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glassbeach · #1 01-06-2009, 07:44 PM

I reside in Tennessee and need a little guidance, please, regarding paying off payday loans.

This is my current situation:

Storefront loans:
Check Into Cash-on EPP with 1 pmt. to go

Advance America-stopped pmt. on check to be able to enter into EPP. 1st pmt. due 1/30.

Check N Go: $300 loan/$30 fee monthly. Will enter into pmt. plan on 1/30.

Cash Express: $300 loan/$30 fee monthly.

Internet Loans:
ABC Payday Loan: $350 loan/$105 fee monthly/paid $210 in fees

PaydayYes: $475 loan/$237.50 fee monthly/paid $118.75 on 11/08 (was only two weeks since I got loan) and $237.50 on 12/30 for a total fee of $356.25.

Speedy Payday Loans: $300 loan/$90 fee monthly/paid $180 in fees

E-payday loan: $350 loan/$105 fee monthly/paid $210 in fees

USA Payday loan: $300 loan/$90 fee monthly/ paid $90 in fees

Paydayone: Have increased loan to $650 (new loans) with a total fee due on 1/26 of $211.

Here is my question. I have gotten together enough cash to pay off all the internet loans, save Paydayone. I have enough to pay all the loans plus the current fee due, but do not want to overpay.

I know that it is recommended that you close your account if defaulting on the loans and wish to make payment arrangements, but that is not the case here. Is it possible to send and ACH revocation and then make arrangements to pay these in full by another means? If so, should I try to pay the amount they currently show I owe (with fees) or have I already paid some of these principal amounts of these loans with the fees I have paid?

Closing my account is not an option as we have several things tied to this account. I have chosen not to include the Paydayone loan in this payoff at this time as I understand they are one of the legal lenders and I will have enough to pay this off next month. I am going to contact them and see what arrangements can be made to pay if off in payments and possibly reduce the fees.

Anyway, any info. on what is the best action to take in this situation is greatly appreciated.

BTW-As far as the storefronts go, I have always had to go in and pay the entire amount then rewrite. Do I have any recourse here or is each transaction considered a new loan?

Thanks in advance for the help.

phoenix · #2 01-07-2009, 02:14 AM

Check whether the internet pdls are licensed in your state. If not then you can only pay them the principal amount. If you have the money to payoff then it is better to pay them.

In case of licensed internet pdls and storefronts please follow the pdl law: -

Quote:

Tennessee State Information

Legal Status: Legal

Citation:
Tenn. Code Ann. §45-17-101 et seq.

Loan Terms:
Maximum Loan Amount: $500
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: the lesser of 15% of the check or $30
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: 3 (2 per licensee)
Rollovers Permitted: None (cannot renew or otherwise consolidate)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: One $30 NSF Fee; Court Costs
Criminal Action: Prohibited

Where to Complain, Get Information:
Regulator: Tennessee Department of Financial Institutions
Address: 511 Union Street, Suite 400 Nashville TN 37219
Phone: (615) 741-2236
Fax: (615) 532-1018
Regulatory Contact: Bart Daughdrill

dawnlango7 · #3 01-07-2009, 08:03 AM

Hi,

Tennessee is a weird state, here is some info:

Quote:

Tennessee allows an Internet based payday loan company to lend legally as long as it is licensed in any US State. They would need to follow the laws of the state they are licensed out of, not the state the consumer is in.

You would also need to check if any of the internet pdl's are licensed in another state as well.

kfstaff24 · #4 01-07-2009, 08:08 AM

My advice is to take care of your legal PDL loans first, then only pay your illegal PDL's the principal borrowed. Your legal lenders can and will take action against you but your illegal lenders can only harass you. Defaulting on a PDL is a civil matter but you can end up in court.

glassbeach · #5 01-07-2009, 04:37 PM

I guess what I was trying to ask in my original post was since I am going to pay them off completely, is it possible to revoke ACH and then contact them and try to work out a payoff amount that is only for the amount I actually owe each lender?

Also, can anyone tell me which of the lenders in my case are legal/illegal in Tennessee so I know where I stand as far as fees go?

Thanks!

dawnlango7 · #6 01-08-2009, 09:22 AM

You can do this, you would need to be careful with the storefront loans though. They are legal and can take action, especially if you don't keep them in the loop. I will look at your list to see who is or isn't licensed. I can tell you that PayDayOne is licensed in Delaware and I will post their law's when I'm done looking at the other companies.

dawnlango7 · #7 01-08-2009, 09:47 AM

Hello glassbeach,

Here is what I have found out for you:
ABCpaydayloan - I cannot find anything for them, is there another name on your paperwork?
E-payday loan - Illegal - you owe them $140
PaydayYes - legal-licensed in NV
SpeedyPayday - legal - licensed in Utah
USAPayday - legal - licensed in Utah
PaydayOne - legal - licensed in DE

I am going to post the law's for the states, then post some additional info for you:

Quote:

PaydayYes is licensed in Nevada:

Quote:
Nevada State Information

Legal Status: Legal

Citation:
Nev. Rev. Stat. 604A.010 et seq.

Loan Terms:
Maximum Loan Amount: 25% of expected gross monthly income
Loan Term: Max: 60 days
Maximum Finance Rate and Fees: Not Specified (After default: interest rate must be equal to or less than the prime rate at the largest bank in the State of Nevada plus 10 %)
Finance Charge for 14-day $100 loan: No Limit
apr for 14-day $100 loan: No Limit

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: Not Specified (Lenders cannot extend payment period beyond 60 days after expiration of initial loan period)
Cooling-off Period:
Repayment Plan: Yes

Collection Limits:
Collection Fees: $25 dishonored check fee (max. two fees for insufficient funds; max. one fee for closed account) Court Costs; Reasonable Attorney's Fees; Service of process costs
Criminal Action: Prohibited (Unless customer acted with criminal intent)
Where to Complain, Get Information:
Regulator: Nevada Financial Institutions Division
Address: 2785 E. Desert Inn Rd., Suite 180 Las Vegas NV 89121
Phone: (702) 486-4120
Fax: (702) 486-4563
Regulatory Contact: , Supervisory Examiner

Both Speedy Payday and USAPayday are licensed in Utah:

Utah State Information

Legal Status: Legal (Applies to check cashers only)
Citation:
Utah Code Ann. Â§ 7-23-101 et seq.

Loan Terms:
Maximum Loan Amount: No Limit
Loan Term: May not exceed 12 weeks
Maximum Finance Rate and Fees: No usury limit
Finance Charge for 14-day $100 loan: No Limit
apr for 14-day $100 loan: No Limit

Debt Limits:
Maximum Number of Outstanding Loans at One Time: No limit
Rollovers Permitted: Not Specified (cannot extend or renew loan more than 12 weeks from original loan date)
Cooling-off Period: None
Repayment Plan:

Collection Limits:
Collection Fees: Not Specified
Criminal Action: Not Specified

Where to Complain, Get Information:
Regulator: Utah Department of Financial Institutions
Address: 324 South State Street, Suite 201 Salt Lake City UT 84111
Phone: (801) 538-8830
Fax: (801) 538-8894

PaydayOne is licensed in Delaware:

Quote:
Delaware State Information
Legal Status: Permitted under small loan act or licensing law - Legal

Citation:
Del. Code Ann. tit. 5 Â§ 2227 et seq.; Del. Code. Ann. tit. 5 Â§ 2744

Loan Terms:
Maximum Loan Amount: $500
Loan Term: Max: 60 days
Maximum Finance Rate and Fees: Not Specified
Finance Charge for 14-day $100 loan: No Limit
apr for 14-day $100 loan: No Limit

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified ($1000 aggregate loans outstanding to all licensees)
Rollovers Permitted: Four (rollovers)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees:
Criminal Action:
Where to Complain, Get Information:
Regulator: Delaware Office of the State Bank Commissioner
Address: 555 E. Loockerman Street Suite 210 Dover DE 19901
Phone: (302) 739-4235
Fax: (302) 739-3609
Regulatory Contact: , Administrator, Non-Depository Institutions and Compliance

Emails to and from the banking dept:
From:
Sent: Wednesday, September 19, 2007 10:04 AM
To: Coffman Dawn M (BCO)
Subject: Payday Loan Question

Hello,

Do internet based companies need to be licensed by DE to lend legally in DE? Or can they be licensed in their home state? I have several payday loans and they are all licensed in other states. They say they don't need a DE license. Is that correct?

Thanks!

Response:
From: Hoffecker Carole (BCO)
Sent: Friday, September 21, 2007 4:55 AM
To:
Subject: RE: Payday Loan Question

Dear,
In response to your e-mail, Delaware has a safe harbor of 5 loans in a twelve month period and which is viewed as not conducting business. Therefore, a license would not be required. However, should a lender do more than the five loans a license would be required even if they are an internet based.

I trust this is responsive to your concerns. However, if you have any questions, please feel free to contact me.
Sincerely,
Carole

What does this mean?

If the company does more then 5 loans a year to DE residents, they must be licensed by DE, even if they are internet based.

They can charge whatever they want.

dawnlango7 · #8 01-08-2009, 09:50 AM

Because a majority of your PDL's are legal, I would work on them first. Especially the storefronts, all of them can take action to get their money back, but if you keep them in the loop it might not be so bad.

The info below if helpful, but keep in mind that you only have 1 illegal pdl abd will need to keep the legal one's updated:

Quote:

What should you do?
Close your account asap, if you are unable to close your account, go into your bank and ask to speak with the Branch Manager, tell him/her you need a hard debit block placed on your account immediately! Explain that you are revoking ACH authorizations from unlicensed/illegal companies, and have learned these companies are notorious for ignoring revocation, therefore it is important to BLOCK any withdrawal attempts on your account to protect your interest. This is your privilege, do not accept no for an answer. The following link will provide you important information regarding closing accounts. CLICK HERE

What next?
AFTER your account is secure send each pdl (the unlicensed and illegal) an email similar to THIS (please scroll down to locate letter template). Tailor this letter to your needs, and try to write it with the same basic concept in your own words. You will need to research and locate email addresses/physical addresses if you don't already have them, I suggest that you type the name of the pdl (example: "oneclickcash address") in the search box in the upper right hand corner of this forum. You may also search for addresses HERE at the Better Business Bureau.

File complaints: Most of the time, you can file a complaint online with the following, I encourage you to follow through with doing so, you will need to search the Internet for your state Attorney General's website, however, here are links to file complaints for the FTC, Online complaints: Federal Trade Commission., and the BETTER BUSINESS BUREAU.

Keep in mind that you may not receive a response for days, or even weeks, or, you may receive harassing and threatening phone calls. I have found the best way to deal with this is not to respond or reply, simply hang up.

Side note: If you have paid an illegal/unlicensed payday lender above and beyond the principal amount you borrowed, it might be a good idea to demand a refund and a paid in full letter/receipt. You may or may not get one or both. It still doesn't hurt to include that tidbit in your letter.

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