Pay Day Loans Threats

I have eight payday loans that are eat my pay check up with the fees , and now I can not paid my monthly bills or even buy food Iam walking to work, every payday the fees are taking my paid .Please I need help I can not paid my rent this month I am at my last rope Please help . I want to get rid of this debt.

London

I suggest first, you ask your financial instituion to change your account number. Although this is wrong, this will keep your paycheck from disappearing from you. From there you can call each loan company and work something out with them. I suggest you attempt to pay one off every two weeks.

Pay off the one that has the higest interest rate first. But also remember that most payday loan companies will charge you that fee each payday, and thus will create an even bigger loan.

In the future try to stear clear from payday loan companies. These are usually only a quick fix for an extreme emergency and usually are suppose to be paid back no more than 2 weeks later.

Try sticking to a budget for the next few months, maybe buying cheaper grocery items and keep walking to work. This will eliminate the need for gas for transportation. This will help you have added funds to the loans that will need to be repaid.

And soon enough, you'll be clear from the dangers of the loan companies.

Remember also they may have a right to do a wage assignment to your paycheck. Read each loan agreement carefully. You also have a right to revoke any wage assignments you have may have signed.

Regards-
Mike

I got an initial loan of $300 from ameriloan, I deferred it for the first four payments at $90 each so paid $360 before I even was to start paying on the principal. On 9-10 I faxed them page 2 of their agreement, thinking this was cancelling the deferrment and that the next draw on my account would be for the $390 that I still owed. I put a stop payment with my bank on the $140 that would have been the regular payment, so all they could get would be the $390. They did not even try for the $390, they took the $140, in $90 and $50, to get around the stop pay that I had placed for $140, my bank reversed it because they agreed with me that I had no idea that they would do it that way. Yesterday they drew $465 from my account. I called and talked to Supervisor "Brittany" who told me she was the end of the line and no one was going to give me my money back because I had sent the wrong form to cancel. This withdraw cost me $256 in fees with my bank because it overdrew my account. I filed a police report for unauthorized withdrawls which the bank says will do me no good, I filed a complaint wiht the Indiana Finanacil Institutions Board, who can not even find where Ameriloan is based. Any ideas what else I can do?

Caril

Welcome to the forums. Is this your first loan with ameriloan?

If you're worried about any more drafts on your account I would recommend chaning your account number. Although I'm against defaulting on your loan, you have to do what you have to do. To me---it sounds like you've already paid well over what you owe on the $300 loan. Could you please explain the total amount you've paid to this company? Do you still owe them money?

Sorry to hear of your troubles, but if you signed a loan agreement, you may be out that money. If that money was due to them, they had every right to attempt to get their money back. It states somewhere (in most loan agreements) that they will attempt to get their money back as often as need be after the due date, and hitting your account as many times as need be.


Regards-
Mike

They called me and said I owed $440 - had all my information - said that I had falsified my S.S. #, my bank account #, etc. etc. Told me they were going to call my employer. I work for attorneys - so told her that - and then suddenly her tune changed. I haven't heard from her again. I did make an arrangement for them about 30 days prior to this call - to take $91.25 from my account - but then they are also taking $10 each time they collect. It is also more than I really owed them...but they told me if was their fees; I have two payments left - so I think I am going to have the next payment stopped because obviously, it isn't the loan I took out in the first place...and they have already been repaid for the loan, if in fact, it is the same people.

Cindy, also inform your bank about it. I feel that they should be informed about this thing.

i borrowed $250.00 dollars a year ago and now i am receiving a call form a collection agency saying either i pay the amount or they will put me in jail for a bad check which i live in tennessee and we do have bad check laws here. Can they do this threaten me and put me in jail.

paulabeth

I would ask for them to validate the debt. If you're just now receiving a call about it, you have every right to ask for validation. If this is a collection agency, then they have to abide by the FTC rules. Any collection agecny cannot, however, intimidate you with arrest. Only the State can do that. Unless this is the Sherrifs Department, or a special unit by state trying to find out where you live and such, because a merchant turned over your check to them, then I would not worry about getting arrested.

Find out the name of the company that is calling you. Ask for written validation. Or you could mail them the following template...

Your Name
123 Your Street Address
Your City, ST 01234

ABC Collections
123 NotOnYourLife Ave
Chicago, IL

Date:

Re: Acct # XXXX-XXXX-XXXX-XXXX

To Whom It May Concern:

This letter is being sent to you in response to a notice sent to me on
September 30, 2002). Be advised that this is not a refusal to pay, but a
notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC
1692g Sec. 809 (b) that your claim is disputed and validation is
requested.

This is NOT a request for “verification” or proof of my mailing address,
but a request for VALIDATION made pursuant to the above named Title and
Section. I respectfully request that your offices provide me with
competent evidence that I have any legal obligation to pay you.

Please provide me with the following:


What the money you say I owe is for;
Explain and show me how you calculated what you say I owe;
Provide me with copies of any papers that show I agreed to pay what you
say I owe;
Provide a verification or copy of any judgment if applicable;
Identify the original creditor;
Prove the Statute of Limitations has not expired on this account
Show me that you are licensed to collect in my state
Provide me with your license numbers and Registered Agent

At this time I will also inform you that if your offices have reported
invalidated information to any of the 3 major Credit Bureau's (Equifax,
Experian or TransUnion) this action might constitute fraud under both
Federal and State Laws. Due to this fact, if any negative mark is found
on any of my credit reports by your company or the company that you
represent I will not hesitate in bringing legal action against you for
the following:

Violation of the Fair Credit Reporting Act
Violation of the Fair Debt Collection Practices Act
Defamation of Character
If your offices are able to provide the proper documentation as
requested in the following Declaration, I will require at least 30 days
to investigate this information and during such time all collection
activity must cease and desist.

Also during this validation period, if any action is taken which could
be considered detrimental to any of my credit reports, I will consult
with my legal counsel for suit. This includes any listing any
information to a credit reporting repository that could be inaccurate or
invalidated or verifying an account as accurate when in fact there is no
provided proof that it is.

If your offices fail to respond to this validation request within 30
days from the date of your receipt, all references to this account must
be deleted and completely removed from my credit file and a copy of such
deletion request shall be sent to me immediately.

I would also like to request, in writing, that no telephone contact be
made by your offices to my home or to my place of employment. If your
offices attempt telephone communication with me, including but not
limited to computer generated calls and calls or correspondence sent to
or with any third parties, it will be considered harassment and I will
have no choice but to file suit. All future communications with me MUST
be done in writing and sent to the address noted in this letter by USPS.

It would be advisable that you assure that your records are in order
before I am forced to take legal action. This is an attempt to correct
your records, any information obtained shall be used for that purpose.

Best Regards,

Your Signature
Your Name

***

Writing bad checks is against the law. However mistakes do happen. The collection agency does not know the situation. So remember, the ball is still in your court. If they continue harassing you, mention to them that they are calling a line that is being recorded, and ask them to cease & desist contact via telephone.

Hope this helps. If you have any more questions, let us know.

Regards-
Mike

I am having the same problem with this company,they first said they were BMG Consulting,Then emax,I had set up payments with them at first but then I realized it was the loans I paid off With Ellis Crosby,I sent them proof they said they never rec'd & they were suppose to stop the payments coming out and 1 did, I have over paid now and try getting the money back in your account & every time I call I talk to someone different and can't get an answer,I have names of people that I have talked to. I don't know what else to do . Anybody have any suggestions, I ask for a new number to contact the people I have been talking with and they said they will call me.

I paid a total of $825 for a $300 loan. Plus what my bank charged me when my account was overdrawn because they drew $465 out in a lump sum without my knowledge.

Hi CHeryl

After you made the payment to Ellis Crosby, they should have updated your account as 'paid' to the credit bureaus. This was not done and as a result, another collection agency is trying to recover the same debt from you.

Do you have the receipt of your payment made to the previous company? You can show them a copy of your receipt of payment made and prove that the debt has already been paid by you towards the account.

Also, send a copy of your letter to the credit bureau and request them to update your account. Though your account might have been sold to the collection agency, but contacting your creditors can also solve some of the problems here.

You might also think of lodging a consumer complaint at the FTC, BBB and the state attorney general office and request for immediate action. Sending them a copy of all your correspondences will be helpful.

Regards
Roxette

The attorney general in Florida is in the process of shutting down Ellis Crosby & Associates due to their breaking the law and saying people owe more than they do, and they pocket the money.

I am in way over my head. I have seven different payday loans with companies over the Internet. It has gotten to the point now that paying all the interest is eating up my paycheck and I am unable to meet my other obligations. How can I stop this cycle? I want to be free of the loans but I don't know how to do it. If I could somehow stop these companies from taking the money out of my checking account and be able to make payment arrangements with them, this would help me alot.

I closed out my checking account and made arrangements with the different companies to pay a little each pay period and they stopped charging the interest. If you received a loan through Sonic, that do not make payment arrangements. This was the only way I could break the endless cycle. best of luck to you!!!!

It would seem with Sonic they would attempt to honor you attempt to make payment arrangements. Their wage assignments are void if you didn't sign it and fax it to them. Well---even then, wage assignments are void if they are NOT signed in person.

Stamped signatures and type SSN#'s are not considered proof as making a loan. That would basically state that I could go and claim I lost my soc sec card, get a new one (claiming to be someone else), and write something up, and get someone's paycheck.

This is illegal, and although I'm not trying to get people to stray away from paying off their payday loan...I am stating that these type of wage assignments are not legal.

Regards-
Mike

Rhonda,

What did you do about Sonic Payday since they don't accept payment arrangements?

Kathy