bank is overdrawn and I think they are ready to be closed

Will...it's basically like writing hot checks. Sometimes you can't avoid bouncing 1, 2, maybe even 3 checks. I suggest you change your account number, and start a direct deposit to get all your money back in a safe place. Work with the payday loan companies and tell them you can pay one off every two weeks. You'll probably have to live off cheese sandwiches for awhile...but really there is no getting away with not paying. It'll hurt your credit, and much worse...they'll find you and keep calling and calling till you send a cease and desist letter. Hopefully you're not too bad off and you can get these paid off in a couple months. But keep your account in good standing with your bank. That is the most important. If you change your account number before they close, you may get to keep the account.

but they cant arrest me right

THEY CAN'T. but writing hot checks is illegal. your local authorities could come arrest you at the request of your bank. usually that's only done if your real scam artist writing hot checks at like circuit city or some tv place. your bank would be the one to to that. usually only have getting (-) in hundreds of $$$'s and not paying it back.

but no they can't. no collection agency can state harm or arrest to someone in debt to get them to pay. it's not illegal to be in debt. it's not illegal to stay in debt. it'll only cause more harm to you later...when your checking your credit. because it will be there.

i think i understand but if i stay in good standing with bank open new account then not even bank can do anything right

if you are in good standing with your bank, then really there isn't anything that can be done. you have to be taken to court and the judge has to rule in favor of the lender before you go to jail. usually the courts will say judgement for the plantiff, and you'll be given 60 days to pay. when you fail to pay then...and only then, will the sheriffs come after you. i haven't heard/seen any other time when a sheriff knocks on someones door because they missed a payment on their payday loan.

couldn i even consider debt consolidation and how would i do that.

i'd ask a moderator. usually when you signed up with this forum a debt consolidation company should have called you. honestly? even though you may think you're not ready or have enough money to start rebuilding credit...$30/week aint bad. i've just restarted and within a month my score came up a few points. but the payday loans have to of had been turned over to a collection company i think before you can consilidate. but really, i'm not totally sure on that. so i would ask a mod.

thank you so much for all the information you have provided...but if im not able to pay off a loan every couple of weeks cant i pay something

well, like with my credit card company...they're lieniant. i've been late one month (with good reason they'll remove the late fee). but it's not like they'll come ringing my phone.

i think payday loan companies are different though. t hey want all their money and when it's due. so i would have to say no on that. soon as it gets turned over to a collection company though, they will be able to work something out with you.

BUT...soon as it does get to a collection company, if you want it to go that far (it'll be put on your credit report)...you can have the debt consolidation company your working with add to the bills you owe. and then yes..you can do the whole weekly thing. pay one lump sum amount every week till all your debts are paid.

i would email a mod, or check your email box because you should have gotten an email/phone call like the next day after you signed up on this forum from a debt consildation company.

they'll be able to help you/answer questions about whay they can help you with.

sorry...i myself am in debt and only know what i can pay and how much.

i understand but thank you so much for help:)

You don't necessarly have to change your account number. Some payday companies will let you make payment arrangements with you, others will not. Contact them and see what they allow. You can consolidate payday loans. Check with this forum. I did and was refered to a company. I put a stop payment on the ACH (auto debits) from the loan companies. My bank charged me a stop payment fee for each one. The stop payment will be good for 6 months at my bank. Good luck.

than you kathryn for that information ill check into it

Hi Tracy

Welcome to the forums. I guess mikeyindetroit and Kathryn have answered most of your queries regarding payday loans.

My opinion to you is that keep yourself away from payday loans as much as possible. They may be the easiest cash available but the aftermaths of these loans are disastrous.

Even if you consider taking a payday loan, make sure that you will pay it within the next payday. Otherwise, the financial charges tucked on it will make these loans unbearable to be repaid.

It is better to face the pain during the times when there is financial trouble rather than inviting havoc after taking payday loans.

Lastly, I see you posting your queries as a guest. You have to register yourself in the sign up page of this website to get professional counseling from the consultant. He will analyze your financial situation and offer you various options on your debt repayment.

Hope that the guidance of the trained consultant will help you in becoming debt free within a quick period of time.

Regards
Roxette

thanks roxette but i signed up i dont know why it still says guest

I signed up too and still show as a guest.

Hi

I will check in the system and see if there is any technical problem. I will let you know once it's done.

Regards
Mike

Dear Tracy and others,

To log in as a member these are the steps.

[list=1]

can the payday loans co. take money out of acct if theres no money there

they'll just do the regular ACH on the day you said you get paid. if you get paid every other monday...plan on them doing it about 2 times.

this will cause an overdraft with your account though. and then they'll (well both really) will add their fees.

changing accounts numbers will not cause a fee with your bank because they'll just get a message sent to the payday loan place saying that account is closed/doesn't exist.

okay i just dont understand how they can do that if there is no money in there :) this is all so confusing

It's like writting checks money, and then there not being enough money. When that last check comes through, it's gonna get denied with a NSF. You bank will charge you the NSF...and usually the company will also impose a $15-$30 NSF fee.

If you said you get paid every Friday. The payday loan company will try to get their money on that Friday. If there is no money, you're bank will charge the fee because you basically wrote a check. Plus the loan company will add on the fee to what you owe them. They'll say the only way you can pay them back is by western union, but don't beleive this. I got hit with them trying to debit my account the following payday. TOTALLY UNEXPECTED.

You signed a wage assignment I'm assuming. Which can be taken back by mailing a certified letter to them.

Pursuant to the Fair Debt Collection Practices Act (15 U.S.C. 1601 et seq Title VIII), please be advised that I am taking back my voluntary statement of the wage assignment. Also because the document was not signed in person, it is invalid. Understand that wage assignments are totally voluntary and can be taken back at anytime. Forced assignments were done away with by the FTC in 1985. This serves as your notice to immediately stop any intention of use on the wage assignment.

That is just a templete that was found on the internet. They can get the money with that wage assignment from your employer. If you stop the wage assignment and work what you can, and pay it off. The sooner the better.

But they will continue to hit your account as many times as necessary (it's in the aggreement you signed electronically) to get their money back.

i understand except for the wage assignment does that mean they can garnish my wages....

garnish is something that the courts do.

do you remember anything about the loan agreement that you signed online by putting in your ssn#.

It states that if you fail to pay, they can fax over the wage assignment and have your employer basically pay off the loan for you, by taking it out of your paycheck.

wage assignment means:

A loan provision stipulating that in the event of default, payments will be deducted from an employee's wages. Prohibited in some states.

thats why i suggest you send a certified letter revoking of the wage assignment. it's kind of the same thing as garnishment, but it's totally voluntary. so you have the right to revoke it.

but as i said...don't just forget about paying the loan people. it's best if you paid it off AS SOON as you possible can. the quicker the better.

make sure you keep documentation of when ever you talk to the loan people to. first/last names, dates/times, what was discused, etc.etc.

oh okay but my work doesnt have to agree to the wage garnishment correct

that's up to your work. you might want to tell them whats going on...depending on how comfortable you feel in talking with them about the situation. mailing that letter saying your revoking the wage assignment is the first step i'd take though. most companies can decline it, but if they get the letter from the payday loan company before you talk with them/revoke the assignment...they very well could take your paycheck away from you.

it's voluntary, but you did sign it.

is it prohibited in the state of texas having them go thru employer to garnish

then most likely you will be protected.

what payday company did you go through by the way?

i'd take another look at your loan agreement too. just to see what steps they might take against you.

i went thru several different ones but yes im definitely going to check thanks so much

ohh...yeah you might want to change account numbers. ACD stops have to be done for each one. sonic does their repayments 2 different times. so thats two "stop ACH" that you'll have to do @ whatever your bank charges you. changing account numbers is free, and all you have to do is buy a new box of checks. getting hit that many times by the payday people will cause you go serioiusly NSF if there is no money there.

but as i said...try to get these paid off. if they go to collections then you can possibly seek the debt consilidation.

i had to change account numbers because they said my only option was western union. and that i couldn't pay these back until next week...the following friday. well they hit my account after the weekend on that monday, and all the checks that i had written to pay bills wouldn't clear, because they tried to get the money (twice) and caused some NSF's. I had to put more money in my account to make sure the checks I had written would clear, causing me to be even more short on my expense money.

i ended up having to change the account the number so nothing else would happen to my account.

THEY WILL hit your account when they say the only option is western union.

how long do you think it'll take to get them all paid off/

well im looking for another job if i get a night job probably 2 months.... will they charge me to change my account number and what would i tell them the reason why i want to do this the bank.

you don't really need a reason. just say that someone got ahold of your personal account information. you had a box of papers that ended up missing or something. they don't really ask (but really they do) and the asnwer you give doesn't have to be a super real one.

2 months is probably the best. nothing longer. hopefully sooner.

good luck!

thanks so much mikey

if i change my account number then the loan people cant get into my new account, and my bank cant divert them to the new account correct

NO. your bank will ask you what checks you want to clear. you'll also have to tell your employer that you have a new checking account number if you have direct deposit. do this the same day. that way there won't be any problems.

okay great then once i change my account then i should i start getting a hold of all them and try to make arrangements or wait until they ger a hold of me....

basically. be sure to keep notes on when you talk to them though. and don't forget the wage assignment revoking letter or you could end up checkless for a week.

where do i send the wage things too

you'll have to ask for the address. call up customer service from the payday place or you can look it up online. checking with ripoffreport.com might help too.

not sure how to get addresses though.

forgive me it doesnt take much to confuse me..but when i switch over my account to a new one does that mean my old one will still be open.. and if it is not then once the loans try to pull money out cant that be considered theft by check and wont the bank resolve the issue from my new account

hmm...theft by check? i haven't heard that term.

so i don't know.

i do know, that you have to have money in your account to change account numbers. i would consult a debt counselor on that one.

so as long as i have money in my account i can change account numbers then what happens when the loan people try to get money from old account

they'll get a thing back saying account closed. then they'll be contacting you saying you need to send the money western union. it varies with each payday place though. if you went to a local payday place, then you might have a harder time explaining. did you actually write out a check or just give your account number?

nope just gave my account number

you might be fine changing your account number. it's an online lender. still, it's almost the same as any lender...it needs to be paid.

what if i got a new account at a new bank then would i be able to close my other account out at my old bank

basically if this spins out of control the worst that can happen is wage garnishment even then they cant take whole paycheck im guessing..i have had upaid student loans since 1996 and im finally going to start repaying them now

NO...see thats the thing with wage assignment. they ask for you entire paycheck or the entire amount that you owe. garnishment is different. they'll let you do it at 30%. if you take out a payday loan, you're expected to pay it back on the date you told them. and when you told them you make so much per week/month or whatever they determined the amount you could loan for. so basically if you owe $300, and your check is for only $300, they'll take it all. thats why you should probably send that letter certified. you can copy and paste the letter that was in my comment earlier and mail it out to them tomorrow. but send it certified. wage assignments are similiar from garnishments, but really totally different. they're voluntary, but it'll eat your whole check if you let them.

i see thanks ill do that

so after i send those letters then what can they do next

call you. ask for their money to be sent western union. etc. basically just like a collection agency calling and harassing you. they've got you ssn# so they can put it on your credit report, sell the account to another firm/collection agency, and they may attach fees to it.

i do suggest dealing directly with the payday people though. it'll show that you're actually trying to get it paid off. ignoring it won't help.

i do strongly suggest that you contact the debt councelor and maybe they can do something for you now.

i've made my mistakes and learned from them. but everyones situation is different.