Help...defaulted PDL
Date: Wed, 09/13/2006 - 12:52
I need some help with some PDL's.
On Monday, My first PDL went into default. As of tomorrow, my second PDL will be in default. (I have 2 PDL's for $500 each - they required me to put these loans into 2 checks - therefore I have 4 checks to them)
Although, I have no money in my checking account - I cannot afford for them to start putting these checks into my account. And I am afraid that they will keep putting these into my account costing me enormous NSF fees. I felt that it was cheaper for me to stop payment on these checks. And I figured once they saw that I had stopped payment, I figured they would send these to collections were I could make payment arrangements...Even though it scares me from reading your experiences that these collection agencies will not make payment arrangements.
I am curious if anyone else has done this? Do you think I could get into legal trouble by stopping payment on these checks?
I live in South Dakota and the companies are Cash Depot and Check N Go (formely Ameri-Cash). I need some help as I have fallen behind in my other bills and need to get them caught up. However, with all of the fees I cannot get these paid off. I am currently paying $400 in fees per month for $1000 in checks and I just cannot keep up any longer...
Help!!! What can I do???
It sounds that you are dealing with storefront lenders. Storefro
It sounds that you are dealing with storefront lenders. Storefront lenders usually get a legal stand against people if they are carrying on their business as per the state laws. What your best move would be to contact these companies and explain your financial difficulties. Keep in mind you will have to show them good faith so that they arrange some payment options for you. Confirm with your state laws if they are allowed to charge that much interests on the principal amount.
Yes, they are storefront lenders. In South Dakota, we have some
Yes, they are storefront lenders. In South Dakota, we have some funky (or lack of) law that states we have no maximum interst. I was just going through my paperwork and I noticed that their is only one that I actually got a Truth in Lending statement. The bad thing about it is their is a disclosure that says "...You may take no action that will result in the failure for your bank to pay your check on or after the due date. For example, you may not maintain insuffient funds in your bank account, stop payment on your check or close your bank account." So that means I have basically screwed myself because as I read that I cannot take out my funds in my bank account, I cannot stop payment on my check and I cannot close my bank account. So what happens if I do that? I know that I am going to be forced to close my checking account as there is a disclosure that says that they have the option of depositing the check or doing an ACH and that they may represent the check to my bank account whenever and how many times they want too. The sad thing is that I can see that I am going to be forced into bankruptcy as I don't see any way around it.
Call the lenders and get some arrangements done. The disclosures
Call the lenders and get some arrangements done. The disclosures are put by the lenders so as to make the customer aware about the consequences of defaulting on the loans. Since they are storefront lenders and unfortunately your state laws do nothing towards the consumers' favor, call them and work out some arrangements. I hope they sound easier when you propose the deal.