I am in a situation with a payday loan and need some quick advice or help.

I took a Payday loan for $300 from Loanshop Online in October 2007. I made several payments on the loan, but had not paid the loan off completely. Recently we defaulted on the loan, due to a bad financial situation, and were not able to make payments. I did try to make payments, but I had to put things like electricity and food before payday loan payments. I was contacted on June 2, and told that if I do not pay the balance by 4 PM that day ($300) they will proceed with a judgment against me. I told them that I was able to make payments of $100 every 2 week. They said there was absolutely no way they could hold the account and that "their hands were tied" as far as holding it another 5 days. They told me to "check my resources" and if I did not have the payment in by 4 PM, I would have to deal with the consequences. They also told me that they would no longer be able to discuss the debt with me, it would have to be my attorney (I do not have an attorney). I was told that my file would be sent out to the court if I did not have a payment in by 4 PM June 2. I told them there was no way I could make that payment that day, they hung up on me.

On Friday, June 6, I receive another call from them - even after telling me they could no longer hold the account, and that they would no longer be able to speak to me - asking again for the balance. Again I told them I could pay $100 every 2 weeks beginning June 15. They would not accept that arrangement, and insisted I pay $250 on the 13th and 20th of June. I told them I could absolutely not do that and again offered to pay $100 every 2 weeks, and was told no.

Today, June 10, I received another phone call at work. They are now leaving me voicemails saying that it is very urgent that I contact them before 4 PM today.

I know a little bit about laws and know that they cannot garnish my wages without a judgment. I also know they cannot send me to jail for not paying a payday loan. I am more than willing to pay this debt. I acknowledge that I owe it. I explained that I am willing to start paying $100 every 2 wks, but they would not accept that.

Is Loanshop all talk, or do they pursue judgments? What should I do - they will not accept my arrangements that I can afford and only offer large payment options. Should I just start sending in the money I can pay and see what happens?

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pm, how much did you borrow from the Loan Shop (principle amount only), how much did you pay back, and what state are you in?

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I borrowed $300 initially. I believe I have paid back about $200 of that. I am in Texas.

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I just received an email telling me that my total owed is $390. On the phone I was told that "with court costs this will be well over $1,000." I am also confused because back on June 2 they told me they would no longer be able to speak to me about this debt, only my attorney, but yet they continue to call me. I acknowledge I owe it but can only afford to pay $100 every 2 weeks and I don't like being lied to by them about going to court and stuff.

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pm, I'm not showing The Loan Shop as licensed in Texas. Now, they could be operating as a CSO in Texas; however, I don't believe so. I know they have a license in Utah (I believe?), but nothing comes up in the Texas licensee database for them. So, if you borrowed 300.00 and have paid approximately 200.00, you would actually only owe them about 100.00 more. How much are they asking for?? You're talking about sending $100 every two weeks? What do they claim you owe them? Because whatever it is, they are full of it.

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Also, let me add, you can let them "turn you over to collections", if you like. This way, you can send them a debt validation letter. They would have to properly validate the debt (which they most likely would not be able to do with their illegal fees). You can just wait it out and let them do that and go that route. When you send a debt validation letter (in writing), the collection efforts are to cease until you get PROPER debt validation. I've sent debt validation letters once turned over and NEVER heard from pdls again because they could not validate the debt. Just a thought for you! :wink:

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The Loan Shop is owned by LTS Management. They are unlicensed and illegal. You will have much more luck if you contact them at LTS then when you try to deal with the trained monkeys they have working the phones. I was eventually able to get a PIF and a refund (I had paid back more than the amount of the loan) from these folks.

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Thank you for the information! They are harassing me at work - calling several times a day - and insisting I owe $390. They say the actual balance is around $890 with fees, but they are willing to settle for $390.

How do I find out if they are licensed in Texas? Here is the company info, I have also seen them listed as Princeton Harris, DMS Marketing:

The Loan Shop
2207 Concord Pike #505
Wilmington, DE 19803
(800)806-9971 ext 8513
(800)757-8373 fax

They also call me from 800-757-0122.

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Just received 2 emails in a row from them, here's the first:

From: Princeton Harris (pharris@ltsmanagement.com)
Date: 06/10/2008
Subject: DUE

This letter is to inform you of your delinquent cash advance balance. You received a cash advance on 10/24/2007 and have yet to schedule payments to reconcile your account.

To avoid any further collection activity, please call me at 1-888-265-5074 to set up a payment plan to clear your balance.

I am willing to make you the following offer:
The current balance, the total outstanding principal and fees, owed on your account is $ 390.00. However, I will waive ALL of your previously unpaid extension fees and freeze your account at a balance of $ 300.00. Contact me as soon as possible to set up a payment plan.

After < >, you will be responsible for all of the extension fees that are currently waived - as you agreed to in your loan contract. I will accept payment via Money Grams or electronic withdrawals from your checking accounts.

Please call immediately to resolve this situation. I am very flexible on payment plans and we will come to an arrangement that you will be comfortable with.

Sincerely,
Jamie Bailey
Account Manager
Loan Shop Online

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They're not licensed in Texas.

WI GUY - good to see you! Can you give some information on LTS?

pm, this is what the illegal/unlicensed companies do. They claim they are sending you to collections. They don't. They continue to harrass you. They claim extra "fees" (court costs, etc). There are none. The only way unlicensed/illegal companies can get their money is by SCARING it out of people since they have no legal recourse to collect. Do not let them scare you. Yes, they will bug you to death; however, you do not owe the amount of money the are claiming.

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Thank you so much for the advice, it makes me feel so much better.

So... how should I proceed? I am willing to pay the $300 loaned, as I do owe that. Should I send them a letter, or what should I say? I'm not sure how to proceed from here.

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burk,you don't owe 300.00.you owe 100.00 this is an illegal loan.which means everything you have paid goes toward the principal.don't give these jamkoes any more than they deserve.

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Wow, thank you all for the advice. I honestly had no idea this loan was illegal. Here I have been worrying for weeks about having a judgment against me!

So... should I just stop paying and answering calls? Or is there some documentation I should send them in order to have these harassing calls at work stopped?

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The Loan Shop is an LLC out of Delaware. LTS Management, which is the parent company, is out of Missouri (I think). It's probably not much help, but their phone number is 888-265-5074, and fax is 800-383-3309.

And if you want to see something really funny, run a search on Yahoo for LTS Management and then take a look at all the sites that pop up on the right. Gee, you think those companies might be connected?

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From: Loan Shop Online (accountresolution@loanshoponline.com)

Loan Shop Online Payment Reminder‏

This is a reminder that you have a payment due on 06/13/2008 in the amount of $215.00 toward account number ******.

- If you agreed to pay by MoneyGram, our MoneyGram information is as follows:

Receive Code: 4959
Pay To: LTS Management Services
Wilmington, Delaware
Account Number: 373227

Call 1-800-555-3133 for a MoneyGram location near you, or search online at moneygram.com

- If you agreed to pay by electronic transfer, do nothing. Your payment will be withdrawn from your bank account on 06/13/2008.

Once the payment has been received it will be posted to your account. If you would like to receive a receipt for your personal records, please notify me by phone or email.

Missing your agreed upon payment date or sending in less than the agreed upon amount can result in your payment plan being declared null and void. Collection activity will resume.

Thank you in advance for your cooperation. If you have any questions or concerns, do not hesitate to contact me at the number below.

Sincerely,

Jamie Bailey
Account Manager
Loan Shop Online
1-888-265-5074

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You can file a complaint through the BBB of Delaware- like I did.
Call William Mashburn 888-265-5074 x 3497
email is wmashburn at ltsmanagement.com
He's the one who resolved my acct quickly.

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