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13 Pdl's - VERY Desperate Situation...

Date: Fri, 12/04/2009 - 21:28

Submitted by Divon Ray Crutchfield
on Fri, 12/04/2009 - 21:28

Posts: 3 Credits: [Donate]

Total Replies: 14


I have a very close friend of mine (an ex girlfriend of several years) who has recently got into some very serious trouble with pay day loans. She has 13 pay day loans out, as well 3 with personal finance companies (totaling $2,000). I'm thinking chapter seven is the way to go, but I'm not sure about how to handle all of these creditors about to withdraw a huge amount of funds from her bank account.

Now, I know it's best to provide information concerning the amount that has been paid on each, but she is not sure. She says she's had 3 of the 13 since the summer (and been rolling them over continually) and added the other 10 (3 of which she just added in the month of November). But she's not sure of the total amount paid on each one.

To make the matter even worse she lied when the companies asked her if she had 3 or more advances already out, all the way until she racked up a total of 13 pdl's.

I honestly have no idea how to help her. Here's what we're wondering:

1. First of all, what sort of criminal punishment (if any) could she be facing for lying to these companies?

2. Should she go ahead and close her checking account?

3. If so, should she worry about an ACH transaction forcing her account back open even though she used a physical check? Basically, how do we close the account in a way that keeps from racking up bank fees or being put on the Chexsystems thing?

4. Finally, what do you all think would be the best option for her to get out of this mess if her free income (not including food) is about $400 per month? Chapter 7? Let it go to collections and set up a repayment plan (if that's even possible)? Call them individually and set up a payment plan? etc.

Here's some more information:

The companies are all located in Tennessee.

Here are the names of the companies and the amount of the payday loans:

ACE- 230
Advance America- 230
A-1 Cash Advance- 230
Advance Financial- 230
Cash Choice- 230
TN Quick Cash- 230 + 230 (she has two here)
Advance Financial- 230
Cash Express- 330
Cash Advance- 330
First Cash- 230 + 117 (she has two here)
Check into Cash- 230

Also, can someone post a link to some information on how to get them to stop calling her and her references (or so they'll just call her)?

I know this is a lot, but.... I'd TRULY appreciate any and all help we could get in this manner. She's been crying about it all day and I just don't want to help her out of this ridiculous cycle.

Thanks again everyone.


Tennessee laws can be tricky when it comes to deal with payday lenders. Hence, I feel the laws wouldn't be much on her side.

However, $2,000 debt sounds too small an amount to file for bankruptcy but again I'm not sure about her financial condition.

Regarding lying to the payday companies, I think legal pdls have access to Teletrack from which they can easily find out if the customer is lying or not, Moreover, criminal actions are prohibited in TN for debt related issues. Hence, I don't think that she can be charged with criminal charges for this reason.

IMO if it is possible for her to set up payment plans with the lenders she must look at that as a solution before contemplating bk.


lrhall41

Submitted by SC on Sat, 12/05/2009 - 01:26

( Posts: 3937 | Credits: )


Thanks a lot, I'll talk to her about this. I think bankruptcy should be a last resort, but she is certainly unable to pay them off at this time, and the thing that has kept me from telling her to just call all of these places and work out payment arrangements is that I'm under the impression that the payment arrangements on 13 different pdl's would still be too high for her to pay back on a monthly basis... But I'm sure it's worth a try.

In the meantime though, should she close her bank account first or call to negotiate payment plans first?

Sincere thanks for your replies...


lrhall41

Submitted by Divon Ray Crutchfield on Sat, 12/05/2009 - 06:25

( Posts: 3 | Credits: )


Has she requested an EPP (extended payment plan) from any of these lenders? Some of them may be members of the CFSA (Community Financial Services Association of America) which menas they would offer an EPP, but they won't tell you about it, you have to ask for it. You can check to see if they are members at the link below, keep in mind that not all lenders are listed here so even though you may not see their names listed doesn't mean they aren't members, you could call them and ask.
http://www.cfsa.net/MemberList.aspx


lrhall41

Submitted by Shazzers on Sat, 12/05/2009 - 07:15

( Posts: 17344 | Credits: )


First of all, TeleTrack will only list a company if they subscribe to the system. There are many companies that no longer use TT. Secondly, odds are that the EPP is going to provide for too large of payments initially or with this many accounts, theier are quite a few in default or getting ready to default.

Here would be my advice. Since the fee on all of these loans is $30, except the small one at $17, I would not worry about payment arrangements. You need to keep them current, but budget in an additional $25 towards the smallest one each payday. This will allow you to pay it down and free up larger amounts for the next smallest one. In a nust shell, you keep them current, pay off the smallest one by paying extra each time you payoff. Once you pay that one off, the money that you were paying to that account is added to the payment for the next smallest, which allows you to pay that one off quicker. Eventually, within a month or two, the process will speed up to where you have the funds to pay off an entire account in one payment. Budget the entire amount that is needed today for the fees plus $25 and stick to that amount until all are paid. It will happen quick and painlessly.

Good luck.


lrhall41

Submitted by PDLOwner on Sun, 12/06/2009 - 06:14

( Posts: 1049 | Credits: )


Quote:

Originally Posted by PDLOwner
First of all, TeleTrack will only list a company if they subscribe to the system. There are many companies that no longer use TT. Secondly, odds are that the EPP is going to provide for too large of payments initially or with this many accounts, theier are quite a few in default or getting ready to default.

Here would be my advice. Since the fee on all of these loans is $30, except the small one at $17, I would not worry about payment arrangements. You need to keep them current, but budget in an additional $25 towards the smallest one each payday. This will allow you to pay it down and free up larger amounts for the next smallest one. In a nust shell, you keep them current, pay off the smallest one by paying extra each time you payoff. Once you pay that one off, the money that you were paying to that account is added to the payment for the next smallest, which allows you to pay that one off quicker. Eventually, within a month or two, the process will speed up to where you have the funds to pay off an entire account in one payment. Budget the entire amount that is needed today for the fees plus $25 and stick to that amount until all are paid. It will happen quick and painlessly.

Good luck.



why don't you get a real job, pig?


lrhall41

Submitted by pseu donym on Sun, 12/06/2009 - 23:33

( Posts: 23 | Credits: )


paydayln nightmare....question??? I have my paydayloans in MD and while searchig this site for the first time i find that paydayloans are prohibited in MD!!! So what does that mean for me??? Does that mean they were breaking the law by approving payday loans to MD residents? I was looking into a payday laon consolidation..because i have to figure out something.and right now this advice has been so good..b.c my bank is charging me outrageuos fees everytime they try to debit. the negative balance just keeps growing. I am going to call and see about freezing the acount.

THANKS!!


lrhall41

Submitted by on Mon, 12/07/2009 - 20:24

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