My situation is this; last June I lost my job working in a school district. I fell behind on all my bills throughout the summer, and luckily I earned another school position in November. Back in October, I applied for a loan with Great Plains and got $600. I am still not caught up on all my bills, and haven’t been able to pay back what I owe Great Plains. They were taking $116 just in interest from me for a month and a half until I had to stop it because I could have used that money for bills.
My question is this, I have been getting a call from Great Plains Lending each day, and each day I can’t pick up the phone because the time they call is during my work shift. They leave a message on my voicemail, but nothing is said in the voice message. The entire duration of the voicemail is silence. Is what they are doing legal? I thought a bank or loan company could not harass you with phone calls followed by SILENT voice messages?
Also, I know I can talk to them and see if I can make some monthly payment arrangements (which they refused to work with me on when I tried to do so in November), but does a loan from a lending agency like Great Plains go on your credit if you don’t start paying it off, or pay it all off after a certain time period?
Of course as in any agreement with a lender, the details about what they will do is in the agreement you signed.
It looks like from your email that you might live in Michigan.
According to the Michigan Department of Insurance and Financial Services it does not look as if Great Plains Lending is licensed to lend in Michigan.
Here is what the State of Michigan says if you believe the payday lender has violated Michigan law.
Any customer who believes a payday lender has violated the law should contact the payday lender in writing detailing the nature of the violation and providing all the evidence to substantiate the complaint.
The payday lender must determine if it violated the law within three business days of receiving the complaint. If the payday lender determines that it did violate the law, it must return the check received from the customer and any service fees paid. The customer must still pay back the amount received. The payday lender, however, will be required to pay the customer an amount equal to five times the amount of the fee charged in the transaction, but not less than $15 or more than the face amount of the customer’s check.
If the payday lender does not believe it has violated the law, it must notify the Commissioner of the Department of Insurance and Financial Services (DIFS) and the customer of its conclusion. If the customer still believes that the payday lender has violated the law, the customer should file a complaint with DIFS (see address below). DIFS will investigate complaints promptly.
The law provides that a person injured by a payday lender’s violation of the Deferred Presentment Transactions Act may file suit to recover actual damages and reasonable attorney fees. – Source
You can also contact the Michigan Department of Insurance and Financial Services at:
P.O. Box 30020
Lansing, MI 48909
I think before you even worry about the other stuff that you should deal with if they are even legally able to make the loan to you in the first place.
Please post your responses and follow-up messages to me on this in the comments section below.