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 Posted: Wed Apr 16, 2008 8:34 am Subject: Payday loans are ruining my life
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I have the following loans:
Payday okay, this one is almost paid in full as they are no longer doing business in PA and have switched to payday one. Principal balance in $100, fees paid over the last year $870.00, original loan was $500.00
Payday one $650 principal, loan fees paid over the last year $1681.50
CashadvanceNetwork Principal $600, I cant get into loan history with them to calculate exact fees, but I know it has been around $720 at least.
CashnetUSA $550 principal balance, I have paid them off in the past and had to reborrow to pay other loans, total fees over the last year $1775.
Checksmart $500 principal balance, fees paid $125 on this loan.
Cash Central $300 principal balance, fees paid $300. This loan will be paid this week.
My bank has told me they would have to re-open my account if the debits came in as they do have my authorization. Even if it is revoked. I cant open another checking account as I have something on checksmart as a result of an older payday loan with another bank. I have already been denied. My employer requires you have a checking account to get paid, they do not pay by check. I live in PA, all my loans were done online. Anything you can do to suggest getting away from this awful situation would be appreciated. I have nobody to borrow the money from, otherwise that would have been my way out a long time ago.
I was just informed by Cash Advance Network that they are licensed in the United States and they are not required to provied a copy of the license. I have just been on the phone with PNC Bank also, they claim I cannot close my account completely as the ACH debits will reopen it. Also, they stated that they cant put hard holds on checking accounts for all ACH debits.
I think I am stuck!
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Myalias
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Posted: Wed Apr 16, 2008 11:53 am Subject:
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Myalias, Here are the laws for PA...
| Quote: | Pennsylvania State Information
Legal Status: Prohibited
Citation:
Check cashers are specifically prohibited from making payday loans under Check Cashing Licensing Act of 1998, § 505(a). Otherwise, consumer discount company act applies. 7 Pa. Cons. Stat. Ann. § 6201 et seq.
Small Loan Rate Cap
$9.50 per $100 per year discount or 24% per year
Where to Complain, Get Information:
Regulator: Pennsylvania Department of Banking
Address: Market Square Plaza, 17 N. Second Street Harrisburg, PA 17101
Phone: (717) 214-8343
Fax: (717) 787-8773
Regulatory Contact: Jim Keiser, Administrator of Non-Depository Institutions
http://www.banking.state.pa.us/banking/site/default.asp
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| Quote: | What does this mean?
There are no storefronts in PA. They are illegal.
Internet lenders can lend legally to PA residents as long as they are licensed in another state. They would need to follow the laws of the state in which they are licensed.
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RoxyNY
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Posted: Wed Apr 16, 2008 11:58 am Subject:
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Here is a synopsis of what I have read so far...
Pay OK borrowed 500 - paid 870
Payday 1 - borrowed 600 - paid 1681.50
Cash Advance Network - borrowed 600 - paid 720
CHecksmart - borrowed 500 - paid 125
Cash Central - borrowed 300 - paid 300
IS this correct?
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RoxyNY
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Posted: Wed Apr 16, 2008 12:02 pm Subject:
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Also, Cashnetusa $1200, still owe $550. Fees paid so far $1775.
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Myalias
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Posted: Wed Apr 16, 2008 12:05 pm Subject:
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I contacted pdlassistance. They want $200 up front before they can help. Then they claim they will set up a payment arrangement for $400 every two weeks to get the loans paid. I dont have the extra $200 as the loan companies are taking all their money every payday. I cant close my account after talking with PNC as they will not do a hard hold on my account and the ach debits will cause the account to re-open, and then I would be overdrawn. Besides, I cant open another checking account any where.
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Myalias
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Posted: Wed Apr 16, 2008 12:12 pm Subject:
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Myalias, About your account, check out the banking fourm. One of the things that fourm provides in information on banks that will open accounts for people with chexsystems issues or other issues. As for the pdls you listed....
Payday 1 - licensed in DE
Cash Central - licensed in UT
CAsh Net - licensed in Nevada
Cash Advance Network is part of MTE and will not be licensed anywhere, that is why they are telling you they do not have to give it to you.
I am checking Payday OK and Checksmart for licensing.
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RoxyNY
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Posted: Wed Apr 16, 2008 12:12 pm Subject:
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Why can't you open another checking account? Because of Chexsystems? If that's the case, we can help you find another bank. There are many that don't use Chexsystems!
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goudah2424
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Posted: Wed Apr 16, 2008 12:14 pm Subject:
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OK.. Payday OK and Checksmart are both going to be licensed. As for the bank issue...
| Quote: | Take this to your bank.You have the right to revoke ALL ach debits from your account.
Per the Electronic Funds Transfer Act:
Quote:
§ 205.10 Preauthorized transfers.
(a) Preauthorized transfers to consumer's account--(1) Notice by financial institution. When a person initiates preauthorized electronic fund transfers to a consumer's account at least once every 60 days, the account-holding financial institution shall provide notice to the consumer by:
(i) Positive notice. Providing oral or written notice of the transfer within two business days after the transfer occurs; or
(ii) Negative notice. Providing oral or written notice, within two business days after the date on which the transfer was scheduled to occur, that the transfer did not occur; or
(iii) Readily-available telephone line. Providing a readily available telephone line that the consumer may call to determine whether the transfer occurred and disclosing the telephone number on the initial disclosure of account terms and on each periodic statement.
{{10-30-98 p.7369}}
(2) Notice by payor. A financial institution need not provide notice of a transfer if the payor gives the consumer positive notice that the transfer has been initiated.
(3) Crediting. A financial institution that receives a preauthorized transfer of the type described in paragraph (a)(1) of this section shall credit the amount of the transfer as of the date the funds for the transfer are received.
(b) Written authorization for preauthorized transfers from consumer's account. Preauthorized electronic fund transfers from a consumer's account may be authorized only by a writing signed or similarly authenticated by the consumer. The person that obtains the authorization shall provide a copy to the consumer.
(c) Consumer's right to stop payment--(1) Notice. A consumer may stop payment of a preauthorized electronic fund transfer from the consumer's account by notifying the financial institution orally or in writing at least three business days before the scheduled date of the transfer.
(2) Written confirmation. The financial institution may require the consumer to give written confirmation of a stop-payment order within 14 days of an oral notification. An institution that requires written confirmation shall inform the consumer of the requirement and provide the address where confirmation must be sent when the consumer gives the oral notification. An oral stop-payment order ceases to be binding after 14 days if the consumer fails to provide the required written confirmation.
(d) Notice of transfers varying in amount--(1) Notice. When a preauthorized electronic fund transfer from the consumer's accounts will vary in amount from the previous transfer under the same authorization or from the preauthorized amount, the designated payee or the financial institution shall send the consumer written notice of the amount and date of the transfer at least 10 days before the scheduled date of transfer.
(2) Range. The designated payee or the institution shall inform the consumer of the right to receive notice of all varying transfers, but may give the consumer the option of receiving notice only when a transfer falls outside a specified range of amounts or only when a transfer differs from the most recent transfer by more than an agreed-upon amount.
(e) Compulsory use--(1) Credit. No financial institution or other person may condition an extension of credit to a consumer on the consumer's repayment by preauthorized electronic fund transfers, except for credit extended under an overdraft credit plan or extended to maintain a specified minimum balance in the consumer's account.
(2) Employment or government benefit. No financial institution or other person may require a consumer to establish an account for receipt of electronic fund transfers with a particular institution as a condition of employment or receipt of a government benefit.
[Codified to 12 C.F.R. § 205.10]
[Section 205.10 added at 44 Fed. Reg. 59471, October 15, 1979; amended at 45 Fed. Reg. 8265, February 6, 1980, effective May 10, 1980; 61 Fed. Reg. 19672, May 2, 1996] |
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RoxyNY
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Posted: Wed Apr 16, 2008 12:17 pm Subject:
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Thank you Goudah... 
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RoxyNY
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Posted: Wed Apr 16, 2008 12:19 pm Subject:
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Payday OK is the same company as Payday One.
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How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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goudah2424
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Posted: Wed Apr 16, 2008 12:33 pm Subject: Electronic Transfers Act
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This does state I can stop payment, but it doesnt state anything about stopping ALL ACH debits. I have so many coming out at once, and for different amounts.
As far as changing banks, it is because of Chexsystems. I am only close to a couple of banks and there fore it makes it tough. My credit union will open an account for me, but they will not give me a debit card. They are not close to me and are not open during hours that I am off. I really dont want to switch banks if I dont have to. I have 3 accounts at PNC Bank right now and do alot of dealings with them for my "real" loans and bills. They are set up to pay my utilities and a few other things. If I close the major checking which is my pay deposit and payday loan account, and it goes overdrawn then they have to right to offset the other 2 accounts. BUT I think if I just let that happen, I would have less to pay in the long run. What do you think?
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Myalias
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Posted: Wed Apr 16, 2008 12:35 pm Subject:
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Paydayone and Paydayok are now one and the same, however, since I had a loan with both, they were not combined. I have 2 seperate loans. The paydayok loan is almost paid in full.
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Myalias
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Posted: Wed Apr 16, 2008 12:39 pm Subject:
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Wait. You have 3 accounts with PNC, correct? Can you not put a block on the one that the pdls have the information on and re-direct your paycheck to one of the other accounts?
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cannr
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Posted: Wed Apr 16, 2008 12:55 pm Subject:
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I finally got in touch with somebody at PNC Bank that can help me!! I have to wait until all my checks have cleared and then they will close the account, put a hard hold on it and that will be it. I will have my employer put my paycheck into one of my other accounts ASAP.
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Myalias
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Posted: Wed Apr 16, 2008 1:16 pm Subject:
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Great job! 
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cannr
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Posted: Wed Apr 16, 2008 7:37 pm Subject: Wage garnishment
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Can these companies garnish my wages? I dont think it is legal in PA, but I want to make sure. Thanks.
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