Consumer Blog
Waist deep in payday loan debt
Missouri consumer writes:
I had to take a $500 payday loan and could not pay the interest. They have maxed out the loan and I must make bi-weekly payments on $875 dollars. Now they're saying another $250 in interest and $25 in fees. Everyday they are adding daily interest. There is no hope that I can pay daily interest and ever pay off the loan. Are they operating within the law to add daily interest after the check has been presented? I am unable to pay any other creditors due to paying this interest. Now facing debt management program or bankruptcy due to this mess.
Your total bill should not exceed $875, which is the maximum allowed by law including principal, interest and fees. You have two options here:
- File a complaint with our office. We can mediate and try to resolve this for you - we have a pretty good success rate. But if that doesn't work, we can't get involved further because Missouri law gives the state Division of Finance the exclusive legal authority over payday lenders.
- File a complaint with the Division of Finance.
Technorati Tags: debt, payday loan, payday loan complaints, payday loans, moagoconsumer, consumer protection
Posted by on August 7, 2007 10:49 am :: Comments (3) :: Permalink
3 Responses to "Waist deep in payday loan debt"
says:
August 13, 2007 9:39 pm
My husband and I are also "waist deep" and keep sinking when it comes to payday loans. i am on disability and a few years ago my husband got hurt at work. we took out loans to pay the mortgage and have food on the table. now some of these places won't work with us and are threatning that if our check comes back nsf we will either be prosecuted or they will turn us over to a federal check recovery program that will keep debiting our account until it is paid in full. this has cause numerous sleepless nights and worry. we are scared and don't know what to do. please help.
says:
September 21, 2007 1:41 pm
My husband and I are over "waist deep" in payday loans, we have 5 of them out. My husband had became unemployeed and we are struggling now with the three kids and catching up on our utilities and making sure our rent is paid. I have had one of them actually come to my door twice and threatened to prosecute my husband, for he was the one that had to sign the check, I don't know what to do or if they even have the right to do that. I have talked to a friend that knows someone that works at a payday loan place and they told my friend, there is nothing that they can do if it doesn't get paid back. I don't know....just worried.
says:
October 17, 2007 9:11 am
I currently have 6 internet payday loans and 1 store front title loan, I have filed complaints w/ BBB, MO AG office, MO Director of Finance and the FTC, I am hoping one of these offices is willing to help me with the mess that I have gotten myself into. I have not closed my bank account, but requested from the PDL companies that were willing to work w/ me that they forward me an address to send a money order to, I don't want them getting ahold of my new bank account info.
