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Posted: Thu Aug 14, 2008 9:21 am Subject: PDL Help in Illinois

Hi, I am new to the site so please forgive me if this information is posted already.

I live in Illinois and have gotten into a mess with PDLs. I have contacted them by email and phone and have revoked my ACH authorization so they stop debting my account. I have 4 day day loans outstanding.

Loan Point (they also go by Geneva Roth and now I was given the name Capital Lending). I owe $520 on a orginal loan of $400. I have made about 4 payments of $120 of an extension fee. I talked to them this morning and they are refusing to stop by the ACH debit and have informed me that since I signed the contract agreeing to thier terms, I am responsible for the $120 extension fee and that I knew none of that would be applied to my principle. Is that legal even if I did sign the conract?

Almost the same situation with The Loan Shop (Or LTS Management). My orginal loan was for $300 and I owe $390. Again, numerous payments of the $90 with none of that going to the principle. They have agreed to stop the ACH and I am going to pay with by Money Gram.

I believe that I have way overpaid the loan but I am getting no where with these companies. They keep telling me I knew the terms of the contract.

I also have Pay Day one. I have sent them an email with no response yet.

I also have Check n go. I have already defaulted on this one. I have a call into the company to stop any ACH debits and to contact me regarding repayment. So far this is the only one who seems to be charging the appropriate finance charges.

Any help would be greatly appreciated.

Dena

Posted: Thu Aug 14, 2008 10:19 am Subject: reply

hello,first geneva roth and all there d/b/a's are not licensed in IL.second neither is LOAN SHOP.you have overpaid both.as far as CHECK-N-GO.yes try to work with them on a payment plan.i didn't see where you safeguarded your account.sending letters withdrawing there ACH will spur them to clean your account if you didn't put either a hard block or closed it.stop payments won't work,as they can change the amount or put a paper check through.you must stop there ability to get that money first.

Posted: Thu Aug 14, 2008 12:25 pm Subject:

What is a Hard Block? Is that something I would do at my bank? Is that the same as an ACH hold? We have a lot of scheduled payments that come out every month (car, cable, insurance, etc). Would an ACH block those as well or can specify the ones we want to block.

Does anyone have a letter or an example of the language I can use when I contact Gevena Roth and the Loan Shop about my overpayment. I looked at the Illinois Law and if I am reading it right they can only charge me $15.50 per $100. I told the Loan Shop lady that this morning and she said they were not charging interest, that it was an extension fee.
If they are not licensed in Illinois, where can I get proof and what does that mean. That they should not have provided me the loan or does that mean that the contract I signed is not valid.

Posted: Thu Aug 14, 2008 12:43 pm Subject:

First, a PDL company must be licensed to lend to residents of IL and must follow IL lending laws.
Second, rollovers (or extensions) are not allowed.

So, based upon the above, it appears that your internet loans are illegal. If that is the case, then you are only responsible to payback the principal.

Find out which ones are illegal, how much you borrowed, and how much you paid in fees or extensions. The difference is what you owe them or overpaid them.

Check 'n Go is legal, so I would set up payment arrangements with them.

As for your checking account, doing an ACH block will prevent all ACH transactions from debiting your account, even ones you have scheduled for your bill payments. ACH block WILL NOT prevent a paper check from going through, so be aware that once a PDL gets an ACH blocked, they may try to submit a paper check.

The best thing to do is close it and open another. You need to maintain control over your funds to prevent the illegal PDL's from ruining you financially. Once you have secured your checking account, they will submit to your demands and repayment on your schedule!!

Best of Luck!

Posted: Fri Aug 15, 2008 2:20 pm Subject:

I just talked to customer service at Geneva Roth about my account again. I told them that continuing to extend my loan and charge me an extension fee was not legal in the state of Illinois and that I would not be paying the fee. They told me that since I signed the contract I would be responsible for paying the fee. She just kept referring to the loan agreement as a binding contract. I even offered to pay the full $400 of the original loan just to help end the nightmare, but she kept insisting that I have to pay $520 (400 plus 120 extension fee)>

My question is this: If the the terms of the loan are illegal then does that make my agreement invalid?

Posted: Fri Aug 15, 2008 2:24 pm Subject: reply

in fact,if you paid the 400.00 back with (supposed) extension fees.then you don't owe them anything.

Posted: Fri Aug 15, 2008 4:30 pm Subject:

Be sure that you read this information about closing your bank account, and as others have said, you should do that ASAP because if you have already revoked ACH authorization, they may not wait until payday to try to get whatever money they can get:

http://www.debtconsolidationcare.com/paydayloan/close-account.html

Also, you should revoke any voluntary wage assignment authorizations that you have signed. Be sure to give a copy to your employer so that the PDLs can't try to get it put through anyway.

Posted: Mon Aug 18, 2008 7:39 am Subject:

Payday One is legal in Illinois.

Posted: Mon Aug 18, 2008 7:41 am Subject: reply

D'OH i missed that one.thanks goudah.you must work with payday one as well as check-n- go.

Posted: Mon Aug 18, 2008 6:34 pm Subject:

Thank you for all the information!

I have negotiated my settlement with The Loan Shop using the tips from other posts. Once I got to the collection manager it was very easy.

I have also talked to Check n go and Payday One. They have agreed to stop the ACH debits and let me pay by Money Gram.

I am still having trouble with Loan Point USA. I get the same answer from all the reps. I just get so frustrated them I talk to them. They have no idea what the law in Illinois states and just keep repeating that I agreed to their terms. I have sent numerous emails with no response. I am going to try to get to a manager when I call tomorrow. I sent a complaint to the Illinois Attorney General Office yesterday. I hope that does some good.

Does anyone have any tips for dealing with Loan Point?

Has anyone ever gotten help from the Attorney General?

Thanks

Posted: Tue Aug 19, 2008 7:04 am Subject:

Point out to them that, under IL law, any contract clause which contradicts IL is considered null and void (the clause itself, not the contract). Additionally, since they are not licensed to lend in IL (again required by IL law), then the entire lending contract is null and void. Offer to pay them the remainder of the principle (It looks like you have), revoke their rights to contact you via any form other than in writing, revoke the ACH authorization, and revoke the wage assignment. It is recommended that you close your bank account. Since you have already filed a complaint with the AG, file with the FTC and the BBB and then just ignore them.

They can't sue you in IL, and the worst that will happen is that they will send it to a bottom feeder collections agency. If they do, then you send a debt validation letter to the agency.

Posted: Tue Aug 19, 2008 4:17 pm Subject:

I checked my bank and they are trying to take out $120 tomrrow. I have to go into the bank and sign the stop payment form. I have sent them another email stating that they are violating Illinois Law and now they are violating the Electronic Funds Act. They just will not respond!!! I am closing my bank account this weekend. I have to wait until a couple of legal ACHs come out......
I am compsoing a complaint to the Illinois Division of Financial Institutions. With Illinois really cracking down on Payday lenders this may help.

Posted: Wed Aug 20, 2008 10:39 am Subject:

I have issued a complaint to the Illinois Attorney General, the BBB of Utah and the Department of Financial Institutions in Illinois and Utah.
Still no response from Loan Point.......I guess they will contact me when they get the payment retured...

Does anyone know how long it usually takes to get a repsonse when you make a complaint?

Posted: Fri Aug 22, 2008 7:59 am Subject:

I just got off the phone with Mrs. Pinkerton and some other person at Geneva Roth. They were so rude, they kept telling me to pay my bills and be a grown up! Come one, I have paid my bills. I have paid them way over the amount that I should have. They both said they were supervisors??? I have read other posts where they have said these same things to others. After I was hung up on... I called back and asked to speak with collections or fraud department supervisor and was transfered to someone's voice mail. I left a very direct message for him to call me ASAP. They threatened to sue me and said they can take money out of whatever account they want and will track me by social security number and debit any account they find......
I called my bank and they have flagged the debits from GRC funding. They threatened to take money out everyday. The bank said if they keep trying that I can change my account number.
I am getting ready to call the Attorney Generals office to follow up on my complaint and ask them for help. I may need to hire a private attorney... I am just so freaked out right now....

Posted: Sat Aug 23, 2008 9:54 pm Subject:

I got a letter form the Illinois Attorney Generals office today. Just said they have sent a copy of my complaint to to the named business (Loan point/Geneva Roth). Should be interesting to see if they respond. I am also waiting to hear back from the Utah Department of Financial Institutions and the BBB.

I sent a money gram to the Loan Shop today to pay off my loan with them. I originally borrowed 300 and they were charging me a rollover fee of 90 every two weeks. I made 3 payments of $90 for a total of 270. I offered to pay them the remaining 30 plus 46.50 in finance fees (Illinois allows 15.50 per 100 borrowed. They agreed to the payment of 76.50 and are going to mark my account as paid and send me a Paid in full letter. Yeah! One Down.

Posted: Sat Aug 23, 2008 10:19 pm Subject:

Good job, Dena!! Keep it up, and you'll get them all taken care of before you know it!!

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