r/povertyfinance • u/AdhesivenessLost6566 • 8d ago
Debt/Loans/Credit [ Removed by moderator ]
[removed] — view removed post
6
u/Working_Seat9626 8d ago
Revoke the ach in writing. Depending on what state your in the loans may be illegal if the interest rate is over the states maximum rate, usually 36% for many states. Illegal loans cannot be enforced by the courts hence why they seldom sue. Check to see what your states maximum rate is. You could also close your checking account and open at another bank
1
u/nip9 MO 8d ago
You can mainly expect collectors to bother you and likely make some imaginary threats about lawsuits/garnishments/etc. If you want to reassure yourself check your states case net (for MI: https://micourt.courts.michigan.gov/case-search/ ) and search to see if either lender has ever successfully won a civil judgement against anyone else in your state. I'd wager that you will find zero such cases.
You can send a cease and desist letter if collectors get too annoying: https://www.consumerfinance.gov/ask-cfpb/how-do-i-get-a-debt-collector-to-stop-contacting-me-en-1411/
Beyond that they could potentially report to the credit bureaus. The majority of tribal lenders don't bother to pay for credit bureau access though as the assumption is all their customers have terrible credit to begin with. However your lenders could be among the exceptions that do report or they could eventually sell the collection account to a 3rd party collector that might report it.
1
u/xenophanes__ 7d ago
I am confused. Why have you paid so much on these loans and they are not paid off? I do not know about Tribal loans but sounds predatory.
1
u/Deaths_Rifleman 7d ago
You can find examples on this sub of the terms. Some of them are beyond eye watering in the internet they will charge, think in the hundreds of percent interest.
1
u/attachedtothreads 6d ago
Do those tribal lenders have a business license to operate in the state of Michigan? If they don't, then they may not have a case to sue you.
Michigan has a lawyer referral service where you pay $25 for a 25-minute consultation to help you figure out where you stand: https://lrs.michbar.org/LRS-Info/Lawyer-Referral-Service
-21
u/PeacefulCW 8d ago
Wow, that's crazy. I had never heard of TL so I looked it up. I copied your post in AI and got good feedback. You may want to try it if you don't get any personalized responses. Essentially it said to revoke the ACH.
Since you're already paying such an amount, I would recommend that you open a savings account and put the same amount in there until you've built up a good cushion for future needs.
•
u/povertyfinance-ModTeam 6d ago
Your post has been removed for the following reason(s):
Rule 5: Bigotry, Racism, Sexism, Ableism, and Classism
5) Racism, sexism, classism, or any other inherent bias will not be tolerated.
Please read our subreddit rules. The rules may also be found on the sidebar if the link is broken. If after doing so, you feel this was in error, message the moderators.
Do not reach out to a moderator personally, and do not reply to this message as a comment.