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 Posted: Tue Nov 25, 2008 12:01 pm Subject: Can debt counseling stop PDL's for 90 days? |
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I live in Florida and have multiple payday loans that I'm in the process of terminating. I read on this forum a few weeks ago that if you send a letter to the pdl lender stating that you will be seeking debt counseling, you will then have 90 days to pay off the loan without incurring bi-weekly rollover fees. Is anyone here aware of what law that is? Thanks.
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billgop25
Joined: 25 Nov 2008
Posts: 3
Debtcc Points: 44
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| Posted: Tue Nov 25, 2008 12:11 pm Subject: |
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I don't have an answer for your specific question regarding that law ~ but I will ask ~ Are these internet or store front loans? If they are internet and are not licensed to lend to you ~ they most likely won't follow that kind of letter you're talking about.
Before you pay another dime...make a list of all of the companies, the amounts you borrowed as well as much you've already paid on each. You may have already paid more than you could imagine.
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debrag_25
Joined: 10 Jan 2007
Posts: 221
Debtcc Points: 3000
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| Posted: Tue Nov 25, 2008 12:29 pm Subject: |
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They're all online loans. Here's a list:
BIG -- borrowed $225, paid back $225 (3 payments of $75 each)
VIP Cash -- borrowed $300, paid back $285 (3 payments of $75, one for $60)
GRC Funding -- borrowed $500, paid back $150 (the first rollover fee)
Cash Advance Network -- Borrowed $300, paid back $90 (the first rollover fee)
... I'm already thinking about canceling my account with BOA and BIG and VIP may not be legal in my state, so i'm thinking I can reach a settlement with those two for the original loan amount only (this actually worked with Up Front Money a while ago).
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billgop25
Joined: 25 Nov 2008
Posts: 3
Debtcc Points: 44
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| Posted: Tue Nov 25, 2008 1:54 pm Subject: |
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Hi billgop,
You might get more help is you started a thread in the payday help section. That being said, I will post your law's for Florida in a minute. It would be a good idea to close your account & open another one, that way they can no longer have access to your funds. None of your companies are legal so you are only responsible for the amount you borrowed:
BIG -- illegal - you are done with them
VIP Cash -- illegal - you owe $15
GRC Funding -- illegal - you owe $350
Cash Advance Network -- illegal - you owe $210
_________________
HAPPY NEW YEAR!!!
To a crisis of the spirit, we need an answer of the spirit.
To find that answer, we need only look within ourselves.
When we listen to "the better angels of our nature," we find that they celebrate the simple things, the basic things--such as goodness, decency, love, kindness.
Greatness comes in simple trappings.
-Richard Milhous Nixon,
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dawnlango7
Debt Samaritan
Joined: 05 May 2008
Posts: 943
Debtcc Points: 3406
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| Posted: Tue Nov 25, 2008 1:56 pm Subject: |
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Here are the law's for Florida:
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Quote:
Florida State Information
Legal Status: Legal
Citation:
Fl. Stat. Ann. § 560.401 et seq.; Rule 69V-560.901-912
Loan Terms:
Maximum Loan Amount: $500
Loan Term: 7-31 days
Maximum Finance Rate and Fees: 10% + verification fee
Finance Charge for 14-day $100 loan: $15
apr for 14-day $100 loan: 390%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: One
Rollovers Permitted: None (cannot rollover)
Cooling-off Period: 24 hours
Repayment Plan: Yes
Collection Limits:
Collection Fees: All charges imposed on the lender by any financial institution; lender not entitled to treble damages
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Florida Office of Financial Regulation
Address: Division of Securities and Finance, 200 E. Gaines Street Tallahassee FL 32399
Phone: (850) 410-9805
Fax: (850) 410-9748
Regulatory Contact: ,
Emails to and from the DFI:
Hello,
Do internet based payday loan lenders with no physical location in FL need to be licensed by FL to lend legally to FL consumers? I am trying to help a friend with a huge mess. She has several internet payday loans, and they are saying that they only have to be licensed in their state, and that they can follow the laws of their state, not FL's laws. What is correct? Any information would be very much appreciated!
Thanks!
Reply:
She can file a complaint through our website at flofr.com and under 'helpful information' click on file a complaint. Then click on
finance related and you can download the form. Or click on money transmitters and call the 1-800 number. The Office will review her complaint when received. All lenders must be licensed by Florida, regardless of location, however, the current payday loan laws in place do not address internet businesses. The department is currently looking at other laws to apply to them.
She may also wish to contact Legal Aid in her area, to determine what recourse she may have.
If you have further questions, please contact this Office.
Office of Financial Regulation
Pam Henley
Financial Speci alist
(850) 410-9805
[b]What does this mean?
Internet based companies must be licensed by FL.
No Rollovers are allowed. [/b]
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_________________
HAPPY NEW YEAR!!!
To a crisis of the spirit, we need an answer of the spirit.
To find that answer, we need only look within ourselves.
When we listen to "the better angels of our nature," we find that they celebrate the simple things, the basic things--such as goodness, decency, love, kindness.
Greatness comes in simple trappings.
-Richard Milhous Nixon,
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dawnlango7
Debt Samaritan
Joined: 05 May 2008
Posts: 943
Debtcc Points: 3406
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| Posted: Tue Nov 25, 2008 1:57 pm Subject: |
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Here is some more info for you and a letter you can send to the pdl's. You will need to tailor it for FL. If you do a search in the box above, you can find their contact info:
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What should you do?
Close your account asap, if you are unable to close your account, go into your bank and ask to speak with the Branch Manager, tell him/her you need a hard debit block placed on your account immediately! Explain that you are revoking ACH authorizations from unlicensed/illegal companies, and have learned these companies are notorious for ignoring revocation, therefore it is important to BLOCK any withdrawal attempts on your account to protect your interest. This is your privilege, do not accept no for an answer. The following link will provide you important information regarding closing accounts. CLICK HERE
What next?
AFTER your account is secure send each pdl (the unlicensed and illegal) an email similar to THIS (please scroll down to locate letter template). Tailor this letter to your needs, and try to write it with the same basic concept in your own words. You will need to research and locate email addresses/physical addresses if you don't already have them, I suggest that you type the name of the pdl (example: "oneclickcash address") in the search box in the upper right hand corner of this forum. You may also search for addresses HERE at the Better Business Bureau.
File complaints: Most of the time, you can file a complaint online with the following, I encourage you to follow through with doing so, you will need to search the Internet for your state Attorney General's website, however, here are links to file complaints for the FTC, Online complaints: Federal Trade Commission., and the BETTER BUSINESS BUREAU.
Keep in mind that you may not receive a response for days, or even weeks, or, you may receive harassing and threatening phone calls. I have found the best way to deal with this is not to respond or reply, simply hang up.
Side note: If you have paid an illegal/unlicensed payday lender above and beyond the principal amount you borrowed, it might be a good idea to demand a refund and a paid in full letter/receipt. You may or may not get one or both. It still doesn't hurt to include that tidbit in your letter.
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To Whom It May Concern:
After doing research on internet payday loan laws in the state of Connecticut, I have found that your internet payday loans are actually illegal. I have also found the following laws to be true applying to payday loans in the state of Connecticut in general:
Legal Status: Prohibited
Citation:
Usury act applies or small loan act applies. Conn. Gen. Stat.§ 36a-563
Small Loan Rate Cap
30.03% apr or $17 per $100 up to $600; $11 per $100 up to $1,800; add-on interest.
I have contacted the Connecticut Office of Financial Institutions and the Connecticut State Attorney General's Office regarding your internet payday loans and was informed they are indeed illegal in Connecticut and was advised to pay what is due according to principle amount only of the loan.
To date, I have paid $525.00 DOLLARS on my $250.00 DOLLAR loan. The legal amount that could have been charged to my loan is the principal amount of $250.00 DOLLARS even if your internet pay day loan was legal in Connecticut. I have paid $525.00 DOLLARS on this loan by your debits of my bank account. Please mark this account as PAID IN FULL.
I demand that any contact be made through US Postal mail or email only. I will need everything in writing to keep accurate records of all communication as per instruction from my state Attorney General's Office.
I prohibit you or your affiliates to contact me via telephone at my place of employment or my home telephone number. I also prohibit you from calling my references listed on my loan. Once I inform you of this, you must stop the telephone contact immediately or you will be once again breaking the laws of the state of Connecticut.
You are also hereby notified that I am revoking any voluntary wage assignment I may or may not have signed. I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for your collection purposes.
I am revoking your right to debit my checking account any longer. You, your company, or your affiliates are not authorized to debit my checking account at all. Please be aware that I have informed my financial institution of this situation and they will also be receiving a copy of this correspondence. Any further attempts at debiting my account will be rejected by my financial institution.
I must also inform you that I have filed complaints with the Better Business Bureau, the Federal Trade Commission, and my state Attorney General's Office.
I expect a response from your company no later than 5/2/2008, regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted.
Thank you,
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_________________
HAPPY NEW YEAR!!!
To a crisis of the spirit, we need an answer of the spirit.
To find that answer, we need only look within ourselves.
When we listen to "the better angels of our nature," we find that they celebrate the simple things, the basic things--such as goodness, decency, love, kindness.
Greatness comes in simple trappings.
-Richard Milhous Nixon,
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dawnlango7
Debt Samaritan
Joined: 05 May 2008
Posts: 943
Debtcc Points: 3406
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| Posted: Tue Nov 25, 2008 2:43 pm Subject: |
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Thanks ... also, just wondering if any of the companies I listed are acting as CSO's. If so, does that change anything?
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billgop25
Joined: 25 Nov 2008
Posts: 3
Debtcc Points: 44
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| Posted: Wed Nov 26, 2008 8:20 am Subject: sonic |
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can you give me info on disputing the wage dec in North Carolina
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sameboat
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