My husband and I have been in the deathly cycle of payday loans for almost a year now. I work part time and he works full time and we have 1 daughter. Right now we are up to 11 payday loans totaling a whopping $6,500. I just barely stumbled upon the CFSA EPP. Only 4 of the places we loaned from offer EPP. When it comes to pay days we have a little bit left over but not much.
When can you enter EPP. Would it be a good idea to loan from other places that do offer epp to pay off some of the others. Any advice for getting out of this problem.
For those that don’t know what a CFSA EPP is, it is the Extended Payment Plan offered by payday and cash advance lenders who are members of the Community Financial Services Association of America.
The EPP can be a reasonable way out of trouble with a payday loan but on my recent visit to some payday lenders I discovered a very important fact that isn’t in print. It seems that they would only allow one payday loan at a time in the EPP. See my previous post “Cristy Has Three Payday Loans And Can’t Pay Them” for the specific details of the EPP.
Since it sounds like your payday lender is a member of CFSA, they should provide you with a booklet that describes the EPP solution. The hurdle to get into the EPP is very specific, “You must invoke the EPP by close of business on the last business day before the advance due date by returning to the office where you obtained the advance or by using whatever method you used to obtain the advance. To invoke the EPP, you must sign an amendment to your agreement reflecting the new payment schedule.”
I don’t want to be too cynical here but I forecast that the payday lenders are going to give you a bunch of reasons why you don’t qualify for the EPP. Typically in similar situations people have turned to bankruptcy to resolve this problem since the lenders would not be cooperative.
My opinion is that payday lenders need to be on a central database so as to never extended more than one payday loan to one consumer at any one time. Let me know if you dig yourself out from this without bankruptcy.
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