My son got a payday loan that has spiraled out of control. He's 24 and his only income is a GI Bill (he's in college now), which I thought didn't count as income, but they gave him a loan anyway. Now, they are hitting his bank account for almost his entire check every month just to pay the unbelievably high fees. Should we close that account so they cant keep taking all his money? It probably started out as a $500 loan that has snowballed to $6000 with the fees. This child has never given us any real trouble and he made a mistake....a big one.....so his dad and i want to help him out of this but we don't know what to do. Can you please help us?
Your 24 year old son may still be a child in his parents' eyes; but the law says he has been an adult for some six years now. The law also requires adult borrowers to repay their debts, regardless of how bad or outrageous the deal was. So, unless your son wants to be sued by the shark lenders that have him completely trapped, he--or someone else--will have to find a way to pay off the rapidly increasing debt. Finally, because there is a substantial amount of money involved here, IMPO you would be wise to hire a lawyer skilled at dealing with loan sharks to review all the documents and make sure there is no other cheaper way to get your son out of the nightmare. Most lawyers will not charge very much to do the document review and a little bit of research needed to advise you and your son properly.
I entirely agree with Mr. Minnick. This predatory lender could be doing something illegal that would allow your son to either get out of the loan or have the interest rate changed which makes it worth consulting a consumer attorney familiar with these kinds of loans. But if not, the best way to help him is to get this loan paid off now so it doesn't keep accruing outrageous interest and let him pay you back the amount you have to pay off at what he can afford over time, which could increase once he is out of college and working. He also could take a part-time job while he is in college so he has more money and can support himself better and pay this off faster. And I would surely have a conversation with him about never resorting to such predators again and reading and understanding anything he signs.
Please note: This response is solely general information or suggestions about your issue. It is not intended and should not be considered as legal advice, and I am not your attorney. Such professional advice requires creation of an attorney-client relationship and full disclosure to an attorney of a client’s circumstances and that attorney’s opportunity to analyze those circumstances and review any relevant documents against applicable law.
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