My Payday Loan is Killing Me
Posted September 10, 2013
WRAL Reader Question
I have recently gotten in a bind with trying to live paycheck to paycheck. I went and did a payday loan over the internet through mobileloans.
Now it is really stressing me because I can't keep my main bills paid nor my credit cards cause they get $145 biweekly not to mention my hours have been cut from 40 to 36 with no overtime.
I am a single parent with only $50 granted a month for child support which is 3 mths behind, my food stamps just became available, and I have a very old van that needs work but I can't afford to put it in the shop.
Is there anything I can do about the payday loan?
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A good thing about payday loans is they are a true canary in the coal mine to wondering if you have financial problems or not.
If a payday lender is the only place you can borrow money, you are in trouble even before you took out the loan.
I'm going to be brutally honest. Payday lenders exist to make as much profit as possible from people who can least afford the loans. They specifically target communities where financially troubled people frequent or pass by.
I get the payday loan industry is a resource for last resort loans. And that is true. And while it is also true there is a good way to use payday loans, if you can repay the loan in full by the next payday, without a problem. There are many bad ways as well. Unfortunately study after study shows the right borrower is not the majority of borrowers.
Think about it like this, nails are good for some things but I wouldn't suggest driving one through your head.
Apparently you were financially drowning before you took out this loan. It's just the last nail in the coffin, so to speak.
There are some logical solutions here:
- You can increase your income.
- You can see if you are eligible for more benefits by visiting Benefits.gov.
- You can reduce your expenses.
- You can pay the loan.
- You can default on the loan.
- You can file bankruptcy and eliminate all of your debt and start over.
I don't really know enough from your question to know if there is any underlying debt that could even be cleared by bankruptcy. And being a single parent it might be problematic to take on a second job for additional income. You could look to cut expenses but at some point living on beans and rice is not sustainable.
So logically the probable outcome here is you will not be able to afford the payday loan and will default. The company will probably try to collect but in North Carolina they can't garnish your wages over this. However, you would need to confirm that with an attorney licensed in North Carolina.
If the payday loan company you used was the folks at mobiloans.com then they are a tribal lender of the Tunica-Biloxi Tribe of Louisiana. These tribal lenders are in a lot of hot water right now and being sued all over the country. The tribal lender claim is they don't have to conform to state law.
So before you freak out over the payday loan, contact the North Carolina Commissioner of Banks at 888-384-3811 and see if it was even legal for the lender to operate in the State at all. A search of the Commissioner of Banks website could not find a company named Mobiloans or MobileLoans registered to lend in the state. Anyone surprised?
While you are filing complaints, file one as well with the North Carolina Attorney General office by calling 877-566-7226. Tell them I sent you.
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