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lisa wright · Posted: Thu Oct 04, 2007 9:48 am Subject: PDL help in Alabama/Loan Point USA

I received a loan from loan point usa for $300. I had $90 taken from my checking account (which they said did not go toward my balance but only served as an extension) every two weeks x 3 payments before I ended up overdrawn and had to close my account. I called them to make arrangements for another method of payment, but was told they would not accept western union payments until my account had either been closed or charged off. During the next 3-4 weeks they have attempted to debit my account for 6 more $90 payments to bring my total balance of loan to $900. Is this right? I live in Alabama. They said if I sent them 4 payments of $150 they would subtract $300 from balance. Please help me. They sent me an e-mail saying that they were getting ready to render a decision that would affect me directly and to call them.

Posted: Thu Oct 04, 2007 12:56 pm Subject:

Lisa please post this under the "Pay Day Loan Help" section so it will be visible to everyone for reply. Just copy and paste what you have already written and give it a title like: Need Payday Loan Help in Alabama. I will post the laws for Alabama when I see your thread!

Posted: Thu Oct 04, 2007 1:58 pm Subject:

Looks like a Mod switched it over so I'm going to put my two cents in here.

First of all Loan Point, is funded by Geneva Roth, and them I've dealt with. I've received that "render decision" email often. Now once Frogpatch or someone puts up the laws for Alabama we can go into a few of those details.

But for now, thank goodness you've closed your account. Do you have any other PDLs debiting?

So they've taken out $270 right? Well what is the most likely case is that you don't owe them more than $30.

Actually I'll go check out the laws, and if no one has posted before I get back then I'll post them and we can get further into this....

Posted: Thu Oct 04, 2007 2:04 pm Subject:

Okay for some reason I can't post it because of the spam filter finds a product word in it........ Although there are none...

Posted: Thu Oct 04, 2007 2:16 pm Subject:

Okay well Loan Point broke the rules in that only one roll over is allowed in Alabama. And I checked the Licensee database and Loan Point nor Geneva Roth come up.

So they are illegal. First you need to send them a letter. You can click the do it yourself button at the top of this page, search sample letters in the search box or check out my blog to find a letter to write. You will be telling them you are revoking the authorization for automatic debiting of your account, revoking any wage assignment you may or may not have signed and that they are illegal and you only owe them the principal. (which if they've debited $90 3x, then you've paid 270 and only owe 30)

Here is the link at least for the Alabama state laws [www.paydayloaninfo.org/state_detail.cfm?id=AL] and from there are links to file a complaint. File that complaint about them, it will help get this settled. And help to get them stopped from doing any more harm!

Posted: Thu Oct 04, 2007 3:38 pm Subject:

Posted: Thu Oct 04, 2007 3:39 pm Subject:

Poko - It's the word "Spec ialist"

Another word, "cia lis" is contained in the middle of "spec ialist". That is the spam word it won't let go through . . . You just have to put a space in the middle and it will go through.

Posted: Thu Oct 04, 2007 4:13 pm Subject:

You know I kept looking through it trying to find out where it was hidden, I thought it was split between two words! just couldn't figure out which two... Thanks for clearing that up for me!

lisawright · Posted: Fri Oct 05, 2007 2:12 pm Subject: loan point usa

Well, Loan Point USA not only took 3 $90 payments from my checking account, but called me and told me I had to pay 4 payments of $150 to get my balance cleared. I've sent one payment this past Wednesday via Western Union, but I haven't felt right about it. They told me that each time they tried to get payment from my account and the funds werent there, they added that $90 extension fee to my loan bringing it to $900. I just wondered what would happen if I couldn't pay it?

lisawright · Posted: Tue Oct 09, 2007 6:54 am Subject: payday loan in al

Well, I sent loan point a payment of $150 via western I wondered if I should send them anymore. I didnt tell them to extend my loan six times that they kept adding $90 each time. Can they do anything to me legally?

Posted: Tue Oct 09, 2007 9:03 am Subject:

First of all sorry I couldn't get back to you right away....

So you've now paid them 270 and 150 (equalling 420 paid for a 300 illegal loan) . I say that you have paid them enough. Here is where you stand up and take charge.

They are illegal and they can't do jack to you, although they will threaten to. First send them a standard letter. Search under sample letters, I've got one on my blog, and others have some as well. You will need to tell them you are revoking authorization for automatic debiting of your account and revoking any wage assignment you may or may not have signed. Even though they can't take any more out of your closed account, doesn't mean they won't stop trying, and it is nice to have some paperwork to back it up. Also in this letter state how much you have paid, reference the dates they took out money and the reference number on the western union you sent, and that by the state of Alabama your account is considered paid in full. Keep copies of this letter. Send it to them via mail, fax, and email. (when you fax, do it from a place like Kinko's and no place where they know you like your work).

Go and file complaints against them with the state authorities. The link is in the Alabama laws that Goudah posted. Don't forget the BBB and the FTC. Then sit back and wait, once they are contacted by the big guns, they will eventually agree to your letter and send you a PIF.....

And hopefully someone will come along and agree with me, I think that is how it happens..... And hopefully someone will have a good "I've paid you enough" letter....

lisawright · Posted: Tue Oct 09, 2007 9:46 am Subject: payday loan in al

Thank you so much for your help. I really had no idea about the legal issues behond these people. I appreciate all the information !!! It's amazing these people are still in business.

Posted: Tue Oct 09, 2007 10:16 am Subject: payday loan in al

Well, you know I was looking under the laws section for Missouri which is where they are from and it stated that they were allowed 6 extensions I believe and only 1 in alabama. So does that mean if in their state they can extend to someone 6 times, but since I am from Alabama, they could only extend mine 1 time? Because they sent me an e-mail at one time with a checkoff on whether I would be paying off the loan or extending it and I read the fine print underneath which said something to the effect of if no response received by me they automatically extend the loan thru the next payday. Justwondering.

Posted: Tue Oct 09, 2007 10:23 am Subject:

I believe they need to follow the laws of your state. The thing is that they are illegal and laws dont matter to them.
Lisa , i am concerned about one thing that i see.
It states for your states laws. that :criminal action is prohibited unless a ck. is returned for a closed account"
I did check with another member who has much knowledge regarding banking , and she was also concerned that an ach debit, can be looked upon as a ckeck. Please check with your bank to clarify this

Posted: Tue Oct 09, 2007 10:49 am Subject: reply

Wait a minute. I have an issue here. Is this correct? When I read the laws and see criminal action prohibited unless check returned due to closed account, I am envisioning an actual CHECK being returned by the bank because the account was closed. Now, can someone verify if this is true? That an ACH debit can be considered a "check"? To me, and this is just me, these are two totally different things. One is a physical check that you wrote - the other is an ACH debit (which can be an unauthorized transaction). Now I'm not in the banking industry & I'm clueless about some things, but to me, it seems unfair that an ACH debit would be considered a "check" in some circumstances. ACH debits can be unauthorized transactions by an illegal company. A check is what you personally wrote with your own hand. Please someone verify this! Goudah? Someone? I'm way confused here.

Posted: Tue Oct 09, 2007 10:53 am Subject:

Cannr, I think Volley should be along any minute to clarify.

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