we have an ARM mortgage and are out with pdls

Welcome April!

Sounds like you've got 2 issues here...

1-Who are your PDL's with, how much did you borrow and how much have you paid? Also, are they storefront or internet.

2-Is your ARM set to adjust sometime soon?

Here are the Payday loan laws for Ohio (just select your state)
...I know we have a few members here from Ohio that can help with advice too.
http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html

The ARM will adjust next October.. There is also a second mortgage we fell behind with that I'm trying to get caught up with now.

in addition to other collections we have:

pdl
Always payday: store front $300 $45 in fees
Checksmart: store front $500 $75 in fees
Advance America: store front $500 $75 in fees
and online Mycashnow $500 and $143? in fees..

Thanks for posting that info!

Are you current with the 1st mtg? Is the 2nd mtg working with you on a forbearance or loan modification?

About the pay day loans...those storefronts are going to be the priority. When are they due?

Storefronts are due Dec 16 for the $345, Dec 7 for one of the 575 and Dec 13 for the other 575

current on 1st mortgage and she said she was going to take legal action on the 2nd so a check is in route today but i can NOT pay the pdl's off then

Spanish, if you are current wiht the pdls, you need to try to work out payment plans with them. Explain your situation and tell them you need a payment plan. Just by looking I can tell Advance America and Checksmart are members of CFSA, if they are current you can go into these stores no later than the day before the loan is due and request an EPP (Extended Payment Plan)and with the other storefront you need to talk to them They are going to be licensed and legal so you want to work something out with them. If the store staff do not want to work with you, ask for a district manager and then work you way up.

Spanish also, when does your internet pdl become due? (I did not read very closely the firsttime :? )

I did forget to post previously...this is the link to the CFSA website so you can do some research before going to the storefronts. It may be wise to print off any information you feel will help you while talking to them.

cfsa.net/MemberList.aspx

This is for the member list...you can check for your storefronts, on the left side is all the other information.

Thanks the internet one is due 12-21

Thanks! I'll print off the info and ask for those payment plans :)

Sounds good..about your mortgage. You said on your second "she" would not take legal action...do you have it through a private party or an actual mortgage company?

Spanish, I know you are working on two issues...and keeping your house is the most important thing..Your internet loan is going to be unlicensed in your state. You will need to close your account...can you do this? I know you have a priority with your mortgage but the pdl will not stop taking money from your account unless you close it. Volley, you may want to jump in here becuase I do not want to give her information that may interfear with her mortgage situation..Is this an option?

Mortgage payments can be re-arranged through a different checking account as needed. I know some people that pay their mortgage via money order.

If you have any ACH mortgage transactions, just as any other bill, contact your mortgage company to make other payment arrangements and give them your new checking account info. They will have you complete a new ACH draft form.

Thank you Volley, Spanish you need to think about closing your account then. You will also need to get with the storefronts and keep them in the loop if you do this. Please read this about closing your account, there is some good information in it you will want to know before contacting the bank:

Before you close your bank account due to payday loans eating away at your paycheck, please read this.

Some banks have a policy regarding ach transactions that allows them to force open closed accounts if any ach transactions go through within a certain time frame after the account is closed. This can leave you owing a legal bank $1,000's and reported to chexsystems, instead of owing barely legal (or not at all legal) payday loan companies. Not a good thing. Ask your bank what their policy is on ach transactions on closed accounts before you close the account. It's best to go in person and talk to a branch manager.

If your bank does have this policy, tell them your situation. Don't be embarrassed. Take letters with you showing that you have revoked authorization for each of your payday loan companies to debit your account. Tell the bank to put your account on deposit only, an ach block, or a hard hold before they close the account. Your bank can do one of those, don't take no for an answer. This will prevent any payday loan ach's from reopening the bank account.

It'a always best to close your bank account. Leaving it open gives ways for the payday loan companies to continue to take money out. These companies have many different dba's, so blocking them won't work. They will also produce paper checks and run them through your account. Closing the account is the best way to prevent these companies from taking money out of your account.

Some state laws do allow for prosecution if you close your bank account, but that is usually in cases of fraud. But it's always best to check with your state's attorney general or department of financial institution before you close your account. You want to make sure you are not causing more heacaches!


Last edited by goudah2424 on 17 Jul 2007 10:25