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 Posted: Fri Nov 16, 2007 11:32 pm |
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Ok, here is my story......I live in PA and I have gotten myself into trouble with IPDL's......I have 4 of them, actually 5 one being advance america (storefront.....but have no problems with them since I only have to now pay only $20 a month towards the $500 i got)
It has come to the point where I can not make all of these payments (as the only income I have is I get SSI for 2 of my kids)My hubby works, but I did not use his income for these loans. I have closed my account, sent out my letters certified revoking them to debit my account and wage assignment) I am going to my bank tommorrow to put a HARD DEBIT BLOCK on my account, because until I came here I was not aware that the account could be forced open.
The 4 IPDL's I have are:
CashNetUsa (licensed in Nevada)
PayDay1One, PaydaySelect And PaydayOk (all 3 are licensed in Delaware)
Here is where I need help:
| Quote: | Nevada State Information
Legal Status: Legal
Citation:
2005 Nev. Stat. 414 (A.B. 384)
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
http://www.fid.state.nv.us/
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So what does this exactly mean for me? Am I reading it correctly that they can not take criminal action unless I fraded? What can CashNetUsa do to me for defaulting on the loan? I tried talking to someone in their collections department (big waste of time) and was told that there is nothing they can do for me, and I must pay everything back when they demand it) Can they sue me?
| Quote: | Delaware State Information
Legal Status: Permitted under small loan act or licensing law - Legal
Citation:
Del. Code Ann. tit. 5 § 2227 et seq.; Del. Code. Ann. tit. 5 § 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
http://www.state.de.us/bank/
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So my question for the other 3 IPDL's that are in De Can they go for criminal prosecution? Please help me understand what is going to happen. Can they garnish my kids SSI?
I am so worried about what is going to happen to me once I default on the loans (Cashnetusa will be in default on 11-30-07, and the other 3 are not due until 12-03-07 then I will be in default with them as well.
I am just scared that I will end up in jail, have multiple lawsuits, and whatever else they can do to me.
I know that I owe them the money I borrowed, but the fees are outragious and I had to make the decision to default on these so my kids could have a good christmas.
Sorry this was so long, I am freaking out here and really could use some advice here on what next steps I should be taken, and what and (how soon) is going to happen when I default on these.
Thank you in advance for the help and advice. I am so glad I found this site.
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tinabarr
Joined: 15 Nov 2007
Posts: 68
Debtcc Points: 2195
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| Posted: Sat Nov 17, 2007 5:26 am |
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I was hoping for a response from anyone. Can someone answer this question for me? It would be greatly appreciated
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tinabarr
Joined: 15 Nov 2007
Posts: 68
Debtcc Points: 2195
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| Posted: Sat Nov 17, 2007 5:38 am |
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tina...you are not going to jail. As we all know in PA some ipdls are legal as long as they are licensed in some state and follow those laws. You have Nevada and Delaware listed so I assume you have checked and they are licensed in these two states. Goudah has done an excellent job of simplifying some of these so far:
Emails to and from the banking dept:
| Quote: | 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.
There can only be 4 rollovers.
_________________
I am still checking on Nevada...maybe someone else will have info for you there also.
_________________
If you think you can, you can...if you think you can't, your probably right...
http://lifewithyourcredit.yesdebtfree.org/
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Morningstarr430
Debt Samaritan
Joined: 13 Jun 2007
Posts: 2337
Debtcc Points: 39294
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| Posted: Sat Nov 17, 2007 9:08 am |
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| Quote: | It has come to the point where I can not make all of these payments (as the only income I have is I get SSI for 2 of my kids)My hubby works, but I did not use his income for these loans. I have closed my account, sent out my letters certified revoking them to debit my account and wage assignment) I am going to my bank tommorrow to put a HARD DEBIT BLOCK on my account, because until I came here I was not aware that the account could be forced open.
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I contacted my bank this morning and went to my local branch (citizens bank )and they told me that they could not and would not put a hard debit lock on my account as they will not be a part of me committing fraud. The lady I talked to also said to me that I was breaking the law basically anyways using this account for PDL's since I am Rep Payee for my 2 sons,and was wrong of me to do this. So now I am worried that they will contact SSI and tell them then I will lose the money. I had to get these PDL's to get food and pay my bills, ETC because at the time my hubby was not working many hours.
So I was told that my account will be forced back open and then I will have to pay the bank all the fees this account incurs.
Can a bank refuse to put a hard debit block on a account? What should be my next steps to take when these ACH debits starts coming through this closed account?
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Guest
Debtcc Points: 100
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| Posted: Sat Nov 17, 2007 9:11 am |
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The post above is me as well.
[url]It has come to the point where I can not make all of these payments (as the only income I have is I get SSI for 2 of my kids)My hubby works, but I did not use his income for these loans. I have closed my account, sent out my letters certified revoking them to debit my account and wage assignment) I am going to my bank tommorrow to put a HARD DEBIT BLOCK on my account, because until I came here I was not aware that the account could be forced open.
[/url]
I contacted my bank this morning and went to my local branch (citizens bank )and they told me that they could not and would not put a hard debit lock on my account as they will not be a part of me committing fraud. The lady I talked to also said to me that I was breaking the law basically anyways using this account for PDL's since I am Rep Payee for my 2 sons,and was wrong of me to do this. So now I am worried that they will contact SSI and tell them then I will lose the money. I had to get these PDL's to get food and pay my bills, ETC because at the time my hubby was not working many hours.
So I was told that my account will be forced back open and then I will have to pay the bank all the fees this account incurs.
Can a bank refuse to put a hard debit block on a account? What should be my next steps to take when these ACH debits starts coming through this closed account?
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tinabarr
Joined: 15 Nov 2007
Posts: 68
Debtcc Points: 2195
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| Posted: Sat Nov 17, 2007 6:39 pm |
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tina, is the bank account in your name only? It doesn't have your kids name on it? It's an account with just your name & the SSI money is deposited into it?
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cannr
Moderator
Joined: 07 Jun 2007
Posts: 9374
Debtcc Points: 124815
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| Posted: Sat Nov 17, 2007 6:56 pm |
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the account that was used had my name as well as my 1 son's name, it said my name rep payee then my son/s name
so by your question am I right to assume I am in trouble even though the money used from these PDL's were used for things for my son
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tinabarr
Joined: 15 Nov 2007
Posts: 68
Debtcc Points: 2195
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| Posted: Sat Nov 17, 2007 7:02 pm |
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Hang on, tina. I'm going to pm another member who might have more knowlege regarding this. Don't freak out yet. Hang on and I'll send a pm. I'm not sure about this, so I don't want to give any advice without being 100% sure, okay? Don't go away. I'll have someone along who might be able to give us a little more insight on this. 
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cannr
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Joined: 07 Jun 2007
Posts: 9374
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| Posted: Sat Nov 17, 2007 7:21 pm |
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I am trying not to freak out here. I had to take these IPD's because at the time hubby took time off from work (this was in Setember when I was 9 months pregnant and put on bed rest)and we needed the money for food, our van broke down, needed to pay bills, etc
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tinabarr
Joined: 15 Nov 2007
Posts: 68
Debtcc Points: 2195
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| Posted: Sat Nov 17, 2007 7:25 pm |
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Ok..I can start with the first thing..Your son's SSI will not be garnished. These are illegally operating, and they are consumer debts, in the state of PA consumer debts CANNOT garnish. no matter what they tell you. You took care of the wage assignments, so that will be fine.
It sounds like the lady at the bank is mean. It is NOT a criminal act to take out a loan of any kind..It was never a crime for you to take out the PDLS. It is my advice to you to close that account and set up another one at a different bank. Just because you are rep payee does not mean that you can't switch banks. Do this right away before you rack up too many fees. You will not get into trouble..There is no fraud here, just irresponsible lending on the IPDLs part.
_________________
"It's a treat, being a long-distance runner...."
Allan Sillitoe, The Loneliness Of A Long-Distance Runner
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finsfan13
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Joined: 17 Feb 2006
Posts: 7021
Debtcc Points: 59875
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| Posted: Sat Nov 17, 2007 7:30 pm |
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Thank you for your reply, I feel much better now. Now I have another question. I have a IPD with cashnetusa, and so does my hubby (he got it under me, so I could get the $20 taken off of my loan fees) He has no intention on defaulting with his loan (different account at different bank used for his loan) my question is once I defailt on my loan can they go into my account under my referrals and get my hubby's bank info and debit this account for my loan? I have not authorized this, and just want to be sure if they can do that or not. If they look at my referrals they will know he is my hubby as my last name is not a common one.
I am just trying to calm my nerves on all of this. It is very scary to think I would get into trouble for doing these IPDL's on the account that I was rep payee for.
I have had nothing but bad luck lately. Shortly after I had my daughter (9-19-07) I started having problems with my stomache and just had my gallbladder removed last friday, and now all this worry over defailting on my loans.
I appreciate all of you guys help!!
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tinabarr
Joined: 15 Nov 2007
Posts: 68
Debtcc Points: 2195
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| Posted: Sat Nov 17, 2007 7:47 pm |
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You both have a loan out with CashNetUSA? Is your loan under your name at your bank and his loan under his name at a different bank? Am I understanding this correctly?
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cannr
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Posts: 9374
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| Posted: Sat Nov 17, 2007 7:53 pm |
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| Quote: | | You both have a loan out with CashNetUSA? Is your loan under your name at your bank and his loan under his name at a different bank? Am I understanding this correctly? |
Yes, you are understanding this correctly. My loan is in my name different bank, his loan is his name at a different bank
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tinabarr
Joined: 15 Nov 2007
Posts: 68
Debtcc Points: 2195
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| Posted: Sat Nov 17, 2007 8:05 pm |
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Okay, tina. Since CashNetUSA is going to be licensed/legal for you both and your husband does not plan to default on his loan, I'm going to assume that he's going to continue to let CashNetUSA debit his bank account, correct? What you will need to do, by closing your bank account, is contact CashNetUSA and set up a payment plan with them with an alternate form of payment (not debiting your bank account). Tell them the bank closed your account. Set up payment arrangments with them (via money order) and you should be okay. They will continue to debit your husbands account for his loan. They should set up payments with you by you mailing in your payments. Make sense?
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cannr
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| Posted: Sun Nov 18, 2007 8:10 am |
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i would like to add that this website has calm me down. i am still concerned about going to prison for fraud checks?? can any1 help me???
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igamara
Joined: 18 Nov 2007
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| Posted: Sun Nov 18, 2007 9:18 am |
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Trust me..We have all been where you are now. You are NOT going to jail for check fraud. You have NOT committed check fraud, I promise you. The only companies (usually) that operate within the laws and can cause any kind of legal problems are store fronts..And you have that one under control!! Please relax, and believe that this is going to work out for you!
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"It's a treat, being a long-distance runner...."
Allan Sillitoe, The Loneliness Of A Long-Distance Runner
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finsfan13
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