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 Posted: Sun Apr 06, 2008 7:13 pm Subject: PDL Help--I Need to Stop the Withdrawals
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Hi, my name is Brook, and I am having a major PDL problem. I live in Arizona and have taken out four PDL's--one from a storefront, three from online sources. I need to stop these companies from taking money out of my account--because of payments and overdraft fees, my bank account is way in the negative and the ACH's for these loans are getting returned. I'm about to lose my apartment because I don't have enough money for rent, and am having some other financial issues.
I am now receiving collection calls from all of these companies. I am planning to do down to my bank tomorrow to freeze my checking account to deposit only so I can bring it current. I also think I need to send cease and desist letters to these companies, but not sure what language I need to use. Any help/advice on what to do would be appreciated. Here's the info on my loans.
Storefront
Speedy Cash - owe $588.24 (original loan $500; fee $88.24; my last check to them was returned by my bank); I paid them $88.24 twice to roll over the loan
Online
500FastCash - original loan $300.00; so far I've paid $500 to them; the last ACH from them was returned by my bank
Payday Yes - original loan $400.00; so far I've paid $540.00 to them; I had a returned ACH from them at the beginning of January (1/04); at that point, I spoke with them and made a commitment over the phone to pay 6 payments of $102.00 plus a bounced check fee of $30.00; the last ACH from them was returned by my bank
Little Loan Shoppe - original loan $200.00; so far I've paid them $420.00; I've had ACH's returned from them three times (12/28, 1/11 and this past Friday)
I am really scared right now. I have somewhere to go if I lose my apartment, but I am tired of these companies putting me into financial desperation. I know I will have to payback the storefront operation, because they are a legal entity in Arizona, just not sure how to deal with them right now.
--Brook
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bbm1973
Joined: 10 Jan 2008
Posts: 20
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Posted: Sun Apr 06, 2008 7:15 pm Subject:
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Brook, welcome! You've come to the right place for help!  First, I'm going to post your state law so that we can all see. Then I'm going to address your loans, okay? Hang on!
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cannr
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Posted: Sun Apr 06, 2008 7:16 pm Subject:
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| Code: | Arizona State Information
Legal Status: Legal
Citation:
Ariz. Rev. Stat. ยง 6-1251 et seq.
Loan Terms:
Maximum Loan Amount: $500
Loan Term: Min: 5 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: Three (extensions)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: $25 NSF fee + actual charges assessed by the financial institution
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Arizona Department of Financial Institutions
Address: Financial Enterprises Division, 2910 N. 44th Street, Suite 310 Phoenix AZ 85018
Phone: (800) 544-0708
Fax: (602) 381-1225
Regulatory Contact: Robert Charlton,, Assistant Superintendent of Banks |
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cannr
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Posted: Sun Apr 06, 2008 7:24 pm Subject:
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Actually, let's touch on your bank account situation first, okay? Your account is now in the negative. So, you can't close it. You're going to have to put a hard debit block on it. This way, no debits will go through at all. Nothing. Not even your stuff (ATM, checks, etc.), so you'll want to open another bank account somewhere, if you can, so that you will have a "working bank account". I'm going to post something about closing your bank account for you to read, okay? And do not worry about closing/blocking your account. According to your state law, criminal action is PROHIBITED.
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cannr
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Posted: Sun Apr 06, 2008 7:26 pm Subject:
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| Code: | 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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Posted: Sun Apr 06, 2008 7:31 pm Subject:
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As for your storefront pdl, Speedy Cash, they are a member of the CFSA. This is good news for you! This means that you can go to the storefront (if your loan is current/you have not yet defaulted) and invoke the EPP (extended payment plan). You must go to the storefront BEFORE the loan due date (at LEAST one day before it's due). They will have you sign an amendment to your loan documents breaking down your loan amount into 4 equal payments coinciding with your paydates. No additional fees and all collection efforts stop. So, go to the storefront and ask to invoke the EPP with them. This will help and also get you out of that trap. Pay them off in the 4 payments and be rid of them forever!
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cannr
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Posted: Sun Apr 06, 2008 7:36 pm Subject:
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That is good news. Thanks for the information. Someone from Speedy Cash called me yesterday; I haven't called them back yet. I don't know if I can afford to make the four payments because of my financial situation, but would like to get rid of them. I'll see what can be done on that . . .
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bbm1973
Joined: 10 Jan 2008
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Posted: Sun Apr 06, 2008 7:40 pm Subject:
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One word of advise regarding a storefront, keep in constant contact with them. Not keeping in contact with them will have them calling every friggin reference you put down and bugging them and also your place of employment. They don't usually do this unless they can't speak to YOU. So, call them and see what you can do. Your payments would be 147.06 if you did the EPP. This is a lot, so I understand. Call them and see if they will make payment arrangements for less than that. It doesn't hurt to ask. Hang on and I'll check on your internet loans for you also.
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cannr
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Posted: Sun Apr 06, 2008 7:44 pm Subject:
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500FashCash is not licensed/legal to lend anywhere. They would be considered illegal. Thank God they didn't get any more money. You've already overpaid these idiots $200.00! No more money for them.
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cannr
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Posted: Sun Apr 06, 2008 7:51 pm Subject:
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PayDayYes - what??? Your original loan amount was 400.00 and you've paid them 540.00 (overpaid 140.00) and they want you to pay them 6 payments of 102.00 plus 30.00 for a NSF?? That's paying them a total of $1182.00 for a $400.00 loan! Ummmm.... no. No more money for them.
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cannr
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Posted: Sun Apr 06, 2008 7:54 pm Subject:
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Little Loan Shop - they're not licensed in your state. Even though your state pdl law allows 3 rollovers/extensions, they're still not licensed to lend in your state. So, in essence, even if they were licensed, you still overpaid. You've overpaid these guys 220.00.
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cannr
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Posted: Sun Apr 06, 2008 7:57 pm Subject:
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What does this mean, in terms of what I need to do? Should I be sending each of them cease and desist letters? Are there any models available on the site for me to follow?
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bbm1973
Joined: 10 Jan 2008
Posts: 20
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Posted: Sun Apr 06, 2008 7:57 pm Subject:
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The first thing you need to do is get your bank account blocked. Can you do this ASAP? This way, the pdls can't hit it any longer and the bank will stop adding all those fees to your account. Can you go to the bank tomorrow and talk to them?
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cannr
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Posted: Sun Apr 06, 2008 7:59 pm Subject:
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Yes--after I leave work early tomorrow afternoon, I can go down to the bank and do that. What do you think would be my next step after that?
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bbm1973
Joined: 10 Jan 2008
Posts: 20
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Posted: Sun Apr 06, 2008 8:07 pm Subject:
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Brook, once you know your bank account is "safe", then you can proceed. You're first step would be to contact the storefront since they are legal. Set something up with them. Tell them your bank account is closed. Tell them THE BANK closed it, okay? Don't say you did it. Then we can send letters to your internets stating they are unlicensed/illegal, that you've overpaid, yada, yada, yada. Yes, there is a letter that we use to send to the pdls. We can do that once we know your bank account is "safe". Also, along in here somewhere, you need to file complaints with the BBB, the FTC, and your state AG against the internet companies. Make sense so far?
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cannr
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Posted: Sun Apr 06, 2008 8:13 pm Subject:
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Yes--makes a lot of sense. Thanks. Okay--I will go to Wells Fargo tomorrow and get them to put a hard hold on the account. Then call Speedy Cash. Will let you know what happens. Thanks for the information--I'm not exactly feeling better, but feel less overwhelmed than I did.
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bbm1973
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