Internet's first get-out-of-debt community - 199,000 members

06-20-2009, 01:25 PM

hi. I took out a pdl at cashland store for $250 and then I was laid-off a few days later. I went to the store and asked for a payment plan and they said it had to be returned by my bank before they could make arrangements. so the bank returned the check and I called to make payment arrangements. the collections person (mrs. banks) and I have been playing phone tag for over two weeks. I checked my account today and they sent the check to my bank again. to my knowledge, payday companies in michigan can only send the check once (my brother defaulted on several pdl) and charge a one time returned fee. does anyone know any info? i'm going to change my bank account on monday. thank and have a great weekend

SUEBEEHONEY70 · 06-20-2009, 01:45 PM

Hi there - welcome to the forums!

I believe you are correct in thinking that it can only be presented once, and if returned, you are eligible for a payment plan.

They also cannot charge you with a criminal charge in this matter - only civil. However, it sounds like you want to get it worked out, so they should be willing to work with you.

Let me do a little checking on the law and I'll get right back to you. hang tight!

SUEBEEHONEY70 · 06-20-2009, 01:47 PM

Here's the law on Payday Loans in Michigan:

Quote:

Michigan State Information

Legal Status: Legal

Citation:
Mich. Comp. Laws 487.2121 et seq.

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%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: One with licensee or more than one with any other licensee
Rollovers Permitted: None (cannot renew; lender may extend only if it does not charge a fee)
Cooling-off Period:
Repayment Plan: Yes

Collection Limits:
Collection Fees: One $25 returned check charge
Criminal Action: Prohibited

Where to Complain, Get Information:
Regulator: Michigan Office of Financial and Insurance Services
Address: P.O. Box 30220 Lansing MI 48909
Phone: (877) 999-6442
Fax: (517) 335-4978

As you see above, the collection limits state they can only charge you ONE returned check fee charge of $25 - so for them to return the check again doesn't make much sense, does it?

Something to think about, however, is that it may be the PDL's bank that is returning the check the 2nd time, not the PDL company itself. I think I would ask them that, if I were you.

06-20-2009, 03:13 PM

Thank you for the information. I'll be calling them on monday. it sucks that I have to pay another $36 NSF bank fee

06-22-2009, 11:59 AM

So I called and spoke with Mrs. Banks. I told her that I could pay the $310.95 balance over the next 3 weeks @ one payment a week. She said that she would not agree to it and that I could only have two weeks which I can't do. She said that she would send the check through again every week until I pay it off and she will call all of my references again & again until I pay it off. Can she do this?

I asked if she sent the check back for the second time and she said yes. I should go close my account I guess. This sucks!

06-22-2009, 12:13 PM

If this is a store front and it is a member of cfsa, THEY MUST offer you an EPP (extended payment plan) which allows you to repay your loan in 4 installments.

06-22-2009, 01:09 PM

Mrs. Banks would even accept 3 installments but that is what I'm going to pay. I'm also going to fax them a letter to reverse ACH debit. Does anyone know their fax number for their Cincinnati office located at 17 Triangle Park? I found one (513-347-1196) but I don't know that it is correct.

06-22-2009, 01:19 PM

Does not matter what MRs Banks (phony name) says. Call the corporate office. They must offer the epp if they are members of cfsa. Its the law

06-22-2009, 02:29 PM

Opps. I meant in my previous post that Mrs. Banks wouldn't accept the 3 weeks payment plan. Does anyone know or have the corporate office number? The CFSA lists Cashland as one of its members.

I was thinking of faxing them an agreement letter stating that I want the EPP and that I will be paying them once a week over the next 4 weeks and that I will be keeping copies of every letter, fax, phone call, etc. How does that sound?

Thank goodness for this forum

PDLOwner · 06-22-2009, 02:59 PM

Unfortunately, CFSA members must offer the EPP prior to the due date of the loan. Also, note that the EPP in not a law unless the state requires it. There are a few states that have a mandatory payment plan, but I am not sure about Michigan. As for the check being sent thru the bank, if it is an ACH yo will need to revoke their right. If they are sending a check thru, the bank will eventually "punch" the check and it will no longer be possible to deposit. This is generally after the second attempt.

As stated before, call the Corp Office. If you are willing to do a reasonable payment plan, they should accept. Based on what you have proposed, I believe that you should have no problems. Good luck.