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Desperate in PA

Like so many other threads I have been reading, I am in the same situation. What started off as a convenient way to pay off something quickly has turned into a drowning situation for me.
This is my situation if someone can help...
I have loans through the following:
1. Cashnetusa-I owe $1200 (Paid $1080 in interest)
2. Paydayone-I owe $950 (Paid $1435 in interest since Dec.)
3. Paydaymax-I owe $500 (Paid $432 in interest and extension fees and $50 toward principal)
4. The Loan Shop - I owe $400 (Paid $480 in interest)

I have paid more interest on these than principal. Actually I have paid no principal on these except for the $50 on the one) because the interest takes about half of my paycheck every two weeks. I live in Pennsylvania and I would love to know what my true options are here? If someone could help I would gladly appreciate it. I do feel that I should pay the principal but cannot seem to do so with the high interest rates. I am NOT adverse at all to closing my credit union account but one loan document states that if I close my current account, they can still take money from any other account I would open with my name on it? Any advice on this as well? You all seem so much smarter at this than I am. Thank you so much and I look forward to any help anyone can offer!

Posted: Sun Jul 06, 2008 8:21 pm Subject:

Hi, I do not know anything about PA laws, you can look those up on the stickies at the top of this page. Don't worry someone with more experience than I will be along soon to help. I know it is hard to be patient when the situation is so desperate. We have all been there and understand what you are going through. Hang in there, there is a great deal of help here!

Posted: Sun Jul 06, 2008 8:48 pm Subject:

Hello Desperate in PA, thank you for starting a new topic, as I said before, I will post your state laws. Keep in mind that the laws only apply to businesses physically located in PA. So if a payday lender is not located in PA, they can lend to PA consumers. They would need to follow the law for the state that they are licensed in.
Quote:

Posted: Sun Jul 06, 2008 8:49 pm Subject:

Is that The Loan Shop or The Little Loan Shoppe?

Posted: Mon Jul 07, 2008 4:56 am Subject:

If you find it difficult to manage the PDL debt then you should go for debt consolidation and get rid off this menace as soon as possible.

Before closing your bank account you should read "Read before closing your bank account due to pdl".

Posted: Mon Jul 07, 2008 5:00 am Subject:

Be aware PA is one of those states that allow PDLs to lend as long as they hold a valid license in or out of state. Confused

Posted: Mon Jul 07, 2008 5:39 am Subject:

Thank you for your input anyaroberts , I stated that in the post above. Smile

Desperate in PA · Posted: Mon Jul 07, 2008 6:30 am Subject: Re: The Loan Shop

It is "The Loan Shop". As a follow up, two of these companies (paydaymax and paydayone) are in New Anguilla according to my loan documents. What does that mean for me. As I have stated earlier, I do want to pay these loans but the interest is killing me so I cannot even pay off the principal. I have even thought of bankruptcy. I would think these companies would want their principal amount if I would negotiate that rather than nothing at all from bankruptcy? Please advise. Thank you again every one for your help.
p.s. Does anyone know anything about the other "lenders" that I listed above? Their where abouts, etc.?

Posted: Mon Jul 07, 2008 6:37 am Subject: reply

shazz should be along with that info desperate,but i will say this,if the pdl is not legal in your state.you take all that interest
and mark it toward your loan.you see,if these places are illegal
they cannot charge interest.therefore all monies paid thus far
go toward the principal cause that is all you owe.that being said
shazz should have the info on which ipdl's are legal and which
are not soon.as far as the NEW ANGUILLA loans go.i would just
mark them as illegal.

Posted: Mon Jul 07, 2008 7:01 am Subject:

PayDayMax is an ILLEGAL PDL ans is based out of Malta. They are not licensed to lend in the US period Evil or Very Mad

Looks like you are close to paying the principal off. I would call and propose settling for only principal amount ONLY Evil or Very Mad

Posted: Mon Jul 07, 2008 7:14 am Subject:

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.

------------------------------------------------------

Cash Net USA and Payday One are legal companies. They are using their Nevada license (Cash Net) and their Deleware license (Payday One) to lend to PA consumers. The Loan Shop may be licensed in Utah, I can't remember off the top of my head.

Payday Max is not licensed in the US.

Desperate in PA · Posted: Mon Jul 07, 2008 8:49 am Subject: Still need help...thanks!

What does that mean for me with Cash Net USA and Pay Day One? Can I negotiate with them? Does anyone have this type of experience with either of these companies?

I did call my credit union today and they told me to cancel the ACH withdrawals in enough time to these companies. Save all information from conversations, faxes, etc. Then when the company tries to take the money anyway, I need to call the credit union, give a sworn affadavit of what I have done to stop the ACH withdrawals and they will get back the money and block my account. Does this sound feasible to anyone? I have read many blogs that advise about giving a heads up to these companies! However, my credit union which is the largest in PA does not advise to close my account as it is illegal to do so just to stop transactions. I have actually had great interactions/results with my credit union in the past 10 years of having them. Any advice would be appreciated!!! Thank you all so very much!

Posted: Mon Jul 07, 2008 9:23 am Subject:

Desperate in PA I have worked with Paydayone before, it took a lot of persistence to finally get it through their head that I could make payments, but only in the form of a money order to a physical address. After numerous emails back & forth they finally agreed.

Desperate in PA · Posted: Mon Jul 07, 2008 3:51 pm Subject:

Dear Shazzers,
Thank you...what do you think about the advice from my credit union about not closing the account but instead stopping ACH withdrawals. I am hesitant because of what I have been reading about companies changing their names, etc? Could you please advise? Thank you.

Posted: Mon Jul 07, 2008 6:30 pm Subject:

I would close the account. Revoking ACH's will not deter them from going in under another dba. They only way to safeguard your money is to close the account and if you open another at the credit union, make sure that they will not force the old one open if any ACH's hit. My bank was very helpful with that aspect and no further ACH's went through. I am not sure if the PDLs just didn't try after they got my C and D letter, or if the bank returned them. At any rate, my PDLs are all gone now so I don't stress over it any longer. I also don't keep any amount of money in the account for too long (like I have all that extra just laying around!) as I pay my bills as soon as the deposit hits the account just for an extra good measure!

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