Payday loans are ruining my life and need help now!!!!

You will find the Payday loan laws for Mississippi here (just select your state),

http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html

So there are very specific amounts of interest they are allowed to charge, and they aren't allowed to rollover the loans.

Odds are the companies you are dealing with aren't licensed, as they aren't following the laws.

Your first step should be closing your bank account. When you go to do this ask your bank what their policy is on ach transactions going through on closed accounts. Some banks will force open the closed account and allow the transactions to go through. If your bank does this ask them to put the account on deposit only before they close it, or ask them to put a hard hold on the account.

Once you have that done, you need to revoke authorization to debit your account. Also, revoke any wage assignments you may have signed. This can be as simples as "I revoke any and all wage assignments I may have signed with XX Company." Send this certified mail so you know they received it, and save a copy for proof.

One thing, when calculating the amount of interest, it isn't a straight 18% of the amount loaned. It is 18% of the check amount. So if you borrow $100, you would owe $122 (122x.18=22). You can back into the amount owed by dividing the loan amount by .82.

Example = $300 loan

300/.82 = 365.86

365.86x.18 = 65.86

300 + 65.86 = 365.86

Since these companies are acting illegally in your state you also need to file complaints with your states Attorney General's office, and Deptartment of Banking and Consumer Finance . . . . . They may be able to help you negotiate with the pdl's . . . . .

What companies are you dealing with? Pull your latest bank statement and calculate the total payments done on each of the account. Be aware of the laws and then find out the outstanding balance. Close your checking account to stop any of their debits. Bank will keep adding the overdraft fees as long as the account remains active. You need to explain your situation and request the bank manager to waive off some of the fees. Call the companies and work out other ways to send your

When going through the pdl nightmare, I found the hardest thing to do was to be honest to my bank, Trenity is right you need to talk to the bank manager, it may be difficult, but it will help your situation. There may be options the manager can help you with your situation, however if the truth is not known he/she may not be able to help to the fullest extent.

Thanks everyone. I really appreciate all the wisdom. I have loans with paydayok, payday select, dollarquik, and webpayday. I'm not sure how to determine if I've overpaid them, but I'm sure I have, and what to do about it. Here is a list of my transaction from their webpage:

paydayok

Date Action Loan Transaction Status Principal Fees Transaction Total Principal Balance
4/25/2007 Payment 58797888 81664771 Complete ($50.00) ($75.00) ($125.00) $300.00
3/26/2007 Payment 58797888 81578243 Complete ($50.00) ($88.57) ($138.57) $350.00
2/23/2007 Refinance 58797888 81481078 Complete ($50.00) ($93.22) ($143.22) $400.00
1/25/2007 Refinance 58708034 81375130 Complete $0.00 ($109.29) ($109.29) $450.00
12/22/2006 Payment 58404884 81261123 Complete $0.00 ($90.00) ($90.00) $450.00
11/24/2006 Payment 58404884 81157086 Complete ($50.00) ($107.15) ($157.15) $450.00
10/25/2006 Refinance 58404884 81037764 Complete $0.00 ($125.00) ($125.00) $500.00
9/20/2006 Principal Increase 58283890 80899766 Complete $100.00 $37.14 $62.86 $500.00
9/6/2006 Loan Disbursed 58235803 80844318 Complete $400.00 $0.00 $400.00 $400.00

payday select

Date Action Loan Transaction Status Principal Fees Transaction Total Principal Balance
4/25/2007 Payment 56537093 78983304 Complete ($50.00) ($159.10) ($209.10) $400.00
3/23/2007 Refinance 56537093 78902407 Complete ($50.00) ($150.00) ($200.00) $450.00
2/23/2007 Refinance 56475874 78830195 Complete $0.00 ($155.35) ($155.35) $500.00
1/25/2007 Refinance 56402379 78738920 Complete $0.00 ($91.07) ($91.07) $500.00
1/8/2007 Principal Increase 56365475 78696567 Complete $140.00 $57.86 $82.14 $500.00
12/24/2006 Payment 56182667 78655378 Complete ($45.00) ($130.18) ($175.18) $360.00
11/24/2006 Payment 56182667 78569880 Complete ($45.00) ($144.64) ($189.64) $405.00
10/25/2006 Refinance 56182667 78487318 Complete $0.00 ($77.14) ($77.14) $450.00
10/9/2006 Principal Increase 56147079 78446521 Complete $200.00 $13.39 $186.61 $450.00
10/3/2006 Loan Disbursed 56132124 78429770 Complete $250.00 $0.00 $250.00 $250.00


I think I'm being robbed and don't know how to stop it. They are scheduled to withdraw more money Friday and I can't close my account now because my check from work is direct deposit. What should I do.

So legally for the $450 loan from Payday Select you should have paid a total of $548.78 back. It looks like so far you've paid $1097.40.

For the $500 loan from Payday OK you should have paid $609.76 back. It looks like you've paid $888.23.

I would say you've paid them in full.

If you can go into the bank today, maybe they can help you . . . . It may be too close to payday for anything to be done this time, but you should still try. The bank may be able to put an ach block on your account, or put it on deposit only. That way your check still goes in, and after work you can go to the bank, have the hold lifted, withdraw your money, and have the hold reinstated. Before you go to the bank type up letters revoking these companies authorization to debit your account. Take this to the bank with you.

Once you get the bank issue straigtened out, it's letter writing time!

You need to let each of your pdl's know that you are aware of your state laws, and that these companies are breaking them. Rollovers are not allowed, so all the money you've paid to "rollover" the loan should go to principle. You also need to file compliants with your states attorney general's office and dept of banking. They may be able to help you in getting a paid in full letter.

What should the letter to the bank say concerning the ach block? And will that block all debits and other charges from going through?

Sorry, that was me signing in as guest. Still getting use to this site.

I have another question, should I try sending paydayselect and paydayok a letter or email before contacting the bank? I really want to get something in place to try to stop them from getting my money this month, now that I know for sure that I have repaid my debt to them and they are just taking money out of my house and out of the mouths of my children!!! This really is awful how they can do this to so many people and nothing is done about!!! They are ruining peoples lives and don't even care!!

Yes, send them a email and letter saying you revoke authorization for them to debit. If you do this today, you can prove to your bank that you revoked in enough time for them to stop the payment, and if they do go through you can dispute the items and possibly get them back.

You actually don't need to write a letter to the bank, just take the letters you wrote revoking authorization of the pdls to debit your account with you. It's really best to do this in person. Each bank is different. Some are very helpful and will bend over backwards to help you protect your money, and some will say they can't do anything when they can!

An ACH block will only stop ach transactions from going through. If you have them put the account on deposit only, it will make it so that nothing can come out of the account, money can only be put in. But you can go into the bank, have the hold lifted, and get your money out. Then have the hold reinstated and the pdl's won't be able to get anything out.

Swhite when is your paycheck cut? I know ours are cut on Wed's & Thursdays...i too am in a payday loan mess and asked mine if they could give me a physical check this week (told them i was in between banks) and I'm going to have it cashed at the bank. Also - one of my loans is with Payday OK and in the past I have emailed them and told them I wouldnt have the funds in my account and if they could wait to debit me until the following payday. They will usually work with you and postpone the debit until the following pay day. This will at least give you a little leeway and they wont charge you this week. But you should let them know right (TODAY) so they wont debit you on Friday..

That's right . . . . They usually need at least 3 days warning, so if you act today you might be okay. I had a loan a while ago with Payday OK too and called them once and they extended my "due date" for 5 days . . . . .

Thanks all. I sent them an email yesterday revoking authorization to debit my account. Now I'm getting ready to write letters to them but don't know exactly what to put in it. I want to put that they are violating state law by (?????????????). How should I word what they are doing? I don't want to say ripping me off,(which wouldn't be a lie). Help me!!

Polly has an awesome template letter here but I would recommend putting things in your own words and only using it as an example of what to write.

This is an update:

I got emails from both paydayok and payday select saying they have marked my account paid in full!!!!! I'm so happy and relieved, I can turn flips!! I still have two more to go but just having this accomplished is such a relief. Dollarquick is still not budging but I'm not giving up and webpayday I still owe about $125.00 now but of course I'm willing to pay what I owe.

Thanks to all of you for your wonderful advice and knowledge. By the way any advice on dollarquick and what I should do next?

That is great news!! Now how much was your loan for Dollarquick and how much have you paid? If it's more than the loan, go straight to your state's AG office.