Payday loans are killing me - how is this legal

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

Welcome to the Forum Debtstinker :)

Melissa,

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

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.

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?

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.

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

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.

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. :)

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.

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

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.

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.

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.

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.

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.

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?

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.

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.

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.

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?

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.

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.

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?

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.

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

Hello Maddy,

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

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.

Hi tracy rains,

No pay day loans are not safe. They should be avoided at all costs!!!

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.