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Posted: Wed Jul 16, 2008 8:07 am Subject: Need help in PA

I have several payday loans, I get one to pay off one, and just have a mess. I have one with NLS cash advance, and have so far paid $429.00 for a $250 loan. I am told there will be another payment coming out for $279.00. I never signed a contract, on request they finally sent me a contract that says I electronically signed, which I didn't. I submitted my information on line for a loan, and next thing I knew there was $250.00 deposited into my account, I didn't even know where it came from, but this site helped me find out by what was written on my bank statement. How do I stop another payment from coming out without closing my bank account? I also have one with A2Bcash, and payday1. I have read something about a letter you can send? And how do I find out if the companies are legal or not? Can someone help me get out of this mess? Just want to get rid of them all. Thanks

Posted: Wed Jul 16, 2008 8:27 am Subject:

Hi misshunny, hang tight & someone with a little more knowledge will be here to help.
For you account, if you don't want to close it then you would need to put a hard debit block or hold on it, that way money can go in, but they can't take anything out.
There is a letter, called a cease & desist letter, but I would wait to send it until you know that your money is safe & the companies can't get to it.
Here is a copy of your state laws:
Quote:

Legal Status: Prohibited

Citation:
Check cashers are specifically prohibited from making payday loans under Check Cashing Licensing Act of 1998, § 505(a). Otherwise, consumer discount company act applies. 7 Pa. Cons. Stat. Ann. § 6201 et seq.

Small Loan Rate Cap
$9.50 per $100 per year discount or 24% per year

Where to Complain, Get Information:
Regulator: Pennsylvania Department of Banking
Address: Market Square Plaza, 17 N. Second Street Harrisburg PA 17101
Phone: (717) 214-8343
Fax: (717) 787-8773
Regulatory Contact: Jim Keiser
http://www.banking.state.pa.us/banking/site/default.asp

I won't try to interpret them for you, I'll leave that to the people with more experience Very Happy

Posted: Wed Jul 16, 2008 8:29 am Subject:

The only sure way to stop the debits is to close your bank account. I do see that you are in PA and someone will be along shortly to help you with the laws in your state as I believe there is a little tiny loophole that must be addressed. In the meantime, could you list the amount you borrowed from each, how much you have repaid on each and how you came about to have them (internet,storefront). I believe you are speaking of a C and D letter, which you can find in the do it yourself section at the top of this page. I think A2Bcash is in Denmark. Hang tight. Help is on the way.

Posted: Wed Jul 16, 2008 8:32 am Subject:

The laws posted above apply ONLY to STOREFRONTS. So they would not apply to your situation at all.

Internet based companies lending in PA only have to be licensed in another state. They would need to follow the laws of the state they are licensed in. Not PA laws.

Posted: Wed Jul 16, 2008 8:33 am Subject:

Thank you goudah. . . PA always makes me nervous as I am never sure of how that applies. That's why I always defer to you and the others to clairfy.

Posted: Wed Jul 16, 2008 8:40 am Subject:

Same here, I learned a lot when I was going through the default process & the collectors, but I know that I still have a lot more to learn.

Posted: Wed Jul 16, 2008 8:45 am Subject:

Please read this thread:

http://www.debtconsolidationcare.com/paydayloan/close-account.html

It's got important info you will need to close your bank account.

LLW - You know more then you think! Very Happy