Below are some options if you took out a payday loan. One thing you should not do is take out another payday loan to pay for the other. This will only make the problem worse.
1. Ask your payday lender for a repayment plan
A repayment plan allows you to stop the interest from building up on the debt after 35 days. If you have not paid off a payday loan after 35 days, you can ask the payday lender for a repayment plan.
2. Repay in installments
The repayment plan will give you at least 55 days to repay the loan in installments with no more charges of any kind. If you and the payday lender agree, the repayment plan can be extended even longer, to 90 days.
Call your bank
If you signed an agreement allowing the payday loan company to take its payments directly out of your bank or checking account, you should call your bank and tell them you want to cancel that agreement.
If you gave a post-dated check to the payday loan company, they will probably try to cash it. If the check bounces, your bank will charge you a fee. It may be as high as $30.
You can call your bank and tell them not to pay on the check. There will be a small fee for this.
Note: The loan company is not allowed to file a criminal complaint against you for a bad check.
File for bankruptcy
Talk to a lawyer
If you have borrowed money from a payday loan company or a title loan store, talk to a lawyer to see if they can get you off the hook. Sometimes short-term lenders do not follow all the laws.
File a complaint for a payday loan or title loan
Complaints against a payday loan outfit or a title loan lender can be directed to:
Illinois Department of Financial and Professional Regulation
Phone number: (312) 814-2000
T.D.D. (312) 814-7138