Scenario 1:
Hi! I am Sharon from Newark, Delaware. Almost 3 months back, I took 2 online payday loans of $800 and $700 from Landmark Cash and Check `n Go respectively due to an emergency room visit.
Right now, the total outstanding balance amount is around $4,500! I have been making bi-weekly payments. But I have lost my job due to this COVID-19 pandemic. And the extra unemployment benefit of $600 is also going to end soon!
I don’t think it will be possible for me to pay off the debt amount! If I miss payments for my payday loan, can the online payday lender sue me?
Kindly help!
Solution:
Hello Sharon!
Yes, the online payday lenders can sue you for nonpayment of debts. But usually, they don’t sue in the first instance. They will try to recover the amount through the ACH authorization if you have provided it while taking out the loans.
If your account has enough funds, they will debit the debt amount. Otherwise, for every failed attempt made by your lenders, you have to pay a fee to your bank.
In the next step, the payday lenders can sell off your debt to collection agencies (they can also sue you). Or, the lenders can sue you to garnish your wages.
So, my opinion would be, if you can’t repay your pdls, you can negotiate with your lenders to settle the payday loans. Also, you can approach a genuine debt settlement company. The company will negotiate with your lenders on your behalf to reduce the outstanding debt amount along with waving off late fees or penalties.
Scenario 2:
My name is David and I stay in Middletown, Delaware. I took out a payday loan of $500 from Advance America a few days ago. I am planning to roll over my payday loan. But some of my friends said not to roll over payday loans.
Is it bad to roll over my payday loans?
Solution:
Hey David! Yes, your friends have said it correctly! Why would you rollover your payday loans?
In Delaware, you can rollover your payday loans up to 4 times. But that should be done only if you can’t afford to make payments!
Rollover means renewing your payday loans; by doing so, you are delaying your due date for repaying your pdls.
However, your principal amount plus high-interest remains the same. So, you have to shell out more money because of rollover charges and accruing of high-interest on more number of days.
If you can’t afford to pay, you can request an Extended Payment Plan (EPP). Under this plan, you can repay your payday loans over a longer period and that too without any additional charges!
Your lender, Advance America, is a member of the Community Financial Services Association of America (CFSA). So, you might get an EPP as the lenders associated with the CFSA pledge to help the borrowers having trouble making payments!
Scenario 3:
I stay in Lewes, Delaware and I am trapped with 4 payday loans worth $ 3,500. I need to make bi-weekly payments of $800. That means, around $1,600 every month. Trust me, if it continues like this, I won’t be able to save anything. I am worried about my financial life.
I have been searching for a way out from this debt mess. So, recently, I have come across some information about debt consolidation. But nothing is clear to me!
Can I consolidate all my payday loans? I have taken out the pdls from different lenders. So, will it be possible? Can you please throw some light on it?
-Julie
Solution:
Hi Julie! It would be better if you could mention the name of your payday lenders. It’s important to know!
If the lenders are illegal, you just need to make payments for your principal amount. You are not legally bound to make interest payments! You can check whether or not your lenders are legal! But make sure to do it asap!
But if your lenders are legal, you don’t need to worry. You can certainly opt for payday loan debt consolidation and get rid of your pdls with ease.
You can take out a consolidation loan with a much lower interest rate to pay off these incessantly high-interest loans. By doing so, you can repay your payday loans over a longer period (usually 18 to 24 months) with much lower interest.
However, taking out a consolidation loan at a preferable rate of interest requires a decent credit score.
So, you can opt for a payday loan debt consolidation program to get rid of debts. For that, you have to sign up with a genuine debt consolidation company and you don’t need to have a decent credit score to qualify!
The financial experts of the company will negotiate with your lenders to reduce the high-interest rates of your payday loans. Once they agree, you can make single monthly payments for your 4 payday loans to the consolidation company. And the company, in turn, will distribute the money among your lenders!
Scenario 4:
Hi! I am Joe from New Castle, Delaware. In March 2020, I had to take out 3 payday loans of $4,000 from tribal lenders as I badly needed money for an expensive surgery for my wife.
I have paid almost $6,800 for paying off my payday loans of $4,000. Still, I owe around $1,200 as interest. I am just exhausted by shelling out such hefty amounts!
So, I have stopped making payments for those pdls and closed my checking account too. The lenders have started calling me and threatening to sue me and proceed for wage garnishment!
But recently, I have come to know that these tribal lenders are not legal in Delaware. Can a tribal payday loan company sue me?
Solution:
Hi Joe!
The illegal tribal lenders can’t sue you! Yes, they can threaten to arrest you or sue you or garnish your wages.
But let me tell you, all these things are impossible! As the lenders are illegal, you just need to pay the principal amount. You aren’t legally bound to make interest payments.
This is the reason why I recommend everyone to check whether or not their lenders are legal!
Anyways, you can file your complaint to the Delaware Office of the State Bank Commissioner by clicking here. Besides, you can also request a refund of the interest payments that you have already paid!