What happens if I don't pay the payday loans

Are they internet based lenders or a store front lender where you used a check to get the loan?

http://www.occc.state.tx.us/pages/Legal/Laws/reg/subf.html

Hi Denise,

I understand your situation. Don't fall behind in your utility payments, rent, food etc. You need to talk to your lenders and make them aware about your financial problems. Arrange some payment plans and stick to it. If you are unable to do it on your own, talk to a debt counselor for taking care of these accounts. He will negotiate with your lenders favorable for you. You can do a free sign up in this website and talk to a consultant for help.

http://info.sos.state.tx.us/pls/pub/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=7&pt=1&ch=1&rl=605

So, no you won't go to jail. I guess just ask them if you can set up a payment arrangement.

They may not cash your checks. You will have to wait and see what they will work out with you.

If you can explain the situation to your bank, they will be cautious before the checks get returned. Don't tense yourself over going to the jail. Legally, this is not possible. If the debt is legitimate, the company will try to file a case against you and recover the money through garnishment. It must be governed under the state laws. Try to talk to your lenders and assure your payments if some extensions can be arranged.

Denise---Can you stop payment on your checks or automatic debits or withdrawals?

Good question, Lorri. I'm also in the same boat as Denise. My payday loans in Louisiana and Mississippi total 6 at $300 each. It seems as though I will never pay them off. My fees are totaling $400 month. One company is threatening to take my check to the DA if I don't pay 75% of the loan within 10 days. Now, once I have a total of $500 worth of checks turned in to the DA's office, can't I be jailed? Does anyone know anything about this? This one payday loan in particular is in Louisiana.

Crystal, which state do you live in? What companies are you dealng with?

It is not a felony if you are unable to pay the debt. However, you should contact the company and work out payment arrangements with them. A lot of problems will be solved if you are taking care of the matter. Besides, if the matter takes a legal shape, you should be able to prove your responsibility. Write letters and send your proposals through certified mail with return receipt requested. You will have proof of your actions.

Welcome to the forums. tell us a little more about your situation. What state are you from? Are these loans over the internet or storefront? Also please register and join our forum you are always WELCOME here. KYSIDE38

Guest -

WHere do you live? (state)
Who and how much do you owe?
How much have you paid?

There is a lot of information avaiable here. We'll be sure to point you in the right direction.

If a payday loan is never paid, several things can happen (IF THE LENDER IS A LEGAL, LICENSED BUSINESS IN YOUR STATE):

-they can pursue collection action against you, up to and including taking you to court, obtaining a judgement against you (BAD news for your credit rating), and garnishment of your wages.

-they can call you (and the people you listed as references on your loan application if you won't take their calls, in an attempt to locate you)

-when they serve the court papers on you, they can do so at home, at work, etc.

Keep in mind, this is only for those lenders who are legally operating in your state. We don't advocate nonpayment of what you legally, legitimately owe - but we do offer suggestions for dealing with the illegal lenders - most often found on the internet and operating from other countries.

Hi I live in houston, tx and just talked to a counselor on here. Thy say they can't help with payday loans. My question is I have 15000 in payday loans. Got in the cycle...had to get another payday to just get extensions paid. I have 4 storefront and the rest in online. I don't know what to do. or if the laws have change. I want to close my bank account and work with them to where I can start paying off. some I have had for over 6 months., any ideas?

Do you have $15,000 in payday loans? Or $1500? Please list for us each loan you have, whether they are online or storefront, how much you have paid, and how much you borrowed. We will be able to give you some advice once we know these things. :)

I apologize it is right at 10K They are as follows:
B.I.G. $200.00 online
Arrowhead $300.00 online
MTE Financial / quickest cash $300.00 online
ACC / cash spot $300.00 online
paydayone $755.00 online
First Cash $735.00 store
Payday Adv $725.00 store
Advanced America $1,200 store
CashNetUSA $1,500 online
ThinkCash $2,250.00 online
Purpose Money 400 store front
Zip 19 600 online

scmoore -

Sassnlucy & I discussed it, and I'm going to take a look at your loans and see if we can find a solution for you - or at least a plan to get out of this. (That way there's only one person listing the info, and less confusion!) :-)

I'm going to take some time and go through your loans as you listed them out and see which are licensed in your state and which aren't, and how much you should be repaying to each one. I noticed you didn't mention how much you have paid on each one yet - can you do that for me so I have a little more to work with? Include any "rollover", "renewal" or "extension" fees you may have paid as well.

I'll be back with you shortly...stand by....

scmoore -

Here is You will find the Payday loan laws for Texas (just select your state),
http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html


What the bolded sections mean is this: if the companies lending to you are licensed, they should not have allowed you to take out more than the $500 allowed by your state law. Also, rollovers are not permitted, except in special situations as mentioned in the law quoted above.

Ok, here's the rundown on the licensure for your lenders:

ONLINE LENDERS:

B.I.G or BIG - no results found (not licensed)

Arrowhead - no results found (not licensed)

MTE Financial or MTE - no results found (not licensed)

ACC/Cash Spot - no results found (BUT..found one result for "ACC" - "Access Acceptance Limited", which is a regulated loan licensee - but there was no DBA listed under "Cash Spot", so I would say these are not the same company and ACC/Cash Spot is not licensed)

PaydayOne or Payday One or Pay Day One - CAREFUL! There is a company with a listing as a DBA of Payday One with several active licenses in Texas - but it may not be the same company as the online one you used. The DBA listed was "Payday One XL". There were also two listings for a "Payday One" with a parent company named "Exchange Services LLC", but their license has been cancelled. So you need to find out which company this is - go to their website where you got the loan originally and see if there are any other company names on the site.

Cashnet USA or Cash Net USA - No results found (not licensed)

Think Cash or ThinkCash - No results found for "ThinkCash" or "Think Cash" - however, there was a licensee named "Think NY LLC" and they are a regulated loan provider. You will want to check your loan documents or the website where you obtained the loan to see if that company name appears anywhere. I'm almost certain they're not licensed, but better to check and be safe than sorry. With the amount you listed for this company, it almost sounds like an installment loan, rather than a PDL. Could that be the case? (MANY THANKS TO KASHZHAN FOR INPUT ON THIS ONE!)

Zip19 or Zip 19 - no results found (not licensed)

STOREFRONT LENDERS:

First Cash - LICENSED.

Payday Advance or Payday Advanced - I find no listing for this company either as a DBA or a parent company of a lender. However, there were several variations of company names with "payday" in them - can you find your loan documents and clarify the name? All of the variations I found were licensed.

Advance America - LICENSED

Purpose Money - you said this is a storefront, right? I cannot find a listing for them as either a parent company or a DBA in Texas. Can you clarify if that's the correct company name by checking your loan documents? If they are a storefront, they need to be licensed.


Your biggest worry right at this point will be the storefront lenders. They can and will take you to court, obtain a judgement against you, and pursue further action against you if you do not pay them. Call them right away, explain the situation, and work out some sort of payment arrangement with them if possible.

With the online lenders, as I mentioned before, it's very important that you list how much you have paid each one, compared to how much you borrowed so we can see if you have already overpaid them or paid them in full.

Looking forward to your next post! :D

(THANKS TO KASHZAN AND SASSNLUCY FOR THEIR INPUT & TO OUR FRIEND GOUDAH!!)

Great job Sue, you were right on that......you are right about Think Cash. I just saw a post on another thread by Goudah...Think Cash is actually an installment loan that is backed by a FDIC bank so they are operating legally.

Good job Sue. You sure did alot of research on that one. Goudah pointed out to me about Think Cash. Its good to know, i think lots of folks are dealing with that one.
Again, great work Sue!!!!!

thanks! :-)

Actually, most payday loan companies are CSO's in Texas.

Payday One, Cash Net USA are CSO's. They are 100% legal.

Think Cash and Purpose Loans are actually installment loans backed by an FDIC insured bank. Also 100% legal.

CSO's do not need to be licensed, only registered with the Sec of State. They also do not have to follow the pdl laws, as federal law says any fees charged cannot be considered interest. So they charge very low interest and a huge fee.

Thanks Goudah!

There is an American Consumer Credit registered as a CSO . . . That may be the ACC . . . I'll keep looking.

Anytime! Texas is tricky with all this CSO crap . . . .

hi kymmieco - what state do you live in, how much did you borrow from each one, and how much have you paid back to each one...and are they internet or storefront based lenders? (Sounds like all internet lenders to me, but just checking!)

kym, can you please tell us what state you reside in? We can check your state pdl law for you. Also, can you tell us how much you borrowed from the pdls (principle amount only) and how much you have paid back total so far to date? Then we can see where we stand and also see who is licensed/legal and who would be considered illegal.

Sorry, sue! Posting at the same time! :wink:

no problem - better too much help than not enough! :-)

Please let us know what state you are in, who your lenders are, how much borrowed, how much already repaid, internet or store front.

Hi, i have 3 store fron loans with checksmart for $600 plus the fee of 87.50, express payroll advance for $550 plus the fee of 81.50, and always payday for $500 plus the fee of $75. all three are in default/have been returned by my bank. my bank account is now 0ver $1000 negative and i cannot close my accnt until the balance has been paid. I uused to never hav problems paying these loans on time, but i am a server and ever since the beginning of the year, the economy has wwent down, and with the high prices of gas and everything else going up, business has went down, and as a result so has my money! because of that i have also taken out loans (previous to my bank account mishap)online with impact cash, cashbanc, mte financial, usa payday loans, 247 advance, geneva roth ventures and fast bucks.com. all of the online loans total about 2100 total plus the fees. I do not know what to do. I just want to be able to get them all paid off and never have to use a payday loan again. it is causing me to not have any xtra money for any of my bills, and i am totally broke! Oh yeah, i live in ohio. what can i do?

You cannot go to jail for a PDL. I would start recording their calls as they have violated federal law.