FinanceCreditLoans
ANSWERS: 25
  • SIMPLE. DON'T BORROW FROM THEM ANY MORE!! See a credit counselor if you simply cannot pay what they are asking monthly. See my additional comments below, which I should have put above here, sorry.
  • Is there a reputable place you can borrow the money from, like a bank? That way you pay off these ridicuously high interest loans and replace it with a normal, affordable monthly payment.
  • Don't borrow money, period. while you're in debt cut costs, stop saving money (if you're doing that) put 75% of your savings towards your debt and stop getting more debt.
  • Fax each one of them a signed statement saying that they no longer are authorized to take money out of your bank account, and that they should contact you to make other payment arrangements. You have every right to stop any previously authorized deductions from your account, no matter what they say. The first ones to work with you, pay them. The ones who are difficult, since you can't pay everyone, you will have to put them off. In the meantime, you may want to close that bank account, and open a new account at another bank. In that case, of course you will want to change any direct deposit to the new account. However, be aware that some banks will keep your account open for like a month or something after you request that it be closed, and in that case you will accumulate NSF fees on that account, if you zero out. However, it is best to first take the measures of stopping the automatic deductions from your account and then trying to work out payment arrangements with each one. Only close your account and switch banks if there are one or more who absolutely refuse to work anything out with you. Unfortunately that is what you may have to do in order to be able to pay your other bills in the meantime. I hope this helps.
  • Payday loans are a scam. The loan company makes a ton of money and you just get in deeper and deeper. I found a website www.prosper.com where individuals are willing to loan you money - many of them are to help people get out of payday loans. Then you take this money and pay off the payday loan people and NEVER use them again. Then you start paying this other loan back, at a somewhat reasonable interest rate, cut back on your spending and get yourself out of debt. Good luck!
  • I work for one of these companies and am also mixed up with payday loans myself I see people go through financial struggle everyday. Unfortunately there is really no way out once you sign that contract it will follow you. We sell debts to other companies it will just keep going and going! The best thing to do is make any kind of payment you can even five dollars if your paying on it they can't come after you. It may take five years but they'll leave you alone.
  • Hi I am a recent victim of the payday loan scams. I had 10 existing loans that were basically taking my paychecks away from me. I researched the net and found out there is a way out. I contacted legal-aid.org and talked to a lawyer about my situation. She informed me that you can close your account like I did and open a new one. Im in NC and she told me that these loans are illegal here. The best advice that I can give is to contact legalaid.org theres one in every state I believe and they can help you. They also will call and threaten to take you to jail this IS NOT TRUE! Payday loans are civil there is no way they can take you to jail. Just contact legal aid and let them know about the high interest rates like I did and you too can be rid of these scams because she did a search for me and every loan I had was on the scam alert list. The best thing is is that I dont even have to pay these back but the law my be different in other states GOOD LUCK ALL!!!!
  • [ Sorry if this is a duplicate. I was trying to be helpful, and typed this big long answer, and then lost it during the sign-up process. ] I just got done discussing this with a friend of mine, who had me look over her contracts, since I read a lot of contracts for work. I would like to make a couple of points and offer some advice, but I am NOT a lawyer. KEY POINTS: - I am not a lawyer, so everything expressed here is my OPINION, not professional guidance. My opinions are based on my experience, as well as my review of three of my friend's contracts. - There is a maximum APR allowed by law. In the state of TX, it's 10%. - These places get away with charging 400% to 600% APR by claiming a small portion as interest, and charging the rest as a "one time" loan origination (service) fee. The trick is that they do this at each pay period, so you are paying a new origination fee every time you go in to make a payment. - The origination fee is on the order of $20 to $30 per $100 borrowed. This means that for a $1,000 payday loan, your "origination fee" could be $300, and you would have to pay this, plus interest accrued over the term of the loan (which is usually minimal -- maybe $5 on $1,000 over 2 weeks). - These places want you to keep renewing (re-originating) so they can keep charging you. My friend made a payment, and THEY GAVE HER CHANGE BACK, for the amount she overpaid the interest plus origination, meaning: NOTHING went to the principle of the loan in order to pay it down. They are required to accept any overpayment, and apply it to the principle of the loan. - The contract is designed so that it's in their best interest to keep you coming back to them as many times as possible so they can re-originate the loan, and keep charging you service fees. Because of the service fees, you probably can't afford to pay the principle of the loan, which means you need to keep renewing the loan. In order to re-originate the loan, you have to pay a new service fee...., etc.. - They hold a personal check or ACH (debit) information from your bank as collateral for the loan. - Some places threaten you with jail if you default, claiming that this is the same as writing a bad check. THIS IS NOT TRUE -- they can't send you to jail. - All three contracts that I looked at required arbitration -- probably because they know they have a snowball's chance in heck of winning in court. This does NOT work in your favor. One contract even stipulated that they would automatically advance (LOAN) you the arbitration fees -- this is illegal. - These loan shark practices should be illegal! MY OPINIONS ON WHAT YOU SHOULD DO: 0. STOP DIRECT DEPOSIT! They have enough information to pull money out of your account. If you let your payroll check deposit in to your account, these loan sharks will just pull it right out. Talk to the payroll manager at your company. Let him or her know that there is potential fraudulent activity on your bank account, and you need direct deposit stopped immediately. Be aware that most companies run payroll in advance, meaning that you need to stop direct deposit as QUICKLY AS POSSIBLE, because it still may keep going for another payroll cycle -- you want it stopped immediately if possible. 1. TALK TO YOUR BANK. You are a customer, and they know you could just pack up and go somewhere else. It is in their best interest to work with you to get this resolved, so that they can keep you as a customer (and charge you lots of service fees along the way). Let them know what's going on, and that there may be some debits that hit the account. ASK FOR A NEW ACCOUNT at the same bank. Make sure that you don't have any overdraft protection that could link the accounts and automatically drain your new account. Put a fraud alert on your old account, which can be an effective tool to prevent the bank from attempting to process the debit. Unless you do business with a hole-in-the-wall, your bank will be willing to work with you because they don't want to lose your business (especially in the Financial Services crunch going on right now). Let them know that there may be charges that hit the account, including NSF OD (overdraft, insufficient funds) charges, and you will work with them to pay what you owe. See if they are willing to work with you to drop the NSF OD fees -- a lot of banks will do this if you have been a good customer. You want to MAKE SURE overdraft protection is TURNED OFF. Conversely, you may find that you'll get a better deal with your bank if you let them overdraft your account, and then work with the bank to pay it off. If they charge you 5%, then WHY NOT???? 5% is better than 533%. TALK TO THE BANK to see what options you have. As long as you communicate with them, no one is going to jail (you have NOT committed fraud) 2. DEFAULT. You may want to consult an attorney at this point. I noticed that some of the other posts had some good options on free / cheap help -- DEFINITELY worth consulting a lawyer. Once you move in to "default" of the loan agreement, they can no longer re-originate the loan without your authorization, and can't charge you any more loan origination fees, meaning you only owe principle plus interest at that point. In our example above, if you default on your next payment, you only owe $1,005, NOT $1,305. BE PREPARED. There will be NSF fees and other penalties, but once they all hit, it's over and done with. Make sure you work with the bank to pay them what you owe them. Be aware that the loan shark can still accrue interest, and you are responsible for paying that interest, but they CAN NOT legally charge you another origination fee. I have seen some people report that they keep re-originating the loan using the original authorization -- this is actually illegal. If they do this, GET A LAWYER to send them a cease and desist letter, revoking any authorization. 3. ARBITRATION? PROBABLY NOT. Your contract probably states that in lieu of any kind of court settlement, including class-action, you are required to resolve any kind of grievance in arbitration, and SO ARE THEY. They can't haul your a$$ off to court, because your contract says they can't. They can't have you arrested, because you have not committed fraud. They probably won't do arbitration because it costs them too much, and there is always a chance you could win (even though the deck is stacked against you). Instead, they will probably turn it over to collections. If they do haul your butt in to arbitration, CONSULT WITH A LAWYER. 4. COLLECTIONS. Bill collectors can be the rudest people in the world, because they deal with a-holes all day. Understand that. BE POLITE. Explain the situation, and tell them you want to work out a payment plan. They WANT you to do this because the collection agent gets a bonus based on how much money they recover from your overdue account. If the guy (or gal) won't work with you, threatens you, or gets excessively rude, HANG UP. They will call back. If not, F-em. Be polite but firm, and DO NOT TOLERATE someone who threatens you. Once a debt goes to collections, it has usually been written off by the original lender, and they CAN'T LEGALLY charge you interest if they wrote off your debt. If they keep accruing interest after it goes to a collection agency, GET A LAWYER to write a cease and desist letter. If the collection agency tries to charge you a "collection fee" or interest, CONSULT WITH A LAWYER. 5. PAY IT OFF. Make sure you work out a realistic payment plan, then PAY IT OFF. Don't buy stuff you don't need. Pay as much as you can, as often as you can, and get this behind you. 6. REBUILD YOUR CREDIT. Once the debt is paid, either the collection agency or the lender IS REQUIRED BY LAW to note this on your credit. This works in your favor. MAKE SURE THEY DO IT. It's easy for them to "forget" to do this, or for there to be a negative remark on your credit report, but they are required to annotate your credit report once the debt is paid. If they don't, then file a dispute with the credit bureau. Check ALL the credit bureaus to make sure they are accurate. Get a secured credit card -- this means that you put money in to an account as collateral on the credit that you use. After three months, if you make your payments on time, they will usually raise your credit, and will continue to do so until you qualify for an unsecured credit card. If you and your bank are still on speaking terms, see if this is a service your bank offers -- remember, your primary credit reference is your bank! You may be able to get a good deal through them.
  • debt is one of my least favorite things, i would suggest living in the moment and not borrowing on tomorrow because tomorrow is not promised to be as fruitful as it may seem in your imagination but i hope for the sake of all that it is!
  • Close your checking acct. and open another. It will prevent you from getting another payday loan but at least you'll have a chance to get back on your feet.Most times they don't really pursue it. It just shows up on the payday loan database that you have an outstanding loan.
  • Who got you into them?
  • Stop borrowing money. They aren't taking all of your money, you agreed to give it to them.
  • Well in my opinion a payday loan is one kind of the different loan products. It has its own significance. And also a payday loan has come into existance only because of keeping in mind the cash emergencies that need to be fulfilled and the payday being far away. One has to be clear enough what type of loan suits him or not. I dont think any payday loan company says that it is meant for any reason rather being clear that it is meant to fulfill you urgent cash requirements and emergencies like Medical Bills, Car Bills, Other Expenses etc. It would be not the right thing to say a payday loan company as a SCAM. In order to suggest you something about your current problem, i would suggest you to take a personal loan to pay off your payday loan. But keeping in mind that the monthly installment of this loans suits your pocket well this time. All the best...........
  • Loans suck, and so does credit card debt, but I have to say that I have used payday loans in the past and was just fine. It takes a lot of discipline and planning ahead, but I know that you can do it.
  • I found a LEGAL way to get out of payday loans and in fact, I'm able to know sue them for $2,500.00 for harassment. Want infor? Contact me at Tucsonlocke@aol.com. There is NO CHARGE for this information, I simple want to stope them.
  • contact me about getting out of payday laons legally and in fact maybe even get a judgement against them for $2,500.00. NO CHARGE, I just want to stop these preditors.
  • I have found a LEGAL way to get out of these loans at no cost, and in fact, you may be able to do the same as I did to file a $2,500.00 small claims suit against them for harassment. Contact me at Tucsonlocke@aol.com for details. This is FREE, I do not charge, I just want to help others get out of this trap.
  • look i honestly don't know but im in your shoes i got scam by a pay day loan but im going to call me bank in let them know i did not give them permission and from me to you change your checking/saving account asap cause if not they will continue to take out and if bank midwest in my case doesn't give me my money back or don't flag them for faurd i might have just misspelled that but if they dont do anything then im going to take my business else where because im ur client/ customer and you chose them over me even tho im in the right then that tell me u dont value my business and i should go some where else but in your case change and if that doesn't work then leave and go else where and no more pay day loans cause they are ripe offs and they charge to much for to little amounts of cash. Just ask youself this is it worth it or better yet was it worth it.
  • Your first mistake was going there. Ever heard of a loan shark? Payday loans are essentially the same, except they are legal and prey on the poor with bad credit.
  • Close your bank account and make payment arrangements hopefully with no interest.
  • NO ONE forces you to take out Payday LOANS ... Thus; you have NO ONE to blame BUT yourself ..... Just pay on these loans and don't take anymore OUT .... and you'll get them paid off ! It might take awhile; BUT you'll be freee and clear eventually... +5
  • Go super-revenge action movie on them. Just before you are about to throw the big boss out the window whisper "Its MY money, and I want it NOW!"
  • I've taken out pay day loans and they do kill you. If you really need money you are better off going to a credit union. And to forewarn people Credit Solution Center...big rip off!!!! Dont even go their webpage! Ridiculous! Good luck! Have a great day.
  • This answer won't be popular but I'm going to post it anyway. . They're not a scam. If you had only used one ever you'd be alright. But instead you came back for more. In essence you bet that you would make more money than you did and now you have a debt. . These guys are the second worst people to borrow money from and that is why I defend their existence. . You chose them, I assume, because you had nothing you wanted to pawn, and no assets you could use as collateral for a different kind of loan. Plus they were easy. You walk in the door, fill out some paperwork and walk out with the cash. You could have borrowed from family or friends but that has its own problems, especially if you've borrowed from them before and not paid. . In the old days you'd have had to go to people who were connected with organized crime. They have comparable rates but are not bound by law. They hurt and kill people. . The loan companies you've contracted with can be beaten. You can declare bankruptcy and there are doubtless other methods. I agree their rates suck. But YOU signed up for them all by yourself. . I sincerely hope you get out of this easy - or free. I wish you all the best. But don't be confused: debt is trying to kill you, whether it does it fast or slow depends on the rates. Other than student loans (sometimes) and home or business loans (usually) debt is always bad.
  • It's not a scam as long as they tell you the amount you will be expected to pay back. The interest rate is extremely high and the prey on the people living paycheck to paycheck, but it's legal. +5

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