Confused in ny

In the state of New York, payday lending is prohibited by law. Thus, if a payday loan company is operating in New York, it will be considered as illegal. You can check out the payday loan laws of New York from the given page:
http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html

I'm in NY, and with 9 different loans, I was as sunk as you feel. However, with a little help from this forum, and the NYS Usury Laws which prohibit any more than 25%(under penalty of CRIMINAL prosecution) interest rates on short term loans, I am digging out. I have two Paid in Full letters, and of the 9 loans, I am anticipating "static" from just 3 of them. Long and short, you are only obligated, morally, to pay back what they gave you. If you paid "fees" or "interest" over and above what you were originally given, technically, they owe YOU money(I chose not to fight that battle, but some people do with good results).

What you need to do is:

Close your bank account. Close it completely, and ask the Bank Manager to ensure that a "Hard Hold" is placed on the account, so that no ACH transactions can go through, no checks can be written against it, no withdrawls can be made. Some banks may give you the runaround on this, this is why you speak to a bank manager.

Write the NYS Attorney General and complain that you are being ripped off. This is important. Mail it US Mail.

Complain to the Better Business Bureau. I didn't do this...some people do. I find it hard to believe these illegal companies would give a rat patoot what the BBB thinks, but you know who does? Other potential victims of these companies. Only people who truly don't understand the laws, like I once was, would use these PDL companies.

There are other entities that you could complain to as well that are well documented in the Sticky threads at the top of the forum. Use them. These people know what they are talking about.

Finally...bone up on the Debt Collection laws. The FDCPA(I get that right?) has a butt load of protection for a consumer who is being hassled by debt collectors. These companies,directly, will call and harrass you to try to collect, but once they give up, they will sell your account to a 3rd party collector for pennies on the dollar, and THEY are going to do whatever they can to get money from you. Threaten lawsuits, jail time, police at your work, ruined credit....ALL OF WHICH are not true, and illegal to even say! PDL's is NYS are illegal, and debt collectors cannot legally collect on illegal debts! If you arm yourself with the facts, it really is almost preferrable to have the debt sold to one of these companies. If they don't follow the law, you can sue THEM. Talk about turning the tables!

If you want, I have a whole thread dedicated to my personal journey to get out of this trap. It's here:

http://www.debtconsolidationcare.com/forums/showthread.php?t=89893

From start to today, it is what I've done in NYS to get rid of this albatross in my life. Make no mistake, I have alot to learn, even as an adult, about how to manage my finances so as to not get myself in this kind of bind, and I learn every day...but don't fret....you're not alone, and there IS something you can do.

Nobody here condones stiffing on legitimate debt. A legal debt is just that. Some people in some states where PDL's are legal(like Delaware) come with complaints, and these forums will tell you straight out that you are stuck, but to talk to the company about a reasonable payment plan, which most will ultimately do. If you owe on a legal debt, do your best to pay it, even if it's 20 bucks a month or whatever.

But Pay Day Loans....here is New York? NEVER AGAIN.