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The experience of holding a loan with Lendumo can often be accompanied by considerable financial strain due to the nature of these short-term installment loans. Reports indicate that interest rates can range from an exceptionally high 400% to 700% or even more, leading to significant repayment burdens for borrowers. Customer feedback submitted to platforms like the Better Business Bureau (BBB) frequently cites concerns about these elevated interest rates and what are perceived as predatory lending practices. For individuals facing such financial pressures, understanding the available avenues for relief is paramount. This article aims to provide a comprehensive guide, outlining immediate steps and various strategies that can be considered to navigate and ultimately get out of a Lendumo loan.
For those who have recently obtained a loan from Lendumo, there might be a brief window of opportunity to cancel it without incurring interest charges. According to Lendumo's own frequently asked questions, a borrower has until 3:00 p.m. Central Standard Time (CST) on the second business day following the "Disbursement Date" to initiate the cancellation process and return the funds. The Disbursement Date is defined as the day the funds were transferred to the borrower's financial institution. To pursue this option, it is crucial to contact Lendumo's customer service immediately at 877-558-1999. Given the very limited timeframe, anyone who has just taken out a Lendumo loan and is having second thoughts should act without delay to explore this potential for immediate cancellation.
Even if the cancellation window has passed, reaching out to Lendumo directly remains a vital initial step. By contacting their customer service at 877-558-1999, borrowers can discuss their specific situation and explore any available options. For instance, if a scheduled payment is imminent and there is a risk of missing it, Lendumo's policy allows for a request for a three-day courtesy extension. This short extension could provide valuable breathing room for individuals anticipating an upcoming paycheck or other income. Furthermore, Lendumo states that there are no prepayment fees associated with their loans. This means that any amount a borrower can afford to pay back early, even if it's not the full balance, will help reduce the principal and the amount of interest that accrues over time, ultimately lowering the total cost of the loan. While customer reviews often highlight negative experiences, direct communication with the lender is still a necessary action to understand the specific terms of the loan and any flexibility that might be available.
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A significant development that may offer relief to many individuals who have taken out loans from Lendumo and related entities is the Fitzgerald v Wildcat class action settlement. This lawsuit addressed allegations that the LDF Lending Companies, which include Lendumo, charged annual interest rates that exceeded what is permissible under state laws, or operated without the necessary lending licenses. The final approval for this settlement was granted on December 17, 2024, and it became effective on January 16, 2025.
A key outcome of this settlement is the cancellation of all unpaid loans that were issued by the LDF Lending Companies between July 24, 2016, and October 1, 2023. This amounts to approximately $1.4 billion in debt being cancelled across all eligible class members. Additionally, class members who did not opt out of the settlement are also slated to receive automatic cash payments from a fund totaling $37.35 million. The amount of these payments will be determined based on applicable state laws and the amounts that individuals paid on their loans.
Individuals who entered into a loan agreement with any of the LDF Lending Companies, including Lendumo, during the period from July 24, 2016, to October 1, 2023, are likely considered members of the Settlement Class. Importantly, no claim form was required to receive the benefits of this settlement. For those who fall within this eligibility window and have an outstanding loan from Lendumo within that timeframe, the settlement offers a significant possibility of complete debt cancellation without any further action needed on their part. The distribution of cash payments is anticipated to occur within 60 days of the settlement's effective date of January 16, 2025. To obtain the most comprehensive and up-to-date information regarding the settlement, including the list of the 20 lending entities involved, individuals should visit the official settlement website at www.consumerloansettlement.com. The settlement notices also mention the option to contact Class Counsel for further clarification and guidance.
Beyond the potential relief offered by the Fitzgerald v Wildcat settlement, several practical strategies can be explored to manage and ultimately eliminate Lendumo loan debt.
In certain jurisdictions, borrowers facing difficulties in repaying a payday loan have the right to request a repayment plan. While the research snippets specifically mention Washington state law (RCW 31.45.084), which mandates that payday lenders offer an installment plan to borrowers who notify them before the due date that they cannot pay , it is worth investigating whether Lendumo, even as a tribal lender, offers similar options in other states. Under Washington law, for loans of $400 or less, the repayment plan must extend for at least 90 days, and for loans exceeding $400, the term must be at least 180 days. Importantly, lenders in Washington cannot charge any additional fees for entering into such a plan, although a one-time default fee of $25 can be applied if an installment payment is missed. Individuals struggling with their Lendumo loan should consider contacting Lendumo to inquire about the possibility of establishing a repayment plan, even if the specific legal requirements of Washington state do not directly apply in their location.
Seeking assistance from non-profit credit counseling agencies is another valuable step. These organizations are dedicated to helping individuals manage their debt, develop budgets, and gain a clearer understanding of their financial situation. Many credit counseling agencies can also offer Debt Management Plans (DMPs), where they work directly with creditors to potentially negotiate lower interest rates and waive certain fees. This can lead to more manageable monthly payments and a faster path to becoming debt-free. When selecting a credit counseling agency, it is advisable to look for those accredited by reputable organizations such as the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA). Here is a table of some well-regarded non-profit credit counseling agencies:
| Agency Name | Contact Phone Number | Website | Brief Description of Services |
|---|---|---|---|
| American Consumer Credit Counseling (ACCC) | 1-800-769-3571 | https://www.consumercredit.com/ | Offers free budget counseling and debt management programs with potential enrollment and monthly fees. |
| Family Credit Management | 1-800-432-8103 | https://www.familycredit.org/ | Non-profit organization providing debt management, credit counseling, and financial education. May charge set-up and monthly fees. |
| Cambridge Credit Counseling Corp. | 1-800-948-9655 | https://www.cambridgecredit.org/ | Non-profit agency offering free initial consultations and various counseling services, including debt management, bankruptcy, and housing. May have enrollment and monthly fees for DMPs. |
| Consolidated Credit Solutions | 1-800-435-2261 | https://www.consolidatedcredit.org/ | Non-profit agency offering debt management, credit counseling, and financial education. Provides free initial consultations and may charge fees for DMPs. |
| GreenPath Financial Wellness | 1-866-648-8117 | https://www.greenpath.com/ | National non-profit offering free financial counseling, debt management plans, and housing services. May charge fees for certain services like DMPs. |
| Money Management International (MMI) | 1-866-864-2955 | https://www.moneymanagement.org/ | Non-profit agency providing credit counseling, debt management plans, and housing counseling. Offers free counseling sessions but may charge fees for DMPs. |
Another potential strategy is to explore Payday Alternative Loans (PALs) offered by federal credit unions. PALs are specifically designed to be a more affordable and safer alternative to high-cost payday loans like those offered by Lendumo. These loans typically come with lower interest rates, capped at 28%, and offer longer repayment terms, ranging from one to twelve months depending on the type of PAL. There are two primary types of PALs:
To qualify for a PAL, individuals must be members of a federal credit union that offers them. It is advisable to contact local federal credit unions to inquire about their specific PAL offerings and membership requirements.
Debt consolidation is another approach that can be considered. This involves taking out a new loan, often a personal loan from a bank, credit union, or online lender, with a lower interest rate to pay off existing debts, including the Lendumo loan. The primary benefits of debt consolidation can include:
It is crucial to shop around and compare offers from multiple lenders to secure the most favorable terms and interest rates.
Individuals should also consider exploring options with their local banks and credit unions directly. Credit unions, in particular, often have programs aimed at helping their members avoid or escape the cycle of high-interest payday loans. Some banks also offer small-dollar personal loans that could serve as an alternative. Speaking with a representative at a local financial institution can provide personalized advice and insights into available debt relief solutions.
In certain circumstances, borrowing money from trusted friends or family members might be an option to pay off a Lendumo loan. If this route is pursued, it is essential to establish a clear, written agreement outlining the loan terms, including the repayment schedule and any interest, to prevent potential misunderstandings or damage to personal relationships.
If making payments on a Lendumo loan is becoming increasingly difficult, it might be tempting to stop automatic withdrawals from your bank account. While this can provide immediate relief from debits, it's crucial to understand the potential consequences. Revoking authorization for automatic withdrawals or even closing the bank account associated with the loan can lead to fees from both the bank and Lendumo, and the lender will likely pursue other methods to collect the outstanding debt, including sending it to collections. It is strongly recommended to consult with a legal professional before taking actions like closing a bank account to stop loan payments, as this could have unintended legal ramifications.
Debt settlement is another strategy that sometimes comes up in discussions about debt relief, but it's important to approach this option with caution and a clear understanding of its risks and limitations. Debt settlement involves negotiating with creditors to accept a lump-sum payment that is less than the full amount owed to resolve the debt. While this might seem appealing, there is no guarantee that Lendumo will agree to a settlement. Furthermore, while negotiations are ongoing, interest and late fees may continue to accrue, increasing the total amount owed. Debt settlement can also have a significant negative impact on your credit score, as it is typically reported as "settled" rather than "paid in full," and any missed payments leading up to the settlement will also damage your credit history. Additionally, the amount of debt that is forgiven through settlement may be considered taxable income by the IRS. Finally, debt settlement companies often charge fees for their services, which can further offset any potential savings.
A fundamental step in getting out of Lendumo loan debt and preventing future financial difficulties is to create a comprehensive budget. This involves:
By carefully managing finances and cutting unnecessary expenses, individuals can free up funds to put towards debt repayment or building an emergency fund. Increasing income through additional work or a side hustle can also accelerate the debt repayment process. Establishing an emergency fund is particularly important to avoid the need for high-interest loans like those from Lendumo in the future when unexpected expenses arise.
If you experience issues with Lendumo, such as feeling harassed or believe they have engaged in unfair lending practices, it is advisable to report these concerns to the appropriate regulatory bodies and consumer protection agencies. For instance, if you are in Washington state, you can file a complaint with the WA State Department of Financial Institutions (DFI). On a national level, the Consumer Financial Protection Bureau (CFPB) allows consumers to submit complaints about payday lenders. Additionally, the Online Lenders Alliance (OLA) provides a consumer hotline at 866-299-7585, and Lendumo itself has a Tribal Hotline that can be reached at 844-388-0500.
In situations where you are unsure about your legal rights or facing potential legal action from Lendumo, seeking advice from a qualified attorney is highly recommended. Consulting with a lawyer can provide personalized guidance based on your specific circumstances and the laws in your jurisdiction. This is particularly important before taking significant actions like closing bank accounts to stop loan payments.
Getting out of a Lendumo loan can be a challenging but achievable goal. By understanding the immediate options, such as the cancellation policy, and exploring longer-term strategies like requesting repayment plans, seeking credit counseling, considering Payday Alternative Loans or debt consolidation, individuals can take proactive steps towards financial freedom. The Fitzgerald v Wildcat settlement offers a significant opportunity for debt relief for many past borrowers. It is crucial to avoid potential pitfalls like debt settlement without fully understanding the risks and to prioritize creating a budget and building financial resilience to prevent future reliance on high-cost loans. By taking informed action and seeking appropriate help when needed, individuals can navigate their way out of Lendumo loan debt and move towards a more secure financial future.
You have until 3:00 p.m. Central Standard Time (CST) on the second business day following the date the funds were transferred to your bank to cancel your Lendumo loan without incurring interest. To do this, you must immediately call their customer service at 877-558-1999.
You can contact Lendumo's customer service at 877-558-1999 to request a three-day courtesy extension on your payment due date. This might give you the extra time needed if you are expecting income soon.
No, Lendumo does not charge any prepayment fees. Paying off your loan early can save you money on accrued interest.
Yes, the Fitzgerald v Wildcat class action settlement resulted in the cancellation of all unpaid loans issued by LDF Lending Companies (which includes Lendumo) between July 24, 2016, and October 1, 2023. You may also be eligible for a cash payment. No claim form was required [6, 7, 38].
Lendumo may charge a $30 fee if your payment is more than three days late or if a payment is returned due to insufficient funds.
While Washington state law requires payday lenders to offer repayment plans under certain conditions , it's advisable to contact Lendumo directly to inquire if they offer similar options regardless of your location.
You can find accredited non-profit credit counseling agencies through organizations like the National Foundation for Credit Counseling (NFCC) and the Financial Counseling Association of America (FCAA) [12, 53]. Websites like the Department of Justice also provide lists of approved agencies [49].
Payday Alternative Loans (PALs) are offered by federal credit unions and are designed as a more affordable alternative to payday loans. They have lower interest rates and longer repayment terms. You need to be a member of a federal credit union to apply [17, 18, 35, 40, 46, 48].
If you don't respond to debt collection attempts, Lendumo could escalate their efforts, potentially leading to a lawsuit, negative impact on your credit score, wage garnishment, or liens on your property [8, 33, 34, 35, 36].
Creating a budget helps you understand your income and expenses, allowing you to identify areas where you can cut back spending and allocate more funds towards repaying your Lendumo loan. It also helps in building an emergency fund to avoid future reliance on high-interest loans [8, 12, 29, 30, 31, 32].
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