Help PayDay Loan Hell

Date: Wed, 01/09/2013 - 16:08

Submitted by anonymous
on Wed, 01/09/2013 - 16:08

Posts: 202330 Credits: [Donate]

Total Replies: 2

I live in Houston, Tx. I have two storefront payday loans with First Cash Advance and Cashstore. I owe FCA $1,101.20 the principal loan amount is $900.00 since getting this loan I've made seven payments in the amount of 201.00. After calculating I've actually paid FCA a total of $1,407.00 in fees. I need some serious help; making sure I pay FCA before I can pay any bills makes it extremely hard to live. My utilitiy bills are pilling up since I'm paying less than the amount due. I want to set up a payment plan but after tryng to call and speak with thier collections department I was informed that a payment plan is unavailable since the check I wrote to them has'nt actually been returned. I'm scared if I let a check over a $1,000 bounce what type of legal troubles will I have in the county where I live. I thought if I called and let they know I was having a hard time paying that they would want to set up an arrangement but no luck. My other store front loan with Cashstore has a balance of $540 since getting this one I've actually paid $361.62 in fees. I'm open to any help or advice everyone is willing to offer. Can I be sued for defaulting on a pay day loan; can I be arrested for defaulting; what are the laws in Texas for pdl? Can they charge almost two times the principal balance in fees? Please help me I'm stressed out...

Thanks in advance everyone

Stressed Single Mother

Thanks

Thanks I really appreciate that it gives me reassurance I guess all I can do now is revoke my ACH. After I revoke my ACH what's next should I try and call them then or wait for them contact me. I wrote them a check so they will cash that and I guess after its returned to them I will hear from them. Is there anything I can do right now.

lrhall41

Submitted by nlwalker on Thu, 01/10/2013 - 20:19

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To begin with, take comfort

To begin with, take comfort in the fact that you cannot be arrested for defaulting on a payday loan. Debts are civil, not criminal. On the flip side, you can be sued in which case the creditor will be able to put a lien on your property and levy your bank account. The good news is that Texas as it happens, is a non-garnishment state. So basically creditors, even with a judgment against you cannot take a bite out of your pay check. Now since they can levy your bank account, they will gain access to your funds (and seize/freeze them) if you put your check in your account. We have a bit of a jam here though. Neither of your lenders are CFSA members, nor are they illegal which goes to say that there is no easy way out of this. Your best strategy to tackle this right now is to revoke ACH authorization and force the accounts into collection wherein you would be able to negotiate and possibly settle for less than what is owed. You must remember that if you settle, it is more than likely that they are going to demand a lump sum payment.

lrhall41

Submitted by Steve Barris on Wed, 01/09/2013 - 22:17

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