Bills Logo

Advice and tips on payday loans payment arrangement

Mark Cappel
UpdatedOct 8, 2007

How can I get payday loans to stop being able to get into my account and make them payment?

How can i get payday loans to stop being able to get into my account and make them payment I can't pay the internet any more and still make my other bills. I need real help here.

These small loans, also called "cash advance loans," "check advance loans," or "deferred deposit check loans," are a frequent pitfall for consumers. A fee anywhere from $15-$30 per $100 borrowed is charged for an average loan of $300. With rates so high and the term of the loan so short there's no wonder that a very high percentage of these loans are rolled over by the borrower again and again so that the accumulated fees equal an effective annualized interest rate of 390% to 780% APR depending on the number of times the principal is rolled over.

Frequently, payday lenders require borrowers to provide a post-dated check for the balance of the loan plus finance charges, which the lender will negotiate on the loan's due date. If you have provided your payday lender with a post-dated check, probably the easiest way to prevent the lender from negotiating the check is to place a stop payment on the check with your bank. In order to place a stop payment, you would need to provide the bank with the check number, the amount of the check, and the name of the company to whom the check is made payable. Before placing a stop payment on your check, you should consult with your banker to discuss any possible problems stopping payment on the check may cause you. In addition, you should keep in mind that some payday lenders use electronic debits rather than physical checks, and it may be more difficult to stop these electronic debits. The definitive way to stop any further checks or electronic debits from being processed would be to close your bank account and open a new one with a new account number. Your banker should be able to advise you one what you need to do to keep this company from accessing your bank account, and if closing your current account is appropriate given the situation.

Editor’s note

Comments on this page are closed. See Payday Loans to learn how to handle payday loan collections. See the payday loan resources for California, Florida, Illinois, Massachusetts, Missouri, New York, Texas, and Virginia to learn more about payday loan laws in those states.

Even if you are able to stop the payday lender from debiting your bank account, you will still owe them money, so you will need to formulate a plan to address these outstanding loans. You can get out of this trap if you are a resident of one of the twelve states where this type of loan is illegal once the effective rate passes the usury cap in that state. Usury laws dictate the maximum interest that many lenders may legally charge. If the payday lenders follow their normal business model the loan will most assuredly pass the limit very early. New York State even has a criminal statute that sanctions the lender if the rate exceeds 25%. If you are in one of those states, the loan may be void, and you may be only liable for the principal amount borrowed. In addition, there are eight states whose payday loan regulating statutes require lenders to set up an installment repayment plan if an account reaches the maximum number of rollovers allowed by law and the debtor declares that he/she is unable to pay the balance due. Such a repayment plan may help you in paying off these loans. You can find a summary of your state's pay day loan statutes at a website developed by the Consumer Federation of America. If you go to the same site and click on consumer help, you will find a comprehensive discussion of the best strategies of how to cope with and get out of the payday loan trap.

If you do not live in one of the states whose payday loan regulations favor consumers, the best solution would be for you to borrow the funds needed to repay these loans from a conventional lender or a family member or friend. Converting your payday loans to a conventional loan should allow you to repay the loans within a reasonable time frame and at a reasonable interest rate. If you cannot borrow the funds to repay the payday loans, you may want to make a payment each month to pay down the balances. In some states, the interest on the loans will prevent you from effectively repaying the debts in monthly installments; if you find that to be the case, you should contact the payday lender to try to work out repayment terms that will work with your budget. Hopefully, one of these options will help you resolve your outstanding payday loans. also offers more information on the Payday Loan Information page, and has answered reader questions about payday loans in California, Florida, Illinois, Massachusetts, Missouri, New York, Texas, and Virginia.

If you do not repay a payday loan, the payday loan company has several legal remedies, including wage garnishment, levy, and lien. See the resource Collections Advice to learn more about the rights of creditors and debtors.

I wish you the best of luck in repaying these payday loans. I hope this information helps you Find. Learn. Save.




UUnknown, May, 2011
Hi! I've had payday loans too and they are very expensive!! I'll tell you what I did to stop them: first I put a stop payment on the check that the lenders have (it costs about $30) then i setup a repayment plan with the lending company- so for example if my loan was for $800.00 plus $200.00 interest- I paid $1000.00 over time. just make sure you pay it within 6 months because the stop payment is usually only valid for 6 months so after that the lender will try and resubmit the check if you haven't paid in full by then. hope this helps!
BBill, Feb, 2010
A civil suit is theoretically possible. Calling your employer (other than to verify employment) is illegal. See the resource Advice on Pay Day Loan Collections for a discussion of the rights of creditors and consumers in a payday loans collections setting.
ccynch, Feb, 2010
I owe a thousand dollars to a payday loan company. I wanted to pay them in installment but the collection company refuses for a settlement. Instead,he threat me file a civil suit against me and contacted my employer. I need your advice. Thanks.
BBill, Mar, 2009
Frances, is a website created to give you the best self hep tips and resources to save. We are not a lending institution and do not lend money like banks. We have a wealth of information on our site and you can take a look at some payday loan information here: You can also look for answers specific to payday loans in the loans section of our blog at
FFrances Freeman, Mar, 2009
I have 2 payday loans and I want them paid off with the little income I have. The interest is horrific. Can you help me.