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I have 8 payday loans--all with internet companies--a couple are even from the UK done over the phone. I have gotten myself into a hole & am trying to dig out! the fee's are $700 a month and i can't do that anymore--I can't seem to get them paid off either. I'm debating closing my checking account and getting another--just to avoid the fee's but, I want to make sure they can't come after my paycheck, etc. I want to work paying them off but on my time-I live in Florida and am not sure what the laws are about them..
Hi maxandangie
You cannot avoid the payday loan outstanding debt. Since payday loans have huge interest rates, you fall in debt trap once you go for such a debt. However, what I would suggest is that instead of going for monthly payments on your payday loans, you make a one time payment on the debt by going for debt consolidation loan. You should contact your creditor and ask them for the debt outstanding and then go for debt consolidation loan to pay it off. Else if you go for monthly payments on payday loans you will never end paying off the debt in full as the interest rate on the outstanding debt will add to the debt thereby increasing the original debt amount.
Hi Maxandangie
Fireyone is right. If you have taken a payday loan in UK, they cannot sue you in US because of the International laws which do not allow this even if the creditor has an office in US. However, the payday lenders charge any amount of interest without bothering about the laws. Already PA has banned Advance America, a payday loan company for charging high interest rates. But what I think is that if you have any PDL in US, try and pay it off as early as possible to avoid their high interest rates. You can go for debt consolidation loans, but for that you need to have a good credit score. We can help you out in this forum if you can give us details about your credit score and the outstanding amount of the PDL.
I think that both Carol and Justin have explained it in detail. If you are in US, and you do not plan to return to UK, you need not pay off the debt you have taken in UK, but you need to try and pay off your debt in US if the SOL on the debt has not expired, else a judgment to recover the debt may be brought against you and your credit score may fall. But if you stay at PA, Texas and North and South Carolina, your wage cannot be garnished.
Thats a long time to stay in one place so if you can try to get something worked out. I agree the ones in the UK can just be let go if you do not plan on returning but the ones in the United States need to be taken care of. How old is this debt?
I don't think that maxandangie took the loans out in the UK, I think she took out UK loans here in the US. They will do that over the net and over the phone, they are UK companies that lend to US consumers.
I would close the account and then that would give you a payday or two to get some money together, they will normally let you make a payment plan and at least you will see an end in sight.
Make sure that you know what you have paid them and have all your ducks in a row so when they call you can be prepared to talk to them, they will more than likely work with you or sell your debt to a collection agency who will try to collect it from you.
When they call tell them you want to work it out, have the amount you paid and what you are willing to pay to settle it out for each one of them. Make sure you get all agreements in writing and make sure you get paid in full's when they are paid off so no one else comes along to try and collect off you. Keep copies of everything, I recently had a collection agency try to collect a debt that was paid over a year ago, faxed the letter to them and they went away. I guarentee you if I would not have had it they would still be bugging me. Keep your proof.
I thought loans from another counrty were hard to collect on due to the laws and being a different counrty? will skipping a loan payments not add even more injury like late fees and such? Payday loans can be so difficult to deal with due to the outrageous interest rate they are charging. Some people can barely get their head from under water. If the other counrty is going to have trouble collecting I would consider letting the loan get sold to a collection agency and then try to settle out the debt.