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 Posted: Mon Feb 25, 2008 1:21 am
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Hello,
I have to say that it has taken a bit of time for me to get the courage up to actually post my pdl information. This is embarrassing but I need help and am determined to break away from these leeches. First off, I do live in California and have many loans, both internet and storefront. Here goes:
(Perpetual Loans)
1. Ameriloan
- Internet
- Initial amount $300
- have paid back in fees $535
- remaining balance $260
2. Cash Advance Network (CAN)
- Internet
- Initial amount $400
- have paid back in fees $650
- remaining balance $455
3. Cash Link
- Internet
- Initial amount $300
- have paid back in fees $535
- remaining balance $260
4. LoanShop
- Internet
- Initial amount $300
- have paid back in fees $450
- remaining balance $325
5. Chieftan
- Internet
- Initial amount $300
- have paid back in fees $360
- remaining balance $325
6. ZipCash
- Internet
- Initial amount $500
- have paid back in fees $300
- remaining balance $650
7. CreditProtectionLoan
- Internet
- Initial amount $700
- have paid back in fees $0
(Pay off and reacquire loans)
8. CashNetUSA
- Internet
- Amount borrowed $286 (because I am a Platinum member), up front fees of $31 and I get $255
9. MoneyTree
- Store front
- Amount borrowed $300 of which $45 is up front fees so I get $255
10. Advance America
- Store front
- Amount borrowed $300 of which $45 is up front fees so I get $255
That is it. I am now paying about $800 per paycheck to keep these things afloat and when the fees for the latest (7. CreditProtectionLoan) kick in I will be hitting about $1000/payday, so $2000/month. I am freaking out and need to do something fast and never let this happen again.
I will work out payment plans to pay these off, whatever it takes but these fees are killing me.
Please help with advice.
Thank you,
Drowning in San Diego
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guestSanDiego
Guest
Debtcc Points: 100
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Posted: Mon Feb 25, 2008 5:12 am
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| Quote: | California State Information
Legal Status: Legal
Citation:
Cal. Fin. Code §§ 23000 to 23106
Loan Terms:
Maximum Loan Amount: $300
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: 15% of check
Finance Charge for 14-day $100 loan: $17.65
APR for 14-day $100 loan: 459%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: One
Rollovers Permitted: None (cannot charge fee for extension)
Cooling-off Period: None
Repayment Plan: Voluntary (no fees may be charged in conjunction with payment plan)
Collection Limits:
Collection Fees: $15 NSF fee
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: California Department of Corporations
Address: Financial Services Division, 1515 K Street, Suite 200 Sacramento CA 95814
Phone: (866) 275-2677 |
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cannr
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Joined: 07 Jun 2007
Posts: 9335
Debtcc Points: 123837
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Posted: Mon Feb 25, 2008 5:13 am
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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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Joined: 07 Jun 2007
Posts: 9335
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Posted: Mon Feb 25, 2008 6:07 am
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Regarding your store fronts, if they are members of the cfsa, they must give you the epp.(extended pay,ent plan),. This enables you to pay off your loans in 4 installments. You must go in person to get the epp, and you must go prior to defaulting on your loan.
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kashzan
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Joined: 11 Jul 2007
Posts: 5466
Debtcc Points: 38903
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Posted: Mon Feb 25, 2008 6:16 am
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I'm going to change the subject a bit.....I know 'Guest San Diego' had some PDL issues. However....I just wanted to say 'hello' to him/her. I'm originally from San Diego. I wanted to PM you, but..because you are a 'guest', you don't have a PM box. Also..wanted to say welcome to the forum. I've been on this forum, for 3 or 4 months now. Great advice and help, from everyone here.
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sdchargers_63
Joined: 08 Aug 2007
Posts: 865
Debtcc Points: 9573
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Posted: Mon Feb 25, 2008 9:07 am
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Thank you all for your advice. I have been reading this board and have good information in hand. I have begun the process of getting out from under. I have started a dialogue with my bank (WellsFargo) and am preparing to close my account. I will go in and get the application for my two storefront accounts to pay the loan back. But, what do I do for the existing Internet accounts when they come calling? I have paid back in fees more than the original borrowed amounts in many cases, does that make them paid off? Do I need to send them a cease and desist? From what I've read I have legal backing but how do I wield it?
I'm sorry if these are basic questions but I don't know the answer.
Thank you again for your advice.
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guestSanDiego
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Posted: Mon Feb 25, 2008 9:13 am
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Hi there...I am also in CA.
For sure, one of your internet PDL's is legal in CA and that is CashnetUSA and Ameriloan is not supposed to be doing business in CA anymore as the CA State Dept of Corporations has a Cease and Defrain order. I will check on the others for you.
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volleyballmom
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Posts: 4178
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Posted: Mon Feb 25, 2008 9:16 am
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You should also register on this site....one of your PDL's might issue you a paid in full if you sign a confidentiality agreement. I cannot post the info here, but I can send you a private message about it.
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volleyballmom
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Posted: Mon Feb 25, 2008 10:40 am
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Vollyballmom, thank you for the information. I have now registered on the site. If the lenders are "legal" what does that mean? I have no problems paying them back but can I stop the fees from accumulating while I recover enough to be able to do so?
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snwski3
Joined: 25 Feb 2008
Posts: 10
Debtcc Points: 437
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Posted: Mon Feb 25, 2008 10:47 am
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Glad to see you registered!
The Legal lenders are licensed to do business in CA and follow the rates outlined in the PDL laws posted in this thread by cannr. Those are the laws they must follow.
The loans listed above, #1-6 you have overpaid already. #8-10 are legal so you will need to make arrangements to pay.
About #7...What is Credit Protection Loan? Do you pay back the full $700?
BTW-nice job listing out your PDL's!
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volleyballmom
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Posted: Mon Feb 25, 2008 12:10 pm
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Credit Protection Loan is the way it comes through or bank it is really Discount Advances this is what they say on their site: JURISDICTION. The transactions related to loans will be deemed to have taken place in the offices of DiscountAdvances.com Inc. and according to the laws of Grenada, regardless of where you may be viewing or accessing this site.
I tried calling the California Department of Corporations and they did not really help me out. They told me to track down all the addresses for the companies and file complaints. They also said that it will take at least two weeks. Has anybody gone through this process before? Were they hard to work with? What was the outcome? Any tips for filling out the paperwork?
I am really at a loss for how to handle this and what to do next. The fees are all scheduled to come out this weekend and I am sure they will start calling next week. How can I stop them from contacting my references and will they try? Wells Fargo has set up another checking account for me and once all my pending items are complete then they will close the other account. It looks like I should have it closed by Thursday. I explained why I was closing the account and they told me that there is no way the PDL's can force it back open. I am praying that they are right.
Here are a few more questions that I have:
1. If I have overpaid on several of these accounts, how do I let them know? Can I be reimbursed for the amount over paid?
2. Will they and can they report me to the credit bureaus and Telecheck?
3. Who’s should I be contacting next?
4. What does it mean to me when there is a Desist & Refrain Order or Administrative Action listed for one of the companies that I listed?
I am so grateful to all of you for your help and support. I really feel like an idiot for getting myself into this mess.
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snwski3
Joined: 25 Feb 2008
Posts: 10
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Posted: Mon Feb 25, 2008 12:17 pm
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The transactions related to loans will be deemed to have taken place in the offices of DiscountAdvances.com Inc. and according to the laws of Grenada, regardless of where you may be viewing or accessing this site.
your state laws prevail. You are not under the jurisdiction of Greneda.
Some companies will refund, but others will not.
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kashzan
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Posted: Mon Feb 25, 2008 12:21 pm
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Glad you registered & welcome to the forums!! Please, please don't feel like an idiot. We have all been in your shoes and with a little hard work you can overcome this. We are here to advise and support you any way we can. Keep your chin up & know that you have lots of friends here who will help guide you through this.
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lmk3524
Joined: 06 Sep 2007
Posts: 437
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Posted: Mon Feb 25, 2008 12:28 pm
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| Quote: | | I tried calling the California Department of Corporations and they did not really help me out. They told me to track down all the addresses for the companies and file complaints. They also said that it will take at least two weeks. Has anybody gone through this process before? Were they hard to work with? What was the outcome? Any tips for filling out the paperwork? |
Yes, I have done this....dont expect this to yield any instant results anyhow. We can talk more about this later.
Answers to your questions:
1-I will post a letter for you to send to your PDL's that addresses this. Dont count on a refund.
2-If it is sent to an outside agency, it can be reported...then you can dispute it. These places are operating so illegally that most of the time it isnt reported.
3-You've contacted your bank and made arragnements for the account to be closed. That is the most important at this point.
4-The Cease and Defrain order means the CA Dept of Corporations is not allowing them to do business in CA...but as you can see, they still are. 
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volleyballmom
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Joined: 27 Aug 2007
Posts: 4178
Debtcc Points: 24889
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Posted: Mon Feb 25, 2008 12:34 pm
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Here is a letter for you. Send this only after you have confirmed that your account is closed.
Date
Name and address of the PDL
After doing research on internet payday loan laws in the State of California, 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 California in general:
California State Information
Citation:
Cal. Fin. Code §§ 23000 to 23106
Loan Terms:
Maximum Loan Amount: $300
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: 15% of check
Finance Charge for 14-day $100 loan: $17.65
APR for 14-day $100 loan: 459%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: One
Rollovers Permitted: None (cannot charge fee for extension)
Cooling-off Period: None
Repayment Plan: Voluntary (no fees may be charged in conjunction with payment plan)
Collection Limits:
Collection Fees: $15 NSF fee
Criminal Action: Prohibited
After finding out that your internet payday loans are illegal, your company should actually not issue loans to California residents at all.
I have contacted the California Office of Financial Institutions and the California State Attorney General’s Office regarding your internet payday loans and was informed they are indeed illegal in California and was advised to pay what is due according to principle amount only of the loan.
I have currently paid XXXX DOLLARS on my XXXX DOLLARS loan. The legal amount that could have been charged to my loan is the principal amount of XXX DOLLARS even if your internet pay day loan was legal in California. I have paid XXXX DOLLARS on this loan by your debits of my bank account and only owe XXXX DOLLARS to have this paid in full. I am willing to pay the amount of XXX DOLLARS to pay the principle amount of the loan only, as advised by my Department of Financial Institutions and the California Attorney General's office. <OR> I demand that you mark my account Paid in Full as I have fulfilled in remittance of the principal amount of the loan. <OR> I demand that you mark my account Paid in Full as I have fulfilled in remittance of the principal amount of the loan and send me a refund of $XXXX.
<OPTIONAL>
I demand a physical address to mail payments to, as you are no longer authorized to debit my bank account.
You must provide me with a physical address to mail my payments. I will not Money Gram or Western Union any payment. If no physical address is provided for me to mail payment to, no payment will be made.
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 the California 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 California.
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 the California Attorney General's Office.
I expect a response from your company no later than XX DATE, regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted.
Please respond by XX DATE, regarding this matter by US Postal mail or by email only.
Your name
CC:
Better Business Bureau
California Attorney General
Federal Trade Commission
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volleyballmom
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