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 Posted: Fri May 26, 2006 9:03 am Subject: My loan with Pay Day Select went into default |
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My loan with Pay Day Select went into default. The amount I owe is 241.57 and the rep informed me that the daily finance charge of 1.75 will continue to acrue against my balance when it is past due. Can they do that? I told them the debt is turned over to the debt consolidation company and they will receive a proposal. They said for my counselor to fax in the proposal and they will send a counter proposal.
The lady also informed me that the company is in compliance with their state laws (the company is in Delaware) and fidc laws. The terms and conditions are binded to their state laws not mine.
Is it legal to acrue a daily finance charge of 1.75 dollars against my past due balance?
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sapphiredreams
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| Posted: Fri May 26, 2006 12:05 pm Subject: |
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Hi
Have you reviewed the loan agreement thoroughly? I will like to review the terms and conditions in the contract before coming up with anything.
If the company is complying as per the state laws, it should be clearly put in the contract. They should not come with something like this at the later period.
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john
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| Posted: Fri May 26, 2006 12:06 pm Subject: |
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Whose state laws should they comply? My state or theirs?
_________________
They used to say I was
nowhere, man,
heading down
was my destiny.
But yesterday, I swear,
that was someone else not me
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sapphiredreams
Joined: 16 May 2006
Posts: 260
Debtcc Points: 5258
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| Posted: Fri May 26, 2006 12:25 pm Subject: |
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In general, the laws of that state should be considered where the borrower is residing. But if the company is subjected to its state laws, it must be put in the contract in clear words.
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john
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| Posted: Fri May 26, 2006 1:22 pm Subject: |
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By my research done, Delaware has one of the worst laws when it comes to the payday lenders. I am not surprised that the payday lenders established their addresses there or in UT. UGH!
It gets more confusing for me. Truth in Lending Act states the lender must be in compliance with the laws in the borrower's state. But you said if the company is subjected to its state laws, it must be put in the contract in clear words? So which is correct?
The thing is I did not keep ANY of my loan agreements so I am pretty much screwed. I dont know what the terms and conditions were.
_________________
They used to say I was
nowhere, man,
heading down
was my destiny.
But yesterday, I swear,
that was someone else not me
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sapphiredreams
Joined: 16 May 2006
Posts: 260
Debtcc Points: 5258
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| Posted: Fri May 26, 2006 2:02 pm Subject: |
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That's the point. If a company is going against the Truth in Lending Act subjected to their state laws, it should be pointed out in the contract first and avoid any confusions later.
Can you ask for a copy of the contract from the lending company?
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john
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| Posted: Fri May 26, 2006 5:47 pm Subject: |
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John---As long as you are on the topic of defaults would you explain something for me? All of my PDL's are in consolidation w/T&C, so I haven't they haven't taken money from my account for four weeks now. Does that mean that those loans have been defaulted on? Or is it different because they are with T&C?
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Lorri
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| Posted: Fri May 26, 2006 5:53 pm Subject: |
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Lorri - My take is that the consolidation company and the lending company need to have a sound negotiation over the proposal. Since the lending company has not received any money towards your account, it might be taken as defaulted till something has been arranged. But your counselor should hit with the final deal quickly not allowing further roll on charges. A good counselor will be able to waive off those added fees. Period!
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john
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| Posted: Mon Aug 06, 2007 4:12 pm Subject: payday select |
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help
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