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Posted: Wed Jul 16, 2008 6:41 am Subject: PDL Trap

My husband and I both have many PDLs, and they were killing us. All of our money was going to pay just the fees each week. It's so embarassing that we got into this mess. We make decent money and should not be in this situation. Because of paying so much in the fees, we've gotten behind on our mortgage and lots of other bills. The only thing getting paid on time was the PDLs! A couple of weeks ago we got the courage up to go into the bank and had our account frozen to debits and the bank gave us a new account number that we are now using for legitimate debts. We sent letters to each of the PDLs, but really haven't had much response. We also emailed the letters when we had an address. Here's what we have:

mine
BIG, loan $200, paid 3 $65 pmts ($195)
Total Lending, $300 loan, paid 5 $90 pmts ($450)
Payday-Loan-Yes, $350 loan, paid 6 $150 pmts + $50 ($680)
MultiLoan Source, $300 loan, paid 2 $90 pmts ($180)

husband
Little Loan Shoppe, $300 loan, paid 9 $90 pmts ($810)
Ambassador (Nationwide Cash), $300 loan, paid total $637.50
Paychecknow, $400 loan, paid total $670
Impact Cash, $300 loan, paid 2 $90 pmts ($180)
Payday-Loan-Yes, $350 loan, paid $105
Worldwide Cash, $200 loan, paid $89
Avantis Financial, $200 loan, paid $0

We got the letter back from WorldWide Cash saying they were no longer at the address (Concord Pike, Wilmington DE) and gave a UK address. Does anyone have a better US address or should I send the letter to the UK address?

A couple of the PDLs have continued to call us even though we've told them to contact us through USPS mail and email only.

Right after they received our letter, Total Lending replied by email that they no longer had our account and for us to contact icollect/AIS. I did contact them and tried to dispute the amount due because this loan has already been overpaid. I asked them to verify the debt in writing to me, and they refused. They said they purchased the debt and they don't have to verify it. They suggested I call the original debtor, which I did, who just referred me back to icollect and AIS. When you call icollect, you only get a recording and not a chance to speak with anyone. The rude guy at AIS told me that if I didn't pay it, the fees would continue to add up and it would keep reporting to my credit. Why should I have to pay more than what I've already paid to them? Can they report it to your credit? If the loan is basically illegal to begin with, how can they send it to a collection agency and then report it to your credit?

I'm only trying to pay what I actually owe and somehow see daylight again.

Any advice on the PDLs I'm dealing with? Oh, we live in Ohio.

Thanks!

Posted: Wed Jul 16, 2008 6:46 am Subject:

Welcome! Someone will be along shortly to post your State Laws and help with interpreting them. Hang tight.

Posted: Wed Jul 16, 2008 6:54 am Subject:

Here are the laws for ohio

Posted: Wed Jul 16, 2008 6:55 am Subject:

Any collection agency that is legit is required to verify the debt in writing. Several people have had problems with Icollect..just do a search on this site and you will numerous of threads on icollect.

Posted: Wed Jul 16, 2008 7:02 am Subject: reply

chances are icollect/AIS,is trying to collect for paydayloan yes.
they did the same thing with me,but never realized that pdlyes
got slammed in illinois for there illegal practices.they are a bottomfeeder collector.i will see if i still have the address.you
need to send them DV and C&D letters.send them certified mail
return receipt requested.

Posted: Wed Jul 16, 2008 7:17 am Subject:

icollect/AIS says it is for Total Lending, which I have already overpaid. Basically, Total Lending ignored my letter demanding a PIF letter and a refund, and they quickly sent it off to icollect/AIS. Now Total Lending won't deal with me, and AIS won't verify the debt. They just keep telling me that I should be a responsible person and pay my debts or it will continue to be reported to my credit. If you have an address for them to send the letters to, that would be great.

Posted: Wed Jul 16, 2008 7:21 am Subject:

I dealt with Icollect a few years back and they never reported anything on my credit report. I think that is just another one of their scare tactics. I would tell them if they were a responsible collector than they should validate the debt like a normal legit and legal collector would do.

Posted: Wed Jul 16, 2008 7:27 am Subject:

I tried to stand my ground and insist on a debt validation from them. The collector then basically told me that he had someone on the other line that was willing to pay their bills unlike me and he hung up.

Posted: Wed Jul 16, 2008 10:54 am Subject: reply

hmm,interesting.translation,there's someone on the line i can
sucker money out of.that is pathetic,to say the least.

Posted: Wed Jul 16, 2008 11:23 am Subject:

I received a call just today from National Recovery Systems (888-622-0222) telling me that they now have my account from Total Lending. So first it was instantly sent to icollect as soon as I demanded a PIF/refund letter, then it was to AIS where I asked for a DV letter, and now it's with this National Recovery Systems. I explained to the lady that called me that this was not a valid debt and her company should not have it. I explained the Ohio laws to her, etc. and that I had already overpaid. She asked if I could send her info from my bank statements showing the payments and that she would see what she could do. She seemed very nice - but not sure if this is just another ploy to get bank account information. I am faxing all the info to her today. Does anyone think this will create any additional problems? The bank account is now closed, but I have another account at that same bank.

Posted: Wed Jul 16, 2008 11:31 am Subject: reply

in a word,YESSSSSSSSSSSSS.it is up to the CA to prove there
right to collect not yours to prove you don't owe it.i would
watch your bank account carefully.you might even want to think about closing it.my rule#1 never give anything at all until
they validate fully.

Posted: Wed Jul 16, 2008 11:44 am Subject:

Call the Ohio office of finance and find out if internet loans are illegal. I live in Kentucky and they are illegal here. A PDL has to be licensed in KY to loan in KY. A PDL has to have at least one physical store front in KY to be approved for a license. If the loan was illegally made then you are not bound to pay them a dime.

Posted: Wed Jul 16, 2008 11:50 am Subject: reply

i know the pdl is illegal,i am worried about the bank acct.since
it at the same bank they could try some unsavory things to get
your current info.i would alert your bank to this.put a fraud alert
on your current account,it should be okay.

Posted: Wed Jul 16, 2008 12:18 pm Subject:

I explained to the bank manager my problem, and I initially just wanted to close my account and sever all ties with the bank. I told him I was a little worried about the PDLs accessing my new account. The manager assured me that the bank has a zero liability policy, and that they will immediately credit any unauthorized debits to my new account and that the bank would recover them from the creditor. The account has been set on a "deposit only" status for several weeks, and the balance is zero with no activity, so that has seemed to work. How would someone get the new account information? I think instead of sending my proof of payments, I'll fax them a DV letter just to be on the safe side. Can or does this company report to the credit bureau, because she told me she wanted to help me before it was reported.

Posted: Wed Jul 16, 2008 12:30 pm Subject: reply

that is good to hear,i have heard several stories not just in the
forums either.these companies will try alot of things.they assume you bank at the same one and will misrepresent to try
to get your info.

Posted: Wed Jul 16, 2008 12:34 pm Subject:

Hopefully from what the bank manager has told me that if there are any attempts to debit my new account, it can be stopped. Because I will NEVER go to another PDL, and I am not giving my bank information to anyone except my legitimate bills, like phone, cable, etc. when I pay online.

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