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Campaign donations and a well oiled lobbying effort, at least in this area.
And a number of states HAVE taken action to rein in the predators. What happens is that a number of lenders do leave the state, but enough remain that payday loans remain available (although obviously, no longer on every corner) and more affordably priced.
You're not wrong. I suspect some of the people who take out these loans have no intention of paying it back in full when they get their next paycheck. In fact, they probably take a loan for more than the amount of their paycheck.
Re-reading the op, the whole things sounds similar to a check kiting scheme.
I don't think "they" allow people to borrow more than the amount of their next paycheck. No sane lender would do that, and many states have limits on how much licensed lenders can lend. Like it is common for states to cap payday loans at 25 percent of the borrower's paycheck.
Get a real loan or get a second job or get both. You need to get out from under these loans and with $90 coming out for four loans just to renew them, you're in deep. Seek credit counseling. Fast.
Quit working, no pay no garnishment. Seriously look up the Better Business Bureau on line for your city. Tell them your story maybe they can give you some leads. Heck I would call you local TV station and tell them your story. These cockroaches do not like a spot light on them. Good Luck.
huh?
it's not the 'pay day loan''s fault this doofus took a year before noticing that the 90 bucks a month was not coming off the principle! (hey, OP.....$90 x 12 months = $1080 assuming you get paid every month....if every two weeks, then we're talking $2160 before you noticed the $90 was just 'renewing' your loan. How idiotic! worst case scenario, you should have noticed after 6 paychecks.....)
the 'pay day loan' is merely an 'option' for those in need of cash. it is the responsibility of the consumer to apply or deny such loans. I'm confident that the paperwork states all stipulations.....the OP just didn't read it.....again, his fault.
stop trying to blame others for mistakes made by the individual (OP, this is not directed at you. i didn't notice you blaming anyone in your original post).
I got caught up in a vicious cycle. I had 2 loans out at once. I called the companies and i told them that i lost my checks and that i want to make payments another way i.e. western union. They agreed and now they stopped taking money out of my account. One company kept trying to take money out of my account but i disputed it with the bank and they reversed the charges. I pay them back every other week by western union and i only have 2 weeks left. So call them to see if you can make other arrangements and if that doesnt work then try my method. Its not shady cause your paying them back on your timetable and not theirs
This is why they should teach finance for all 4 years of high school (get rid of 'geography' or some of the other worthless classes and teach the kids something they can actually use in real life.
Okay, I am posting this because hopefully someone will google for payday loans are killing me, find this and it will help them.
I have been thru this experience with a lot of payday loans that i could afford to pay, but had already paid so much interest it was pissing me off, so here is what to do.
First, you have to stop paying them before they will work with you. Note that my experience was with mostly online lenders, but this will work with local stores too. Now closing a bank account and opening a new one can be a pain in the ass, that is okay, because the good news is you have given most of these lenders your authorization to debit your checking account, which brings me to my second step.
Second, call them, and email them, and let them know you are revoking your approval for them to debit your bank account for any amount, and you are placing stop payments on your bank account for their company, and if any transactions do go thru you will show your bank the email and dispute the charge as fraud since they no longer had your authorization to debit your account. Also, if you keep good enough records, which I did, you want to bring up in the mail how much interest you have already paid them, and let them know you will not pay one more cent of interest, but you are willing to work out an arrangement to pay off the principal. Now, if you are dealing with online companies you want to bring up in the email that you doubt the legality of their company within your state. All states have payday loan, installment loan, and interest maximums. Most online loan companies have not gone thru the process to register in your state and if they have, they likely don't follow the laws.
Result of all this, is they will stop charging you interest and work with you to pay off the principal in an amount you can afford and a time period that works for you, generally over months of time. I actually had several online lenders just respond back and say they considered my account paid in full. How great is that.
Best part, none of this or these companies will affect your standard credit score, unless they send it to a 3rd party collections, which trust me, they won't, so long as you are willing to work with them.
It may affect teletrack, which is a system these companies use, but please, once you are outta of this hell, you will never want another payday loan anyways.
I wanted to share this, because I feel many people that least afford it get caught up in this trap and I hope it helps someone.
Good luck
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