I took out a $2300 payday loan about a year ago and I have been paying $215/month service fee and I am no longer able to pay the service fee. I stopped paying the service fee approximately 2 months ago and needless to say they are calling me endlessly. I know it was stupid but I really needed the money at the time. As you can see I have paid $2150 in service fee and still owe the original loan for $2300. My question is what happenns if I cant or dont want to pay any further. Can they garnish my paycheck, etc??
2006-12-08 13:06:00 · 8 answers · asked by Anonymous in Business & Finance ➔ Credit
They can sue you and win. Then they can garnish your wages in many states.
2006-12-08 13:08:57 · answer #1 · answered by VATreasures 6 · 2⤊ 0⤋
You do not indicate the state/province you are in so go here:
http://www.PaydayLoanLegislation.com
Next, close your bank account. It is tough operating without a bank account but they will run up excessive NSF fees if you do not. Use cash, pay the zero to 1%-3% fee to cash your payroll check at a grocery store, check casher, etc.
Tell them to contact you by mail ONLY. Send a certified letter to this effect.
Hopefully the payday loan company will not place you in SCAN (Shared Check Authorization Network) as this will make your life most uncomfortable.
Frankly considering your specific payback history ($2150 svc fees), I would recommend YOU take them to small claims court. Small Claims is much like the wild-wild-west; no lawyers allowed. Bring documentation of the fees you paid, plus your contract(s) and I am quite certain you will be very happy with the results!
Small claims fees are less than $50-$75 in most locales. Typically small claims courts are administered by an appointee (lawyer) rather than a judge. And they HATE payday loan companies!
Most states have a web site for small claims like:
http://www.courtinfo.ca.gov/selfhelp/smallclaims/
Start there!
If they take you to small claims, SHOW UP! Just by showing up at your hearing will result in a very favorable outcome for you; I am certain.
I know from experience......... Get this handled and ease your mind. Move on to the important things in your life.
2006-12-09 06:43:43 · answer #2 · answered by Jer Jer 2 · 0⤊ 0⤋
Depends on what state you live in as for as payroll garnishment . If you still owe that much, I would contact a lawyer. Apparently they are charging your more than the 10% for a loan. This not only sounds wrong, but it might not even be legal.
2006-12-08 13:12:02 · answer #3 · answered by m c 5 · 1⤊ 0⤋
That is a ridiculous service fee. Can you contact legal aid in your state or province? Payday loan type companies often charge illegal amounts of interest and service fees, you should look into it.
2006-12-08 13:10:24 · answer #4 · answered by stoofadoofa 2 · 3⤊ 0⤋
They can garnish your wages, sieze your bank account, take your car, etc.
They're worse than loan sharks because they can do it through the courts.
At least a loan shark has to find you to break your legs.
Any one considering a payday loan needs to reconsider.
Unless whatever you NEED the money for is LIFE THREATENING, don't do it.
You should never, ever take payday loan for something you WANT but don't NEED!
2006-12-08 13:11:38 · answer #5 · answered by Anonymous · 1⤊ 0⤋
yes! they cant take your whole check but they will be able to get sum mabey as much as half! and they will just keep charging you so it will never stop growing best off making a deal to pay a set amount a week
2006-12-08 13:11:11 · answer #6 · answered by burnt bob 4 · 2⤊ 0⤋
You need a debt consolidation . There are many compnies offering this service.Check the list here. You will find the best one for you,
http://debt-relief-free.blogspot.com/
2006-12-08 15:52:17 · answer #7 · answered by kelly 1 · 0⤊ 1⤋
no, they cant garnish you,they dont have many things they can do at all,just make arrangements with them for a settlement amount.
2006-12-08 13:09:31 · answer #8 · answered by Anonymous · 1⤊ 2⤋