I Stopped the Insanity, and YOU CAN TOO!!

I had 2 internet payday loans with both US Fast Cash and NorStar Cash. They told me on the phone at the time of approval that the repayment terms were $390 on a $300 loan. I've since paid a total of $480 in illegal renewal fees because the pirates were raiding my account to the tune of $90 per loan every 2 weeks, plus another payment of $140 each. As of November 20, 2008, I RECLAIMED MY FINANCES by doing this:

1. I did research by Googling: "payday loan scam" and read similar accounts from other victims and got some valuable information, including telephone numbers and addressess. If you know anyone who does collections or skip tracing for a living, they can be a very valuable resource!!

2. I contacted US Fast Cash and NorStar Cash to ask them to skip a scheduled bi-weekly debit. I explained that I had a death in the family and needed to pay for funeral costs and therefore wouldn't be able to pay on the scheduled date. A bit scandalous of me to lie, but I bought me 2 weeks worth of time to plot my next move.

3. I then went to my bank and explained that I was the victim of fraud from 2 internet companies and asked them to close my account. I had a couple of legit charges still pending, so I had to wait for them to clear first. Because I had to wait for the legit charges, I asked my bank to reject ACH withdrawal requests from US Fast Cash and NorStar Cash in the meantime.
After the charges cleared, I closed the account and opened a new one with my same bank, no problem.

4. I then wrote letters to both companies, using this format:

I (your name here), hereby prohibit you or your affiliates to contact me via telephone at my place of employment or my home telephone number, effective immediately. I also prohibit you from calling the references listed on my loan application. Once I inform you of this, you must stop the telephone contact immediately or you will be 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 parts of my wages or contact my employment for collection purposes.

I am revoking your right to debit my checking account effective immediately. Please be notified that I have informed my financial institution of this fraudulent situation and they have received a copy of this correspondence. Any further attempt at debiting my account will be rejected by my bank.

Finally, please be advised that I am taking legal action against your company. Your interest fees and multiple rollovers exceed the maximum allowed in the state of California. I will contact you again once my attorney is retained.

5. I then faxed the letter above to both internet companies and provided copies to my bank as extra security.

I found out that anger can be power, as long as you're not afraid to throw that knockout punch!!

I would say that knowledge was the power which helped you. Good job!

good job! i am glad your method worked for you my concern is that in some states, some loans are legal so this advice would not work for everyone but congrats on settling! did the companies respond well?

Talk about a true scam...both sites updated my account info within the last 24 hours with a status of "PAID IN FULL". If all it took was for me to write a letter to these fools, then it's quite obvious they're aware that they're illegal in MOST states and are quite agile in making a quick getaway when caught.

i do not know if they are illegal in most states but they are illegal in mine and a few did put me as paid in full but it was never from just one letter. you might have gotten lucky!
I still am fighting with a company over a loan that's not legal.

i need the phone number to norstar for i can repay my loan so can someone please help me

Norstar Cash
1-866-668-9409
'ClientServices@norstarcash.com'

Anger is Power...just don't be afraid to throw that knockout punch.

Anger....I did the same letters (emails) to two PDL's yesterday...along with the filed complaints I did with my states Attorney Gen Office, the BBB and the Fed Trade Commision. I have paid both principle back plus over payments of $1300. I was wishful thinking that I would get a response but have not heard anything back yet......I am going to do the same tomorrow I am going to go to my bank and file a fraud charge so they will freeze my account.....I just know they are going to ignore my emails and put through the ACH debits on the 15th.
Glad I read your post.

We had one payday loan, and had the same thing happen, ending up in near $1000 for a $300 loan. FINALLY it paid off in it's one time despite our repeated attempts to contact norstar to tell them to take the whole payment and get it over with! NOW we thought we were free from the whole disaster, and here we are getting an email saying that our NEW LOAN has been approved which we NEVER applied for and NEVER approved, it says funds will be deposited at midnight for $400! Again no answer at phone number, emailed, etc we called our bank they cant stop a DEPOSIT but we can go from there and I put a 90 credit fraud hold on our social security numbers but thing about PayDay Loans, they don't have to RUN your credit, so no way to stop them there either. Same as you we have things going through that are legit on our bank account still so can't just close up shop and go. AAAAAAAAAAAAA

In my opinion the bank may not be able to stop it from coming in, but they can certainly return it once it does. Just my 2 cents.

I think the best thing to do is open a second account. Transfer all you legit bills to that as well as direct deposit if you have that. Once that is done then close the old account.

It may be a hassle but not as much as an illegal PDL sucking your account dry while your legit debts bounce.

OK so i have taken out 2 loans with this company the first one went smoothly but this new one is a nightmare.......i beleive i took out the loan for 400.00 in feb and thay are still debiting my acct. How do i stop this. I need help their # is always busy so is the fax. please reply wit any suggestions email deleted...pmplease note norstar in the subject so i dont delet the msg.
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