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 Posted: Thu Feb 28, 2008 12:46 pm Subject: PDL Legal Action
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I am having trouble with some internet PDL's. They are threatening legal action. Can they do that? What are my options? I live in Indiana.
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mmcbride
Joined: 28 Feb 2008
Posts: 6
Debtcc Points: 248
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Posted: Thu Feb 28, 2008 12:52 pm Subject:
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They will ALL threaten legal action. A lot of them are full of it. However, we would need to know who your pdls are. If you could please list the pdl name, the amount borrowed (principle amount only), and the amount paid back (total to date), we can help you figure out who is legal and who is not. In the meantime, I am going to post the Indiana state pdl law for us all to see.
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cannr
Moderator
Joined: 07 Jun 2007
Posts: 9375
Debtcc Points: 124818
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Posted: Thu Feb 28, 2008 12:53 pm Subject:
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| Quote: | Indiana State Information
Legal Status: Legal
Citation:
Ind. Code Ann. ยง 24-4-4.5-7-101 et seq.
Loan Terms:
Maximum Loan Amount: $550 (not to exceed 20% of borrower's monthly gross income)
Loan Term: Min: 14 days
Maximum Finance Rate and Fees: 15%: $0-$250; 13%: $251-$400; 10%: $401-$500
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 per lender; Two total
Rollovers Permitted: None (cannot renew, repay, refinance or consolidate)
Cooling-off Period: 7 days after 6 consecutive loans
Repayment Plan: After 3 consecutive loans, lender must offer an extended payment plan of at least four equal installments at no additional cost
Collection Limits:
Collection Fees: One $20 NSF fee; additional charges may apply when check or authorization to debit was used to defraud another
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Indiana Department of Financial Institutions
Address: 30 South Meridan Street, Suite 300 Indianapolis IN 46204
Phone: (800) 382-4880
Fax:
Regulatory Contact: Mark Tarpey,, Supervisor, Consumer Credit |
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cannr
Moderator
Joined: 07 Jun 2007
Posts: 9375
Debtcc Points: 124818
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Posted: Wed Mar 05, 2008 12:19 pm Subject:
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Loanshop (Westbury / LTS is threatening action) $300 borrowed (390 pd back)
Paycheck Today (ACA Recovery making threats) $300 borrowed (485 pd back)
Phoenix debt management is also contacting me about a loan from Summit Group which I believed was paid in full.
Any help is appreciated. Thanks.
_________________
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MM Help
Guest
Debtcc Points: 100
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Posted: Wed Mar 05, 2008 12:30 pm Subject: reply
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it looks as though you have paid enough.if you have addresses for these companies,send c&d and dv letters.you should look into the laws regarding recording calls.
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paulmergel
Debt Samaritan
Joined: 24 Jun 2007
Posts: 2740
Debtcc Points: 10059
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Posted: Wed Mar 05, 2008 4:18 pm Subject:
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mmcbride, have you done anything regarding your bank account yet? Is it still open/active to where these guys can still debit? We need to get the bank account straighted out first to where they can no longer debit. I'm going to post something regarding closing your bank account. If you have any questions, just post! 
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cannr
Moderator
Joined: 07 Jun 2007
Posts: 9375
Debtcc Points: 124818
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Posted: Wed Mar 05, 2008 4:20 pm Subject:
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| Quote: | Before you close your bank account due to payday loans eating away at your paycheck, please read this.
Some banks have a policy regarding ach transactions that allows them to force open closed accounts if any ach transactions go through within a certain time frame after the account is closed. This can leave you owing a legal bank $1,000's and reported to chexsystems, instead of owing barely legal (or not at all legal) payday loan companies. Not a good thing. Ask your bank what their policy is on ach transactions on closed accounts before you close the account. It's best to go in person and talk to a branch manager.
If your bank does have this policy, tell them your situation. Don't be embarrassed. Take letters with you showing that you have revoked authorization for each of your payday loan companies to debit your account. Tell the bank to put your account on deposit only, an ach block, or a hard hold before they close the account. Your bank can do one of those, don't take no for an answer. This will prevent any payday loan ach's from reopening the bank account.
It'a always best to close your bank account. Leaving it open gives ways for the payday loan companies to continue to take money out. These companies have many different dba's, so blocking them won't work. They will also produce paper checks and run them through your account. Closing the account is the best way to prevent these companies from taking money out of your account.
Some state laws do allow for prosecution if you close your bank account, but that is usually in cases of fraud. But it's always best to check with your state's attorney general or department of financial institution before you close your account. You want to make sure you are not causing more heacaches!
Last edited by goudah2424 on 17 Jul 2007 15:25 |
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cannr
Moderator
Joined: 07 Jun 2007
Posts: 9375
Debtcc Points: 124818
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