Using state law to get out of your debts!

I read Clay's blog and really needed to add my two cents here. I used my state usury laws to request a refund or, request my pdl's get paid in full notations because:

I have paid so much into them that I paid them twice over in reality. Some are almost one year old! When I requested a refund, I deducted the amount of the original loan and I even gave them the percent of interest that my state allows and then asked for the remaining to be my refund. I felt that was the right thing to do.

Now, if you have any pdl's that you are thinking about sending letters too, be sure that you at least have the amount of the loan paid. Otherwise that is mucho bad karma and will come back to bite ya! I don't know anyone who will back that request up if you have only made only a payment or two. Be fair about this and you will feel better. If you took the money, you should pay it back. The interest rate is the real devil in all of this. The laws will protect you as long as you don't abuse them

You don't want to be the one getting into trouble so do the right thing when using your state laws.

During our payday delemma, we over paid each one I sent the letter to. Only got one refund, but I am happy that they forgave the loans. I totaled up the amount paid to them and I could have made house payment and van payment with just the interest paid.

I agree, Linnie.

A lot of my payday loans were refinanced or rollovered....my state does not allow that. However, I kept paying refinance/interest fees before I could pay down the principal. Now I am looking back at my old bank statements....I shuddered to think of all the money I lost! It's ridiculous! How embarrassing....the high fees or refinance fees I kept paying would have paid off my daughter's medical bills easily!

I also agree with Clay's blog and the other comments made here. The one's that we had that were forgiven had been WAY overpaid and we are still paying on some. With the interest paid on some of them I also could have paid house payments and car payments. I know I borrowed the money and am committed to paying back what I borrowed but no more than allowed in my state. Don't try to get out of what you've borrowed just because you don't think you should have to pay them back if they aren't licensed in your state, be honest - pay back what you've borrowed.

Sounds like everybody is in the same boat as me. I just read a thread last night that made me cringe about somebody asking for money back on a $300.00 loan and they only made one payment of $90.00. Thats just not right.

darn it, that last post was me. I got kicked out for some reason

I was having that problem yesterday Linnie, but it seems to be okay now.

I did not read that specific post but there were others on here trying to get their loans forgiven when they had only taken them out a week before. Come on people pay back what you borrowed and be honest!

This is all very true.

It's kind of the same thing as borrowing from a family member...If they loaned you $50, would you pay back $30? No, you pay back what you borrowed. Grandma is probably not licensed either. ~

When you borrow from a PDL, licensed or not, you have to pay back what you borrowed. But use your state laws to your advantage...But make sure that YOU are following the guidelines as well. If you haven't paid what's allowed in your state, you will not be taken seriously.

there ya go, you said it perrrrrfectly

Not be taken seriously. If you are going to quote your state laws, you will want to sound professional doing it. You want to apppear as though you know your rights inside and out and will have no problem doing what is in your letter. You are more likely to get a refund, it your principal is paid

I have found that TExas laws are very good at kicking the BUTT of Payday loans! So, if anyone in here is from Texas and needs some help, I can PM some Texas laws your way...just let me know.

After reading all your posts, a quick thought came in my mind. Now, we are getting aware of the State laws and we want to pay within the permissible rates. So, what happened to all of us when we were not aware of these laws?? Payday loan is in business since a long time and so are the state laws. But, we, as consumers were not aware of our rights and paid lenders excessively in the past. With the same thoughts of making money, these PDL lenders came up again with their fees. But now, they can't get a penny more from us.

I am trying to focus the point that we are a fraction of people who have just become aware of the legal structure. But, there are still a vast proportion of people who know nothing about it and are paying excessively. Education needs to be spread through the internet and the local authorities about the Truth in Lending Act so that more and more people know about the state laws and do not waste their hard earned money.

I completely agree with you. There needs to be some sort of an "advocate" service with people who use/used payday loans especially internet ones who charge excess fees etc. Is there a way to get this started or do we just continue to educate those that come to this board and hope that more and more people find it (maybe some out of desperation like me) and help themselves? I guess I don't know what the answer is except to get the information out somehow.

I just wish there was some way internet lending would be illegal period. In every state. You are approved by one pdl and passed to anther to fund you and you don't know who you owe in the end. But just like everything else on the web that should not be there.....too hard to control.

Any suggestions, you all can give?? I guess the government should have run some programs for awareness. But we have to visit them to get the info. It doesn't come out from the shell.

The thing that we can do from our side is to get periodical updates from the law enforcement agency. Get in touch with the local AG's office so that we come to know about the latest activities. We can spread message within the people at our reach so that it keeps growing further. My sister's friend was not aware of the state laws and she was paying high charges towards the principal. Now, she knows the facts and she will spread the message to few others. No one remains in the dark forever! We have to take initiative!!

I think it needs to start within each state. Some states allow this kind of crap. Have you noticed how many PDL's are located in Nevada and New Mexico. Ridculous!

My concern is if we all were this ignorant of our rights and laws, then there must be thousands (millions--who knows?) more just like us. And I agree (can't remember who posted it) that some type of advocate should be in place for "victims" of these scams.

Here is my question---how many of you actually read ALL of the fine print on those pdl contracts we signed? I know I didn't, (at least not very carefully) and to tell you the truth I was usually pretty desperate for money, so I don't know if I would have cared. I now wish I had read them and maybe been smart enough to take them out. But, that was in the past--