Wednesday, August 29, 2007

Payday Loan Hell ... and Help

[NOTE: This is NOT a paid post. Because I occasionally get emails from folks who are having difficulties with payday loans, and because my working knowledge with PDLs is so minimal, I wanted to pass on what I really believe would be a great resource for someone in need of assistance in this area.]

A few days ago a moderator at the following forums requested that I take a look at what they've created:

Debt Consolidation Care Forums

I've been around the 'net for a while. Because of that, in most cases, a URL like "" would cause me to instantly discount the site and not give it so much as a glance. This time, however, I went ahead and visited.

Surprisingly, I believe there's some value to be had. (NOTE: I'm NOT talking about the "debt consolidation services" provided at the site; I didn't examine that portion of it at all. Rather, this post reflects only my thoughts on the community-powered forums.)

At the link above, what you'll find is a high-traffic set of message boards — not terribly fancy or contemporary — wherein users display a serious lean toward helping folks get out of the clutches of what's so lovingly called "payday loan hell." They appear to be a knowledgeable (certainly more so than me on this topic) and helpful group. I had to look very hard to find posts and requests for help that went unanswered.

Thankfully, I've never had the privilege of visiting PDL Hell — which is where you go when you get wrapped up in multiple payday loans and their astronomical interest rates. When your payments don't come close to covering the interest and fees, and when you're effectively using one payday loan to pay another, then you know the red gates of PDL Hell have opened wide, and you've arrived.

Financially (and otherwise), it's a disastrous place to be.

Probably the most interesting forum, for me, was the set of Community Success Stories. What I quickly discovered was that folks there had, with each others' assistance, had a substantial amount of success getting the internet-variety payday-loan places to reverse huge amounts of fees and clear their accounts as PAID. How'd they accomplish this?

Well, to be blunt: written threats. Located at that site is an extensive page which details each state's state laws regarding payday loan establishments. What many users have found, apparently, is that if they live in states where internet payday loan services are either (1) not registered to do business, or (2) not allowed at all, then letters to these companies — as well as to the state's attorney's offices — can be pretty effective.

Faced with the possibility of (valid!) legal action, the internet-based payday agencies will often crater to user demands, issuing refunds for fees paid and writing off accrued interest. This isn't typically an "instant result," of course. But in the few hours I spent reading the community stories, I found that as is so often the case, persistence wins a LOT of tough battles.

Stuff I Learned

The folks at CashCall aren't stupid. They're not a true "payday loan" entity. They're backed and validated by a licensed banking institution, which means they can do pretty much what they want. They're relentless, and getting out from under their clutches (at least in the ways you might do with other internet lenders) and their 99-point-whatever percent interest rates is next to impossible. I thought this quote (from a moderate named Goudah) pretty well summed it up, regarding CashCall:

They charge outrageous interest rates. They are evil when you default. But they will sue you if you get behind, and then they will garnish your checks. So I would do what I could to budget the monthly payment in.

Getting Specific: Some Helpful Pages

Sample Creditor Letters - Database

• User-Created Creditor Database

Regarding Closing Your Bank Account


— Posted by Michael @ 10:28 AM


I have three local our walk in payday loans, plus three payday loans from the internet. I am way over my head. What can I do to get out of this mess?

Anonymous Anonymous
, at 7:37 PM, March 31, 2008  

For those suffering from payday loans, I found 2 legitimate services out there for help: 1 Langhorne Debt Solutions, and I used the latter as they just seemed more professional and were more up front about their fees and such. I had all my pdl's paid off in 6 months at a fraction of the cost.

Anonymous Anonymous
, at 6:03 PM, June 02, 2008  

I use my pdl help too. I was done in 8 months. They gave me a toll free number for the payday loan places to call. When the payday loan places called, I told them who I was with and gave them the number, then never heard another word.

Anonymous Anonymous
, at 4:15 PM, July 16, 2008  

I had several payday loans too. I was fortunate that a credit union did a loan consolidation for me. With their monthly payments, it's a fraction compared to what I've been paying in rollover fees. One of the stores that I paid off has called me a few times offering me specials and if I was interested in taking out a loan!! I tell them no thanks. (Maybe they're hurting for business. LOL.)


The payday loan help I got was with Relief, LLC. They took care of everything, stopped the harassment by collectors, and got my payday loans settled in less than six months. They saved me so much money. I would definitely recommend them for getting out of payday loan hell. Believe I know how easy it is to get trapped in.

Anonymous Anonymous
, at 12:51 PM, March 18, 2009  

I also got Payday Loan help with they helped me only have one monthly payment, and they stopped the collectors from calling me. They were also cheaper than some of the other companies out there who do the same thing.

Anonymous Anonymous
, at 4:08 PM, April 09, 2009  

Beware! all most of thest posts are marketing ploys! For instance is simply a lead generator (read the fine print below the form). The only real ones out there are,, & PDL Assistance...My recommendation would be one of the first two...not PDL

Anonymous Anonymous
, at 12:35 PM, April 20, 2009  

I could really use some help as well. Been doing some research and hope to find an answer as I am just getting more and more in debt.

** Comments Closed on this Post **

Thoughts on my personal finances, goals, experiences, motivations, and accomplishments (or lack thereof).

My financial life began turning around when I took responsibility for it.
— Dave Ramsey


Start (2005-12): ~$21,900
Currently: $0
[About Our Debt Paydown]


Savings Goal: $15,000
Currently: ~$15,115
[About Our Liquid Savings Goal]