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I have payday loans and I have been paying for years and can't get out of the payday trap.

Las Vegas, NV |

What is the worst thing they can do to me if I don't pay. I am on social security and collect a $200 a month death benefit. I just can't keep living like this, I barely have enough money each month to live on. I own nothing, no house, no car, nothing. What is the worst they can do to me besides all the harassment? Thank you.

Attorney Answers 1

Posted

The worst they can do to you is file a lawsuit against you, get a judgment, and never be able to collect a dime from you.
If you give a creditor the authority to draft payments directly from your checking account, then you'll either have to close that account and open a new one or change banks. Sometimes if you lose an account and a draft payment request comes in for a closed account the bank will re-open that account, reject the payment, and charge you $25-$35 for an insufficient funds fee. With payday lenders, they'll occasionally re-attempt a couple times which can run your fees up. In that case, you'd have to change banks.
Traditional payday lenders and title loan companies are just shy of loan sharking - short mostly by not having Vito show up and knee-capping you. 200-400% interest is legal in Nevada for short-term loans and is a financial death spiral.

If you feel some obligation to pay them something, go through what you paid them already and if you haven't paid them an amount equal to their original loan amount then feel free to pay them more if you want. Once you feel you've done what you can then you can just send a letter, via certified mail (solely to prove you sent a letter to them) to the payday loan company telling them that you can't afford to make the payments anymore, that you are retired and judgment proof, and that they are free to sue you if they want but they'll never collect another dime from you.

Then change your phone number and forget about them. They'll probably file a lawsuit against you and get a default judgment against you. But if your bank account never has more than twice what your monthly social security income is, then your bank is required by federal law to reject any bank account garnishments on the account where your social security is deposited into.

Regards,
William Devine, II
Rainey Devine

I am an attorney, just not your attorney (yet). Any answers here are to be deemed informational unless and until you retain me as your attorney for actual legal services and legal advice. I offer free in-person consultations so feel free to contact me offline by email or phone. If you like my answer, please hit the thumbs up button.

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5 comments

Asker

Posted

Thank you so much for your quick reply. If they do file a suit against me do I have to send in a answer or even show up at court? Again, thanks! I may get some sleep tonight.

William C. Devine II

William C. Devine II

Posted

if your only source of income is social security and a $200/m death benefit, and presuming you took out the payday loan and they have signed contracts and proof they have you the money - then it may be a waste of your time to defend. They'll win the case with that evidence anyway. I have a few clients in a situation similar to yours and my advice to them was not to waste their time and just let the creditor get a default judgment that it cannot ever collect on.

Asker

Posted

Thank you. One last question please and thank you so much. If I got a vehicle, to go to the doctors, etc., and it's value is $6,500 could they take it? You are simply the best!

William C. Devine II

William C. Devine II

Posted

the exemption for a vehicle in Nevada is $15k in equity so if your car is worth $15k or less then you're safe.

Asker

Posted

Have a great evening and thank you for all legal advise. I feel like a hug burden has been lifted and there is light at the end of the tunnel. God Bless you!!!!!!

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