PDL Laws In Michigan

Hello, I am new to this forum and I have to say that I have obtained some very valuable information here.
I have 2 questions:

#1
I took out a pdl from Pay-day-loan-yes for $400. So far I have paid them $825 in interest and also $100 in pricipal. Have I overpaid them and should I request a refund?



#2
Loan Terms:
Maximum Loan Amount: $600
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: 15% of first $100, 14% of second $100, 13% of third $100, 12% of fourth $100, 11% of fifth $100, 11% of sixth $100 + any database verification fee
Finance Charge for 14-day $100 loan: $15
apr for 14-day $100 loan: 390%

If I borrowed $400, according to Mich law I should have only had to pay $48 in interest vs. the $120 that they charged me. But does that mean that they can still charge me the remaining $72 as a "database verification fee? I was confused by what that means. Could someone please explain this to me? I just want to make sure that I know what I am doing before I send them a letter requesting a refund and revoking the ACH. I would greatly appreciate any help you can give me. Thanks!

That is correct, if you want template letters for refunds, revocation of ach and wage assignment you can find them on my blog at http://thehub.yesdebtfree.org
Please read the tips page first, will give you some good guidance on writing and sending these letters. Goodluck with everything

Yes, you've overpaid. Michigan provides for a small database verification fee (full law here: www(dot)legislature.mi.gov/documents/mcl/pdf/mcl-act-244-of-2005.pdf), although I'm not sure if it's actually in place yet. It is supposed to be minimal, > $1 I believe.

Renewals aren't permitted, the PDLs from MI are the deffered deposit type (you give them a post-dated check, and get money now). You should have been charged $54 (15+14+13+12).

The database verification fee is designed to be charged by the state (or the designated 3rd party) running a PDL database, and passed on the consumer. While it would assist tracking customer complaints at the state level, it is designed to prevent a consumer from having multiple open loans at one time. The goal is one per person, at a time, and not allowing for multiple lenders.

Thanks for you help on this. I faxed a letter today to Payday-loan-yes requesting a refund as well as a letter to revoke the ACH and this is the response I received:





It seems to me that this is not going to be easy so what are my options now? I have yet to file a complaint with my AG so should that be the next step?

That is a common response. I would either contact your AG or just continue to send them letters saying that you know what the contract says, but you want them to respond to the issues you are raising.

msboyd - definitely contact the Attorney General - Mike Cox. You can find his information at the Michigan state website - michigan.gov.

Michigan's law is pretty clear - no rollovers allowed, or only allowed if the lender does not charge a fee for doing so. By charging you to "renew" the loan, they are breaking the law.

I am kind of worried about the pdl company that I am dealing with …..Payday-loan-yes. Do they go by any other name? I checked around on this forum and it seems that they are affiliated with Cashnet500 and I have read several horror stories about that company and that they are one of the hardest companies to deal with. I have yet to read about any success stories with them. This kind of discourages me but I will still try my best. I will file with my AG today. Should I continue to send correspondence to the pld company demanding a refund and PIF? I emailed them a letter to revoke the ACH but they ignored it and debited me once again another $140 today and I want to prevent them from doing it again. I got a raise in my paycheck today and I cant even enjoy the benefits with pdl fees coming out of my account. Should I close my bank account? I bank with National City so I don’t really know what there policy is on closing accounts. I was also thinking about signing up with T&C to see if I can consolidate the loans that I have out right now. I have read a lot of good things about them. Can anyone provide me with their contact information? I would really appreciate it.

That's the thing with the revokation of ach letters, most pdl's ignore them. But you can use that as proof of notification for you bank and request that they reverse the transaction.

I would go in with a copy of the revokation letter, and tell your bank that you feel that this company isn't going to stop. Say you would like to close your account. Open a new one, possibly at another bank. If they are affiliated with cashnet500 they are notorious for debiting accounts with ss#'s, meaning they could dip into your new account without the account number. Make sure your bank knows that these are unauthorized transactions, and ask them what will happen if this company tries again. Some banks will force open closed accounts when an ach transaction goes through.

You may have to go to your bank each time they try to debit your account to get it reversed. That is what we have had to do with Route66. Our bank will not reverse the OD charge though, even though they reverse the transaction. But definitly have your letter showing you have revoked your authorization for them to debit your account and get things set up at least 3 days or more before the next transaction is set to take place. Good luck!

I really appreciate all of the advice you all are giving me it makes me feel so much better to know that I am not alone in this. Does anyone have a contact number for T&C? I would also like to see what they can do for me.

msboyd ~ no you are definitly not alone. It is a terrible feeling, that alone thing. Trust me, you are among friends here. We have all be and some still are in the same boat, but it will get better. I promise. Just keep your chin held high and read everything you can. Knowledge is a powerful weapon and do not be afraid to use it!

Do you only have 1 pdl? If so, you may want to try doing things yourself first. You may be able to handle things and not have to pay the additional cost of hiring someone to do it for you. But it does take some time, research, and you need to have a thick skin.

If you do a search for t & c you should find the contact info and other's experiences with the company.

I have a loan out with the following:

Internet:
Edollarsdirect - loan was for $200, paid only $60
Payday-loan-yes - loan for $400, paid $915.00

Storefront:
Advance America- loan for $550
Cashland - loan for $650

I have defaulted with Cashland and I have already closed a bank account last year to keep them off my back and opened up the one that I have now. I have only had this account for about 6 months and I would hate to close it. I am still loaning with Advance America. I pay it off every payday but then I reloan so that i can pay my bills. I just cant get out of the cycle. I need help, that is why I am seeking help from T&C or some other debt consolidation program. I think it would be worth the extra cost.

I contacted Payday-loan-yes to send me a cop of my loan contract since I never received one and all that they sent me was an AUTHORIZATION AGREEMENT FOR PREAUTHORIZED PAYMENT




That is all I received, it doesn't even show how much the loan was for and it doesnt have a section showing their governing laws. I need to send a contract to my AG, is this information sufficient enough to send to them?

No, this is just generic info. They need the actual contract so they have proof you were lent the money. I'd call them again and tell them again you need a copy of the contract., not the ach authorization form and payment options.

A word of warning - In reading thier ach info, it says that if you revoke authorization they will submit a paper check to your bank. That means that a stop payment will only temporarily stop them. It's going to be very difficult to stop them from dipping into your account unless you close it and go to another bank. The reason I say another bank is because it also says: Additionally, if the account you have provided to us for your ACH debit has been closed or funds are not available at the time of our scheduled debit, you authorize us to debit any account that you hold that we have information. They will go to your bank as try to debit using your ss#. They don't necessarily need the account number since they have a signed contract from you allowing this.

I replied back to Payday-loan-yes regarding the loan contract and this is their repsonse: