Okay, so I just read that payday loans are actually illegal in New Jersey. I borrowed 600 from Loan Point USA and they have refinanced the loan twice for 180 dollars which didn't even go towards the loan, just finance charges. I am in somewhat of a bind right now, and I do not have 780 to pay back right now. Since it is illegal does the $360 that I paid so far towards finance charges need to go towards the loan itself? PLEASE HELP! Thanks

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Yes, The money that you paid in finances charges goes towards the loan amount. You borrowed 600.00 and repaid 360.00 and only owe them 240.00. Please be sure your account is closed . Otherwise they will go in and take everything you have.
After your account is closed, let them know that because they are illegal you will only pay what you borrowed.

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Do I absolutely have to close out my account? I cannot just send a letter stating that it is illegal and demand that they can no longer draft money from my account? Thank you.

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please close it, at the very least put a hard block on it. they will keep going in regardless of what you tell them. blocking them will not work neither as they have millions of names to go under. they are part of geneva roth. i live in NJ and had a loan with them, they are horrible,

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I'm not as fed up anymore.. making extra money http://www.needbetterdays.blogspot.com

I wish I never had to take out this stupid payday loan I've had the same account for 8 years

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I have Loan point USA, I am in Florida, I had 2 loans, one I paid off, but ended up paying the loan off for 600 and over 1000 in fees before that. I now have a new loan for 600, that I have paid 360 on. Do I owe them anymore? Since I so over paid in fees on the first loan I ever had with them? Thanks

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So I contacted my bank, and the idiot I spoke to told me they cannot block anything, nor change my account number until I have paid off that payday loan. I explained to this person that it is absolutely illegal for them to continue taking out money out of my account and they said well all kinds of proof. I'm SO done with this bank. 8 years at this bank and this is what they do. It's like the idiots are on the payday loan crooks side.

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One more thing, I contacted Loan Point USA and let them know that by law they MUST apply whatever payments I have made towards the balance owed. The lady I spoke to says she cannot speak about the legalities of anything over the phone, and because I did the loan over the internet it was not in my state, I MUST pay them back 780.00. I smell B.S.

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missk, keep going up the chain of command. that is crazy, they can too block it and the loan is none of their buisness, anyway. you have the right to revoke ach debits, ask to speak to the fraud department.. keep asking, someone will help you, i had trouble, too but i had to keep asking..
but you could also print out the state statute..

New Jersey State Information

Legal Status: Prohibited

Citation:
Consumer loan act applies but rates as agreed to by contract. N.J. Stat. Ann. tit. 17,§ 1 et seq. However, criminal law sets the usury cap at 30%. N.J. Stat. Ann. § 2C: 21-19. A check cashing licensee cannot cash or advance money on a postdated check. N.J. Stat. Ann. § 17:15A-47.

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I'm not as fed up anymore.. making extra money http://www.needbetterdays.blogspot.com

You have the right to revoke ach withdrawls
show this to your branch manager. Its the law
er the Electronic Funds Transfer Act:

Quote:
§ 205.10 Preauthorized transfers.

(a) Preauthorized transfers to consumer's account--(1) Notice by financial institution. When a person initiates preauthorized electronic fund transfers to a consumer's account at least once every 60 days, the account-holding financial institution shall provide notice to the consumer by:
(i) Positive notice. Providing oral or written notice of the transfer within two business days after the transfer occurs; or
(ii) Negative notice. Providing oral or written notice, within two business days after the date on which the transfer was scheduled to occur, that the transfer did not occur; or
(iii) Readily-available telephone line. Providing a readily available telephone line that the consumer may call to determine whether the transfer occurred and disclosing the telephone number on the initial disclosure of account terms and on each periodic statement.
{{10-30-98 p.7369}}
(2) Notice by payor. A financial institution need not provide notice of a transfer if the payor gives the consumer positive notice that the transfer has been initiated.
(3) Crediting. A financial institution that receives a preauthorized transfer of the type described in paragraph (a)(1) of this section shall credit the amount of the transfer as of the date the funds for the transfer are received.
(b) Written authorization for preauthorized transfers from consumer's account. Preauthorized electronic fund transfers from a consumer's account may be authorized only by a writing signed or similarly authenticated by the consumer. The person that obtains the authorization shall provide a copy to the consumer.
(c) Consumer's right to stop payment--(1) Notice. A consumer may stop payment of a preauthorized electronic fund transfer from the consumer's account by notifying the financial institution orally or in writing at least three business days before the scheduled date of the transfer.
(2) Written confirmation. The financial institution may require the consumer to give written confirmation of a stop-payment order within 14 days of an oral notification. An institution that requires written confirmation shall inform the consumer of the requirement and provide the address where confirmation must be sent when the consumer gives the oral notification. An oral stop-payment order ceases to be binding after 14 days if the consumer fails to provide the required written confirmation.
(d) Notice of transfers varying in amount--(1) Notice. When a preauthorized electronic fund transfer from the consumer's accounts will vary in amount from the previous transfer under the same authorization or from the preauthorized amount, the designated payee or the financial institution shall send the consumer written notice of the amount and date of the transfer at least 10 days before the scheduled date of transfer.
(2) Range. The designated payee or the institution shall inform the consumer of the right to receive notice of all varying transfers, but may give the consumer the option of receiving notice only when a transfer falls outside a specified range of amounts or only when a transfer differs from the most recent transfer by more than an agreed-upon amount.
(e) Compulsory use--(1) Credit. No financial institution or other person may condition an extension of credit to a consumer on the consumer's repayment by preauthorized electronic fund transfers, except for credit extended under an overdraft credit plan or extended to maintain a specified minimum balance in the consumer's account.
(2) Employment or government benefit. No financial institution or other person may require a consumer to establish an account for receipt of electronic fund transfers with a particular institution as a condition of employment or receipt of a government benefit.

[Codified to 12 C.F.R. § 205.10]

[Section 205.10 added at 44 Fed. Reg. 59471, October 15, 1979; amended at 45 Fed. Reg. 8265, February 6, 1980, effective May 10, 1980; 61 Fed. Reg. 19672, May 2, 1996]

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Well I also contacted NJ State Banking and they said because I authorized the ach, there is nothing really that can be done unless I contact an attorney..I'm to the point where I'm just going to pay the stupid 780 and totally forget about these stupid payday loans.

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guest is right (are you sure you are not a member?) i would print that out, and keep going up the chain of command.. that is beyond crazy that they will not help you!

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I'm not as fed up anymore.. making extra money http://www.needbetterdays.blogspot.com

Perhaps I am !!!!!

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You know, I think I may fight with my bank, because this just isn't right at all.

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Well, print out the law that I posted, and the bank has no choice but to comply.

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missk84, it isn't right at all. I would go directly to the branch manager if I were you.

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