Payday loans...What drives me crazy

Have you noticed that these animals take your payments in more than one debit?

I may be all "conspiracy theory" here, but I have an idea of why...

If there are multiple debits, they increase their chances of half of the payment not coming through, right? So that means they get to charge you late fees, and re-loan fees and all that, just to keep the cycle going.

It's gross.

What I get from this, your lender hit your account for more than one time to withdraw a particular amount, right? See the papers of agreement. They cannot do whatever they like. There are certain rules and regulations; moreover they cannot take out money from your account before the date you agreed to pay them.

Under Truth in Lending Act, all the lenders should disclose all the terms and conditions of the loan while lending money. Please go through this thread, though it would be helpful:

http://www.ftc.gov/bcp/conline/pubs/alerts/pdayalrt.htm

What I'm talking about is, say you owe $60.00. They take out 2 debits of $30 each. I was just going through my bank statement, and not one of the payday lenders took out one complete debit...I.E. Quickest Payday..I owed them $390, so they took out 2 payments for 195.00. So if one for some reason would not have cleared, I would still owe $195.00.

Did your lender notify you that they will withdraw money in installments or they just did it? The date of withdrawals should be declared before the date, so that if your account has insufficient fund, you can make suitable arrangements.

If they are doing this purposefully, then it should be brought under attention of FTC.

No, they didn't say it would be in "sections." It was all on the same day, but I can't help but wonder if they're hoping only one part would go through to keep me from closing the account. That's how they stay in business--By us reloaning and renewel fees.

Maybe I'm just paranoid.

Jessica,

IMHO, go through the papers of agreement once again and see if they have mentioned anything about the process of taking money from your account there. Chances are you won't find any clue in the loan papers.

You can file complaint with FTC for hiding information from you. Your account statement will support your charge against them. Creditors as well as these payday lenders are not allowed to conceal any important information from the consumers, hence they are guilty.

I will do that. I did have more than enough money in the account to cover it, but it just made me wonder...That and I didn't sleep too good last night, so I'm a bit cranky today. My poor regional manager called me today to ask if the electrician fixed our lights, and I went into a lecture about how he needs to get a new one because this one is wasting company money by not fixing things...lol

This discussion reminds me about a discussion we had just a few days back. One of the forum members tried to repay the amount with the original payday lender, but the OC refused to receive it saying the account has been transferred to CA. They mentioned the name of the CA also.

Surprisingly, CA did not have any information about this account, hence they also refused payment. Now this consumer was moving to and forth between CA and OC.

Don't you think, this session will add some more charges over the loan? It can be a deceptive practice too. What you say?

http://www.debtconsolidationcare.com...rocessing.html

It sounds like it would. These companies are dirty and count on people not being informed. I wish I was when I got into this mess.

You are exactly right, those companies prey on the individual in trouble.

Interesting topic and yes I agree that payday lenders are unethical. I am dealing with them now along with my debt consolidation company. Before I closed my checking account, I thought about putting stop payments on these withdrawals. I knew some lenders did two debits as Jessica stated. I would have had to pay two stop payments for the same company. It seemed outrageous to me so I just closed my account. I opened a new one and no payday lender will get that information. Let's just be grateful that we are becoming educated consumers with the help of this forum. It has been a great asset to me when I've been dealing with these loan sharks recently. We need to educated people from not taking these types of loans. I wish I would have been but I've learned my lesson.

They're animals. And you brought up a good point, about the 2 stop payment fees. I think at my bank they're $25.00. So I would have to pay $50 of my own money to stop them. It's disgusting.

One thing to remember when dealing with these companies is to stand up for yourself. Learn your rights, state laws, etc. This will be a great tool when dealing with payday lenders, especially online ones. It has been for me.

If I'm still in my grumpy mood tomorrow, maybe I'll call these places and ask what good reason they have for the multiple debits..

What I can guess is, they got tired of people stopping payment, so they put through TWO..so at least they'll get half.

Here's an example..I cut and pasted this from my statement..

01-31-2006 ACH CREDIT MATTRESS FIRM IN PAYROLL 823.39

01-31-2006 ACH DEBIT XTRA CASH XTRA DEB 390.00

01-31-2006 ACH DEBIT COASLINE CREDIT DEBIT 251.96

01-31-2006 ACH DEBIT COASLINE CREDIT DEBIT 251.96

01-31-2006 ACH DEBIT ALPHA FEE DEPOSI 200.00

01-31-2006 ACH DEBIT TELMERICA-WWCASH PRIN PAID 200.00

01-31-2006 ACH DEBIT TELMERICA-WWCASH FEE PAID 89.00

01-31-2006 ACH DEBIT ALPHA FEE DEPOSI 60.00

So see? Three out of four of these companies did the 2 debit thing..It's annoying.

But I am in a better mood today. lol

Yes, just think that you have these almost paid off.