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Maverick, Lawyer
Category: Criminal Law
Satisfied Customers: 6422
Experience:  20 years experience
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I have a payday loan, castlepayday, which i took $600 out a

Customer Question

i have a payday loan, castlepayday, which i took $600 out a few years ago and couldnt pay but mainly because insane fees. They threatened me, or at least a collection service did, to pay 1135 in the next 3 months and i made one payment of 385 in may, but i only took 600 in first place. I think they want to take me to court i dont know. I live in NC. Not sure what my options are
Submitted: 1 year ago.
Category: Criminal Law
Expert:  Maverick replied 1 year ago.

Welcome to Just Answer (“JA”)! My name is Maverick.

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1. In what month and year did you take out the loan?

Customer: replied 1 year ago.
july 2015
Expert:  Maverick replied 1 year ago.

Under NC law, there is a 3 year statute of limitation on their right to file suit on this debt from the date of your last payment. SO, one option is to wait it out three years and see if they want to incur the expense to file suit. The chances are high that they will file suit in a timely manner if you have any non exempt assets that they thing they can attach to collect on the debt. If you don't then they may not since NC does not allow wage garnishment for this type of debt.

That said, it will go on your credit as a debt that was not paid in full and stay there for 7 years. Also, the lender may decide to sue and get a judgment even if they cannot collect on it now, if they think you will be able to pay it later due to say winning the lotto or getting an inheritance. In the meanwhile interest and penalties may continue to accrue.

Another option is to file bankruptcy and get rid of the debt; but that will hit your credit and you would not want to do that unless you have many other debts that you are not able to pay at the same time.

more to come...

Customer: replied 1 year ago.
What type of assests would they be able to collect on debt? Does this make a difference if its not the payday loan thats contacting me but the collection agency which is called asset recievables managment. I dont know, they sound threatening with court
Expert:  Maverick replied 1 year ago.

Your best option is to try to negotiate a settlement with them before the debt gets too large for you to pay.

Here is a form that you can use to do that:

______________ (creditor’s name), referred to as CREDITOR and ____________ (your name), referred to as DEBTOR, agree to compromise the indebtedness as between them.
CREDITOR, hereby agrees to compromise the indebtedness due the CREDITOR on the following terms and conditions:

The CREDITOR and the DEBTOR agree that the present debt due is $____________ (the amount of the debt). The parties agree that the CREDITOR shall accept the sum of $______________ (the amount of the settlement) as full payment on the debt. The acceptance of the payment will serve as a complete discharge of all monies due. The payment shall be made in ___________ (note the form of payment).

In addition, upon accepting of the $__________ (amount of the settlement), the CREDITOR will notify all Credit Reporting Agencies that account is PAID AS AGREED, and delete any entries showing this account as ever being late.

This compromise is expressly conditioned upon the payment being received by ________________ (date that payment is to be made). If the DEBTOR fails to pay the compromised amount by ______________ (date that payment is to be made), the original amount owed by the DEBTOR will be reinstated in full, and immediately due.

This Agreement shall be binding upon and inure to the benefit of the parties, their successors and assigns.

Dated: _______________

Signature: ______________________________

___________________ (Creditor’s name)

Signature: ____________

___________________ (Your name)

Customer: replied 1 year ago.
well techinically we "agreed" on a 3 month payment settlement but i mainly agreed because i felt threatened. I paid 385 first month. They want 390 this month and same in july and i cant pay that much that quickly
Expert:  Maverick replied 1 year ago.

You asked about your options and I have stated them for you above. Did you have another follow-up question?

Customer: replied 1 year ago.
those do help. Again, what assests would they be allowed to collect or what could happen if they sue or take me to court?
Expert:  Maverick replied 1 year ago.

If they sue you and take you to court, then they will eventually get a judgment against you and that judgment will go on your credit history and they will then try to attach that judgment to your non-exempt assets, if any.

Under NC law, the following assets are exempt from execution: SEE this link.

Customer: replied 1 year ago.
i see. well ill read thru whats exempt. Ok, well thank you for helping ill look over everything you said
Expert:  Maverick replied 1 year ago.

Yes, the list is too long and only you know what you have and don't and what each item may be worth.

Customer: replied 1 year ago.
sorry one last question, do these tribal payday loans not hold up as well in court from things ive read? Seem illegal in some places
Expert:  Maverick replied 1 year ago.

That's a good point. Did you get the loan online or at a walk in store located in NC?

Customer: replied 1 year ago.
i got the loan online. Clearly i was desperate but the interest and amount due would be insane on a $600 loan. Even the 1135 or so they want is way more but with payments initially i may have been like 1800-2000 i paid
Expert:  Maverick replied 1 year ago.

At this time, payday loans in NC are illegal by businesses operating within the state lines; but it is open to question as to whether online lenders not based in NC can enforce these loans against NC residents. The NC attorney general is taking the position that they cannot.

This link has further info on them. [which you may have already found].

You should contact the North Carolina DOJ at 1-877-5-NO-SCAM on this issue as they are currently fighting these tribal loans in court. See this link.

Customer: replied 1 year ago.
great i will give that number a call. Thank you for your help
Expert:  Maverick replied 1 year ago.

Your welcome.

Expert:  Maverick replied 1 year ago.

Please assign a feedback rating so JA will compensate me for my time and we can close out this question. Thank you.