Filing a bankruptcy case will stop pay day loan collections immediately while we work together to extinguish your debts permanently. No money up front can get your case filed the same day when necessary.
Stopping the payday loan trap is difficult, stressful and expensive.
What are payday loans?
“Payday loans” are loans that last for a short time (usually 2 weeks) and have very high interest rates. These are often advertised as a way for people to get quick cash between paychecks. Usually, a borrower provides a post-dated check or authorizes the pay day lender to deduct from checking account for the amount borrowed plus a finance charge.
What often happens is that the borrower cannot pay back these loans, and is forced to renew or “rollover” the payday loan. Then the borrower has to pay more finance charges. It is often the case that if you need cash bad enough to take out a payday loan, you probably will not be able to pay it back.
The annual percentage rates are from 391% to 782% for a two-week extension of credit. At a typical fee of $15 per $100 for a 14 day loan, with that fee multiplying each time the loan is renewed, a $300 loan carries and annual percentage rate (APR) of 390%. The consumer ends up repaying $1,470 – the original $300 plus $1,170 in loan fees-if the loan is carried for a full year. If the loan is renewed only eight times, as the average loan is, the cost of repaying $300 loan balloons to $705.00 in four months – well over double the amount borrowed.
Can a payday lender have me criminally prosecuted if I do not pay my loan back?
NO! A payday lender cannot use, or threaten to use, the criminal process to collect the payday loan debt. The payday lender also CANNOT:
- Make false or misleading statements about payday loans;
- Contract for and collect attorney fees on payday loans;
- Change any information on the check that the lender is holding; or
- Charge more fees or higher interest than allowed.
