Payday Loan Default

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gmackay

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My husband and I have two payday loans. Due to recent high medical bills and now legal bills, we care working with a consumer credit counseling service to put everything back on track.

We will be in default of the two payday loans in about a week? Since these loans deal with checks, if the company is unable to process the check but we work out payments through the consumer credit counseling service, can we be procecuted for the post dated checks?
 
It's all in the details...

My understanding of consumer credit counseling is that they help facilitate for payments to the companies that you have listed with them (the consumer credit agency). If the payday loan company is not listed with the credit agency then you would be in default. BUT if you did list the payday loan comapany keep in mind not all companies work with the consumer credit agencies ...some refuse. So, (1) Did you list the payday loan company with the credit counselors, (2) Did the company accept the terms offered by the agency? (3) What kind of agreement do you have with the agency, (in writing) (4) How does the post dated checks fit into all this? Did the credit agency agree to post dated checks?

Did the loan company agree to work with the agency AND do you have that in writing? If yes to the last two questions then if you default to the credit agency then you in effect will default to the payday loan company.

I just read your post again..:eek: .did you send post dated checks to the payday loan company BEFORE signing up with the credit couseling? If yes, then yes you can be prosecuted for the bad checks.
 
post dated checks

Post dated checks are a part of the payday process. If you do not give post dated checks when you apply for the loan then you do not get the loan.

I have now learned that each state has laws on how you can deal with defaults on payday loans. I am trying to become an educated consumer of this process. Yes, CCCS states they might work with them but you are correct that a creditor does not have to work with them. Yes, any creditor that agrees to the CCCS program must sign documentation as to that affect. We have been advised to close our current checking account and open a new one, cancel the checks and seek credit counseling. I am just researching all avenues. Thnak you for your insight.








calalily said:
My understanding of consumer credit counseling is that they help facilitate for payments to the companies that you have listed with them (the consumer credit agency). If the payday loan company is not listed with the credit agency then you would be in default. BUT if you did list the payday loan comapany keep in mind not all companies work with the consumer credit agencies ...some refuse. So, (1) Did you list the payday loan company with the credit counselors, (2) Did the company accept the terms offered by the agency? (3) What kind of agreement do you have with the agency, (in writing) (4) How does the post dated checks fit into all this? Did the credit agency agree to post dated checks?

Did the loan company agree to work with the agency AND do you have that in writing? If yes to the last two questions then if you default to the credit agency then you in effect will default to the payday loan company.

I just read your post again..:eek: .did you send post dated checks to the payday loan company BEFORE signing up with the credit couseling? If yes, then yes you can be prosecuted for the bad checks.
Click to expand...
 
If the payday loan company tries to cash the checks and they bounce you'll be responsible for paying all the fees and can be prosecuted. Who advised you to close your account and open a new one? What is the purpose of doing that? If you cancel the checks you'll be in default of the loan. Have you tried to workout an arrangement on your own with the payday loan company with a temporary reduced payment plan? If you can do this make sure it is in writing. Signing up with a credit counseling agency does adversly affect your credit and future ability to be able to get loans (from banks). They have to give permission and then the loan has to be a secured loan. If you own your own home maybe you can refinance and get the equity paid in to help you pay your bills
 
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