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Posted: Mon Aug 20, 2007 7:39 am Subject: Payday Loans have broke me

I need some immediate assistance. I am not sure what actions to take. I live in Maryland and I am having some horrible troubles with several PDL's. They have eaten my entire paycheck and I have been left with nothing to pay my bills. I have two young children and I was not even able to pay daycare fees, we have limited food in the house now, my water is getting turned off on Wed., and the electric is next. I need to know what my rights are and how I can legally go about this. Someone had told me that I can tell my bank that these charges were not authorized and then the bank will refund my money, but I'm not so sure and I don't want to run into any problems.

Please help me

Posted: Mon Aug 20, 2007 7:42 am Subject:

narn...welcome...there isn't always a quick and easy fix but we will do what we can to help. Please tell us what kind of loans these are: Interent or store fronts...also please list how much the original loan was for and how much has been paid back including whatever fee's they charge that have been debited from your account...with this info we can possibly give you some info to help you...

Posted: Mon Aug 20, 2007 7:43 am Subject:

these are the laws for Maryland

Legal Status:
Prohibited

Loan Terms:
2.75% per month; 33% per year

Debt Limits:
Not applicable

Collection Limits:
Not applicable

Posted: Mon Aug 20, 2007 7:54 am Subject:

I don't know exactly what this means, it says illegal, but some has to put this into sinple wording for me.
Also, I am looking into the loans and how much I have paid so far. I can give you the companies though:
All Internet loans, none store front
MTE Financial
NetCashUSA
UpFrontPayday
the last is just listed as Credit Protection

Posted: Mon Aug 20, 2007 8:01 am Subject:

Here is what I have found out so far:

MyCashNow: loan amount: $250.00

UpFrontPayday: loan amount: $400.00

Posted: Mon Aug 20, 2007 8:03 am Subject:

OK...so you only have four and all are internet. Check out the amounts for me here...but what your laws say is that these type of loans are not allowed in your state...they are illegal. Now when you contact these places they will tell you to follow the law where they are..but that is not true. Most of these types of loans are not licensed even in the state where they reside.

The first thing you will have to do is close your checking account so they can not get any more of your money. PLease PLease read the info on that posted at the top of the first page of this forum. It is very important that you understand that and what transpires. Once you have your money safe you can then send letters to each of these to cease and desist from debiting your bank account, wage assignments, and calling you at work/home to harrass. We also recommend that you file compliants with your state's attorney's office the BBB and the FTC. If you read some of the posts on here you can learn a great amount about how to handle these. Last but not least...figure out how much each was for and how much has been given back...up to you but even though they are illegal most of us feel an obligation to morally pay back the principle of what we borrowed. Your welcome to post any other problems or questions you may have....

Posted: Mon Aug 20, 2007 8:04 am Subject:

narn...you must also tell us how much each loan has debited from your account, ie: loan 300/200

Posted: Mon Aug 20, 2007 8:09 am Subject:

Wow, thank you so much. I had no idea. I'm going to call my bank RIGHT now!! They have all definitely been paid back what I had borrowed. I have been paying them for the longest!!!!!! I feel so much relief Very Happy

I have also read on here about these companies forcing open a closed account. What can I do to protect myself from this????

Posted: Mon Aug 20, 2007 8:14 am Subject:

OK...when you call or go to the bank..you will have to show them your cease and desist letter...and then you will have to explain...sometimes that can be embarrassing..but they need to know what's going on. Some banks will work with you to stop the debits by putting a hard debit block on your account so that none of the debits can get through...most of us have found the best thing to do is close our accounts and open new ones at a deifferent bank. The biggest problem occurs when a bank closes your account but the debits force it open again causing you to have a ton of nsf charges,,,this is why you must work closely with your bank and explain to them what is going on...that the charges are fraudulant and need to be blocked.

I am happy for you...the relief is always so calming...I had the same reaction when I started...good luck to you...let us know if there is anything else we can help with.

Posted: Mon Aug 20, 2007 8:33 am Subject:

Okay, I think that I have everything. Now that I'm really looking into this, it is absolutely ridiculous. I can't believe that I am just now seeking help.

UpFrontPayday: 400/240 so far (opened 7/19/07)

MTE Financial: 300/510 and still taking from me, opened 6/11/07

MyCashNow: 250/219.57 so far, opened 6/27/07

NetCashUSA: 300/715 and still taking my money, opened 5/7/2007

Posted: Mon Aug 20, 2007 8:35 am Subject:

How do I write a cease and desist letter?

Posted: Mon Aug 20, 2007 9:00 am Subject:

Narn...I will PM one to you...look at the side bar, you will see a link that say " you have no new messages" check it when it says you have 1...give me a few minutes...

Posted: Mon Aug 20, 2007 9:12 am Subject:

OK...I sent you some info ...looks like 2 of them are already paid off. You can also search for each payday lender in the google box to read how others have gotten along with them...and what has been done...the more you learn the more power you will have to get yourself on the right track.

Posted: Mon Aug 20, 2007 9:25 am Subject:

Thank you so much. How can I find out the amount they are allowed to charge for each loan?

Posted: Mon Aug 20, 2007 9:28 am Subject:

Technically the loans are illegal...the laws for your state list 2.75 a month or 33 something a year...so on a loan of 200 for 12 months it would be 266 (example only).. Just multiply the amount of the loan by the % and then add that to the total.

And you are welcome....

Posted: Mon Aug 20, 2007 9:49 am Subject:

To calculate the interest you would use this formula:

Principal X Rate X Time = Interest Amount

Since payday loans are not allowed in MD, you would not need to pay any interest. But if you wanted to calculate it for the 2 week period of a pdl, for a $200 loan you would:

200 x .33 x (14/365) = 2.531506849

So you would owe $2.53 in interest on the loan.

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