I took out a $600 loan from a payday advance store. With interest, I owe them $720 in 14 days. I didn't realize that I had to pay in 14 days. I thought I could pay a set amount every month until paid off (like I did 2 yrs ago at Finance Security). They have called me 2 times and I told them that I have NO money right now. I get disability once a month. I had that on the application. Does anyone have advice on how I can pay this off without them having to take me to court. Can I pay monthly towards a collection agency?
2006-08-23 14:04:21 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
Sorry to hear that you got sucked in by those @$$holes. Payday loans are a major scam! NEVER take out a "payday" loan!!!
If you don't pay when due they typically roll the outstanding amount into a new 14 day loan. With the numbers you gave, that would probably leave you owing $1008.00 at the end of the second 14 day period. Many will tack on "rollover fees" to add insult to injury.
The interest rate calculates out to 960% with the figures you gave. To put it in perspective, the worst credit card rates are less than 40%!
Unfortunately you failed to read the entire agreement before you signed it and took the money. At this point you're going to have to figure out how you're going to come up with the $1008.00 or so in 2 weeks.
These slimeballs have a seriously nasty habit of filing these cases in the courts and getting a judgment against you and then going after whatever you own in a sheriff's sale. That's the one thing that they don't show on those cute TV ads with the people all smiling and happy. They won't be smiling and happy when the bill comes due!
BTW, you can thank your friendly Republican party for this one. They gutted the usury laws several years ago. Keep that in mind in November!
2006-08-23 14:15:55 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
I don't have any LEGAL advice, and my best advice is too late-"Don't play with snakes", but you found that one out the hard way. At this point, you have a good negotiating tool-disability. Make them an offer for a payment plan, and when they reject it, invite them to take you to court. They Can garnishee your wages, but disability is not exactly a ton of money, and they can only take some %. Advise them that with the garnisheement, you will have the $720 paid off in only 10 or 15 YEARS. Or the alternative is to GET IN WRITING a negotiated payment plan which is faster than 15 years, and avoids collections. DO NOT give them access to your checking account. And read what you sign, these guys will eat you alive. Good luck
2006-08-23 14:11:26 · answer #2 · answered by Anonymous · 0⤊ 0⤋
ok i am an expert in this my hubby took out like 5 of them loans from all kinds, some $500. some under, that was last year, the deal with those things are that if it isn't ur first time going there they can't take u to court and it will just go against ur credit then if u want to u make arrangments to pay them although we haven't heard ne thing since we told them we can't pay at the moment and that ws last year... now on the other hand if it was ur first time then it might be the same if it is ur first then when u get ur check go pay it and borrow the same amount that u paid and forget bout them but thats up to u
2006-08-23 14:13:19 · answer #3 · answered by scarlett_bytch 2 · 0⤊ 0⤋
I am sorry for your situation. Those places feed on the desperation of people and they should really be outlawed. Once you take out a loan it seems almost impossible to dig yourself out of the hole. Good luck to you. I feel for you.
2006-08-23 14:15:02 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Didn't you read the agreement befor eyou signed it? A payday advance is just that--they are advancing you money against your next check.
2006-08-23 15:57:47 · answer #5 · answered by misslabeled 7 · 0⤊ 1⤋
You should read the fine print, dude. Do the best you can and in ten years it won't seem like it was an issue at all.
2006-08-23 14:10:27 · answer #6 · answered by damndirtyape212 5 · 0⤊ 0⤋