Holiday Group How can they get away with this Joplin, Missouri
I just got a call at my job asking to talk to my supervisor about serving me with papers. I have never received a telephone call or a letter about this loan. I called them over 2 months ago to work out a repayment program, because i borrowed $300 and had to pay interest payment of $90 every 2 weeks. I have done this for about 5 months and never got anywhere on this loan. I called them and asked to work something else out and they told me that I had to pay it in full or keep doing what I am doing.
So I put a stop payment on the loan thru my bank. Never heard anything from them until today and of all places my work. Then when i call this person back who says that they are from a laywers firm representing them on my behalf. They tell me that I now owe $930 on a $300 loan. I cannot find where the Holiday Group is legal in Missouri and I dont feel that I should have to pay back interest and late fees. I offered to pay them back $50 every 2 weeks on the principal and they refused. She told me that I would have to take my chance in court and then hung up on me.
1 Updates & Rebuttals
Michelle
Cullman,Alabama,
USA
Payday Loan
#2Consumer Suggestion
Mon, March 11, 2013
The Holiday Group is a payday loan outfit, hence the outrageous "interest" fees you have been paying. Unfortunately, if you signed on the dotted line agreeing to their terms, it is completely legal and you do owe the money.
The way a lot of these payday loans work is that they loan you a sum of money - let's say $500. For this $500 they charge you a set amount of interest - let's say $100 bi-weekly. Each payday you have the option of either paying the loan off, with interest, or simply paying the "interest" payment to extend it until your next payday. If you pay the interest payment only, by the end of two months you end up owing $1,000 on a $500 loan. (With some slight differences in terms, they all pretty much work this way.)
So in your case, if you signed and agreed to these charges, then you do owe the money. And if your agreement was that they automatically debit this amount from your account and you stopped this payment process, then you have breached the contract. If the company turns this over to a collection agency, it will be placed on your credit report and negatively affect your credit score.
These payday loan/cash advance outfits do charge outrageous fees. But folks are (or should be) responsible for reading any agreement/contract they sign before signing. What happens a lot of the time is that folks get so desperate for the money that they sign up for these types of loans without giving much or any thought as to what the terms are or how they will pay it back.
So my advice is that you will have to pay it. If you can't pay it all at once, talk to the representative and work out some form of repayment. Ignoring it won't make it go away. And next time stay away from places like these. If you have a short-term cash flow problem, get a second job or find something of value to sell to come up with the money. Or use something of value as collateral on a loan through a reputable bank or loan company that charges considerably less interest than a payday loan store.
Best wishes as you deal with this and, hopefully, learn a valuable lesson. :)