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 Posted: Sat Sep 22, 2007 8:57 am Subject: Payday Loans controlling my paycheck
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I have payday loans that are controlling my paycheck so much that I cant pay the expenses that should be paid. I got all of my loans through the internet and presently reside in New York.I want to default on these loans but i dont know the consequences of my action. I really need help and advise on what to do and to expect when I do this.
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silver0421
Joined: 22 Sep 2007
Posts: 5
Debtcc Points: 377
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Posted: Sat Sep 22, 2007 9:04 am Subject:
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Hi Silver, and welcome.  You have come to the right place. When I started I had numerous pdls and was feeling out of control myself. Since joining, things have gotten alot better. Why don't you start by answering a few questions...Who do you have pdls with? Which are storefront and which are internet? How much do you pay, and how much do they say you owe them? I will also post your state's pdl laws...Hold on...
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eleroo
Joined: 06 Jun 2007
Posts: 1227
Debtcc Points: 14311
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Posted: Sat Sep 22, 2007 9:09 am Subject:
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Here you go:
| Quote: | New York State Information
Legal Status: Prohibited
Citation:
Licensed lender law applies but interest rate is that agreed to by contract. N.Y. Banking Law § 340 et seq. A check casher licensee cannot make loans nor cash or advance any moneys on a post dated check unless it is a payroll check. N.Y. Banking Law § 373. Criminal law sets the usury cap at 25%. N.Y. Penal Code § 190.40.
Small Loan Rate Cap
25% per year
Where to Complain, Get Information:
Regulator: New York State Banking Department
Address: One State Street New York NY 10004
Phone: 1-877-BANK-NYS
Fax:
Regulatory Contact: Regina A. Stone Deputy
http://www.banking.state.ny.us/ |
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eleroo
Joined: 06 Jun 2007
Posts: 1227
Debtcc Points: 14311
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Posted: Sat Sep 22, 2007 9:12 am Subject:
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I'm sorry...I just realized that you stated that you have all internet pdls. It looks like pdl lending is prohibited in you state so you have quite a good foot to stand on here! But, please do list how much you owe and to whom you owe. There are quite a few members here from NY that have been very successful in winning their battles. Hopefully one will be along shortly to let you know a little about their story.
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eleroo
Joined: 06 Jun 2007
Posts: 1227
Debtcc Points: 14311
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Posted: Sat Sep 22, 2007 9:16 am Subject:
Latest Blog Post : Where do I begin? |
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Hey Silver -
I'm from NY too and started with 15 PDL from the internet. I'd be glad to share my experience. First thing you need to do is list your loans by lender, amount of loan and amount paid to date (including fees) and then I can offer more help.
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MPEREZ56
Joined: 06 Nov 2006
Posts: 253
Debtcc Points: 6653
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Posted: Sat Sep 22, 2007 9:31 am Subject:
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i am also from New York, and started with 7 loans.All internet.
You have come to the right place for help. Please list the requested info , and we can start you on the road to freedom
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kashzan
Debt Samaritan
Joined: 11 Jul 2007
Posts: 5458
Debtcc Points: 38911
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Posted: Sat Sep 22, 2007 10:46 am Subject: Paydayloans
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I have 550fastcash-balance of $250.00
USA fastcash 500.00
oneclickcash 400.00
united cash loan 200.00
I have reduced 550 fast cash from 300.00
usa fastcash -just paid 150.00 for interest
one click cash-paid down 50.00 from principal plus interest
united cash loan- paid down 100.00 already plus interest for 5 renewals.
Thanks guys for whatever help you can give.
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Raph
Guest
Debtcc Points: 100
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Posted: Sat Sep 22, 2007 11:03 am Subject: Payday loans
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Just for your info, I maxed out the 5 renewals before paying down some of them. I am still paying just interest on the 500.00 loan from USAfastcash
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silver0421
Joined: 22 Sep 2007
Posts: 5
Debtcc Points: 377
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Posted: Sat Sep 22, 2007 12:06 pm Subject: Letter from Banking Department of the State of New York
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PDL's are illegal in New York. They are considered a criminal act.
Please read below legislation regarding PDLs, whether store-front or internet.
| Quote: | Payday Lending Is Illegal in New York
• States traditionally regulate the small loan market and license lenders who are allowed to charge relatively high rates to make small loans available to consumers without perfect credit standing. New York's civil usury cap is 16 percent interest a year (New York General Obligations Law § 5-501 and New York Banking Law § 14-a, subd. 2). The criminal usury cap is 25 percent annual interest (New York Penal Law § 190.40). Check cashers are prohibited from cashing checks with deferred dates in New York. |
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PDLInvestigator
Joined: 24 Feb 2006
Posts: 148
Debtcc Points: 4315
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Posted: Sat Sep 22, 2007 12:58 pm Subject:
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Silver , please be more specfic
Let us know the amount of the loan and exactly what you have paid back. Do not break it down between fees and principle.
For example
you have loan 5000.00 3 rollovers. How much in $ was paid
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kashzan
Debt Samaritan
Joined: 11 Jul 2007
Posts: 5458
Debtcc Points: 38911
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Posted: Sat Sep 22, 2007 1:54 pm Subject: PaydayLoan Mess
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Kashzan,
Sorry for not being specific but i had to look back at my bank statements.Here goes
US Fastcash $500.00 loan 3 rollovers, $450.00 paid
Oneclickcash $500.00 loan 6 rollovers $885 in interest to renew plus $100 towards principal-total of $995.00 paid.
United Cash Loans $350 loan 4 rollovers ,$420.00 paid in interest.
Cashadvancenetwork(MTE) $300.00-no rollover yet-first 90.00 to be taken out on 9/28
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silver0421
Joined: 22 Sep 2007
Posts: 5
Debtcc Points: 377
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Posted: Sat Sep 22, 2007 2:14 pm Subject: Payday loans
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Just to let you know that I already had my direct deposit for my payroll cancelled and my paychecks will just be mailed to me. Do you suggest closing the checking account since i was able to open a new one in another bank recently?The next time they are gonna pull from the account is on 9/28.What will be the consequences?
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silver0421
Joined: 22 Sep 2007
Posts: 5
Debtcc Points: 377
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Posted: Sat Sep 22, 2007 2:18 pm Subject:
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Silver You ahve so overoaid most of these loans.
Wer do suggest closing your checking account and opening a new account at a completely unrelated bank, Do not give this new account number to anyone.
You need to send letters revoking any and all ach debits. Also revoke any wage assignments yoy may have signed.
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kashzan
Debt Samaritan
Joined: 11 Jul 2007
Posts: 5458
Debtcc Points: 38911
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Posted: Sat Sep 22, 2007 2:48 pm Subject: paydayloans
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when do i send the letters? Do i wait after the 28th when the account is closed or before I close my checking account?
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silver0421
Joined: 22 Sep 2007
Posts: 5
Debtcc Points: 377
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Posted: Sat Sep 22, 2007 6:37 pm Subject:
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Hi Silver-I can help leverage the great info that you already have. Close the account asap and then send the letters. The consequence is that your bank may charge you NSF fees and your bank may even pay the pdl's then overdraft your account...I work for a bank and sometimes the bank will indeed forcepay leaving you holding the bag for the payments +fees.
Close the account and then send the letters. Would you like me to PM you a letter that is commonly used? Just PM me and then I will respond right back.
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volleyballmom
Debt Samaritan
Joined: 27 Aug 2007
Posts: 4177
Debtcc Points: 24901
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Posted: Sat Sep 22, 2007 7:08 pm Subject: PDL letter of revocation
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Dear volleyballmom, I really would appreciate it.
Thanks
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silver
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Debtcc Points: 100
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