Need urgent advice on loans in South Carolina

I'm sure you know how it is. I had a car accident that was cited as no-fault and took out an Internet payday loan with an Internet payday lender to cover my deductible. In order to pay that loan back, I took out another and another, and now I'm up to my eyeballs in payday loans and can't afford to pay my regular bills and am in danger of loosing my car, etc. completely. My checking account has had a negative balance for the past two months. I desperately need help.

These are the loans I currently have outstanding:

PaydayFlash.com: original loan $300, paid $645.37; still owe $255
FastMoney911.com: 2 original loans $450 and $300, paid $1,405; still owe total $800.
USFastCash: original loan $100, paid $180
First Bank of Delaware: original loan, $500, paid $951.50, still owe $276.75

Please offer any advice you can. I'm desperate.

Okay first off First Bank of Delaware is an installment loan so the payday loan laws do not apply.

US Fast Cash is illegal.
FastMoney911 is illegal as they lent you more the allowed amount of $300.

Are you paying these loans and then re-loaning or are they rolling over the loan with a fee?

Rollovers are not allowed in SC. Also the loan can not last more than 31 days.

Provide the information that nohiogal has asked for so we can further assist you. We are here to help you.

For each of these, they are automatically renewed each time I am paid and I believe only the interest is being taken out of my checking account when they do.

And thank you for responding!

By re-newed do mean the entire loan amount is taken out or only a fee?

I think the poster is saying just interest each time and the loan rolls over. I could be wrong but fee sounds like nothing off the principal.

If that is the case then they are illegal. Rollover or interest only fees are illegal in SC.

Yes, only the fees are being taken out of some of these PDLs. I used the template C&D letter from this site and e-mailed and mailed certified letters to the ones flagged so far as illegal.

I have not received any e-mail response from either except this one from fastmoney911. Is it a typical reaction?:

"To best assist you, please call our collections department at 800-3271269.

Thank you for contacting FAST MONEY 911.

Sincerely,

Customer Service
FastMoney911
(800)-428-4581 TEL
(88 750-5556 FAX
customersupport@fastmoney911.com"

Also, I contacted my bank today. I cannot close my account because it has a negative balance, but they agreed to block future debits from these PDLs until I straighten out the situation.

What is my next step? How do I know if the balances should already be paid in full or if I still owe the original loan amount? Specifically, for my fastmoney911 loan, I have already paid more than the original loan amount, but still supposedly owe the original loan amounts plus interest.

Thanks.

Yes, only the fees are being taken out of some of these PDLs. I used the template C&D letter from this site and e-mailed and mailed certified letters to the ones flagged so far as illegal.

I have not received any e-mail response from either except this one from fastmoney911. Is it a typical reaction?:

"To best assist you, please call our collections department at 800-3271269.

Thank you for contacting FAST MONEY 911.

Sincerely,

Customer Service
FastMoney911
(800)-428-4581 TEL
(88 750-5556 FAX
customersupport@fastmoney911.com"

Also, I contacted my bank today. I cannot close my account because it has a negative balance, but they agreed to block future debits from these PDLs until I straighten out the situation.

What is my next step? How do I know if the balances should already be paid in full or if I still owe the original loan amount? Specifically, for my fastmoney911 loan, I have already paid more than the original loan amount, but still supposedly owe the original loan amounts plus interest.

Thanks.

Since they loaned you more then the legal limit in SC I am going to say they are unlicensed which means you only owe the amount they loaned you.

All of the fees you have paid go toward that amount. If you paid FastMoney911 the amount borrowed then you are done legally oweing them.

If you go to the sticky at the top of this forum there is a thread about dealing with illegal lenders. There is a template letter you can change to your own information and send to them.

I would suggest as soon as your account it zero to close it and open a new account but verify that your new account can not be touched by an ACH from your old account.

Thank you so much for your assistance in this matter. You don't know what a relief it is to have some hope of getting out from under these lenders.

Does anyone have any advice or knowledge about PaydayFlash being illegal or unlicensed in South Carolina? I've had my loan with them since December 2008 and still owe almost as much as my original loan.

The original loan was for $300. Each paycheck they claim to have taken out $30 in principal plus fees, but my balance is still $259.50. I have paid $645.97. I do nothing each paycheck; they automatically refinance if I have not paid in full.

Thanks again.

One more thing...

I failed to mention that I had a loan with Cash Transfer Centers because I found on this board that it is illegal everywhere. I issued them a letter of revocation today along with a notice to terminate authorization of ACH debits. I received no e-mail reply or phone calls, but when I went to log into their web site to check on the status of my account, it says I am no longer an authorized user. Any idea what this means? I informed them I would pay only the principal of my loan by money order if they provided me with a mailing address, so I expected some reply. Did I do the wrong thing?

If Payday Flash is rolling over the loan then they are not following SC law so I would place them in the illegal/unlicensed category.

I would not worry about what the website says. Illegal companies do that all the time. They block you out so you don't have any proof of your account with them nor any payments you have made.

Since your account is secure then I would not worry about it. You did not do anything wrong.

The only legal loan you have is with FBoD so I would contact them to make payment arrangments.

For the illegals draft up your letters and send them out if you have not already done so for the others.

I'm a little concerned because I received this e-mail today stating the following. However,m it didn't seem to come from a legitimate e-mail since the e-mail was smith_brownattorneyatlaw@charter.net :

This letter serves as notice of intent to prosecute for summary judgment.

Court Filing scheduled 3/26/09. You must either settle with Plaintiff or reply an answer to complaint by that date.

Plaintiff: PaydayFlash (formally FastBucksNow)

vs.

Defendant: Angela C****


A lawsuit may be filed against you.

On or before 3/26/09 you are hereby requested to serve on the plaintiff an answer to the complaint under Rule 14 of the Federal Rules of Civil Procedure.

If you fail to do so, judgment* by default may be entered against you for the relief demanded in the complaint Id: 22****.

You may dispute this action by replying to this email or you may fax your answer to complaint to:

Smith & Brown, Attorneys at Law
805 980-5060

*Attorney fees/court costs and credit reporting fees (to be determined) may be additional as well.

Filing Date 3/26/09 : Forward to judgment dept Report default - Garnishment/DP/Teletrack agencies. Charge code: 4 Blacklist

Acct code DPP: "judgment by default"
Payday Flash
Judicial Dept.
Phone: (909) 657-9156

That is just a scare tactic. They are not operating with in the laws of your state. It specifically says no rollovers.

You can read them here

The link to the regulatory site is at the bottom.

They are required to have a license, which from everything I can read, they do not have one.

I also found this. Ignore the top half as it is about getting a payday loan. Start reading at "The requirements....".

They are allowing the loan to rollover and you have had it more than 31 days.

I would answer the email that they do not have a license in SC to lend which makes the loan illegal. Demand that they give you their license number. I am sure the answer will be "we don't have to".

The number for the "attorney" does not even show up on Google. 805 area code is in CA.