James Dillon v. BMO Harris Bank, N.A.

Filing

OPINION ATTACHMENT filed. Copies to all parties and the district court/agency. [14-1728]

Payday Loans

Appeal: 14-1728

Doc: 53

Filed: 05/29/2015

Pg: 1 of 2
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PAYDAY LOANS

Get Help &
Find Answers

Payday loans (also called “cash advances”) are small, short-term,
cash loans. The loans are based on your personal check held for
future deposit or electronic access to your bank account. 

Payday Loans Are Extremely Expensive

While payday loans may seem like a quick solution to a cash crunch,
they’ll cost you a lot more in the long run. A payday loan of $100 to
$500 can carry an annual interest rate of 390 to 780 percent.

Payday Loans Can Trap You In a Cycle of Debt

Payday loans are due in full on your next payday, typically in two
weeks. If you aren’t able to repay the loan that fast, as most
borrowers aren’t, you can get stuck on a debt treadmill.

This happens when borrowers, unable to repay the loan, take out
new loans or rollover the old one. You pay the fees on your loans
over and over again, without ever being able to pay off the loan.

Payday Lenders: Shut Down In NC, But Still Victimizing
Borrowers Online

Attorney General Roy Cooper helped outlaw storefront payday
lenders in North Carolina, but lenders are still using the Internet to
offer these loans. Internet payday loans are not legally enforceable in
our state, although some Internet lenders who are based overseas or
on Indian reservations claim not to be subject to North Carolina law. 
We are currently fighting online payday lenders in court.

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Internet payday loans can bring even more trouble. Consumers
who apply for payday loans online may be targeted by crooks who
attempt to collect on loans that weren't even made. The risk of
collection harassment is high for online payday loans, and more
difficult to deal with because the collectors may be unlicensed or

Telephone & Do Not Call

http://www.ncdoj.gov/Consumer/Credit-and-Debt/Payday-Loans.aspx[05/07/2015 11:53:37 AM]

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Payday Loans

Appeal: 14-1728
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Doc: 53

Filed: 05/29/2015

Pg: 2 of 2

located in foreign countries. And once a payday lender has your bank
account information, you may find that the only way to keep them
from taking your money is to close your account.

If You Have an Internet Payday Loan and You’re Having Trouble
Paying it Off:

Work with the lender. You may wish to make payment
arrangements with the lender, such as offering to repay the
principal amount of the loan.
Cancel bank drafts. You can notify your bank that you wish to
cancel any electronic draft (known as an ACH) that lets the payday
lender debit your bank account. Notify your bank within four days
prior to the draft date and also notify the lender in writing or by
email that you have revoked their authorization to withdraw funds
from your bank account.
Close the account. If the lender continues to try to draft funds
from your account you may have to ask the bank for a permanent
("hard") closing of the account. (But be sure to open a new account
at a different bank before you close the old account. You may find it
more difficult to open a new account once your old one is closed,
especially if the lender has hit the old account with multiple
overdrafts.)
Stop debt collectors. You can ask that efforts by the payday
lender or a debt collector to collect on the loan stop. If the lender or
collection agency harasses you, threatens to arrest you or garnish
your wages, file a complaint with Attorney General Roy Cooper’s
office at 1-877-5-NO-SCAM toll free within NC.
Look elsewhere. Alternatives to payday loans include small
savings accounts or rainy day funds; salary advances from your
employer; working out an extended payment plan with your
creditor; loans from friends, relatives, your church or social service
agencies. Also, many credit unions, including the North Carolina
State Employees’ Credit Union, offer low interest, short-term, small
loans with quick approval that are a much better than payday
loans. Other options that are more expensive than a credit union
loan but better than a payday loan are a credit card advance or a
loan from a local consumer finance company. 

We Can Help

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If you have a complaint about a payday lender, contact us for help or
call toll free within North Carolina at 1-877-5-NO-SCAM.
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http://www.ncdoj.gov/Consumer/Credit-and-Debt/Payday-Loans.aspx[05/07/2015 11:53:37 AM]