Online payday loans in Illinois
Q: I have been taking out one payday loan to pay another. I am in Illinois and now find myself with 10 online payday loans that are taking up my whole paycheck. I have these all online,
Check 'N Go - borrowed $2,200, paid $1,705
CashNet - borrowed $1,450, paid $950
PayDay - borrowed $1,600, paid $1,127
EZ PayDay - borrowed $650, paid $145
Bottom Dollar Payday - borrowed $1,000, paid $400
National Credit Lenders - borrowed $600, paid $125
CashJar.com - borrowed $300, new loan
EastSide Lenders - borrowed 550, new loan
WesternSky - borrowed $1,500, new loan
Quick Cash of Illinois - borrowed $800, new loan
I don't know if these are legal payday loan stores in Illinois and if they are allowed to lend online. Some of my friends are in the same situation, getting payday loans online and struggling. Some are trying to negotiate the terms and even stop paying because of illegal lending practices. It is all very confusing and I am lost. I also have joint checking account with my husband and do not want to close it, as two of my friends did.
A: Well, the online payday loans are perfectly legal in Illinois. More than anything you should close your checking account, joint or not, to protect your money from all lenders, legal and not. Your living expenses like food and gas, heat and light have the priority. Then, you can renegotiate loan payments with the legal lenders. And you can try to tell your husband, the checking account needs to be closed because of identity theft, fraud or what have you. Closing your account is the only way to keep your paycheck. Reading Letter to revoke ACH debit authorization from Internet payday lenders may be a good start.
I checked Illinois Licensee list and seems that National Credit Lenders, Check'N Go, Cash Net, PayDay One and Quick Cash of Illinois are perfectly licensed. That is five legal payday loans, however, Illinois law allows only two payday loans at one time, online or not, and provides for a repayment plan. You need to contact them to discuss repayment. Take a detailed look at every other agreement and see where the others are licensed. You may find something like operate under the laws of the state of ......
As an Illinois consumer, you have rights and protections. See if any of the payday loan shops you deal with, has violated anything below and for future fight,
- you cannot be charged fees of more than $15.50 per $100 borrowed
- you have the right to full disclosure in your contract of all fees and the annual percentage rate (APR)
- you cannot borrow more than $1,000 or 25% of your gross monthly income, whichever is less
- you can only have two payday loans at a time
- you can request a repayment plan after 35 days of outstanding debt and once in the repayment plan, you cannot be charged interest, finances charges or fees of any kind
- lender cannot sue you until 28 days after the loan was due or the repayment plan ended
- lender cannot charge you for attorney fees or court costs to collect the outstanding debt
- lender may not take an interest in any of your personal property
- rollover of a payday loan is prohibited
- members of the military have additional protections including a ban on wage garnishment, deferral of collection activity for personnel deployed to a combat area, and a prohibition on contacting a consumer commanding officer
- you can cancel a wage assignment at any time by contacting the lender
You can file a complaint here. In addition you may find helpful these pages,
payday loan settlement
payday loan consolidation help
Fri Apr 8, 2011 10:04AM | Copyright: www.bad-credit-advisor.com | More in Payday Loan | Comments (0)
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