I have 3 payday loans that are becoming unmanageable to hold and the lenders are refusing to work with me. I have already paid back the initial loan plus $205 on two of them and $120 on one of them, as I have tried to pay that one down. I have had these loans since May 2010. These loans are directly deducted from checking account. Again, these lenders are refusing to work with me - is there anything that I can do? Can I close my account and open another, so they cannot deduct these fees without them pressing charges on me? I can live with my credit report showing these unpaid in their eyes (which to me would be unbelievable since they have been paid back plus 100% interest almost), but of course I cannot live with jail. Please offer any assistance that you can.
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payday loans
Hi menesaking,
Welcome to this community :)
but of course I cannot live with jail.
You can't be taken to jail for debt. So, you need not worry much :)
Can you tell which is the state you live in? You should know the payday lending (PDL) laws in your state, as PDLs are not legal in all states. Moreover even if it's legal, there is a limit on the interest rate. You can get details of your state's PDL laws from "http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html&…;.
As for the checking account, yes, you can close it if the PDLs are illegal in your state. Even if PDLs are legal in your sttae, the lending company may not be a legal one. So, please provide the names of the PDL companies too, and the principal amount. If PDL lending is illegal in your state, or the company is in any way illegal, you are required to pay back only the principal amount. Still, if the PDL lenders harass you, you can file complaints with the State Attorney General, and the Federal Trade Commission.
Thanks,
Aaron