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 Posted: Wed Apr 16, 2008 3:53 pm
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Aside from the information posted in this forum about revoking authorization, there is a way to stop PDLs without having to deal with them. Every PDL uses an ACH Processor, the entity that actually sends their credit and debit files at the end of the day. The processor can be found be contacting your bank about a previous ACH and simply asking them where it came from. This is different from the obvious "who" it came from. They will be able to identify the institution that sent the file your ACH was included in. Contact the processor and inform them that you wish to revoke authorization and vendor "x" is not responsive. Not only will you no longer be ACHed, but you will damage the PDL. Loans can not be sent sent or collected without a processing entity. These institutions are very legitimate businesses that work cross many industries and will not risk exposure. They will stop your account from being touched and go a long way towards getting a PDL thrown out if they continue and have numerous complaints. The lifeline of a PDL is its banking relationships. Threaten those and you will watch them back off. The 2 common processors are Moneygram Intl and Intercept EFT. Good luck.
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james
Joined: 16 Apr 2008
Posts: 114
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Posted: Wed Apr 16, 2008 3:56 pm
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Forgot to mention, have your contract ready to identify the company name. We all know they have a million names. I'll do my best to help you figure them out.
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james
Joined: 16 Apr 2008
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Posted: Wed Apr 16, 2008 4:48 pm
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What about closed accounts? Can the bank still get that info? I would be curious to see exactly how this works, and if it really does work. The concept intrigues me and the notion of perhaps getting the PDL's where they live makes me smile.
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llw1995
Joined: 02 Feb 2008
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Posted: Wed Apr 16, 2008 4:55 pm
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Interesting....
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RoxyNY
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Posted: Wed Apr 16, 2008 5:01 pm
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Yes, it works. Financial institutions have a need to initiate a transaction. The same people that process the transaction for a monthly gym debit also process PDL debits. I am deeply familiar with processing regulations that are very strict for processors. They will not appreciate a PDL putting through a transaction after an authorization has been revoked and will act accordingly. If you stop them from being able to transact business, or cause enough of a stir to the folks they answer to, you'll find your PDL written off quickly.
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james
Joined: 16 Apr 2008
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Posted: Wed Apr 16, 2008 5:05 pm
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Sorry if that did not clearly answer your question about closed accounts. No transaction will even be attempted so it doesn't matter if an account is closed or open. It's basically going over the PDL company's head and using that power to force them to write off your account. It is the way to get their attention.
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james
Joined: 16 Apr 2008
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Posted: Wed Apr 16, 2008 5:26 pm
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I am still a little confused about this. Let me see if I have this straight. A PDL gets a revocation for an ACH. They try and submit it to the bank account anyway. (Does it matter if the account has been closed, or just denied due to NSF). So now there is a record of this attempted transaction. I know who has tried to collect, as does my bank. Is there any "additional" info that can be gleened from my bank regarding this transaction that I would need to have? If yes, what is it. If no, then I would assume I would need to take that info back to the processor who put the transaction through. What negative effects does this have on the processor? And....I am assuming that is where the buck stops. So that, in essence, would keep the PDL's from being able to collect as they would have no "middle man"? Would I be out of line asking how you have come to have this information?
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llw1995
Joined: 02 Feb 2008
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Posted: Wed Apr 16, 2008 6:04 pm
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Hi llw. Think of it this way...You sign up for automatic withdrawal for your car insurance. The car insurance company selects someone to process their transactions monthly. An electronic file is created by the car insurance company and sent to the processor. The processor has a relationship with the Federal Reserve Automated Clearing House System (ACH). The processor then sends payments (credits/debits or loans/payments) electronically to the individual banks sorted by routing number. 2 business days later the insurance company will receive 1 settlement file. It may have had 1000 transactions totaling $20,000. The file will basically show, for example, 750 paid debits for $15,000 and 250 returns for $5,000. This enables the insurance company to have all payments in 1 place. Otherwise it creates an accounting nightmare.
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james
Joined: 16 Apr 2008
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Posted: Wed Apr 16, 2008 6:10 pm
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Payday loans have an extremely difficult time with banking arrangements. Banks simply do not like extra scrutiny or customers that may have questionable legal issues. These processors will not risk doing business with a company whose tactics could bring them trouble. They are aware PDLs are shady, but will turn a blind eye for the sake of revenue. If they are put on notice, however, they are legally bound to the rules of the ACH system which has clear federal guidelines regarding authorization. According to them, a customer can revoke authorization without reason or question. The PDLs take advantage of the fact that people do not know this. However, it is very clearly stated within the contract between the PDL and processor. You really can threaten their livelihood by doing this.
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james
Joined: 16 Apr 2008
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Posted: Wed Apr 16, 2008 6:19 pm
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Finally, and im sorry this answer is so long, your bank can give you the processor's information. You can revoke authorization through the processor without even calling the PDL. The processor info will be available from your initial loan, even if you've never made a payment. The processor is a real company with a real address. They have the PDL company's real info. Whether they claim to be out of the USA or not, to access the Federal Banking System there must be a US routing number to go through. You would not be out of line asking. I know the PDL companies very well and I think you'll find my perspective to be unique. I plan to be actively involved in this forum and I hope you find my posts offer value. In time I will range off topic into anything you could ever want to know about PDLs. I look forward to helping and having discussions with the forum.
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james
Joined: 16 Apr 2008
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Posted: Wed Apr 16, 2008 6:21 pm
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So basically it boils down to the PDLs doing what they shouldn't and the blame comes on the processor? I can see the logic that if someone is making me look bad, I should kick them to the curb, so to speak. So by knowing who the processor is, you can go back to them and "rat", if you will, on the PDL for pulling a no no. That in turn, should give cause for the processor to "drop" them from the processing list and they will be left high and dry. Is that about it? Correct me if I am wrong. Can I assume you are somehow involved in the "processing" business? If you want to take this to a pm, (I tend to get a little inquisitive) please feel free to do so.
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llw1995
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Shazzers
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Posted: Thu Apr 17, 2008 12:13 pm
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I'm curious as well
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Posted: Thu Apr 17, 2008 12:44 pm
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Thanks James, that is a great new perspective, for those who are having trouble working with either the pdl or our own personal bank. Especially with the economic stimulus coming, pdls will be especially vigilent in trying to push the ACH through, since they have both our account numbers and the last two of our social security.
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Posted: Thu Apr 17, 2008 12:57 pm
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I also am pretty familiar with the ACH system and that makes perfect sense. Would it not be sensible to create the revoke authorization letter and have everyone that has issues with the PDL's complete and contact send to the clearing house?
I assume it takes more than one complaint against a company before they are dropped from the clearing house. Because so many people have the same PDL companies perhaps we could create a list of the PDL and find which clearing house they are using. Once this information is made available to the forum it would be easier for each individual to go in and contact the ACH Clearing House.
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angell
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