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Posted: Tue Apr 01, 2008 2:49 pm Subject:

WEll, I am finally logged in again. I just re-read what Brian wrote and I think I have been a bit redundant in what I told you. I like what he said about the daily lists. I have found all this to be overwhelming I think you are actually in pretty good shape other than the leaglities of the letters, telling them they have been over-paid? Dealing with your bank? And that is less stressful than have your paycheck gone...pfff!
Yes, you are better off than you feel right now, but it is still a headache for you.
I figured I paid $10,000 to one store front in fees over the years on $400. Makes me sick...and I still owe them the $400 I borrowed.
Like Cannr says...she is waiting for all this to sink in and for me to get mad. I am there.

Posted: Tue Apr 01, 2008 3:50 pm Subject:

Egypt, thank you so much for all of your support. Wow, you really went bad times , huh? So here's another question. I know I am obligated to pay what I originally borrowed, so if I have paid more than that in interest fees, but not on the original amount, do I still owe them the original amount? On another note, I can't get to the bank today, I keep getting pulled into meetings and I can't call because all of my co-workers would overhear. So I just have to hope that going first thing in the morning will be enough time.

cnina0224 · Posted: Tue Apr 01, 2008 4:04 pm Subject: debt consolidation

I have a similar question as Momo. I just put a post up myself. i have like 13 loans. all that have started up...some i have paid the extension fees. i guess i am confused. if lets say they are illegal. i can write them a letter (what i have found on this site as well) and pay them back what i morally owe (or the principle amount) correct? do any of my extension fee payments count TOWARDS the principle.. or no? if lets say they ARE legal in CA, can i write them and set up payment arrangements as well? im just really trying to get out of my bind here. any help is appreciated. i did see T&C as a company that can help as well.. but they require a fee.

Posted: Tue Apr 01, 2008 4:18 pm Subject:

HI momo-when going to the bank, let them know that you want the account closed. If the account cannot be closed immediately, tell them you want a hard debit block and that you are revoking ACH rights per the Electronic Funds Transfer Act (posted below).

The bank does not examine who is debiting your account, why, whether they are licensed, etc. and isnt obligated to stop the debits on the sole premise that the PDL isnt licensed. You will just need to be "official" and go in armed with info.

Per the Electronic Funds Transfer Act:

Quote:
§ 205.10 Preauthorized transfers.

(a) Preauthorized transfers to consumer's account--(1) Notice by financial institution. When a person initiates preauthorized electronic fund transfers to a consumer's account at least once every 60 days, the account-holding financial institution shall provide notice to the consumer by:
(i) Positive notice. Providing oral or written notice of the transfer within two business days after the transfer occurs; or
(ii) Negative notice. Providing oral or written notice, within two business days after the date on which the transfer was scheduled to occur, that the transfer did not occur; or
(iii) Readily-available telephone line. Providing a readily available telephone line that the consumer may call to determine whether the transfer occurred and disclosing the telephone number on the initial disclosure of account terms and on each periodic statement.
{{10-30-98 p.7369}}
(2) Notice by payor. A financial institution need not provide notice of a transfer if the payor gives the consumer positive notice that the transfer has been initiated.
(3) Crediting. A financial institution that receives a preauthorized transfer of the type described in paragraph (a)(1) of this section shall credit the amount of the transfer as of the date the funds for the transfer are received.
(b) Written authorization for preauthorized transfers from consumer's account. Preauthorized electronic fund transfers from a consumer's account may be authorized only by a writing signed or similarly authenticated by the consumer. The person that obtains the authorization shall provide a copy to the consumer.
(c) Consumer's right to stop payment--(1) Notice. A consumer may stop payment of a preauthorized electronic fund transfer from the consumer's account by notifying the financial institution orally or in writing at least three business days before the scheduled date of the transfer.
(2) Written confirmation. The financial institution may require the consumer to give written confirmation of a stop-payment order within 14 days of an oral notification. An institution that requires written confirmation shall inform the consumer of the requirement and provide the address where confirmation must be sent when the consumer gives the oral notification. An oral stop-payment order ceases to be binding after 14 days if the consumer fails to provide the required written confirmation.
(d) Notice of transfers varying in amount--(1) Notice. When a preauthorized electronic fund transfer from the consumer's accounts will vary in amount from the previous transfer under the same authorization or from the preauthorized amount, the designated payee or the financial institution shall send the consumer written notice of the amount and date of the transfer at least 10 days before the scheduled date of transfer.
(2) Range. The designated payee or the institution shall inform the consumer of the right to receive notice of all varying transfers, but may give the consumer the option of receiving notice only when a transfer falls outside a specified range of amounts or only when a transfer differs from the most recent transfer by more than an agreed-upon amount.
(e) Compulsory use--(1) Credit. No financial institution or other person may condition an extension of credit to a consumer on the consumer's repayment by preauthorized electronic fund transfers, except for credit extended under an overdraft credit plan or extended to maintain a specified minimum balance in the consumer's account.
(2) Employment or government benefit. No financial institution or other person may require a consumer to establish an account for receipt of electronic fund transfers with a particular institution as a condition of employment or receipt of a government benefit.

[Codified to 12 C.F.R. § 205.10]

[Section 205.10 added at 44 Fed. Reg. 59471, October 15, 1979; amended at 45 Fed. Reg. 8265, February 6, 1980, effective May 10, 1980; 61 Fed. Reg. 19672, May 2, 1996]

Posted: Tue Apr 01, 2008 4:18 pm Subject:

Here is the point Mommo and China...if these companies are not licensed...they ae not legally able to charge you interest? This is my understanding...so all this money you are paying as a *fee* or *interest* is not something they are legally able to charge you.
Mom, from what I can see and what I have learned...almost all of yours are not legal? That means, like the MTE...you have overpaid almost $600 if my memory serves me correctly.
You still will have a mess what with sending out letters, asking for validation, the ugly phone calls...but you are only legally required on those loans that are not licensed to pay what you borrowed...there is NO interest? No principle...these are not conventional loans? No extensions...that is just what they call them?
Hopefully Cannr or Roxy or another will be along soon to give you more advise?

Posted: Tue Apr 01, 2008 4:22 pm Subject:

I am not sure that you are legally required to pay thses debts, but morally or ethically may be a better word for it.
I had no problems with my bank closure at all. I had a great person who worked with me on mine.

Posted: Tue Apr 01, 2008 4:23 pm Subject:

Add up EVERYTHING you have paid them, whether is was considered "interest" or not. If you paid them, for example, four $90 interest payments on a $300 loan, then you have technially paid the $300 principal and overpaid by $60.

Posted: Tue Apr 01, 2008 4:30 pm Subject:

Ahhh...great Volleyballmom has come along with the *real good stuff*! Listen and learn gals.

Posted: Tue Apr 01, 2008 4:33 pm Subject:

Thanks egypt Very Happy

cnina0224 · Posted: Tue Apr 01, 2008 4:43 pm Subject: 13 loans

GREAT. thats good to know, because i have paid a certain amount on some of these loans. it would be great to know which ones are licensed and which ones arent. i live in CA too. I listed all my loans on a different post. from reading on other posts, it looks like i have a couple that might not be legal in CA. even tho i myself am a paralegal, i like to know the jist of what i need to do to get this over with.

I will calculate how much i have paid on interest and towards the principle to see what i have paid. some of these companies thought dont have websites, or they do and i can't see how much i have paid them altogehter i.e., paydayservices.com.

Posted: Tue Apr 01, 2008 4:44 pm Subject:

cnina- I am also in CA...I will head over and take a look at your thread.

Posted: Tue Apr 01, 2008 5:04 pm Subject:

Volleyballmom, thank you for your help. I will go to the bank first thing in the morning. And I also want to know how to tell if these companies are legal in CA? I think it was Egypt that thought maybe Little Loan shop is. Then tomorrow after I go to the bank I will post and ask the next step. I alos like what Brian wrote about one day at a time and keeping lists of what I need to do each day!

Posted: Tue Apr 01, 2008 5:09 pm Subject:

Just skimmed back through the thread and noticed you are also in CA Smile

Here is the website with the CA Dept of Corporations licensee search. Just type in part of the name, or all of it but if it doesnt come up, try different combinations...like CashNet try Cash Net. If they dont come up, they arent licensed.

http://www.corp.ca.gov/FSD/licensees/default.asp

Little Loan Shoppe is not licensed in CA.

Posted: Tue Apr 01, 2008 5:11 pm Subject:

Took a quick look over your list...the only one I know that is licensed off hand is CashnetUSA.

Posted: Tue Apr 01, 2008 5:33 pm Subject:

Thank you! This website and the people on it are lifesavers! Yesterday at this time I was feeling like the lowest of the low and could see no way out of my mess. I am still really scared, especially to go talk to the bank and then send out letters or emails, but now see that there is hope!

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