My payday loan default experiences
Date: Sat, 01/10/2009 - 12:55
We have had financial difficulties for years since Hurricane Rita came through our town and cut out a large part of our income (from oil royalites -- the hurricane shut down the royalty fields permanently). This past year, we were again hit with Hurricane Ike, putting us in further debt.
I have used payday loans from ChecknGo, Cashnetusa, and Paydayone for almost two years. I applied for all of them online -- not at a storefront. I would always extend the loans or pay them off as required and then reapply for the maximum amount because my entire check would be used up paying them off. I can't believe I have been living like this for over a year!!!! It's amazing what you will do when desperate.
About a month ago, I decided that I had enough of the cycle. I realized that I would never be able to pay them off sticking to their contract and that I was losing half my check each month just extending the stupid loans and not even paying any of the original loan off!!!
After thoroughly reading these boards and the advice specific to my state of Texas, I decided to default on all of them and not apply for an extension so the full amout would attempt to be taken from my account. Luckily, due to the holidays, I was paid one day prior to my normal pay day. I went to the bank on my payday and withdrew every cent. I knew that I would be hit with a few returned item fees, but that was MUCH less than I would have paid on even one loan extension.
As I thought, the bank returned all the large loan payments back to the companies. Each one was over $1,000, and I knew that for me they don't overdraft anything over $400. Just to be safe, I opened another bank account at a different location and had my payroll office send my next paychecks to the new account. So, now I'm left with my original bank account that all the payday loans have, but there is nothing in it.
To sum up, I had three payday loans, each for around $1,000. My extension fees would have been about $250 for EACH ONE. By defaulting on each, I only lost $35 in returned fees from my bank for each one. The interest fees for each STOPPED as soon as they defaulted. I now just owe the total amount plus a returned fee for each one (about $25 each).
After the loans defaulted, the companies started contacting me on my cell phone pretty quickly. I did not run away from them. I defaulted on or near the 22nd of December and they started calling on the 26th. I contacted them on the 28th and explained that I had been ill and not working and could I please make a payment arrangement.
Here is what each of them offered:
ChecknGo (which I applied for online - NOT storefront) I owed them a total of $1,074. The collection man was named Mr. Center. He was very polite and professional, but he did use a lot of "collection agent" talk with me. He first asked for the total amount. I sound sufficiently pitiful, I guess, by explaining my illness, having no money for Christmas, etc. I offered a LOW payment plan -- $100 on Jan. 10, $100 on Jan. 25, etc. and he stopped me right there. He said that was way too low and then offered a plan of 4 payments of $268 each. Upon the final payment, my record would be clear and I could reapply for a loan with them (NOT going to happen!!).
I said that there was no way I could come up with $268 on Jan. 10th, so he lowered it to $200 and said I could do four more payments after that of $218 (on the 25th of Jan. the 10th and 25th of Feb. and of March), so a five-payment plan. He had to go to his supervisor to ask for it, his supervisor had to talk to me, and it took a little bit of talking to both to get that plan. They said they don't often do a five payment plan, that it's supposed to just be four, but who knows? He took my debit card info for my now-empty bank account.
I then told him that I was going to tape record myself reading it back to him and his agreement to it, and he readily agreed and said I was also being taped by their company to get the verbal agreement on record. I stated his name and company, my name and the date, and read back the payment agreement, payment dates, etc. He said that because we came up with an agreement, no further calls would be made to me or to my work unless I defaulted on one of the payments.
So, the loan is getting paid off for about the same amount I was spending on extension fees.
Cashnetusa was pretty agreeable. They at first offered a two-payment agreement which I said was impossible, then she extended it to four payments, no other interest or fees added in. I defaulted on that one back in November so I have just now paid it off. It sure as hell wasn't easy, especially with the holidays, but it's DONE. They are already emailing me asking me to make another loan with them.
Paydayone was probably the easiest and nicest. You can just email them a payment arrangement to your liking and they will either accept it or counteroffer another one. I said I was very low on money now, so they accepted a $100 payment on Jan. 10 and 25, and then I increased the payments for Feb. and Mar. 10 and 25, at which time it should be paid off.
They all only have my original bank account info. They will never receive my new account info. I am going to deposit only the payment amounts that will be taken out from them on the due dates with my original bank account and keep the rest of my paycheck in my new account. That way, if they try to take out more (which I don't think they will since we made specific arrangements), my money is still safe.
It's not going to be easy, but I am very happy with the knowledge that the money I would have spent on extensions is not going to pay down the principal.
I feel so relieved that I chose to do this and that I will hopefully be able to get rid of these life-sucking loans and get back to having my entire paycheck to spend on my regular bills!!!! I will be free of them by the end of March!!
I have used payday loans from ChecknGo, Cashnetusa, and Paydayone for almost two years. I applied for all of them online -- not at a storefront. I would always extend the loans or pay them off as required and then reapply for the maximum amount because my entire check would be used up paying them off. I can't believe I have been living like this for over a year!!!! It's amazing what you will do when desperate.
About a month ago, I decided that I had enough of the cycle. I realized that I would never be able to pay them off sticking to their contract and that I was losing half my check each month just extending the stupid loans and not even paying any of the original loan off!!!
After thoroughly reading these boards and the advice specific to my state of Texas, I decided to default on all of them and not apply for an extension so the full amout would attempt to be taken from my account. Luckily, due to the holidays, I was paid one day prior to my normal pay day. I went to the bank on my payday and withdrew every cent. I knew that I would be hit with a few returned item fees, but that was MUCH less than I would have paid on even one loan extension.
As I thought, the bank returned all the large loan payments back to the companies. Each one was over $1,000, and I knew that for me they don't overdraft anything over $400. Just to be safe, I opened another bank account at a different location and had my payroll office send my next paychecks to the new account. So, now I'm left with my original bank account that all the payday loans have, but there is nothing in it.
To sum up, I had three payday loans, each for around $1,000. My extension fees would have been about $250 for EACH ONE. By defaulting on each, I only lost $35 in returned fees from my bank for each one. The interest fees for each STOPPED as soon as they defaulted. I now just owe the total amount plus a returned fee for each one (about $25 each).
After the loans defaulted, the companies started contacting me on my cell phone pretty quickly. I did not run away from them. I defaulted on or near the 22nd of December and they started calling on the 26th. I contacted them on the 28th and explained that I had been ill and not working and could I please make a payment arrangement.
Here is what each of them offered:
ChecknGo (which I applied for online - NOT storefront) I owed them a total of $1,074. The collection man was named Mr. Center. He was very polite and professional, but he did use a lot of "collection agent" talk with me. He first asked for the total amount. I sound sufficiently pitiful, I guess, by explaining my illness, having no money for Christmas, etc. I offered a LOW payment plan -- $100 on Jan. 10, $100 on Jan. 25, etc. and he stopped me right there. He said that was way too low and then offered a plan of 4 payments of $268 each. Upon the final payment, my record would be clear and I could reapply for a loan with them (NOT going to happen!!).
I said that there was no way I could come up with $268 on Jan. 10th, so he lowered it to $200 and said I could do four more payments after that of $218 (on the 25th of Jan. the 10th and 25th of Feb. and of March), so a five-payment plan. He had to go to his supervisor to ask for it, his supervisor had to talk to me, and it took a little bit of talking to both to get that plan. They said they don't often do a five payment plan, that it's supposed to just be four, but who knows? He took my debit card info for my now-empty bank account.
I then told him that I was going to tape record myself reading it back to him and his agreement to it, and he readily agreed and said I was also being taped by their company to get the verbal agreement on record. I stated his name and company, my name and the date, and read back the payment agreement, payment dates, etc. He said that because we came up with an agreement, no further calls would be made to me or to my work unless I defaulted on one of the payments.
So, the loan is getting paid off for about the same amount I was spending on extension fees.
Cashnetusa was pretty agreeable. They at first offered a two-payment agreement which I said was impossible, then she extended it to four payments, no other interest or fees added in. I defaulted on that one back in November so I have just now paid it off. It sure as hell wasn't easy, especially with the holidays, but it's DONE. They are already emailing me asking me to make another loan with them.
Paydayone was probably the easiest and nicest. You can just email them a payment arrangement to your liking and they will either accept it or counteroffer another one. I said I was very low on money now, so they accepted a $100 payment on Jan. 10 and 25, and then I increased the payments for Feb. and Mar. 10 and 25, at which time it should be paid off.
They all only have my original bank account info. They will never receive my new account info. I am going to deposit only the payment amounts that will be taken out from them on the due dates with my original bank account and keep the rest of my paycheck in my new account. That way, if they try to take out more (which I don't think they will since we made specific arrangements), my money is still safe.
It's not going to be easy, but I am very happy with the knowledge that the money I would have spent on extensions is not going to pay down the principal.
I feel so relieved that I chose to do this and that I will hopefully be able to get rid of these life-sucking loans and get back to having my entire paycheck to spend on my regular bills!!!! I will be free of them by the end of March!!
hence my psot
per my post...I did this same thing and that was the nightmare part....these loans are a horrible way to try and supplement your income....I feel for what you went through in your life and the hard times you had...but if these loans cannot be paid in full within one to two pay periods...stay away! And never pay them and keep requesting more money from them.....what starts out as a 150 loan to get by can become a 1000 debt....and to be fair to them....they loaned you money with all of the clauses of how this loan works and they have no way to get it back other than to go after you collection wise....just like a credit card....they loaned the money in good faith and assumed you knew the rules....
What a great success story!!!! I wish the the best and a Happy
What a great success story!!!! I wish the the best and a Happy Dept free New Year!!!!! I bet you are sleeping much better at night.
That was a great summary. It really is scary to take the plunge
That was a great summary. It really is scary to take the plunge but sometimes defaulting is the only thing you can do to get payday monkey off your back.
I have one more to go and I think this paycheck I can finally start paying them back. It is with PayDay One as well and they really do have the nicest customer service reps.
