HELP Protection Against Payday Loans in Ohio

queenybride

I need your help ladies.  I am trying to help a family member get help from payday loans but they are in a really bad cycle.

Right now they all (there are several) have checks that are to be cashed on Friday that will drain the checking account then leave them with no money to pay the fees to file bankruptcy.  My only suggestions was to close the bank account or try to stop payment but they fear criminal prosecution and although I am almost certain they do not prosecute for bad checks with payday loans I need some proof.

Can anyone help me so I can prove to them that this is the only way out, or does anyone have another suggestion?


Thanks

stacyinluv

I work in HR and do payroll, they end up garnishing your wages if you do not pay back the loan.

stacyinluv

I want to say that they do prosecute as well.  My best piece of advice is to steer clear of payday loan places.

BuksFan

Yes, they do prosecute. I don't practice bankruptcy but I would recommend that your family member check with their bankruptcy attorney (if they have one), or the clerk of the bankruptcy court and see if there are alternatives for the filing fee, such as qualifying for a reduced fee or suspended fee. Good luck.

brainstorm102

I'm sorry that your family is dealing with this. They did a piece on the news about a month or so ago how they were trying to get them removed from Ohio due to the Payday places charging 400% pay back. It was ridiculous!

wickedclown1020

I used to work at a payroll advance company in Columbus. They do prosecute if payment arrangements cannot be made. However, there was a law passed in the last year that made it that if a check is returned you can make payment arrangements for less than the whole amount. If they are taking this option they will need to close their checking account to avoid further fees from the bank. The annual percentage rate on these are 391.07%. Also they could try getting a small personal loan from a bank to pay them off or borrowing from a credit card.

Jody81

I know I'm late on this, but I just talked to my DH...who happens to be PayDay Loan's Lobbiest. He said that they don't prosecute, the only thing they could do it take them to small claims court and they very rarely do that because it costs them too much money and isn't worth it. So, he said they can just get an extention on their loan, or they will help them come up with another payment plan. I would just have them go in and talk to PayDay because they handle things like this all the time and can be pretty understanding.

It is very hard for me not to defend the Payday people here, seeing as how my DH is their Lobbiest. But no one on this board probably uses them, so it's not worth the debate. The news has warped the business to a horrible degree and are not telling the truth about their practices in many cases.