Several months ago, I got a payday loan through Advance America for $600. I had to re-finance seven times (which I was told was the maximum amount), paying over $800 in interest and fees alone. I asked several times for an extended payment plan (EPP), but was told they don't have to give me one until after I default. I defaulted last month, but have not arranged the EPP. After doing some research, I am finding several articles that say refinancing is not allowed in the state of Texas. In addition, granting an EPP is required. If that be the case, then her acts were illegal. She should have not granted a rollover (which she did seven times, collecting $120 each time). She would have been required to give me an EPP the very first time I came back after taking the loan. Does anyone know for a fact that this is true? Where can I find it in the Texas statutes, in order to prove my case?
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Taylor..you can look up on this forum or via the internet if payday loans are legal in the state in which you reside. I learned the hard way, if a payday loan is NOT legal in the state in which you live, you don't owe them anymore money. They weren't suppose to 'lend' you any money in the first place. I'm assuming the debits are coming out of your bank account. You can close your bank account and open a new one (legally). Let me know if you are having trouble finding information you need and I can probably help. :)
Are payday loan lenders allowed to refinance loans
Welcome to the forums!!!
Advance America is an illegal lender. So you owe principal only. Don’t pay them any interest or fees. Close down your old bank account and open a new one. Ask them for a refund as you have overpaid them.