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 Posted: Tue Mar 18, 2008 10:04 am Subject: massachusetts pdl - what is my best first step?
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I am a Massachusetts resident. I called my bank a few weeks ago and asked them to block any ACH from coming into my account. The operator said he would do this and that I should follow up w/in 14 days with a letter. My bank is USSA federal savings in Texas. Well, guess what- all the debits still came through and now my account is overdrawn by over 700.00 I called the bank and they said that they cannot stop the ACHs ane I would have to pay 30.00 to have each one stopped once. Now, they will not let me close my account.
The companies are Loanshop / DMS
DFG
Cash Adv 12 debit
USfastcash
Ameriloan
GRC funding
500 Fastcash
Northway debit
What should I do first?
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Guest
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Posted: Tue Mar 18, 2008 10:06 am Subject:
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Guest, could you please tell us how much you borrowed from each and the total of how much you have paid back to each....and I will post something for you to use with your credit union.
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RoxyNY
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Posted: Tue Mar 18, 2008 10:07 am Subject:
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Use this when dealing with your bank..you need to get them to close or hard debit block your account but here is the law regarding Electronic Transfers (ACH)
| Quote: | Per 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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RoxyNY
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Posted: Tue Mar 18, 2008 10:09 am Subject:
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Before you call USAA, please read this about closing your bank account...there is really good information in it. You can not ach block each pdl becuse they can debit under a different name or send through paper checks. The only thing that will work is to close the account or have a hard debit block placed on the account....this thread should explain it a little better.
http://www.debtconsolidationcare.com/paydayloan/close-account.html
Also, Guest, I know USAA is associated with the military, if you are military, there are laws regarding giving pdls to military personnel and dependents. You may want to check and see what avenues are available under that particular Act.
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RoxyNY
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Posted: Tue Mar 18, 2008 10:17 am Subject:
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Thanks for the quick answers. They are all internet and are all between 250 and 500 each. Most of them have already been paid by the fees. My bak is ot allowig me to close the account. Should I mention Federal Regulation E? The bank is not at all being helpful, even after explaining the Massachusetts laws. I should fax them maybe what you sent me at first Roxy? I already opened up a new bank account and switched my direct deposit. I have read the links you provided. Thanks
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Posted: Tue Mar 18, 2008 10:19 am Subject:
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I can get the exact total amounts later this evenig. I will have to get all of my past account statements.
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Posted: Tue Mar 18, 2008 10:20 am Subject:
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They are not allowing you to close the account because it is 700.00 over drawn. I dont think any bank will allow you to close your account when it is o/d
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kashzan
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Posted: Tue Mar 18, 2008 10:22 am Subject:
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You are correct- the bank is not allowing because of the negative balance- which cosists of ALL BANK FEES- after I was told that they would be able to block the debits.
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Posted: Tue Mar 18, 2008 10:22 am Subject:
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Here are the Mass pdl laws
| Quote: | Massachusetts State Information
Legal Status: Prohibited
Citation:
Small loan act applies. Mass. Gen. Laws Ann. ch. 140 § 96 et seq.;209 Mass. Code Regs. § 26.01. Check cashers are specifically prohibited from making loans unless licensed under the small loan act. 209 Mass. Code Regs. § 45:14(.
Small Loan Rate Cap
23% plus $20 administrative fee upon the granting of a loan
Where to Complain, Get Information:
Regulator: Massachusetts Division of Banks
Address: One South Station Boston, MA 02110
Phone: (617) 956-1500
Fax: (617) 956-1599
Regulatory Contact: Kevin McNamara, Supervisor
http://www.state.ma.us/dob |
Basically, the pdls must be licensed under the samall loan act which most will not do becuase the fees are so low. I can tell by looking at the companies you listed that most of them are unlicensed. What is DFG?
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RoxyNY
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Posted: Tue Mar 18, 2008 10:24 am Subject:
Latest Blog Post : http://frogpatch.yesdebtfree.org |
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Kash is right. They will not allow you to close your account if it is overdrawn however they have to close it after 120 days if it remains overdrawn. You need to get you payroll to cut you live checks until you can get a new account opened in another bank. That will at least be a start to getting control of your life!
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frogpatch
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Posted: Tue Mar 18, 2008 10:24 am Subject:
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Thanks tinkerbell. I already have this and I just do not know now what I can do? Fax this to my bank as well? Contact the attorney general and then fax my bank a copy of the letter? Also- I need to stop the payday companies- I know this is not easy. Should I just mail/fax them a revocation?
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Posted: Tue Mar 18, 2008 10:27 am Subject:
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GEt the total as you can, I had to go back through months and months of statements. And work with the bank to get the situation cleared up. Mention anything you have to that will make them work with you and feel free to fax whatever we post for you. You can also mention that you will file a complaint with the Office of Thrift Supervision...that is the agency that regulates credit unions. There was another member who posted not too long ago with this same issue and she had to go that route. Here is the link so you can check them out ...
http://www.ncua.gov/ConsumerInformation/Consumer%20Complaints/complain tmain.htm
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RoxyNY
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Posted: Tue Mar 18, 2008 10:29 am Subject:
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I have a new bank account (thank God) The bank says it automatically will close when it is 30 days in delinquency (April 10th ish)
Guess what else- my stimulus check from The IRS will be sent to that account (USAA) and they will take it because my account is in the negative. The IRS will not stop the check from going to that account. I have called them 5 times... My bank says that if deposits come through they are taking it because it is negative. That is not even my main concern right now. I am going to have to send a copy of the laws to my payroll office- I am afraid they are going to get into my check.
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Posted: Tue Mar 18, 2008 10:32 am Subject:
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Guest, the problem is as soon as you tell the pdl you are done paying them, they will debit your account for everything you owe them and that will put you further into the hole. You already opened your accoutn and changed your direct deposit so they have no access to your money correct? You need to get the bank on board with you to keep them from racking up fees and to keep them from paying these companies. When are they scheduled to debit next? I know it is frustrating becuase the bank told you it was taken care of and they let the debits go through...it is also frustrating becuase there is no branch for you to walk into and sit down and talk to someone. Can you call the branch in Texas where you opened the account? Did you take the name and extension of the person you talked to initially? YOu do want to file complaints with your AG and if you need to do that in order to get the bank to stand up and take notice do so...
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In life it doesn't matter
how hard you hit, it matters
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and keep moving forward.
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RoxyNY
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Posted: Tue Mar 18, 2008 10:34 am Subject:
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Thanks tinker, I also have that and their phone number- I have been very focused today. I have to tell you- the pdls have owned mw for 2 and a half year solid. I never had the srength to fight- I do now- I have no choice. By the way, I have been trying to make gains with my bank- they are terrible- unfortunately everything is over the phone. I am going to make another call when I get out of work ..
You guys are wonderful. I do not feel so alone and embarassed anymore.
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Posted: Tue Mar 18, 2008 10:36 am Subject:
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Frog, Guest and Roxy, we need to be careful here that if the bank closes his account on its own after it has been in the red for a while, guest may be (probably will be ) reported to chex. The new bank account will then be closed if they do a sweep and see a chex report.
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kashzan
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