Internet's first get-out-of-debt community - 129,000 members

mslisa66 · Posted: Sat Nov 10, 2007 8:48 am Subject: Payday Loan Harassment

I took out one payday loan for $580 from The Cash Store (a storefront). They automatically took out $89.90 from my checking account, then I went into the store and paid $200.00. After that they took out $72.84 five times from my checking account. The total I paid them so far is $654.10. I closed my checking account, now I am receiving daily harrassing calls from them saying that I need to make arrangements to pay off this debt that their saying that I still owe them $560.00!!! They told me that I have 9 weeks to pay this off or their sending this account to a third party or an attorney to collect this. I MORE than paid off what I borrowed from them. Can they make me pay this additional $560.00?? This is just CRAZY!!!

Posted: Sat Nov 10, 2007 5:46 pm Subject:

mslisa66,,I would complain to the State Banking Authority. You over paid on this one. Write the same letter you wrote here. You did the right thing in closing your account. Also complain to the BBB.org website. As far as the harassment goes, send The Cash Store collections department a cease and desist letter (Someone from this site will help you with that). These guys are breaking the law on all fronts by over charging, and on top of that harassing you. Let these guys know that further harassment will be reported to the FTC for the violating of your rights under the fair debt collection act.
Also let this site know what State are you from, so that they can give you some further information about PDL loan laws.

Posted: Sat Nov 10, 2007 6:00 pm Subject: This is so crazy!

PS - THERE IS NO WAY IN HELL YOU SHOUD PAY OVER $1000, FOR A $580 LOAN THIS IS ILLEGAL IN ANY STATE. I JUST HAD TO GET THIS OFF MY CHEST Evil or Very Mad

SOMEONE PLEASE HELP! Mad

(I don't EVEN know you and I still mad over this)

mslisa66 · Posted: Sat Nov 10, 2007 6:27 pm Subject:

I'm just concerned that when I took out this loan for the $580.00(120-day) I signed their stupid contract. It does state that I am required to pay the interest bi-weekly. Then at the end of the 120-days you make the final payment of what you borrowed plus the interest. If I didn't go into the store to pay this every other week, they automatically deducted it from my bank account. I went into the store once and did pay $200.00 on this account, of course the biggest part of that went to the interest--very little to the principle. After that is when they started taking out the $72.84 bi-weekly from my checking x5, until I didn't have the money in the bank to pay that weeks interest, so I closed that bank account to avoid an overdraft and keep them from continually sucking me dry. Can they legally pursue me for the $560.00?? Like I said before I borrowed $580.00 and paid back $654.10, of course they are claiming that the money taken out of my checking account and the $200.00 that I went in and paid was all interest. So, do I still owe them what they are saying? They told me that I did sign the contract and I do owe them this money. Answers please!!!!!!!! They have called my house 4 times just today!!!!

mslisa66 · Posted: Sat Nov 10, 2007 6:31 pm Subject:

I forgot to mention that I live in Illinois.

Posted: Sat Nov 10, 2007 6:40 pm Subject:

Hi Mslisa. Here are the laws for Illinois:

Posted: Sat Nov 10, 2007 6:45 pm Subject:

So, this is a storefront, correct? If I am understanding you correctly, they deducted interest only from your bank account? This would constitute a rollover, if I am not mistaken...which is illegal, according to your state laws. It seems as though they should have made you come in bi-weekly and pay the entire loan off and then re-borrow. If this was supposed to be a 120 day loan, then they again have broken the law, if I am interpreting it correctly. According to your state's law, after 45 consecutive loan days then you have to wait 7 days until you take out another loan. I would start to make some complaints to state officials if I were you. Start with the AG office and go from there. Someone may come along shortly who interprets the law differently, but if I am reading correctly then they have certainly not followed the guidelines that they are supposed to.

mslisa66 · Posted: Sat Nov 10, 2007 6:48 pm Subject:

Thanks eleroo, I've seen the laws on here for Illinois, I just don't understand them I guess. Am I in the wrong, or are they regarding my situation?

Posted: Sat Nov 10, 2007 6:55 pm Subject:

To me, it seems like they are in the wrong because of them allowing rollovers and this being a 120 day loan. This is specifically a payday loan and not an installment loan, right? If it is an installment loan then we have a completely different monster to attack. But, we can work through it, no matter what. Smile

mslisa66 · Posted: Sat Nov 10, 2007 6:55 pm Subject:

Yes, the money that was directly taken out of my checking account was for the interest only. When I first got the loan I wrote them a check for $580 plus the interest which was $89.90. They told me that if I didnt come in or was not able to come in bi-weekly that they would just automatically deduct the interest from my checking account. When I closed my bank account, they tried several times to try and get that interest payment, then they went ahead and tried to put my check thru. Of couse, they didn't get a dime, but they called me and said that I owed them $25.00 for the returned check.

Posted: Sat Nov 10, 2007 6:59 pm Subject:

eleroo is sayiing (and I agree) that roll overs are not allowed in Illinois. Rollovers are when they charge you interest continuosly every payperiod several times and then collect part or all of the principle with another set of interest. That sounds like what they are doing to you and that is against the law. If they were following the law...they would make you pay off the whoile loan every 2 weeks and then re loan it to you minus the interest payment. So they are collecting the debt wrong and charging you more than they should. I would definitely call the State Attorney's office on Tuesday and tell them the situation...ask advice, etc. I am sure they can give you some advice on what to do next.

Posted: Sat Nov 10, 2007 7:01 pm Subject:

How many times did they attempt to present the check to your bank? According to your law, they are limited to only two attempts to cash the check.
Also, they are definitely in the wrong, as the interest only deductions constitute rollovers which are prohibited. It looks like you have a very strong case against them. Now it is time to start contacting you atty. general with this information. Send them a cease and desist letter via certified return receipt mail and specify that you are only going to communicate with them in writing. This way you will have proof to send to the AG if necessary. Also, let them know that you reporting them to the AG unless they cease all contact with you and mark your account paid in full.

Posted: Sat Nov 10, 2007 7:03 pm Subject:

Thanks Morningstar. Smile

I was hoping that someone would be along to agree/disagree with my interpretation. These laws can get so confusing sometimes. Smile

mslisa66 · Posted: Sat Nov 10, 2007 7:05 pm Subject:

I think its a payday loan. Its thru The Cash Store/Cottonwood Financial. They have a website, but it won't let me post it here. Check it out and let me know what you think, and btw.....thank you so much for taking the time to help me with this!!!!!

mslisa66 · Posted: Sat Nov 10, 2007 7:12 pm Subject:

Yes, the money they took was for the interest only, not one penny went to the principle. I'm not sure how many times they tried to put my check thru, I could check my bank and see if they have a record of that. Another thing they do--which my bank told me they are notorious in doing--if the customer puts a stop payment on them, The Cash Store will try putting it thru again, but they will change the amount to be deducted.

Posted: Sat Nov 10, 2007 7:17 pm Subject:

Wow! They are very crooked! Unfortunately, this is an all too common practice among pdls. I took a look at the website, and it looks like they do payday loans and title loans, correct? I didn't see anything mentioned abotu installment loans, so you are absolutely justified in your complaint! I'm sure they they have taken advantage of many people so turning them in would be a service to your community! I hate it when these companies take such advantage of people. Luckily, you are armed with the knowlege to fight back. Smile

*Name:
*Email:
*Phone:
*Zip:
Debt

	* denotes required field

Internet's first get-out-of-debt community - 129,000 members

Payday Loan Harassment

Members Area

Free Debt Counseling

Ask the community

Community Photos

Featured Discussions

Featured Articles

Question of the Month

Also See

Recent Forum Discussions

Recent Blog Post