Overwhelmed by pdl debt, can someone help?
Date: Tue, 05/15/2007 - 18:58
I live in Tennessee and I have several
loans outstanding. The companies include:
my cash now -I owe $650, paid $233.43
Sonic Cash-I owe $400, paid $80
Best Cash Advance-I owe $489.88, paid $250
Payday OK-I owe $500, paid 410.72
MTE-I owe $300, paid $270
US Fast Cash-I owe $350, paid $270
United Cash Loans-I owe $350, paid $270
500 Fast Cash-I owe $350, paid $270
PayDay One- I owe $500
SonicPay-I owe 1200.00
I tried to make arrangements with Payday Okay today and they were very rude and were not willing to work with me and told me that I needed to borrow the money from family or friends. I have been a customer of theirs since 2005 and I've always paid them accordingly. This is the first time that I have ever defaulted on pdl's and it is a bit frustrating for me not to be able to pay my debts. Will this affect my credit? I can pay all of these in full in August so can anyone give me any advice on where to begin?
Please help!!
There are some settlement and consolidation companies that handl
There are some settlement and consolidation companies that handle paydays, like T&C and Langhorne. I don't have personal experience with Hess Kennedy but after reading some of the posts on this board, I'd avoid them like the plague.
If you want to do it yourself there's lots of help available on this board. You'll need to accept that you're going to be dealing with people a lot ruder than the folks at Payday OK. They're pussycats compared to some of the other on your list like Sonic Payday. But if you can deal with them, the good news is they're all internet lenders and none have licenses to make loans in Tennessee. Most don't have licenses anywhere. So you'll have a lot of tools available to you to fight them.
Overwhelmed by pdl debt, can someone help?
Thanks for the response. I would like to do it myself. I don't understand, does it work in my favor that they don't have licenses in Tennessee. Will I go to to jail or anything like that?
The one thing you can be sure of is you can't go to jail. You e
The one thing you can be sure of is you can't go to jail. You entered into contracts with them. Even assuming they are valid, binding contracts the worst you did was breach a contract. That's a civil matter, not a criminal one.
Having said this, a lot of collectors will tell you different when they get you on the phone. That's because they want to scare you into paying them as much as you can as fast as you can. (Their bonuses and commissions are based on how much they collect.)
A few tips . . .
1) Avoid the collector calls until you're ready to deal. Just don't answer and get nasty with them if they manage to get through. (Whistles and pressing buttons on the phone are especially effective.) You want them to put your loan in the 'uncollectible' pile as fast as possible.
2) Don't believe the threats. The same things they put into contracts to make it hard to sue them make it hard for them to sue you. In nearly every case they will do nothing more than keep calling. Eventually, your loan becomes so old they don't consider it worth the time and expense of active collections.
3) Don't worry about your credit score. Most payday lenders report to Teletrack or other subprime credit bureaus. It will make it tough to get another payday loan, but it has nothing to do with your FICO score.
4) When you are ready to deal, insist on speaking to a collections manager. Rank and file collectors have almost no authority to waive fees or enter long-term payment plans.
5) Fax each of them a revocation of ACH authority. You should close your bank account, but if they ever find your new account they'll try to get money from there. If you formally revoke the authorization you can dispute any future debits at your bank.
6) Sonic Payday will probably go to your employer with a wage assignment and try to get the money you owe deducted from your paycheck. This is NOT a wage garnishment order from a court and it can be REVOKED. Make sure you send them a letter telling them you have revoked it. Then give a copy of the letter to your employer so they don't mistakenly send your money to the lender.
I'm sure other people on the board have a lot of ideas to help you, too. Just keep asking and we'll get you through this.
Here is what I found about payday loans for the state of Tenness
Here is what I found about payday loans for the state of Tennessee(just select your state),
http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html
If I misread something, please someone, feel free to correct me.
If I misread something, please someone, feel free to correct me. Not an expert on interperting these things, but am learning.
Also, since rollovers are not permitted in TN, they are breaking
Also, since rollovers are not permitted in TN, they are breaking the law by allowing you to do so.
It looks like you still owe money on all the loans, so what I'd suggest you do is figure out how much you should legally owe on each loan.
Quote:
Email to and from TN Banking Dept Hello, I'm trying to make sense of the payday loan laws in Tennesse. How would I go about calculating the allowable interest? Thanks! Response Technically it is not an interest rate but service fee and this is how it works. The fee cannot exceed the lesser of 15% of the check amount or $30. So if you have a check amount for $100, the service fee would not exceed $15 (15% x 100). Keep in mind the fee is on the check amount, not cash amount. If the consumer requests $100 in cash, the check amount would be $117.65. The check amount of $117.65 x 15% equals $17.65, and cash is $100 ($117.65 - $17.65 = $100). If the customer asks ... "how much should I write the check for if I want $50?" You can back into the check amount by taking $50 and dividing it by 85% or .85. In other words $50 divided by .85 = $58.82. You can verify by multiplying $58.82 x 15% = $8.82 service fee. $58.82 - $8.82 = $50. Remember the service fee is limited to $30 on all checks exceeding $200. |
All of your loans are over $300, so the most they can charge you in "interest" is $30.
Make sure you follow the advice Freaky Friday gave above . . . . Also, when you close your bank account ask your bank what their policy is on ach transactions going through on closed accounts. Some banks will force open the closed account and allow the transaction to go through. If your bank does this, tell them your situation and that these companies will fraudualantly continue to debit your account after you've revoked authorization. Ask the bank to put the account on deposit only before closing. That will stop any transactions from forcing the account open once it's closed.
I have have refinanced My loan with Pay Day Select 5 times since
I have have refinanced My loan with Pay Day Select 5 times since 11/10/06.Totaling 588.74.My loan amount was 100.00 at first then 2months later I got a loan increase of 360.00 with 23.14 taken out for fees,so that left me with 336.00.They claim my balance is 450.00 still.since 8/3/06 they have managed to get 1,027.45 out of me!That could not possibly be legal could it?I live in Tenn.If refinancing is not legal in this state(which I've already mentioned 5 times totaling 588.740)Could I bring this up to them and tell them to put pif on my account and be done with this? I have another payment due 6/15/07 and I intend on closing my account and following some other procedures with my bank that I have read off of this site,which is fantastic by the way.Ihave not spoke with them yet.I also have 2 more pdls that are a nightmare as well that have also allowed me to refinance they aren't quite as bad as this, but close.
