HELP!!! In California
Date: Fri, 08/05/2011 - 02:04
Ok, my problem is that I have 7 Payday loans (2 online-registered in Ca, 5 online-not registered). Now I know I have paid off the principal at least with all the rollovers, except one. The ones licensed in Ca. are small $255 and I can take care of them. The others range from $400 principal to $700 in principal. Now, my checking account is $2000 overdrawn and I am stressed. I can't sleep (it's 2am as I am writing this), I have a wife and 4 children, and feel I letting them down. I got into this mess, because I was laid off for a good chunk of 2010. Now I have been working near a year, making decent money, but nothing to prove for, because I am in this dreaded cycle. I decided enough is enough.
I have just recently opened a new checking with another bank, because I want to let the other close. My question is, what can I do with my bank, because I owe them $2000 and not officially told them, what I'm doing. I have been there over 10 years and feel bad. What do you think my next step is, because tomorrow, my lenders are going to try to withdrawal from my account again, but they will all get returned. I have completely canceled all my direct deposits from my work and my wife's work. The phone will be ringing very soon and I would like some advice on how I can come out of this situation. I'm close to thinking of bankruptcy because these payments that I have been making for the past 6 months have gotten me behind on my mortgage and cars. I can't lose those, and my credit is shot right now anyways. Any thoughts or opinions would be very helpful.
Thank you
Welcome to the forums!!! Pdl lending is considered legal in the
Welcome to the forums!!!
Pdl lending is considered legal in the state of California. You can contact with the California Department of Corporations in order to know whether or not pdl companies are licensed to operate in your state. You will be liable to pay both the principal and interest if you find that the lenders are licensed in your state. Otherwise, you are responsible only for the principal amount. If you have already paid more than the principal amount to the illegal lenders, then ask them for the refund. You can request your bank manager to put a hard debit check on your bank account so that they can???t debit any further amount from your account. If you are in a financial hardship and can???t repay your debts in full, then you may try to arrange a better repayment plan with your lenders.
as for your bank
okay first things first.you must go to your old bank,see the manager and get that account put on DEPOSITS ONLY status.that will give you time to bring that account even and close it.you must do this as the pdl's will continue to attempt debits,and depending on the bank the NSF'S can add to the deficit.plus you are in CHEXSYSYEMS meaning if the bank you switched to uses CHEX then they can close that account.not puutig the old account on deposits only is dangerous for you.now as for the loans.go to the sticky titled DEALING WITH ILLEGAL LENDERS at the top of this very forum.it has all you need from letters,to every step to get these out of your life.as for the legal loans.you will have to come to an arrangement to pay them,but the illegals you only owe the principle and since you stated you paid the principle on all but one.use the info in the sticky to send the letters and you pay the one you still owe when you can,and pay with a money order with a physical address.don't woory about the other illegals as being illegal they can do nothing as long as they don't have/get your new bank info.to close get to your old bank and get the account blocked so you can resolve that.i know it's alot,but you must do this to save further problems.
Hi! Always good to see another Californian here. Based on what I
Hi!
Always good to see another Californian here. Based on what I have read, without knowing who the lenders are, $255 is a legal amount in California, as storefront PDL's go for that amount with a $45 fee, as the legal limit is $300 in California.
With that being said, Paul is absolutely right. You need to have a conversation with your bank about why your account is currently overdrawn. In my own experience (I bank with one of the biggest ones in the state), they were actually very nice about it and gave me a new account, along with putting fraud alerts on my old one.
If you don't, you run a serious risk of having your account closed due to NSF's after 30 days and definately being put into Chexsystems. This will not be good for you.