payroll loan default and collection calls

I have 5 payday loans and I defaulted on on them, figuring I could set up payment arrangements that were more manageable. I did that with one of them...but I am getting threatening phone calls from United Federal, regarding 2 loans with VC Funding and Platinum B Services. The call said that I had until 12:00 to pay them or I would be arrested. Can they do that? How do I find out if they are registered in my state (I live in Maryland). Any advice?

Any advice would be appreciated.

United Federal is a collection agency that is going by several different names. It is illegal for them to threaten you with arrest and please don't send them anything without getting the debt validated. If you do a search on United Federal aka prelitigations you will see that several people have received the same type of illegal threats. I myself am one of those people. Tell them you are not going to send anything until they send you something in writing.

I spoke with a supervisor who said that my suggested payment arrangement was "unacceptable". Can I request that they send me something in writing? The two companies are ones that I did have a loan with (VC Funding and Platinum B Services or SJM Marketing). I don't want to be arrested, and I am trying to find if they are legal in Maryland.

Try asking them for their address or a fax number and see if they will give it to you. Several members have not been successful in gettting their address. It's hard to find out if they are licensed to collect because they don't give you any information about their company and they go by several different company names. Everyone who is contacted by this place is encouraged to report it to their Attorney General's office and the FTC.

Tell them you are not going to agree to any payment arrangements until you see something in writing. Also tell them you know your rights and that it is illegal for them to threaten you with arrest.

You can also try contacting the original companies to verify who the debt was actually sent to.

United Federal is not licensed in Maryland. They are based in Florida and I did a search on the Better Business Bureau website to see what came up.

ADDITIONAL TRADENAMES, ADDRESSES AND TELEPHONE NUMBERS

Platinum B Services
United Federal Bank
(90 212-3726
(561) 210-5357

"The Bureau processed a total of 13 complaints about this company in the last 36 months, our standard reporting period. Of the total 13 complaints in the last 36 months, 13 of those were closed in the last 12 months."

Complaints Concerned
Service Issues: 8
Outcome of all complaints -
Unpursuable: 8; |[Company cannot be located. Mail
returned and phone disconnected.]|

Customer Service Issues: 3
Outcome of all complaints -
Unpursuable: 3; |[Company cannot be located. Mail
returned and phone disconnected.]|

Billing or Collection Issues: 2
Outcome of all complaints -
Unpursuable: 2

Given their illegal threats and the fact that people are filing complaints with the BBB to no avail, I would send them a Cease & Desist letter immediately via certified/return receipt mail. If they continue to harrass you after you have proof that they received the C&D letter, you have ammunition.....

Maryland is one of 12 states that prohibits payday lending at triple-digit interest rates. The Small Loan Rate Cap for Maryland is 2.75% per month; 33% per year. How much were the loans for, and how much had you paid before defaulting?

Each of the loans were for 300$ and I had paid the service fees each paycheck, so 90$ each.

What are my options? All I have is there phone number, and no mailing address?

So, in theory, all the payday loans I have are illegal in MD, as they were all at triple digit interest rates. What should my next steps be?
They say I owe over $ 1,300 in fees and what not.
Thank you so much for your help.

Don't believe what the lenders say. Lending payday loan is illegal in Maryland. Put your complaints to the state regulator.

Maryland Commissioner of Financial Regulation
Address: 500 North Calvert Street Suite 402 Baltimore, MD 21202
Phone: (410) 230-6100
Fax: (410) 333-3866

http://www.dllr.state.md.us/finance/

Okay, I found a post on the ripoffreport website that says United Federal Bank is actually Ellis & Crosby. A supposed rep from Platinum B Services said they did not realize that United Federal Bank/aka Ellis & Crosby were using such unethical tactics to collect on accounts and had stopped using them. The contact info for Platinum B that the rep posted was
Tel: 1-866-722-2770
Email: info(at)platinumbservices.com
Fax: 1-866-599-5161

You could try contacting them directly to try and work out a repayment proposal. If that doesn't work, check out Polly's blog for a template letter to send. You can insert your state's payday lending regulations in the letter and let Platinum B know that the finance/interest charges on the loan issued to you are illegal and tell them what it should be, what you have already paid and what is left owing.

You can do the same with VC Funding and see what kind of responses you get from both pdls. Remember to send your letters certified/return receipt so you have proof that they were signed for.

this payday loans "fraud division" called me at work today. they wer rude and crude and stated he was from the fraud dept. because i wrote a check on a closed account. I did not. I closed it after check was already written but still out. H estated he can call me anytime he wants at work because he is not a colection agency or third party collector. Is he right?

If he isn't a CA or third party collector he can, I would still send the cease and desist letter. So long as he isn't contacting your co-workers etc... releasing personal info. regarding his business with you and/or making threats, I would still file a complaint with the AG and I would send them a template letter with your state pdl laws. Tell him to come and get ya.

His threats were there but not blatant. he said things like, "you know what avenues we can take on your writing a check off a closed account. anyways it is not as if I am not going to pay. i gave them 100 today, he wants the other 600 in two weeks. cant do it and not going to stress myself out trying to. thanks for the response steelers1.

I wouldn't stress either. Send only what you can afford you have to be able to have enough to survive.

in ohio, law states they can only go up to 500. so how do some of them get away with going up to 800?

I don't think enough people realize that they are not licensed and just take the threats as fact and give in. I'm from OH too, I filed my complaints. Let him know that OH doesn't allow criminal prosecution on pdl defaults, it is a civil matter only, and since they aren't licensed here I highly doubt they will come to OH to sue you, it wouldn't be in their best interest, and then you can threaten him with arrest and you wouldn't be lying, because he would be arrested.

Did you file a complaint? If not, I would go online to the AGs site and do it. I would also send the template letters. I don't know how much you have paid so far, if you have been paying for some time then you probably have already paid back the principal along with the allowable interest allowed in OH. If that is the case, I would demand the pdl be marked paid in full and not budge on the matter, I wouldn't send another dime if you have paid too much.

these are storefronts, if it makes a difference. i also do have two online ones. they are paydayok and mycashnow. the storefronts i have had for months now, just had to keep redoing them so i dont know if that would count as repayment.