how to get of the payday loan cycle

I don't think stop payments generally work because they will just put through a different amount.

I see that you listed your state as Wisconsin. If you could list some additional information, the folks here will be better able to advise you. Please list each company, whether it is internet or store front, the amount borrowed from each, and the amount repaid so far on each

Once you post that information, someone should be able to help you out.

Stop paymant on a check in Missouri on a payday loan. What will happen to me?

Internet or storefront?

I'm in WI, too. First thing to do is find out if your loans are legal or illegal. All store front loans are legal.

In my case, I had 2 internet loans from illegal companies and 5 legal loans. Many people on this site advocate closing your checking account immediately. I chose not to go that route simply because I was very close to paying off the illegal loans.

With the legal loans, I emailed that them I was revoking my authorization for them to use ACH withdrawals from my checking account. All the legal companies complied immediately (PayDayOne, Cash Central, and Check City). I was afraid to try this with the illegal companies, as I've come across horror stories of how the illegal ones don't honor the revocation and may in fact try to take the full amount (or more) of the money that you still owe.

After I revoked my authorization with the legal ones, I emailed them and told them my financial situation (7 PDLs, risking foreclosure bc I'm paying so much for so long on these PDLs, etc). Then I told them (nicely) what I would be sending them payment wise and reiterated that I will pay these loans off in full, but I'm just not able to immediately.

In my revocation of the authorization, I also asked that they not call me at home, on my cell, or at work. I requested that they contact me via email.

I hope you stick around Sonja. You are already helping others and giving great information. :)

We need more people with experiance in WI.

Sonja-
I'm in WI too, did the illegal lenders try to contact you yet? I have revoked my ACH auth withe them, but haven't heard anything yet and am kind of worried as to what action will be taken. As far as the legal lenders, were they willing to work with you?
Thanks!

Thank you for the kind words, nohiogal. This forum has been a blessing to me, I've learned so much. I was so desperate and distraught before I found this site.

Beckas85, no, the illegal lenders haven't tried to contact me but that's because I haven't contacted them, I'm guessing. I owed a total of $225 on my illegal loans, fees and all, so I chose to just pay them off. Many will suggest dealing with them first and closing your bank account. Very good advice and I definitely would have went that route had I owed more than I did. But I decided to pay them off and then try to request a refund. Might not get it, but at least I don't have to worry about them taking extra money out of my account.

As for the legal lenders, yes, they seem willing to work with me. When I revoked my authorization, I used the format/letter from this forum. I asked them not to contact me by phone and not to contact any of my references. I don't know why, maybe because I'm embarrassed, but I prefer to go the email route.

For example, Check City (to whom I owe $309) emailed me right away after I revoked the authorization. They said they would take 3 equal payments every two weeks, for a total of $103 each payment. I emailed back and told them the truth. That I have 7 PDLs, my house was close to foreclosure, and I'm behind on everything (car payment, utilities, etc) bc I've been struggling with PDLs and the interest payments for months. I explained that I am not refusing to pay but that I am unable to pay immediately or to pay large sums. I also said that I will pay every penny that I owe them and I requested their mailing address. I told them that I can afford to pay $30 in April and $30 in May. In June, I anticipate the ability to pay more money and I would contact them then and make more payment arrangements. For this loan alone, I was paying $130 in interest per month and not getting anywhere on the principal. So paying $30 a month starting in April and seeing it be used to reduce the total balance is going to help substantially.

I've come across some great advice on this forum. The thing is, I owe the money and I think it's important that I let the companies know that I intend to pay every cent. It does appear that that interest charges stop when you default. Otherwise, there'd be no sense in trying to pay them off if they were still charging the same interest charges, you know? So that right there is another blessing. It's important not to let these PDLs get in the way of other bills. They are all going to want the total due as soon as possible. But if I could do that, I probably wouldn't be in this situation to begin with. Go through your budget, prioritize your bills, and come up with a total that you can comfortably afford to repay the PDLs each month. Divide that number (mine was $210) by the number of payday loans you have, and then tell each one what you are going to pay them per month. Be polite, don't let them force you into agreeing to pay more than you can afford or you will be right back in the cycle of borrowing money to pay for PDLs that you can't afford, just like the rest of us. :-)

The other legal loans I had (internet) were Payday One and Cash Central. I advised Payday One of the same situation as I told Check City. I just need to contact Cash Central yet.

I should have added this information: read the forum about how to handle illegal PDLs. I may have chose a different route based on my circumstances, but the advice on how to handle the illegal loans is invaluable.

Sonja-
Thanks for the advice! I too am struggling becuase I had taken out 1 and then I had to take out another to cover bills and it just kept snowballing! I had emailed the letters the my illegal lenders but need to take care of the 1 legal lender that I do have. I,too, want to pay them what I owe, I just need to figure out a way to do it w/out letting all my other bills get pushed aside. As far as revoking your ACH w/the legal lenders, what format of a letter did you use? I was only able to find one for dealing w/the illegal lenders..
Thanks again! :)

Actually, what I did was read the letter for the illegal ones and put it in my own words.

I emailed and mentioned these points:
1) Effective (date), I am hereby revoking any and all prior authorization allowing (the company) to withdraw funds from my bank account through the ACH or any other process.
2) I am revoking any and all previous wage assignments that I may have agreed to. (I don't know if I had agreed, but this should be mentioned anyway.
3) I am requesting that I not be contacted via cell phone, home phone, or at my place of employment.
4) I revoked all authorization for the company to contact my references and/or employer.

I also mentioned that my bank had been notified of my revocation for the company to withdraw money. I stated that I will diligently pursue any violation by the company in case they tried to continue with bank account withdrawals.

Then I mentioned that I would be contacting the company shortly to make payment arrangements.

Please note that I only did this with the legal companies.

Maybe someone knows where the formatted letter is for dealing with legal lenders.

I don't think there is a letter for legal lenders. The best advice it to call them or contact the via email.

Many will work with you.

Ok, thanks again for all your help on this! I was in over my head and it's such a vicious cycle! I will get the email out to my legal lender today!

And please let us know how it goes! If you run into problems, someone might be able to help you. Not only that, it is so encouraging for other members to hear about the successes and experiences of others.

I'm battling w/one right now.. Integrity Advance is saying I owe $810 on a $500 loan and that they will settle for $350 when I only owe $200 as long as I provide copies of my complaints... I emailed them back and stated taht I will not settle for that since they are unlicesnsed and that I will pay the $200, I'm waiting for a reply back.. I'll keep yah posted, though!
Thanks! :)

Is Integrity Advance a legal company? If it's a storefront, it is for sure.

i got my loan thru them on the internet.. as far as i know, they are illegal..

Quote:

I checked the dfi website and didn't see them licenesed..

Then they are illegal.
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Anyaroberts was just pointing out that just because they are internet does not make them automatically??illegal. There are legal lenders out there.

Yeah, I had checked it out about a week ago when I started finfding out about the legal/illegal lenders. I found alot of useful information on here, thanks!
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I am glad we could help!