Legal Question in Credit and Debt Law in Pennsylvania

paying a debt

I have three or four payday loans that I obtained on-line and the fees became so absorbanant I was forced to close down my checking account to keep them from taking any more money. I have offered to mail them checks to pay the debt down but many refused this method of payment and insisted on money grams for the entire amount owed. How much leverage can they apply to collect this money? Can they attach liens against my wages ? The interest fees are as much as 383% and on a $300 loan, I paid $90 twice a month just as a finance charge! I realize I did not act very wisely applying for these loans, but I was struggling at the holidays. Most of these companies already have gotten the money back just in the interest. Please let me know what I can do at this point. I am afraid if I send a check or money order, it will not be applied to my balance and finance charges will keep piling up. Thank you for your help


Asked on 4/21/07, 10:32 am

1 Answer from Attorneys
John Gibson John W. Gibson, Esquire

Re: paying a debt

You should contact the Pennsylvania Attorney General's Office. They recently shut down one of these operations and gave consumers called "Ace Pays, Inc." and several others are under agreements of voluntary compliance with Pennsylvania usury laws.

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Answered on 4/21/07, 3:22 pm


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