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How to Deal with my Unpaid Loans

Date: Wed, 11/17/2010 - 12:35

Submitted by Kenneth Barhight
on Wed, 11/17/2010 - 12:35

Posts: 55 Credits: [Donate]

Total Replies: 4


I have sent letters to all my creditors where I have already paid back at least the principal.

Now to deal with the other lenders.

I have 4 loans out with illegal lenders since late August. I am going to send them letters stating I am going to repay the principal and that I do not acknowledge any fees they may have assessed. I can't pay the principals all back in one lump sum tho. How much should I offer to pay over what time period? I have two loans for 300, one for 400, and one for 500.

I also need advice on what to offer the lenders I have stopped paying on that are legal in Pennsylvania. I owe FBD and Elastic. Do I contact them and let them make an offer, or should I make an offer to them?

And for Elastic...Since they're being sold and wont be under the licensed bank's umbrella, do I just wait and see who buys them and let them know they're illegal as well and I already paid more than the principal?

Thanks,

Ken


No payday loans are legal in Pennsylvania. Regarding FBD, you should contact them and see if you can make a payment arrangement with them.

Regarding Elastic, I would like to know what other members comment on this.

You only owe the principal amount taken on the loan to the illegal payday loan lenders. Deduct whatever you have paid to them in fees or charges from the principal amount and the remaining balance is what you owe to them. You are just morally responsible to pay it. So, there is no time frame for the repayment.


lrhall41

Submitted by paulcahill80 on Wed, 11/17/2010 - 12:58

( Posts: 2359 | Credits: )


Elastic and FBD are bank installment loans. They aren't covered by the CashNetUSA ruling. (In fact, they can't be since bank-backed loans are subject to federal laws rather than state laws.)

Then it gets muddy . . . . Only CashNetUSA's pre-decision loans were covered by the Supreme Court decision. The Department of Banking originally said it would only apply the new policy PROSPECTIVELY once it went into effect, but CashNetUSA asked the court (for tactical reasons) to rule on whether its old loans were legal. (The court ruled against them as we all know.) But the court wasn't asked about any other company's loans and the Department hasn't said whether it will not change its position in light of the ruling. In fact, they haven't even said what (if anything) the status is of loans made after the original effective date of the policy but before the Supreme Court ruled.


lrhall41

Submitted by on Wed, 11/17/2010 - 13:10

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