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Posted: Tue Jul 03, 2007 6:07 am Subject: PDL Purgatory in Pennsylvania

I have been reading the posts on the board here, and it is somewhat comforting (I don't know if that's the correct word) to know that I'm not alone in my situation. I have been caught up in the sick cycle of the payday lenders due to an urgent need for cash and now I don't know what to do! I can't believe that it ever got this bad. I now have a wife and young daughter I need to provide for, and I need to step up and be a man. Right now all I feel like doing is breaking down and crying. I have loans to the following:

Advance America
CashNetUsa
800899Cash
OneStepCash
USFastCash
Big-Ltd (?)
VCFunding
First Bank of Delaware
UrgentCashAdvance
WebPayday

All totalling up to $3550. Each one is scheduled to debit their "fees" again on Friday when I get paid, but I really need the money to pay my real bills.

Is there any hope for me? Right now all I feel is despair, especially for the feeling that I am letting my family down. Any help at all would be greatly appreciated!

Posted: Tue Jul 03, 2007 6:23 am Subject:

Welcome to the site tuk! We all know the feeling of despair ur feeling right now! We've all been there and not so long ago!
Although i don't know much about pdl's there are MANY people here that do! I'm sure someone will be along soon to help u out! U may want to put a little more info, like are they internet or storefront, amount of each and amt paid to each to date.
Good Luck and hang tight, u've come to the right place for help!!
Ang

Posted: Tue Jul 03, 2007 6:36 am Subject:

You are definitely not alone! I'm also in PA and had too many payday loans taking my wole check. I fell behind on everything else b/c there was nothing left. BUT I found this site and started reading and taking the advice here. I closed my bank account. Then figured out what I borrowed,paid, and if I owed for each loan.Sent letters to all of them to revoke authorization for debits, phone calls,wage assignments. I am not free yet but I can see it happening.What a relief! I got my first reply that one pdl is being marked paid in full. It does work. It won't be easy for all of them but now I can pay rent and utilities while I work things out. Try it. It really is a huge step. I was scared but feeling control return is worth it. Good luck to you. Keep reading and posting there's lots of support here.

Posted: Tue Jul 03, 2007 6:40 am Subject:

Thanks for the response Ang! Here is a little more info:

Storefront:
Advance America
Amount Borrowed: $540
Amount Paid: $720

Internet:
CashNetUsa
Amount Borrowed: $200
Amount Paid: $115
800899Cash
Amount Borrowed: $300
Amount Paid: $152.57
OneStepCash
Amount Borrowed: $300
Amount Paid: $180
USFastCash
Amount Borrowed: $300
Amount Paid: $90
Big-Ltd (?)
Amount Borrowed: $200
Amount Paid: $80
VCFunding
Amount Borrowed: $250
Amount Paid: $75
First Bank of Delaware - this is an "installment loan"
Amount Borrowed: $300
Amount Paid: $59.65
UrgentCashAdvance
Amount Borrowed: $300
Amount Paid: $0
WebPayday
Amount Borrowed: $400
Amount Paid: $0

All of the above internet loans are scheduled to debit fees from my checking account this Friday, which as I calculate it, will come to approximately $584 - and this is just to pay the interest and fees. This won't pay down any of the principal. I only receive $972 per paycheck, so obviously this is a major issue. The loans that I am least worried about are the Advance America and First Bank of Delaware, as they seemed to be the least predatory of the lenders. Advance America has their storefronts all across the country. The others simply make me want to be sick. All this from needing immediate cash - and of course me being gullible and irresponsible.

My goodness, this is a horrible cycle to be in...hopefully somebody out there has some advice!

Posted: Tue Jul 03, 2007 7:32 am Subject:

There's plenty of advice here tuk! Although i'm not familiar with pdl's i'm sure the first thing u need to do is go and close ur checking acct! Tell the bank about this pdl's and revoke their right to debit ur acct. Hang on and i'll get someone to come and tell u what to do step by step!
You've definately found the right place for help!!
Ang

Posted: Tue Jul 03, 2007 7:49 am Subject:

I belive in Pennsylvania PDL's are prohibited or very restricted. The most they can get per $100 for fees is $9.50

Pennsylvania State Information

Legal Status: Prohibited

Citation:
Check cashers are specifically prohibited from making payday loans under Check Cashing Licensing Act of 1998, § 505(a). Otherwise, consumer discount company act applies. 7 Pa. Cons. Stat. Ann. § 6201 et seq.

Small Loan Rate Cap
$9.50 per $100 per year discount or 24% per year

Where to Complain, Get Information:
Regulator: Pennsylvania Department of Banking
Address: Market Square Plaza, 17 N. Second Street Harrisburg PA 17101
Phone: (717) 214-8343
Fax: (717) 787-8773
Regulatory Contact: Jim Keiser Administrator of Non-Depository Institutions
Regulator’s Website
Complaint Form
Complaint Instructions
Online Resources:

You can do one of two things, you can contact these PDL's and tell them about Pennslvania law regarding PDL's and request a payment plan without the illegal interest they are probably charging. I would also say to close your bank account and open a new account or ask your bank to not allow ACH debiting from your account because these places will try and take your money.

Or you can again, close your account and not pay the loans back since most of these companies appear to be acting against PA. law. They will not be able to have you arrested nor will they try and sue since they will not win in court since they are breaking the law.

Advance America has an action filed against them by the state of PA. for illegal practices and not being licensed in the state. Most, if not all of those PDL's probably are not even licensed in PA. so they cannot force you to pay.

Posted: Tue Jul 03, 2007 7:50 am Subject:

btrx...thanks for your kind words. Maybe there actually is a light at the end of the tunnel! The worst thing with me is that the PDL stuff is just an extension of my terrible credit rating. Right now it is hard for me to think positive - all I want is to live a simple, happy life with my family, buy a house, not have to live paycheck-to-paycheck. With my bad credit and mounds of debt and now the payday loan debt on top of all that, I'm seeking out all the advice that I can so that someday I can be debt free and not have to worry constantly.

Posted: Tue Jul 03, 2007 7:55 am Subject:

ramj70 - thank you for the information. One question regarding Advance America. That loan is secured with a personal check that I write each time I make a payment. That said, what would the ramifications be if I closed my bank account while a personal check is out there to secure the money they have paid out?

Hopefully I worded that clearly...I can't tell if it makes sense now that I read it! Very Happy

Posted: Tue Jul 03, 2007 7:58 am Subject:

Be patient tuk and u will one day, sooner than u think, start building ur credit up and have all u dream of!!
Stay with this board, work thru ur situation and it will all be fine!!
Good Luck and glad u found this site!
Ang

Posted: Tue Jul 03, 2007 7:59 am Subject:

Do you currently have a check out there right now, written to advance america for a certain amount of money that they have not cashed? Not a voided check. Also Advance america was supposed to stop making payday loans last year in PA. Go to this website to get more information and phone numbers if need be.

http://www.banking.state.pa.us/banking/cwp/view.asp?a=1347&q=546255&ba nkingNav=|32124|

Posted: Tue Jul 03, 2007 8:02 am Subject: pa

Do as Ram says and also contact your Attorney Generals office consumer division. I spoke to them the other day. They said they are not receiving that many complaints in PA. They cannot do anything without complaints. They are very sucessful mediators in these situations. KYSIDE38

Posted: Tue Jul 03, 2007 8:03 am Subject:

ramj40 - First of all, MANY THANKS! To answer your question, yes, there is a personal check written in the amount of $546 that they "hold" until my due date, at which time I make their minimum monthly payment of $172 (including their $149 "participation fee" and a payment against the principal), they hand back the old check for me to void and I write a new check for the new balance on the account. So yes, in short, there is a personal check out there written to advance america for a certain amount of money.

Posted: Tue Jul 03, 2007 8:06 am Subject:

kyside38 - thank you for the information, I am definitely going to take that advice.

Posted: Tue Jul 03, 2007 8:09 am Subject:

Oh and BTW, after reading further on the boards, it seems that First Bank of Delaware isn't as innocent as I first thought. Someone else on the board is having a horrible time with them. Apparently they lend after being referred through another agent called "Check n Go" - I don't remember filling out a Check n Go application, but obviously I must have at some point. Ugh.

Just wanted to let you all know, in case you hadn't seen that in the other posts.

Posted: Tue Jul 03, 2007 8:12 am Subject:

That could complicate things because there is a possibility they could file criminal charges if you close an account with an outstanding check out there. However that payday loan they are doing is illegal because they are not licensed in the state to do payday loans, and the fees they are charging is illegal. They were supposed to stop giving payday loans last year and I'm sure PA. will be interested to know they are still doing it. First I would call the 1-800-PA-BANKS, or 1-800-722-2657 and explain the situation to get their advice and see what they say, make sure you explain to them about the check and payday loan and such. You might still be able to close the account.

You can also still close your account if you have the $546 in the account. You can ask the bank to close the account and tell them about the outstanding check. As long as you have the money in the account its okay. Also do make sure to tell your bank to not allow any ACH debits and close that account as soon as legally possible.

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