How do I get out of internet payday loan hell? I

How do I get out of internet payday loan hell? I live in MI, I closed my account that they were drafting out of, emailed and faxed letters to the 6 companies I took loans from and now I am getting threatening calls from Epstein and Rothman Firm. What do I do next?

6 Answers

I want to share my story because it may help someone else who is afraid of dealing with this thieves....

I got into the payday loan cycle and like many others, began taking out new loans just to stay in front of the ridiculous fees.  I ended up with a total of $4400 of debt with 5 predatory lenders.  As you can imagine, this resulted in over $1000 just in fees to renew the loans every payday.  I contacted one of these PDL consolidation companies because I realized it would take me over 6 months to get out of this mess on my own.  When I got the consolidation companies quote, I realized....these people aren't here to help me, they are here to take advantage of me too.  Their plan was to have me pay $317 every 2 weeks for almost a year to get out of the debt.  That's $7,000+.

I did a lot of research.  I put together a letter to each of the 5 lenders outlining MY TERMS.  That's right...I told them what I would pay to settle the debt, factoring in past fees paid, etc.  I settled my debt for half the balance owed.  One lender even offered me a settlement at a reduced amount than I suggested "in good faith" because they know that payday loans are illegal in my state.

My suggestion is to do your research regarding the laws in your state.  Close your bank account and revoke wage assignment and ACH authorization.  Tell them that they can not call you to collect the debt and harrass you (there is a federal law prohibiting such conduct).  Be bold and do not waiver.  You will win.  I won in less than one week after sending my settlement offers and I paid them on my terms, not theirs.


Just don't answer there calls. Check and see if they have to be licensed in your state and what your state laws are regarding paydayloans. My state of washington only allows a max loan of 700.00 and you can only have one payday loan out at a time and you can only have 8 loans in a 12 month period. If you get a  payday loan  from a company from out of state after already having one in the sytem (all payday loans companies must be licensed and they have to all use the same computer tracking system) you do not legally have to pay them back and there is nothing they can do. So check your states laws.

Dont TAKE PAYDAY LOANS!!!!!!  I've gotten behind on credit cards and monthly bills like so many Americans.  I've definitley over extended myself.  When i originally applied for/ or used a credit card, I did the math and could afford to pay all the bills back. One small setback in my whole plan would ruin everything.  One thing I always knew though was I never intentionally took credit with the intent of not paying it back.  Now days there are many people who do not follow my belief.  People will take payday loans and then intentionally close the account in which they gave to pay back the account.  There's not much the lender's can do to prosecute these people for such small loans, but they can charge large amounts of interest to the people who do want to take care of ther responsibilities and pay back there loans as agreed to.  So, if your on this page looking for a way to not pay your loan back, then shame on you!  Whining about someone calling your phone, or your relatives, or your job will not solve anything.  Simply dealing with your problems one at a time will help yourself, and one by one will help this economy that has been created by people that have not tried to go out and make it  on there own.  Stop relying on government hand-outs and loop-holes. Take care or your own responsibilities.

They are threatening criminal prosecution.  I have contacted the Michigan Office of Financial and Insurance Services and with the names of the businesses I have, they do not have licenses in MI.  One pdl company actually sent me an email to negotiate a settlement, but the other 5 are calling constantly even though the letters have asked them to correspond by mail or email.  Do you recommend a debt relief company to help out?

I completely agree with Anna. Illegal payday lenders don’t have any right to take any legal action against you. If your financial condition doesn’t permit you to repay your debts in full, then you can negotiate with your lenders. You may try to settle the debts on your own. If it is not possible for you to negotiate yourself with your lenders, then you may get help from a reliable debt settlement company. This company then works with your lenders on your behalf. The following link may help you in this regard:

You should contact the Michigan Office of Financial and Insurance Services in order to find out whether or not your payday lenders are legal in your state. If your payday lenders are not legal in your state, then you need to pay only the principal balance to the payday lender and get rid of the debts. However, if they are legal in your state, then you need to pay the debts in full. In that situation, you can contact a debt relief company and try to consolidate your debts and pay them off in full.

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