excepted $50 a week except one which would not accept any payments unless it was in full. So I paid them off with in the 60 days they gave me and set-up payments with the rest. In Washington state they have a payment plan after 4 loans in a row that the company must let you enter into..it gives you 60 days or more to payoff the balance. After months of payments I finally cleared up my payday loan hell...Here is my advise..call them all and set up payments and tell them this is all you can afford..and do not miss a payment or enter into a payment plan as offered in Washington state get them paid off and NEVER do one again..they hurt bad.

I have a payday loan out that I can't pay right now and they are threatning me with filing warrants for my arrest. Can they do that?

Laketia Ross

I am not sure where you live, but in Texas a Post Dated check is not considered a "hot check". You can not be arrested for being unable to pay your debt. These are threats that are used in an effort for the lenders to collect they're payment quick.

Contact the lenders with a payement plan. Then stick to it!

ihave been off work since 11/28/05,but i had disabillity pay coming from my job,now my employer is not trying to pay me what can i do.

Debra, your debt amount will keep rising higher if you don't pay anything towards the account. It is important for you to arrange some money so that you can keep the balance low.

Try for some consolidation program as this might be the suitable option for you right now. Your monthly payments will be set as per your present financial situation. My main intention of choosing this program was to keep the interest rates lower with my lenders. I knew that I was paying high rates while working on my own. Additionally, most of the late fees were also waived off. This reduced the total amount and I had a very affordable amount to pay through this program.

You must take a free counseling. You are not bounded to start the program after taking the counseling. At least, you will get the accurate picture of how to resolve this situation. The consultant will set your monthly payments for each month so that you can pay off the debt with ease. This way, it will be your first step towards a debt free life.

I have 4 payday loans. Three of them were done online so they don't actually have checks from my check book. They have my acct info so they can do the debits everytime I get paid. I can't pay them any more money. If I just close my acct and open a new one and ignore their calls what will happen?

Here is the link to find your state's pdl law:
http://www.paydayloaninfo.org/
For the storefront, you need to make arrangements with them. They are licensed and have recourse to file civil judgement against you. And the majority of the internet pdls are not licensed in most states. How long have you been paying on them?
Most people find they have to close their old account and open a new one in order to gain control back of their finances. If you have paid these internet pdls back the principal along with the legal interest rate, then demand they mark your account paid in full. You can ignore their calls, but they may make your life at work a living hell by calling repeatedly. They will also make illegal false threats such as you are being investigated for check fraud, and that you have a warrant out for your arrest, or are going to be arrested if you don't pay X amount of dollars by a certain time. Don't be fooled by their lies. And the most important thing you must do is file a complaint with your AGs office against each internet pdl and let them know that they aren't licensed.

One other thing, make sure you didn't sign a voluntary wage assignment, if you did then you MUST revoke that immediately in writing or they will try to garnish your paycheck. You should also provide your payroll dept. a copy of the revokation letter. (That is if you have that in your contract) Chances are if one of these loans are with Sonic it is in there.