Payday loans are killing me - how is this legal

Submitted by LStellar on Fri, 01/12/2007 - 20:53

payday loans are killing me. I have easily paid these things off and am getting enormous amounts debited from my accounts that collection agencies are getting now for these things now. My bank just keeps reversing them - what should I do?

John Vanderslice (not verified)

The thing they are doing is illegal and you should file complaint with the FTC, BBB and state attorney general about it. With the complaint submit all the documents proving your payment program and the actual payments you have made till now.

Sat, 01/13/2007 - 01:33 Permalink
James J (not verified)

I had something similar happen to me. The payday loan company tried to take money from my checking account on the days they were not supposed to, ran up hundreds in overdrawn fees. I closed my account, I would suggest you do the same. Close it an open another account.

Tue, 01/16/2007 - 21:52 Permalink
Melissa (not verified)

I have a lot of payday loans, me and my husband included. They say that these loans are for emegencies only, but they know that the people that use them are already in trouble financialy, and they know that these people with be back and re borrow, becasue they cant afford to hand over their enitre pay check. I am in collections with many of them. I closed my checking account and re opened one at a different bank. I am going to file banrupsy as soon as i get the money for that saved up.
These places need to be shut down. Sure they are nice to have in an emergency, but people use them and become trapped. I actually had one of the managers COME TO MY HOUSE. LOAN SHARKS IS WHAT THEY ARE!

Fri, 11/02/2007 - 19:00 Permalink

Melissa, I think you brought up a good point to the original post and that is you closed your checking account. I agree to report it to the three agencies listed above. I think that if your bank is not working with you, maybe close the account that you have an switch to another bank if possible. unfortunately it sounds like you got hit two ways, with the pdl companies and your bank with its reversals

Sat, 11/03/2007 - 01:29 Permalink

Welcome to the Forum Debtstinker :)

Melissa,

Please clarify one point. You had to close the account because money was getting debited right?

Sat, 11/03/2007 - 07:25 Permalink

You need to close your account and open another very quickly, have your direct deposit directed to your new account. Talk to the bank manager of the account that this is affecting, tell them about the situation you are in and try to work out a payment plan with them on this account when closing it. This may be embarrassing, but you only have to do it once. Getting a new account will then allow you to pay your bills.

Then deal with the payday loan companies, are they internet or storefront loans? If they are storefront they are more than likely legal, if they are internet then it may be questionable. What state are you from? what payday loan companies are you dealing with? how much did borrow and how much have you paid back? If you are dealing with internet companies, you may have a chance of stopping them, it is a process and requires alot of work on your part. please post the information if you can and see what others have to say also.

Sat, 11/03/2007 - 12:19 Permalink
Melissa (not verified)

Yes I closed my account. I have several online ones as well as storefront ones. I kinda ignore the payday loans, because non of them really work with you. The store front ones wont take payments they want it all. I put them on those payment arrangements but they want so much a paycheck and I couldnt pay all of them. If I did I would not have money for food and other bills. I will be filling banrupsy in december. I have to wait until like Dec 12. My hubby will be getting the Settlement that took forever, and then I can file. his settlemnet is not enough to pay them off. That is why I am doing bankrupsy. I have filed Bankrupsy in the past But it was in like 2001 or 2002. i wonder if i can still file with this new Law. Someone told me that since i did that bankrupsy before the law that I can file now and then I cant for another 8 years, but after this time I WONT get into this situation agian I hope.

Fri, 11/30/2007 - 03:01 Permalink
Melissa (not verified)

Yes I closed my account. I have several online ones as well as storefront ones. I kinda ignore the payday loans, because non of them really work with you. The store front ones wont take payments they want it all. I put them on those payment arrangements but they want so much a paycheck and I couldnt pay all of them. If I did I would not have money for food and other bills. I will be filling banrupsy in december. I have to wait until like Dec 12. My hubby will be getting the Settlement that took forever, and then I can file. his settlemnet is not enough to pay them off. That is why I am doing bankrupsy. I have filed Bankrupsy in the past But it was in like 2001 or 2002. i wonder if i can still file with this new Law. Someone told me that since i did that bankrupsy before the law that I can file now and then I cant for another 8 years, but after this time I WONT get into this situation agian I hope.

Fri, 11/30/2007 - 03:02 Permalink

Hi Melissa.

Yes Melissa you are right. As per the new bankruptcy law the span has been changed from a 6 years period to 8 years.

The commencement date of the bankruptcy case (bankruptcy filing date) is the date used for calculation purposes of the 8 year rule. Under the new bankruptcy law, there must be 8 years between filing dates for a debtor to receive a subsequent chapter 7 discharge.

Are you contemplating a Chapter 7 or a Chapter 13?

Fri, 11/30/2007 - 03:33 Permalink
Melissa (not verified)

Well do you know if i can do the bankrupsy now if I filed in 2001?? or will the new law affectr thst? Or does that count after I file this time??
I really want to do the chapter 7 agian becasue I dont know if I can pay on chapter 13. or does it have to be 7 years for both chapter 13 and 7. I also have other loans. I had mu wage garnished for one of them already, and I work for a school and I am afraid that I will loose my job if I keep getting my wage garnished? But anyway i filed before they changed the law so i just wonder if I can even get the bankprusy.

Sat, 12/01/2007 - 05:47 Permalink
Melissa (not verified)

Sorry bout the typos :shock: :shock:

Sat, 12/01/2007 - 05:50 Permalink
Melissa (not verified)

I found the old bankrupsy papers and I filed on 9/21/00, and it was discharged on 01/24/01. i really hope that I can file still.

Sat, 12/01/2007 - 06:26 Permalink

As per the date I think you can file a bankruptcy now. It is past 6 years that you have filed. You can always file a Chapter7. Take the opinion of you lawyer as well.

Mon, 12/03/2007 - 07:17 Permalink

great information Laura, I am sure this will put her mind at ease, hopefully.

Mon, 12/03/2007 - 17:17 Permalink

Thanks. I talked to a lawyer and was told that I owuld have to wait until September 2008. But I can file for the chapter 13. I make more money than my hubby so money is tight so I hope that I can qualify for it. I took a means test on the internet to see and I qualified for a chapter 7, sp hopefully I can for the 13 as well.

Tue, 12/04/2007 - 05:58 Permalink
Anonymous (not verified)

Do you have any place around your area like credit unions or finance companies? But be carefull that you do not overdo the loan, and have trouble paying it back. Thatt is the mess that I am in now. mine were mostly payday loans though.

Mon, 12/10/2007 - 18:17 Permalink

Hi Yusef,

You can do an online search. But make sure you cross check and do a thorough background check. Its essential for you to know that there are a lot of scams that can rip you off. Just stay on your guard and ask friends where they took help from. Try to research some from the internet and can come back to us again if you need some help. :)

Tue, 12/11/2007 - 12:06 Permalink

You can also use the better business bureau to check out any company that you want or are thinking about using. You can read everything about the company there including any complaints filed and the results of those complaints.

Hope this helps, keep us updated because we can all learn from you and your experience here.

Wed, 12/12/2007 - 00:58 Permalink

Better business bureau allows you to do a complete check but be sure you ask people.

Wed, 12/12/2007 - 07:38 Permalink
Buddy Paranoid (not verified)

We are very close to filing for Bankrupcy....I owe $2,500 on 2 parday loans. My lawyer suggested I simply cloe my checking account and set up another one. How do I know the Police won't be at my door or will I be handed a Supoena at Work ?

Fri, 03/21/2008 - 21:58 Permalink

You have no guarentee, but it would not be the police it would be the sheriffs department, you would just end up in court under civil suit and there they would come up with a payment arrangement that would work for both of you.

Who are the companies that you owe? Somebody here may have dealt with them before and tell you how they are in the long run of things.

Thu, 06/19/2008 - 02:06 Permalink
mashel miller (not verified)

I am in chapter 13 my husbund left me with 3 kids i had to get a a couple of payday loans to help me. Now I am in trouble and need to add these to my chapter 13 is that possible I swear that i will never mess with a payday lender again.

Mon, 10/20/2008 - 19:32 Permalink
DEBO (not verified)

WHAT HAPPENS IF THE BANK CLOSES YUOR CHECKING ACCT DUE TO NEGATIVE BALANCES FROM PAY DAY LOANS? i HAVE SEVERAL LOANS OPEN AND FOR A WHILE THE BANK WOULD PAY THEM AND I'D HAVE TO REIMBURSE THE BANK. NOW I'M HAVING MY WHOLE PAY CHECK CONFISCATED EITHER BY THE THE BANK, THE LOAN PEOPLE AND OVERDRAFT FEES. WHAT SHOULD I DO. I'VE GOTTEN MYSELF IN SOME SERIOUS DEBT HERE PLEASE HELP

Mon, 12/15/2008 - 19:09 Permalink

First of all I cannot understand that if the bank closes your checking account how can the check gets deposited in the bank. Now the creditors can get access to your bank account and garnish your wages only if they have brought judgment against you. If there is a judgment to garnish your bank account, the creditors can garnish the entire amount that gets credited so long as the outstanding debt gets paid in full.

Tue, 12/16/2008 - 09:33 Permalink
Mashel Miller (not verified)

Please remove me from this blog I was asking a personal question I want it removed ASAP!!!!!

Sat, 10/24/2009 - 04:23 Permalink

Just don't post anymore if you don't want to be part of it. You are coming across as a guest so it does not look like you registered, your post would have to be removed by admin.

Mon, 10/26/2009 - 01:24 Permalink

If your really intent on removing the post you may be able to send a personal message to the moderator or administer of the site. I feel you really have nothing to worry about. Usually a post gets old in a f ew days or changes to another topic. Your question will just get lost in the mix unless you keep calling attention to it.

Mon, 10/26/2009 - 13:29 Permalink
Chris Rutter (not verified)

I was stuck in payday loan debt and couldn't make it through another week! Thankfully I found this company called Payday Loan Debt Solution pdlds dot com is their site! They were great and I received the help I sooo much needed! A gentleman by the name of William helped me and I would recommend him to all of my friends who need help with their debt!

Good luck everyone and hope I could help =)

Wed, 12/09/2009 - 22:46 Permalink

You will have to pick one at a time if that is if you can afford it. You can pay them a little moe to get rid of them.

Thu, 12/10/2009 - 03:01 Permalink

I'm wondering if someone has some good advice on this: I have a 'loan' with Think Cash (They actually go by First Bank of Delaware on my bank statement). They said after the 2nd payment, a certain amount of my payment would start going to the balance instead of the % I'm paying (very high). I don't see that happening. I probably shouldn't of gotten the loan in the first place, but,,was really in a bind with some things. I asked if I could put a payment off, lower payments,etc. All of a sudden, (seems like) these people are the ruddess people to deal with. Any advice?

Thu, 12/10/2009 - 18:27 Permalink

Hey guys can you explain the difference between Chapter 7 and chapter 13? I thought bankruptcy was bankruptcy. I've never had to file, when I see I'm getting in over my head I usually dig in and start digging myself out.

Fri, 12/11/2009 - 00:38 Permalink

Simple truth, The best way to fingd the difference between the two is to google the topics. This would give you a more detailed esplanation then you would maybe get here, I do know with either bankruptsy you have to do credit counseling and they look at your income to see if you can repay.

Fri, 12/11/2009 - 02:18 Permalink

Hi Simple,

Chapter 7 bankruptcy is known as the liquidation bankruptcy where the non-exempt assets of the debtor are sold by the creditor to obtain the debt amount.

Chapter 13 bankruptcy is termed as a wage earner's plan wherein the debtor can place a repayment plan to pay off the debts. Normally, this plan stretches for 3-5 years during which the debtor is required to make regular installments to the creditor. If the income of the debtor is less than the state median, then the plan is for 3 years and if it is more, then the plan applies for 5 years. During this period, the creditor must stop any kind of collection activity on the debtor.

Fri, 12/11/2009 - 06:56 Permalink

What about 'First Bank of Delaware? They say they are not a PDL. However.....now I'm beginning to think they are. They say they are an "installment loan." Same thing?..or different?

Fri, 12/11/2009 - 11:44 Permalink

I received an e-mail from a 'non-PDL company' (can't remember the exact name..). According to their e-mail, they ''consolidate ONLY PDL's''. As I was reading along, it stated this 'company' would "loan you money to pay the PDL's back." Has anyone heard of these companies? Seems really 'fishy' to me.

Mon, 12/14/2009 - 08:34 Permalink

Hey sd

They said after the 2nd payment, a certain amount of my payment would start going to the balance instead of the % I'm paying (very high). I don't see that happening.

Did you get any of this in writing?

All of a sudden, (seems like) these people are the ruddess people to deal with.

well that happens with most creditors. So, don't bother about that. Keep your focus on settling the loan. If some executive is not handling your query well, then look out for someone else, maybe someone who is a level up and who may be willing to listen to your offer. Usually creditors do not want to listen to any settlement talks but if you can convince them that it is really really difficult for you to pay up the whole amount, they might settle for the lump sum rather than going to court.

Mon, 12/14/2009 - 09:28 Permalink

Hi

As far as I found out First Bank of Delaware offers services like personal banking as well as business banking. They also offer personal unsecured installment loans to help you pay off your existing loans. They also charge high interest rates on such loans. So, how did you get their money? Was it in a savings a/c directly like PDLs or otherwise?

Mon, 12/14/2009 - 09:38 Permalink

CAROL..I applied over the Internet. They were loaning out 'products' up to $2500.00. They said I qualified for $500.00. The money was Directed Deposited into my bank account. However.......the Webdite I applied on was Think Cash. It's debited as FBDLoan. Hope this helps.

Tue, 12/15/2009 - 00:37 Permalink

Are you still paying on it sdchargers, did it take a long time, what is your status on it now? Was it cashcall?

Wed, 12/16/2009 - 01:37 Permalink
maddy (not verified)

what will happen if you just pay what you can a month?

Sat, 01/30/2010 - 15:57 Permalink

Hello Maddy,

If your question would have been much more clear, i could have answered to your query.

Mon, 02/01/2010 - 12:29 Permalink
100TimesTired (not verified)

In the middle of filing bankruptcy. Should I continued to make payments. The person from the bankruptcy said I should since it will take 10 days to file my petition.

Mon, 07/26/2010 - 18:05 Permalink

100TimesTired - Who told you to keep paying a PDL? That isn't right. If you are filing BK, (by the way an emergency filing can be done in 1 day), then you should not pay any lender unless you plan on reaffirming the debt. You SHOULD send them a notice of bankruptcy filing (send it RRR) and give them your attorney's info.

Mon, 07/26/2010 - 23:17 Permalink
teal1006 (not verified)

Your situation i quite critical..but pay day loan is not such a bad thing..you can try to generate some income source so that you will get out of all this..

Tue, 08/10/2010 - 07:45 Permalink
tracy rains (not verified)

hi
I also know little bit about pay day loans.pay day loans are not bad . pay day loans are for the help of people.

Mon, 08/16/2010 - 05:35 Permalink
tracy (not verified)

Payday loans are not that bad.These loans really help you on time.You can get payday loans just in hour.

Thu, 08/19/2010 - 11:51 Permalink
Your Friendly … (not verified)

ADVICE FROM A PERSONAL STANDPOINT: STAYYYYY FAAAR FAAAR AWAYYY!!!!!
ADVICE FROM A BUSINESS STANDPOINT: GET AS MANY AS YOU CAN!!!!

Payday Loans are absolutely a ripoff, but for Debt Buyers are heaven. You can buy them at .25% or less. If I collect 1 % i quadrupled my money, in addition it's still an asset. Even if I work it with no result I can keep it as a pending receivable to secure credit lines. Believe these target people who are financially hurt for a reason, money money money....

Fri, 10/01/2010 - 16:47 Permalink

You should check usury laws to determine what are the allowed rates that these companies can charge. If they are charging excessive interest rates for the pay day loan you obtained then you may be able to file a suit for violating usury laws in what they are charging you.

Fri, 10/15/2010 - 06:22 Permalink