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 Posted: Mon Apr 28, 2008 12:16 pm
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I have two payday loans out that i have been extending and extending... My paycheck keeps shrinking. I was considering using pdl assistance but i couldn't find any info on them in the BBB. Has anyone here tried either them of longhorn...
My loans
mycashnow 538 internet based I've already paid 500+ towards this loan and I haven't even made a dent in the principle... I still owe 538 dollars:(
paydayloans 500 internet based which is now over 600 bucks
I'm located in New york
any help or insight is greatly appreciated... I'd like to fix this before my next draft cycle:(
i was thinking about just signing up with a consolidation company...
Neequa
state: new york
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neequa
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Posted: Mon Apr 28, 2008 12:50 pm
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neequa, hi!  Just to let you know, I see you reside in New York. Neither one of these pdls are going to be legal to lend to you, okay? I'm going to post your state pdl law just so you can see it. However, let me ask you, have you considered doing anything with your bank account (close/block) so these illegal companies can no longer debit? I can post some information for you to read regarding that, too.
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cannr
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Posted: Mon Apr 28, 2008 12:51 pm
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| Quote: | New York State Information
Legal Status: Prohibited
Citation:
Licensed lender law applies but interest rate is that agreed to by contract. N.Y. Banking Law § 340 et seq. A check casher licensee cannot make loans nor cash or advance any moneys on a post dated check unless it is a payroll check. N.Y. Banking Law § 373. Criminal law sets the usury cap at 25%. N.Y. Penal Code § 190.40.
Small Loan Rate Cap
25% per year
Where to Complain, Get Information:
Regulator: New York State Banking Department
Address: One State Street New York NY 10004
Phone: 1-877-BANK-NYS
Fax:
Regulatory Contact: Regina A. Stone Deputy Superintendent |
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cannr
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Posted: Mon Apr 28, 2008 12:52 pm
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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
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Posted: Mon Apr 28, 2008 1:02 pm
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Hi Cannr, thank you so much for your response. I was completely ignorant to fact that they were illegal to lend in my state...Can't say that i'm suprised though. I am going to read over this info you gave.. Also in regards to my account.. i didn't close my account but i did re-route my direct deposit to another account.... I get my check and all my money is gone. I've been trying to pay them back but geesh i have a infant to feed and the interest on these loans is a killer....
i don't even know where to begin...
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Neequa
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Posted: Mon Apr 28, 2008 1:07 pm
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I am from NY and they are indeed very illegal here. All you are morally obligated to repay is the principle. Actually when thee pdls hear that you are in NY they seem to get a bit scared and vanish after awhile. I has 7 and now have none.
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kashzan
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Posted: Mon Apr 28, 2008 1:11 pm
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really??? what are the steps i need to take? I know i have already given mycashnow over $500. yet my balance is stil 538... my loan was only 610 bucks
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Neequa
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Posted: Mon Apr 28, 2008 1:12 pm
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neequa, when are your debits scheduled to hit your account next? We can see if you have time to close your bank account or if we need to put a hard debit block on it to prevent these guys from debiting you any more. The first step is to get the bank account to the point to where they can not debit & you won't get any bank fees. We have to get the account "safe".
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cannr
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Posted: Mon Apr 28, 2008 1:22 pm
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Cannr, they are scheduled to debit my account on the 30th of this month... (wednesday)i can call my bank and try.
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NEEQUA
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Posted: Mon Apr 28, 2008 1:32 pm
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neequa, try to get a HARD DEBIT BLOCK on that account. NO debits will go through. Not even your stuff, so you'll want to open a new account somewhere else so that you will have a "working" bank account. It might be too late to actually totally close the account, as the pdl debits are probably already pending. If they're pending, they'll force the account back open and you'd be hit with the pdl debits and bank fees. If at all possible, can you go to the bank and speak with the branch manager? You need to get a hard debit block on this now. Customer service can't help you, the tellers can't help you, the branch manager is the way to go.
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cannr
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Posted: Mon Apr 28, 2008 1:39 pm
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Ok, i will go to my branch this evening and speak to someone. Hopefully that will work. i already have an alternate checking account... this is such a mess... but i just look forward to cleaning it up:(
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NEEQUA
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Posted: Mon Apr 28, 2008 1:41 pm
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neequa, once you go to your bank, let us know what happened. Try to not leave that bank until there is at LEAST a hard debit block on that account. Once we know your account is "safe" from the pdls, we can send some letters out to them, okay? We just need to do the bank thing first!
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cannr
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Posted: Mon Apr 28, 2008 1:44 pm
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Ok Cannr,
i will update the outcome later on this evening.
thank you so much for your help
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NEEQUA
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Posted: Mon Apr 28, 2008 5:20 pm
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Go to the processor for MyCashNow. It is ACH Commerce. There is info on other posts regarding this. Get your account covered before they can get to it. Hope this helps.
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llw1995
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Posted: Mon Apr 28, 2008 5:23 pm
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Hope you didn't have any problems with the bank. Please let us know how things turned out
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2nband
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