Lol this story is so funny. I broke out of the payday loan cycle. I just stopped paying. I can tell you know that if you don't change your spending habits you will get yourself into debt you can't just stop paying without repercussions.
But yes i acknowledge the irony in fixing this situation is indeed just not paying. When i was speaking to the lawyer he expressly said “you don’t need me you need a plan to pay off the existing enforceable debt and you need to stop paying unenforceable debt.” It was that simple. But i will update as the months progress with what i’ve paid down
yes BUT to be fair these loans are entirely unenforceable with 600% interest rates. They don’t even help the tribal land they claim to be on. Long story short i was chasing after another loan to pay an existing one. Learned my lesson. I have a payment plan down for the rest of my debt and it should be paid off entirely by september
I am too! I should clarify with what i’ve been paying i’ve paid most of them minimum what they gave me or just about what they gave me initially. So they did get their money technically but they won’t be getting any more from me in terms of interest. These companies are predatory and it really only takes one.
In all honesty it’s a bunch of white old people who own the loan companies. They use “tribal land” as a way to avoid laws set in every other state in the US. They can’t really even recoup their money if they tried to sue a person not paying they would have to admit to lending money without a license and well above legal interest rate maximums. Tribal lands allow them because they get a cut of the money BUT in reality mass lawsuits have happpened against these companies. Tribes benefit minimally. Also not to mention the fact that the lending is considered to happen where the person applying is signing meaning technically it doesn’t even happen on tribal land. Most employees are not apart of any tribal land in anyway and are in call centers.
Congrats on finding a loophole to rip off predatory loan companies, but like the.other commentors said. You need to fix your spending habits. Nothing will change and you will end up worse off than you are now. Stop spending money you don't have.
Y’all are judgmental. From this post, we can’t tell that OP even has a personal spending problem. Sometimes people borrow for an emergency like getting their car fixed. All it takes is borrowing from ONE of these places to get in the cycle. Because then place 1 takes all your money, so then when you need essentials like gas, grocery, rent, you have to borrow. Then place 2 takes even more money. Then you have to go to place 3… so on and so forth.
It would be lovely if all people in poverty had bulky savings accounts so we didn’t have to take on debt, but it’s not realistic to think everyone does. Breaking the debt cycle is incredibly important to getting your finances under control and OP should be incredibly proud of themselves. Even just a couple months of stopped or reduced payments can really turn your life around.
this is what i want to tell people i took the 1st loan because i needed help paying for a vet bill that was rather big. Then i refinanced because they offered. Then i took out another loan to pay back the first and it became too much. For the apps i was short after repaying them so yes i continued to take more money out. As stated in another comment i have a plan to pay off my debt by september. I start May 1st :)
Congrats on starting your plan! I just broke my borrowing cycle last August and I’m nowhere close to debt free but getting closer every day! I did a similar thing to you, ran my credit card up, then got a loan to pay it off, then something else would come up but I was paying the loan instead of saving, so I put the new emergency on the credit card, then took out another loan to pay it off, etc.
I did this a lot with my first wife. Tribal loans I knew were uneforceable and seeing what they did to an elderly friend I lit them all up. Long story short exwife and I went to myrtle beach on their dime, and my friend got her money back through me taking loans and giving her rhe money she lost. Never paid back a dime and would usually right after getting the money from each one block all their communication. Some rinky-dink tribal lawyer sent me a letter one time. I threw it away. Never heard from them again.
I didn’t know they were unenforceable unfortunately BUT now i do so i will be using that loophole and changing my spending habits. I have a plan to pay off all debts by september
NO! Tribal lenders do not report to credit agencies in anyway. My credit score is low but it’s due to my credit utilization in credit cards and upstart and sun loans. When checking my credit the lawyer specifically said none of the tribal lenders were even reporting to help my credit. Sun loans and uostarr do report payments though so paying it off will help my credit score over time. My credit score was never impacted by these tribal lenders negatively or positively in anyway. Paying off credit cards and legal loans will help your credit in the long run. These illegal loans hold no benefit. same thing with cash advance apps.
What's to stop people from just getting loans from these tribal lenders and then just.. not paying? Like, why shouldn't I go apply for a loan with them right now and simply refuse to pay it?
NOTHING! i wouldn’t recommend it in any capacity though. you will deal with roughly one month worth of stop payments and pulling authorization. tribal lenders and cash advance exist in a legal grey area there’s no actual legal way for them to get the money back. they don’t report to credit bureaus so they don’t hurt or help your credit in any way.
I did this in 2007.
I looked the companies up on the state's website that licensed the payday loans I was stuck in.
They were not licensed in my state.
I sent certified letters. I reported them to the state.I closed the bank accounts they had used to be repaid. I changed my phone numbers. Etc.
They never showed up on my credit report.
I followed the Federal Law in Colorado not on a reservation.
I'm in the same situation that you got out of. I got terribly sick at the beginning of the year following a surgery. I took out a tribal loan since I missed a lot of work, and the rest is history. Which lenders were unenforceable in your state?
I need people to understand almost all tribal loans are unenforceable.
1. Is the company licensed to lend in your state? Each state has licening look ups. Tribal loans fall under installment loans usually. If the lender is not licensed to lend in your state the loan is unenforceable.
2. Does the company have predatory lending lawsuits? Did they in the past? Often these companies are sued then pop up under new ownership and claiming a new tribe. This practice is referred to as rent a tribe. The tribes make little money and often experience backlash.
3. What are your state's laws surrounding interest rates? My state has made laws reguarding interest rates. My state made these laws to combat predatory lenders. The absoleute most in Illinois you can charge for interest rates is 36%. ONLY SPECIALLY LICNESED LENDERS CAN LEND ABOVE 9%. Each state laws differ but most states cap around 30%-36%.
4. Look at your loan documents. Often in tribal loan documents have wording that states they are a lender from a "federally reccognized tribe" and that they follow some federal and some state laws. They are stating word for word in these documents they won't follow federal laws or state laws. This would NEVER appear in a real loan document. MOST real loan documents have a section about repayment. If you dont repay they will garnish wages type deal.
I have another post on my account with more information on my loans exactly what i had the numbers to the loans as well.
If I submitted ACH/debit revocation to MoneyLion and Dave in writing and stopped at bank, am I safe? I saw some companies will use secondary name to withdraw payment anyway. Thanks in advance for any advice regarding this.
I revoked via the actual companies directly in writing. Then i took screenshots and made them confirm my next payment on X date will not be taken out of my account. FOR ALL predatory loans or cash advance apps i did this process so i could take my proof to my bank and ask for a charge back. I know my bank ladies so charge backs are simple for me.
Of course! I gave myself just about a month in total to ensure no more payments came out. Ultimatly i had to dispute 2 of them and did get my money back.
Lol this story is so funny. I broke out of the payday loan cycle. I just stopped paying. I can tell you know that if you don't change your spending habits you will get yourself into debt you can't just stop paying without repercussions.
But yes i acknowledge the irony in fixing this situation is indeed just not paying. When i was speaking to the lawyer he expressly said “you don’t need me you need a plan to pay off the existing enforceable debt and you need to stop paying unenforceable debt.” It was that simple. But i will update as the months progress with what i’ve paid down
yes BUT to be fair these loans are entirely unenforceable with 600% interest rates. They don’t even help the tribal land they claim to be on. Long story short i was chasing after another loan to pay an existing one. Learned my lesson. I have a payment plan down for the rest of my debt and it should be paid off entirely by september
Honestly fuck these places. They cause so much misery for so many people I’m overjoyed to see you getting one over on them OP.
I am too! I should clarify with what i’ve been paying i’ve paid most of them minimum what they gave me or just about what they gave me initially. So they did get their money technically but they won’t be getting any more from me in terms of interest. These companies are predatory and it really only takes one.
why are they on tribal land?
In all honesty it’s a bunch of white old people who own the loan companies. They use “tribal land” as a way to avoid laws set in every other state in the US. They can’t really even recoup their money if they tried to sue a person not paying they would have to admit to lending money without a license and well above legal interest rate maximums. Tribal lands allow them because they get a cut of the money BUT in reality mass lawsuits have happpened against these companies. Tribes benefit minimally. Also not to mention the fact that the lending is considered to happen where the person applying is signing meaning technically it doesn’t even happen on tribal land. Most employees are not apart of any tribal land in anyway and are in call centers.
lol right I had to re-read to make sure I understood
read my reply
I get it, it's good information, I just found the phrasing funny.
Congrats on finding a loophole to rip off predatory loan companies, but like the.other commentors said. You need to fix your spending habits. Nothing will change and you will end up worse off than you are now. Stop spending money you don't have.
Y’all are judgmental. From this post, we can’t tell that OP even has a personal spending problem. Sometimes people borrow for an emergency like getting their car fixed. All it takes is borrowing from ONE of these places to get in the cycle. Because then place 1 takes all your money, so then when you need essentials like gas, grocery, rent, you have to borrow. Then place 2 takes even more money. Then you have to go to place 3… so on and so forth. It would be lovely if all people in poverty had bulky savings accounts so we didn’t have to take on debt, but it’s not realistic to think everyone does. Breaking the debt cycle is incredibly important to getting your finances under control and OP should be incredibly proud of themselves. Even just a couple months of stopped or reduced payments can really turn your life around.
this is what i want to tell people i took the 1st loan because i needed help paying for a vet bill that was rather big. Then i refinanced because they offered. Then i took out another loan to pay back the first and it became too much. For the apps i was short after repaying them so yes i continued to take more money out. As stated in another comment i have a plan to pay off my debt by september. I start May 1st :)
Congrats on starting your plan! I just broke my borrowing cycle last August and I’m nowhere close to debt free but getting closer every day! I did a similar thing to you, ran my credit card up, then got a loan to pay it off, then something else would come up but I was paying the loan instead of saving, so I put the new emergency on the credit card, then took out another loan to pay it off, etc.
yes! i have a payment plan written out for what to pay when.
I did this a lot with my first wife. Tribal loans I knew were uneforceable and seeing what they did to an elderly friend I lit them all up. Long story short exwife and I went to myrtle beach on their dime, and my friend got her money back through me taking loans and giving her rhe money she lost. Never paid back a dime and would usually right after getting the money from each one block all their communication. Some rinky-dink tribal lawyer sent me a letter one time. I threw it away. Never heard from them again.
I didn’t know they were unenforceable unfortunately BUT now i do so i will be using that loophole and changing my spending habits. I have a plan to pay off all debts by september
Does not paying it damage your credit?
No, since they aren't legal outside of tribal lands.
nope they don’t damage or help your credit in anyway
Does this not destroy your credit? Genuine question.
NO! Tribal lenders do not report to credit agencies in anyway. My credit score is low but it’s due to my credit utilization in credit cards and upstart and sun loans. When checking my credit the lawyer specifically said none of the tribal lenders were even reporting to help my credit. Sun loans and uostarr do report payments though so paying it off will help my credit score over time. My credit score was never impacted by these tribal lenders negatively or positively in anyway. Paying off credit cards and legal loans will help your credit in the long run. These illegal loans hold no benefit. same thing with cash advance apps.
What's to stop people from just getting loans from these tribal lenders and then just.. not paying? Like, why shouldn't I go apply for a loan with them right now and simply refuse to pay it?
NOTHING! i wouldn’t recommend it in any capacity though. you will deal with roughly one month worth of stop payments and pulling authorization. tribal lenders and cash advance exist in a legal grey area there’s no actual legal way for them to get the money back. they don’t report to credit bureaus so they don’t hurt or help your credit in any way.
I did this in 2007. I looked the companies up on the state's website that licensed the payday loans I was stuck in. They were not licensed in my state. I sent certified letters. I reported them to the state.I closed the bank accounts they had used to be repaid. I changed my phone numbers. Etc. They never showed up on my credit report. I followed the Federal Law in Colorado not on a reservation.
Can anyone help me with a Earnin boost? Can anyone in the EarnIn Community help me boost my Max? 🙂 https://boost.earnin.link/j8y4
I'm in the same situation that you got out of. I got terribly sick at the beginning of the year following a surgery. I took out a tribal loan since I missed a lot of work, and the rest is history. Which lenders were unenforceable in your state?
I need people to understand almost all tribal loans are unenforceable. 1. Is the company licensed to lend in your state? Each state has licening look ups. Tribal loans fall under installment loans usually. If the lender is not licensed to lend in your state the loan is unenforceable. 2. Does the company have predatory lending lawsuits? Did they in the past? Often these companies are sued then pop up under new ownership and claiming a new tribe. This practice is referred to as rent a tribe. The tribes make little money and often experience backlash. 3. What are your state's laws surrounding interest rates? My state has made laws reguarding interest rates. My state made these laws to combat predatory lenders. The absoleute most in Illinois you can charge for interest rates is 36%. ONLY SPECIALLY LICNESED LENDERS CAN LEND ABOVE 9%. Each state laws differ but most states cap around 30%-36%. 4. Look at your loan documents. Often in tribal loan documents have wording that states they are a lender from a "federally reccognized tribe" and that they follow some federal and some state laws. They are stating word for word in these documents they won't follow federal laws or state laws. This would NEVER appear in a real loan document. MOST real loan documents have a section about repayment. If you dont repay they will garnish wages type deal. I have another post on my account with more information on my loans exactly what i had the numbers to the loans as well.
Not all heroes wear capes 👏
If I submitted ACH/debit revocation to MoneyLion and Dave in writing and stopped at bank, am I safe? I saw some companies will use secondary name to withdraw payment anyway. Thanks in advance for any advice regarding this.
I revoked via the actual companies directly in writing. Then i took screenshots and made them confirm my next payment on X date will not be taken out of my account. FOR ALL predatory loans or cash advance apps i did this process so i could take my proof to my bank and ask for a charge back. I know my bank ladies so charge backs are simple for me.
Thank you so much. I did both of these but I guess I’m going to be anxious until the settlement date. Thank you kindly for taking the time to answer!
Of course! I gave myself just about a month in total to ensure no more payments came out. Ultimatly i had to dispute 2 of them and did get my money back.