Seven PDLs, closed account - what to do?

I hope someone here can help me. I live in NJ and work in PA. My wife had breast cancer and things got tight. I wound up with seven (!) PDLs. After I got the last one, from East Side Lenders, a draft was presented to my bank for about $40, which I hadn't authorized. I called the number on the draft and was told it was for a net **** site (I do not frequent those!). Got the bank involved (NJ) and they put a hold on my account and opened a new one.

What should I do about these loans? I'm afraid to give them my new account number because of the fraud I just had. I would love to pay back the principal, probably have in some of them by now, and be done with them but I wonder what I should do next. I am worried about garnishment. My bank says it will not charge me if they try any withdrawls, but what will they do next? To add to the worry, because of the fraud I have a new account, and because of that I won't have direct deposit next payday, the 15th.

I hope someone here can tell me what to do next! Besides the new ESL loan, I have loans from
USFastCash
Web Payday
Upfront Payday
Cash Direct (GECC)
NetCashUSA
OneClickCash

Yes, I am an idiot. My wife's cancer, coupled with the current economy, have made me lose focus and repeatedly make bad decisions. The recent fraud has left me facing a dilemma - tell all the PDLenders of my new account and continue this horrible spiral, or - what?

Thanks for any help. I was researching this topic on the web and found this site. As I've had to abandon paying my credit cards I suspect I'll need to join soon.

Troubled in New Jersey

PS - My wife is now free of cancer. But not stress...

****Adult term removed - Jason

Welcome! That's good news about your wife!

You have come to the right place. There are many people here who have also been through the PDL spiral and will be able to give you good advice.

In order to better help you, please also post whether each lender is internet or store front, the amount borrowed from each, and the amount paid so far to each.

Thank GOD your wife is ok!

Aren't PDL's prohibited in NJ?

Yes, PDLs are prohibited in New Jersey. I am in NY and they are prohibited here as well. If you can list the items that alias requested, we can help you better. Things may not be as bleak as it appears on the surface. I can tell you that UsFastCash and One Click Cash are part of MNE and illegal as all hell. . .everywhere. Your bank account is closed. That is a good thing. Please do not, under any circumstances, give this new account info to the PDLs. You will need to draft a C and D letter (you can find the template on this site) and get it out to the PDLs which will revoke just about everything you agreed to in the first place. You need to file complaints with the NJ AG, the BBB and the FTC. You can join this site at any time. There are many different aspects so feel free to become part of this community. I am glad to hear that your wife has beat this thing. That, I am sure, is your main concern. Take care of your personal stuff first, as your money is now safe from the PDLs. Get those dollar amounts listed and we can tell you exactly where you stand with this situation. Not to worry, help is on the way.

Thank you!! I will have to go online to check all their statements as I never just wrote them down (See: idiot). All are web based. I will do this by the end of the day.

The C & D letter - once I find the template, how do I get it to the PDLs? Mail or e-mail? I hope I can find addresses.

My former account is not closed, but on a fraud hold. I suspect one of these PDLs got extra greedy by signing me up for a **** site. I called the bank and will not be charged by themfor repeated attempts to withdraw.

I have every intention of repaying all principals and even reasonable interest.

****Adult term removed - Jason

To my knowledge, USFastcash is not licensed to lend anywhere in the US, unless that has recently changed.

USFastCash
3531 P Street NW , PO Box 111
Miami, OK 74355
Attention: Collection Department

US Fast Cash Compliance Department
Fax: 1-800-470-6614
Email: compliancedepartment(at)usfastcash.com

Web Payday is not licensed to lend anywhere in the U.S.

WebPayDay
320 West 200 South, Suite 350-B
Salt Lake City, UT 84101
Phone: 1-800-814-5451
Fax: 1-800-814-4960

Upfront Cash is unlicensed/illegal

Upfront Cash
223 West Bulldog Blvd.
Provo, Ut.

Cash Direct (GECC) - I believe they are also unlicensed/illegal.
This is for Cash Direct Express/GECC:
Tracy L. Callaway
(302) 737-0926 ext. 302
(302) 737-3873 - fax
tcallaway(at)geccloan.com

Net Cash USA - I believe they are licensed in NM.

Net Cash USA
314 N Riverside Dr
Espanola, NM 87532
Primary Phone: (866) 348-6200 » Other
Primary Fax: (866) 922-7401 » Other
Primary Contact: Anthony White,Operations Manager
Website: netcashusa.com

OneClickCash - illegal/unlicensed

CustomerService(at)oneclickcash.com
compliancedepartment(at)oneclickcash.com
FinalCollections(at)oneclickcash.com
1-800-825-0441

In N.J. payday lenders are not legal, either because of restrictive laws, or because the state does not license companies not located in that state, but requires a state issued license to lend.

I would send them emails and you can elect to also send a letter to each of them USPS certified return receipt. Try to write a letter in your own words stating the following information:

-You are revoking wage assignments
-You are revoking ACH authorizations to any of your personal accounts. (you may want to include a copy of the EFT laws below)
-You are aware they are illegal and unlicensed to lend to consumers.
-Demand they cease communication with you other than USPS or via email.
-Demand they not contact your employer, family, friends, or any of the references listed on your loans. (Be aware that the Federal law regarding cease communications only applies to a third party collector, however it never hurts to add this anyhow.)
-Inform them you will pay back the principal amount of the loan ONLY, via USPS with money orders only.

If anyone else can think of anything to add to this, please do!

Shazz is right. I sent all of my C and D letters via email and never sent a hard copy to anyone. Perhaps I just lucked out but the emails seemed to work for me. Emailing gets them in record time and the hard copy would just be additional proof of their being sent. Looks like Shazz has given you some good email addresses to get you started. Keep us posted.

I just spent an hour online finding all my loans. To my horror, I have 8 PDLs!!! My bank statement (online) does not go back far enough to find out how much I've paid, and the lenders websites do not display this info. Perhaps I can go to the bank later and see how far back their records go.

Here is what I have so far...

July 30 - East Side Lenders Borrowed 300 owe 390 not yet paid.
Date? -NetCashUSA Borrowed 250 owe? paid over 300
May 1 -USFastCash Borrowed 500 owe 390 paid over 500
March 31-WebPayday Borrowed 500 owe? paid over 500
March 31 Upfront Payday Borrowed 500 owe130 paid over 500
June 16 Cash DirectGECC Borrwed 300 owe 244 will check bank
June 13 OneClickCash Borrowed 300 owe 390 paid 360
July 30 American Consumer Credit Borrowed 300 owe 390 no pay

In a word, ouch! We have really been hurting and I can't believe how stupid I've been. I have been looking all over for the C&D template, so I hope someone will post a link. The other info just added will be very useful.

I cannot begin to thank you all enough. I have really lost my focus, and the recent fraud was a major wake up call. As soon as I find the template I'll start sending it out.

Since PDLs are illegal in NJ, it looks like you have overpaid on most of these, but I'll let someone more familiar with them give you more specific advice.

I just wanted to mention, since I didn't see it in the other posts, that when you revoke wage assignments, be sure that you give a copy to your employer, in case any of them try to do it anyway.

Good luck!

Yup, that's what I was missing, thanks Alias, I KNEW something was missing.

Here's a letter but I would encourage you to tailor it to your needs. This gives you a general idea, however, some parts may not pertain to you. Make sure you read it over carefully.

Wow, this a great help! Thank you all so much!

I have been working on the letter supplied by Shazzers. How is it sounding?

August 11, 2008

Name Of PDL

Name
Address
Account #


After doing research regarding Internet payday loan laws in the State of New Jersey, I have found that your Internet payday loans are actually illegal. I have also found the following laws to be true applying to payday loans in the State of New Jersey in general:

New Jersey State Information

Legal Status: Prohibited

Citation:
Consumer loan act applies but rates as agreed to by contract. N.J. Stat. Ann. tit. 17,§ 1 et seq. However, criminal law sets the usury cap at 30%. N.J. Stat. Ann. § 2C: 21-19. A check cashing licensee cannot cash or advance money on a postdated check. N.J. Stat. Ann. § 17:15A-47.

Small Loan Rate Cap
30% per year

I hereby revoke any and all ACH authorizations with your company from debiting any of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I have closed my account with the Commerce Bank to protect my interest in this matter, per instructions from The New Jersey Department of Finance. I also revoke any and all wage assignments I may or may not have signed with your company, I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for your collection purposes. I have notified my employer about this matter so any attempts to do so on your part will be rejected.

I demand that any contact be made through US Postal mail or email only. I will need everything in writing to keep accurate records of all communication as per instruction from my Attorney General's Office. I prohibit you or your affiliates to contact me via telephone at my place of employment or my home telephone number. I also prohibit you from calling my references listed on my loan.

Due to the fact that Internet payday loans must be licensed in the state of New Jersey to be a legal and binding contract, your company should NOT issue loans to New Jersey residents at all. I am requesting that you send me your license number which enables you to offer loans to New Jersey residents.

The legal amount that could have been charged to my loan is the principal amount, even IF your Internet pay day loan were legal anywhere in the U.S.. I am willing to pay the principle amount of the loan only, however, this is only if you provide me with a physical address where I can send payments. (Here I will mention if I have already sent enough to cover said principal…)

I must also inform you that I will be filing complaints with the Better Business Bureau, the Federal Trade Commission, and the New Jersey Attorney General's Office.

I expect a response from your company no later than 5 days from the above date regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted.

Sincerely,


My signature
CC:
Better Business Bureau
New Jersey Attorney General
Federal Trade Commission




Electronic Funds Transfer Act

907. Preauthorized transfers

(a) A preauthorized electronic fund transfer from a consumer's account may be authorized by the consumer only in writing, and a copy of such authorization shall be provided to the consumer when made. A consumer may stop payment of a preauthorized electronic fund transfer by notifying the financial institution orally or in writing at any time up to three business days preceding the scheduled date of such transfer. The financial institution may require written confirmation to be provided to it within fourteen days of an oral notification if, when the oral notification is made, the consumer is advised of such requirement and the address to which such confirmation should be sent.
(b) In the case of preauthorized transfers from a consumer's account to the same person which may vary in amount, the financial institution or designated payee shall, prior to each transfer, provide reasonable advance notice to the consumer, in accordance with regulations of the Board, of the amount to be transferred and the scheduled date of the transfer.

[Codified to 15 U.S.C. 1693e]

This morning I sat down with my statements and figured it out. I am shocked to report there was a company listed only as "Credit Protection" which has taken out over $1100 since the beginning of February. I can't match it to a particular PDL. I was more unfocused than I thought.

Here is a breakdown of my PDLs, other than "Credit Protection":

3/31 Web Payday Borrowed 500 Paid so far 1050
3/31 Upfront Payday Borrowed 500 Paid so far 1135
5/1 USFastCash Borrowed 500 Paid so far 995
5/16 Cash Direct GECC Borrowed 300 Paid so far 364
6/13 OneClickCash Borrowed 300 Paid so far 270
6/18 NetCashUSA Borrowed 250 Paid so far 245
6/16 ACC Borrowed 200 Paid so far 150
7/30 EastSideLenders Borrowed 300 Paid so far 0

Tomorrow I will email each of them a tailored version of the above letter. I will also contact the various state agencies listed on this site and the Payday Loan Consumer Information site. Should I talk to my employer CFO at once or wait to see what they do? Does it make a difference that I work in PA but live in NJ?

Thanks again for the help. And if anyone knows who debits as Credit Protection I'd love a heads up.


the way I see it I owe a total of $385 in principal.