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Hi all, Since we last talked, I took my paycheck off direct deposit and put a hold on the ACH debits from my bank account by pdls. I can't close my account, as it is overdrawn from the last pdl payments. I got brave and sent emails to all my pdls except two yesterday telling them that I have paid over the limit, since they are not licensed in my state and rollovers are not legal in California. I asked them to mark my account paid in full. I have some of the nasty ones that you see in this section all the time. I haven't received any replies. I think it is because I am paid up to date. My question is - on my last pdl I received, I sent the info. they requested to Purpose Loans in Georgia. However, the loan is from The First Bank of Delaware. I read out on the internet that The First Bank of Delaware ceased making pdls in 2006 after coming under fire for doing so. The loan is paid back in 10 installments, with extremely high interest of course. Everything about this loan is so confusing, I don't know if it is still considered a pdl. Has anyone had any dealings with these companies? Thanks, Talitha

Posted: Mon Apr 02, 2007 12:13 pm Subject:

I haven't dealt with the company, but from the way you explained things it sounds like an installment loan. If that's correct it wouldn't be a payday loan.

Posted: Mon Apr 02, 2007 12:17 pm Subject:

That's where it is confusing...because when I applied, I was applying for a payday loan with the Purpose Loans company. Also, although you pay in installments, the loan percentage rate is 408.86% like the pdls.

Posted: Mon Apr 02, 2007 12:22 pm Subject:

I have a similar loan with high interest that I pay in installments.

Do you still have the contract? What may have happened is it was a pdl, then after you "rolled" it over for x amount of months it turned into an installment loan. I know some states require that.

I would define a payday loan as a "short" term loan that is meant to be paid back in full with a "fee" on your next payday. Since with this loan payments are in installments (equal amounts each month?) then it would be more like a traditional loan, just with ridiculous interest rates.

Posted: Mon Apr 02, 2007 12:24 pm Subject:

I have one toooo, it is considered an installment loan. One with a very dear payback.

Posted: Mon Apr 02, 2007 3:56 pm Subject:

I did a search on this site regarding Purpose Loan and First Bank of Delaware. It appears it is a pdl being backed by the bank, but there is just not very much information. Thank you for your responses.

Posted: Fri Apr 06, 2007 10:49 am Subject:

Were you able to find the contact information for Purpose Loans? I am unable to login to their site - says my SSN and birthdate do not match. I have a loan for them and need to send them a notification that my bank account is CLOSED and that they will be paid by a debt management group from now on.

Thanks,
~b

Posted: Fri Apr 06, 2007 11:51 am Subject:

I just tried to get into my account and got the same response as you. this must be their answer so that no one is able to get into their account. If you hit the contact us link, you can send an automated message. However, I think I will mail a letter to the physical address and cc First Bank of Delaware. They call it an installment loan, but I think it is a payday loan in disguise.

Posted: Fri Apr 06, 2007 12:08 pm Subject:

Thanks for the update... I didn't think I filled out the wrong info when signing up for the loan!

Posted: Fri Apr 06, 2007 12:12 pm Subject:

I think they want to give as little information as possible. I tried replying to the email they sent me as a reminder of my payment, but of course it was an automated email. I also wanted to let them know that I have put a hold on all the ACH withdrawals out of my account. They work very hard at making it impossible to have a record of any written correspondence between you and them.

Posted: Fri Apr 06, 2007 12:27 pm Subject:

These types of loans suck. They really are just glorified payday loans. But since they are backed by banks and are considered "installment loans", payday loan laws don't apply to them.

Posted: Fri Apr 06, 2007 1:12 pm Subject:

I had a payday loan that was backed by this company. It wasn't purpose loans but it worked as a regular payday loan. It doesn't surprise me that they are going this route now.

Posted: Fri Apr 06, 2007 2:23 pm Subject: loans

I also had a payday loan that was backed by this company. Even if this is an installment loan they MUST abide by your state law in the interest they charge. Thats why they dont want to mess in the states where payday lending is PROHIBITED. Or let me see if I can phrase what they told me a state that is a lending risk. LOL They know where they are legal and where they are not. Dont pay over your states interest and contact your Attorney General. KYSIDE38

Posted: Fri Apr 06, 2007 3:53 pm Subject:

kyside,

That's good information to know. That is one I wasn't clear about. Thanks hun Smile

You rock!!

Posted: Sat Apr 07, 2007 6:55 am Subject:

For anyone looking for contact information, here is what I found on my contract:

Fax Number: 877-846-0057
Toll Free: 877-846-0062

Purpose Loans
PO Box 105617
Atlanta, GA 30348-5617

Lender:
First Bank of Delaware
1608 Walnut St., Suite 1000
Philadelphia, PA 19103

I guess that Purpose Loans is the "customer service" center and First Bank of Delaware gives/takes your money. Hope that helps someone out there. Very Happy

Dwight Frasier · Posted: Wed Apr 09, 2008 10:40 am Subject: Loan

i was wondering i still have a loan with you and if not i need to get into writing that we are paid in full.

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Does anyone have info. on First Bank of Delaware?

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