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Posted: Wed Oct 10, 2007 3:26 pm Subject: Internet Pay Day Loans

I have about 4 to 5 pay day loans. I attempted to contact one in particular today: Web Pay Day Loans - they have contracted: Legal Mitigation Practice based in Jacksonville, FL to settle the account. The loan is $300 - I borrowed 5/31/07. Due to financial difficulty, I closed the checking account (Chase) where they were debiting the pay day fees (extenstions). I even told them so over the phone. They never agreed to my pay arrangements... Upon contacting Legal Mitigation - he advised that I am in trouble with the law, will have legal enforcement against me if I did not pay today. I offered to make two pay arrangements - he refused. he would break down as to how the loan increased $350... I was so shook up. I did fax them a verification of debt letter, filed a complaint w the BBB and FL attorney general. I am not sure what else I can do. Please help. Thanks... I live in Indiana.

Posted: Wed Oct 10, 2007 3:29 pm Subject:

Starr -

Thanks for providing the info, as far as your state, the name of the lender and how much you borrowed.

Now, what we need to give you some accurate advice is the following:

-how much you have paid this company, including all fees/interest paid.

-whether they are internet or storefront based...though they appear to be an internet lender with a name like "web payday loans"

I'm going to check and see if they're licensed in Indiana, and I'll be back. In the meantime, post that other info I asked for, and I'll help you figure out if you've overpaid them already, and by how much.

Posted: Wed Oct 10, 2007 3:39 pm Subject:

The Lender: Web Pay Day Loans (www.WebPayday.com) - Borrowed amount: $300 5/31/07 - Their collector - Legal Mitigation Practice - states I now owe: $650... I paid approx $95 in their fees every two weeks from the time that started the loan and then my acount was closed with that bank due to financial difficulty.

Posted: Wed Oct 10, 2007 3:41 pm Subject:

Ok Starr - here's the payday lending law for Indiana:

Posted: Wed Oct 10, 2007 3:45 pm Subject:

Starr -

You have WAY overpaid this company if you've been paying $95 every two weeks since 5/31/07.

You also need to file another complaint with your state - with the Indiana Department of Financial Institutions, as listed in your state law above. Your State's Attorney General may not be much help, since the DFI is the governing body that handles these things.

Let us know if we can be of any more help!

Posted: Wed Oct 10, 2007 3:47 pm Subject:

Thanks for the info. I will follow up with the letter your recommended, to be clarify... Since I live in Indiana - even if they are in a different state, they can only legally charge me what is owed in that state?

I appreciate all of your help, i can go to sleep tonight without a knot in my stomach.

Posted: Wed Oct 10, 2007 3:57 pm Subject:

Starr - in MOST states, the lender has to be licensed in the state they lend into.

I can almost guarantee you this company is operating illegally in your state - here's how:

-they are allowing rollovers/renewals on loans at a charge to you (rollovers/renewals are prohibited by your state law)

-they are charging you WAY over the allowed amount of interest - demanding $650 on a $300 loan, even after you've already overpaid.

-they won't work out a payment arrangement with you, even though your state law specifies one MUST be offered.

-they are threatening you with legal action - defaulting on a payday loan is NOT a crime, and your state prohibits criminal action.

Based on those things alone, I would say they are illegal.

Also - did the man you spoke to sound foreign? Maybe like from India or something? Many of these companies are based overseas - not even in our country - making them VERY illegal.

Posted: Wed Oct 10, 2007 3:59 pm Subject:

Starr - if you have more payday loans you need help with, please post them, and we'll see what we can do to help! Smile

Posted: Thu Oct 11, 2007 2:27 pm Subject: Are you familiar with Amscot PDL

Hi, I currently have a $500 PDL with Amscott. Every two weeks i go in and pay it off and then take out another one in 24 hrs. The fee is $51 every two weeks. I am in such a hole from this now that I have had to retake the loan every two weeks for MONTHS!! I can't get out I tried going down by $50 everytime but that plus the fee is more then $200 a month I cant do it anymore I am so in the hole. I am going to see if there is anyway they can take payments to pay this off instead of the constant paying and renewing. I can't keep doing it. Can they sue me or can I get in legal trouble for not paying it back and doing a payment arrangement? It scares me because they take a check but i think legally if the check is post dated that they cant report me to the bad check system? Has anyone out here gone through Amscot and did a payment arrangement? I am afraid of the repercussion but I know I can't pay it back and can't keep doing this every two weeks. They make a $100 off me every month for probably the past 4 months or more.

Posted: Thu Oct 11, 2007 2:47 pm Subject:

Hi Toby! Are you also in Indiana?

Posted: Thu Oct 11, 2007 6:18 pm Subject: reply

This is for starr -

WebPayDay is not licensed. WebPayDay is not overseas. I can believe they already turned you over to collections, which would be an illegal collection agency. I have dealt with WebPayDay. I got it resolved through the BBB alone. I actually received a refund from WebPayDay. However, they "sold" my loan (which was overpaid, refunded, and closed) to a collection agency who tried to collect. God love them. I had to show this collection agency proof that WebPayDay was paid, I was refunded, and the account was closed. However, I filed complaints against the collection agency with all the agencies. You're not going to be in any "legal" trouble. These guys are the illegal ones. File your complaints ASAP. File against WebPayDay and also the collection agency. WebPayDay was quick to respond to the BBB and offer me a refund via email back and forth. They know they are illegal. Please file your complaints as soon as possible. And do not worry about getting into any "legal" trouble.

Posted: Thu Oct 11, 2007 6:38 pm Subject:

Just as a point of interest: I am in Indiana and the AG's office was actually more help than the DFI. However it is true...you must be licensed in Indiana and follow Indiana Law.

Posted: Thu Oct 11, 2007 6:56 pm Subject: reply

Thank you, morningstarr! A fellow Indiana resident is always the best to give advice! In my state, the Department of Finance is more helpful! LOL! I guess it depends on what state you're in. So, follow morningstarr's advice. Call your AG and find out what they say regarding internet lending in Indiana. Or, morningstarr, do you already know their stance on internet lending since you've spoken with them?

Posted: Thu Oct 11, 2007 8:18 pm Subject: Amscot post

Hello.. no I am not from Indiana I am in Florida

Posted: Thu Oct 11, 2007 8:26 pm Subject:

Hey Toby!! So we can help you better, any way you can start your own seperate topic? Just post new topic, and you can just copy/paste the info you posted here.

That way you will have your own dedicated thread not comingled with Starrs.

In the meantime, I will look up Amscott for you.

kurt

HI I BORROWER $170.00 FROM ACE CASH EXPRESS IN THE STATE OF MISSOURI MAY/08. I MADE TWO PAYMENTS FOR 2MO:S THEN MY CHECKINING ACCT WAS CLOSE DUE TO MY BANKPRUTY. THIS ACCT HAS BEEN TURN OVER TO SOME COMPANY NAME LEGAL MITIGATION PRACTICE

THEY CALL ME MONDAY THREATEN TO SERVE ME AT MY RESIDENT FOR WRITTEN A BAD CHECK TO ACE CASH EXPRESS
THEY ARE ASKING ME TO PAY $228.00. IS THIS A LEGAL COMPANY. AND CAN THEY DO THIS.

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