In way too deep with payday loans....
Date: Fri, 12/26/2008 - 11:18
CheckSmart $425 original loan $1200 paid in fees
Advance America $425 original loan $1050 paid in fees
Check Exchange $425 original loan $1050 paid in fees
Ace Cash Express $400 original loan $1000 paid in fees
Fast Payday Loans $425 original loan $450 paid in fees
Cash Tyme $300 original loan $215 paid in fees
US Cash Advance $300 original loan $165 paid in fees
Check n Go $425 original loan $225 paid in fees
Cash Express $425 original loan $0 paid in fees
It is so embarrassing to type this out and see how much I could have saved if I had come up with an alternative solution to my original cash crunch. I opened the second loan to help me pay the second, and so on and so on. I was going from place to place every payday to rewrite. I was always able to keep the loans going, while my bills suffered at home. But then Christmas came and I needed money for gifts. I was too ashamed to tell my family about my PDL loan problem, so I bought gifts as usual and didn't have money to pay my loans.
At this point I have contacted all the companies and they have been "nice" enough to extend my due date to January 2, my next payday. Basically I am stalling while I put a plan in motion.
Here's what they don't know: I am on direct deposit for my paycheck. I earn about $800 every two weeks. I contacted my payroll department and stopped the direct deposit. So next week I will get my check mailed to me. I am afraid they will try to ACH debit my account and I would like to work out payment plan arrangements with these companies, and hopefully have some considered "paid in full"....the ones I have paid far too much in fees on. Next week is also my last paycheck, because I am leaving my current company. I am in home sales and the poor economy has a lot to do with how I got into this mess. I am going to be bartending under the table to earn money while I figure things out, but as far as these companies need to know, I am unemployed as of next Friday.
I am so sorry for this long post, but I need advice and lots of it.
This forum appears to be a godsend.
Hi and welcome. :) Did you write post-dated checks to these com
Hi and welcome. :) Did you write post-dated checks to these companies, if so, which ones? What state are these lenders located?
Oh sorry, I re-read your post, all of your loans are store front
Oh sorry, I re-read your post, all of your loans are store fronts in your state, OK, I am going to post the laws for your state first, then we need to try and plan a course of action for you!
I'm really surprised these companies rolled your loans over sinc
I'm really surprised these companies rolled your loans over since that's not legal in KY. :shock: However, was it a rollover or re-loan? Although, based on your state laws re-newing isn't an option either.
[quote]Kentucky State Information
Legal Status: Legal (Applies to check cashers only)
Citation:
Kentucky Rev. Stat. Ann. ???? 286.9.010 et seq.
Loan Terms:
Maximum Loan Amount: $500
Loan Term: 14-60 days
Maximum Finance Rate and Fees: $15 per $100
Finance Charge for 14-day $100 loan: $17.65
apr for 14-day $100 loan: 459%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Two ($500 aggregate loans outstanding to all licensees)
Rollovers Permitted: None (cannot renew, rollover, or consolidate)
Cooling-off Period: None
Repayment Plan:
Collection Limits:
Collection Fees: One NSF fee (if disclosed)
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Kentucky Office of Financial Institutions
Address: 1025 Capital Center Drive, Suite 200 Frankfort KY 40601
Phone: (800) 223-2579
Fax: (502) 573-8787
Regulatory Contact: Gary Davis,, Branch Manager[/quote]
Is your account closed, or still opened? If I am understanding y
Is your account closed, or still opened? If I am understanding you correctly these lenders are automatically withdrawing their payments from your account? If so, when these loans come due again, they will attempt to withdrawal payments which will devastate your account with non-sufficient fund charges, therefore you need to revoke in writing, to the bank AND to the lenders their eft rights to your account. ASAP! Include a copy of the EFT law in your letter, below in quotes.
Quote:
Electronic Funds Transfer Act 907. Preauthorized transfers (a) A preauthorized electronic fund transfer from a consumer's account may be authorized by the consumer only in writing, and a copy of such authorization shall be provided to the consumer when made. A consumer may stop payment of a preauthorized electronic fund transfer by notifying the financial institution orally or in writing at any time up to three business days preceding the scheduled date of such transfer. The financial institution may require written confirmation to be provided to it within fourteen days of an oral notification if, when the oral notification is made, the consumer is advised of such requirement and the address to which such confirmation should be sent. (b) In the case of preauthorized transfers from a consumer's account to the same person which may vary in amount, the financial institution or designated payee shall, prior to each transfer, provide reasonable advance notice to the consumer, in accordance with regulations of the Board, of the amount to be transferred and the scheduled date of the transfer. |
Rollovers and renewals
I have never rolled my loans over...isn't that where you just pay the finance charge and rewrite? No, every two weeks I pay the loan in full and then rewrite. It costs me about $700 to pay the finance charge on all these loans every two weeks. So I just "rewote" all these loans a little over two weeks ago, and this is the first time I haven't had the money to pay them off and rewrite.
Ex. Every two weeks I go in Advance America, give them $500 in cash (which I can't afford to give them), then write a new, post-dated check and sign a new contract, and they hand me back $425 of my own money. It absolutely sucks multiplied by nine.
So basically, they have never debited my actual bank account, be
So basically, they have never debited my actual bank account, because I am always in to pay my loan off and rewrite before my check gets deposited. In my area, they encourage you to do this. However, come January 2, they are going to want their money or they will be depositing checks into my account left and right.
OK, I understand now, well, do you think you could afford an EPP
OK, I understand now, well, do you think you could afford an EPP (Extended payment plan) with each of these lenders? I am going to post an explanation of that below in quotes, taken from the CFSA site.
Quote:
Extended Payment Plan *. Each member will provide customers who are unable to repay a payday advance according to their original contract the option of repaying the advance over a longer period of time. Such an extended payment plan will be offered in compliance with any requirement in state law to provide an extended payment plan or, in the absence of such a requirement in state law, in compliance with the Best Practice ???????Guidelines for Extended Payment Plans.??????? A member will adequately disclose the availability of the Extended Payment Plan to its customers in compliance with any requirement in state law for such a disclosure or, in the absence of such a requirement in state law, in compliance with the Best Practice ???????Guidelines for Extended Payment Plans.??????? (Amended 7/21/08) |
Usually, how an EPP works is, the lender allows you to pay off t
Usually, how an EPP works is, the lender allows you to pay off the loan in four equal payments on each payday. I realize of course with you having so many loans that might be impossible, but the thing is, you do owe them the money and they will come after you if you don't set up some type of payment arrangements. So one way or another they will attempt to get their money. If I were you, I would get that account frozen (hard debit block), and in order to do so you will need to speak directly to the Branch Manager. After you have your account secured, you can try to work out some type of arrangements with these lenders, but inform them (the lenders) that your account is frozen which means the post dated checks will not go through.
My intention is definitely to repay these loans. I am an idiot f
My intention is definitely to repay these loans. I am an idiot for getting into them but they are my responsibility. The only problem with an EPP is that with nine advances out, realistically I am only going to be able to give each company $50-100 a month. I don't know how willing they will be to work with me, I have been reading lots of horror stories on the internet about them coming to people's houses, etc. I don't know what to do I am biting my nails to the quick!!!
Yes, they will come to your house, call you, call your reference
Yes, they will come to your house, call you, call your references, the whole shabang! These people can be ruthless. But, your chances of that happening decrease if you can talk to them (And I would bypass the clerks and ask to speak directly to the Manager), explain your situation, but assure them you ARE going to pay them back! I would also opt to send them an offer of payments in writing, certified return receipt. That way, if they do opt to take you to court you will have proof that you made every attempt to work this out with them. Send them money orders via USPS, that way you will have more proof of payments, no matter how little the payment is, send SOMEthing in good faith.
I actually looked up the CFSA guidelines online yesterday...the
I actually looked up the CFSA guidelines online yesterday...the only problem is will these companies look at the fact that I no longer have a job. I am voluntarily leaving my company but I plan to tell them I have been laid off. How can I split my payments coinciding with four paydays I won't have??? I guess I just don't know what to expect with how understanding or brutal these companies will be.
Another thing, if you aren't working, they can't garnish your wa
Another thing, if you aren't working, they can't garnish your wages anyway. When and if you send them a letter with a payment offer, also include a wage assignment revocation, just in case you signed one. A wage assignment revocation simply revokes any and all rights for them to take any of your wages, which most lenders have you sign in case you default on your loans.
All that you can do is offer them what you can afford.
All that you can do is offer them what you can afford.
I just added up what it would cost to pay all my loans in four e
I just added up what it would cost to pay all my loans in four equal payments....$1040 per payment....there is NO WAY I can accomplish that!! I plan to liquidate my 401K, which has about $1200 in it, and I anticipate a tax refund of a thousand or so, all of which I plan to use to pay down these loans. Other than that, I can only rely on about 350-400 week bartending under the table....and of course I have bills beyond these PDLs.....I have never been so mad at myself or stressed in my life!!! Does anyone have advice on how to deal with these specific companies??
Thanks SO MUCH for the help you have given me so far. I am going
Thanks SO MUCH for the help you have given me so far. I am going to go in to each office next week after I have frozen my account. The good news is, having gone into these PDL stores numerous times, I have become friendly with the people who work there. I know they can be awful from everything I've read, but my only hope is that if I am upfront with them and give them some sort of payment to start and some sort of written payment schedule they will work with me.
I just can only hope and pray. I read somewhere that I can give them something in writing that only allows them to contact me via home phone or mail, and prohibits them from calling my references, has anyone heard of this?? Also, can I be assured that all these PDL companies are operating within NFSA guidelines?
Oops...I meant to say CFSA instead of NFSA in my last post.
Oops...I meant to say CFSA instead of NFSA in my last post.
Quote:I read somewhere that I can give them something in writing
Quote:
I read somewhere that I can give them something in writing that only allows them to contact me via home phone or mail, and prohibits them from calling my references, has anyone heard of this?? Also, can I be assured that all these PDL companies are operating within NFSA guidelines? |
I would just include that little tidbit in your wage revocation letter.
Shazzers is right - if you tell them you intend to pay, at some
Shazzers is right - if you tell them you intend to pay, at some point, they will be much more likely to work with you. Explain you have lost your job and will do your best to pay them back but you have many other payday loans outstanding. I got into this same problem a year ago but was able to dig my way out of it. Communicating was a big part of it. Some of the companies were great, others were jerks - just like it always is!
One thing I would also like advice on that I am simply not sure
One thing I would also like advice on that I am simply not sure if it would be a wise thing for me to tell the companies that I have other payday loans. In ky you are only supposed to have two and when you sign the contract you are supposed to disclose if you have others, obviously I did not, because I wanted to get the loans I so desperately needed. I don't want to anger them furthur by letting them know that I lied to them but I think the fact that I am out of a job and willing to work with them will help.