I took out a payday advance through Cashland in Newark Ohio. At the time, I had steady income, a good job and was in a position to pay them back. Three days after taking out the loan, which was for $200.00, I called and notified them that I had a huge reduction in hours at my job due to the economy and that I would like to pay them back and asked if I could work out an agreement to pay them. They were not interested and said I would have to pay the entire loan off in 2 installments by the due date. The reason for 2 installments is they require you to write 2 checks instead of one.
That would not work and I told them I was unable, they did not care and said if it was not paid, the checks would be sent to the bank. The checks were sent, I had $120 in the bank at the time. BOTH CHECKS BOUNCED, and after the bank got their fees, I had NO money left to live in.
They call and advise the checks bounced and said I needed to come in THAT DAY to pay them off, I told them I would be glad to make a payment, once I got paid again since I no longer had any cash and all they could suggest was that I go to another payday lending company and take out a loan to pay them, sorry, not doing that.
I got a call from the collections people, very rude and demanding that I pay, threated to garnish my next check (this has not made it to court yet) if I did not pay. I told them to be my guest and try. I offered a payment plan with them, the guy said he could do that, if I could pay $100 a week until the checks, fees and bounced check fees were paid off, roughly $400. I said I could not afford such and he said fine, we will get a garnishment and take your whole check.
Fast forward, after getting several threating calls at all hours of the day, sometimes 3-4 times a day, I demanded that they cease contact unless it was via US postal service. They did not cease so I changed my phone number and sent them a letter again offering a payment plan to settle this.
Finally I get served with court papers, they won a judgement in excess of $700 for a $200.00 loan.
I dont see how they can legally collect that much money, but the judge felt it was just.