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i need help..i was approved for a loan in september..and i had my checking account closed out for other reasons. How should i go about paying back this loan..it was a $200 loan..with a fee of $80 i believe. it was an accident that i fell upon this site and im so glad that i did. im in need of some advice! thanks!

Posted: Fri Nov 17, 2006 1:23 pm Subject:

Who was it from?? Internet or storefront...

Posted: Fri Nov 17, 2006 1:39 pm Subject:

Also, what state do you live in and what is the name of the company? If it's an internet loan, chances are they're not licensed in your state, in which case you would only need to pay back the principal amount you borrowed. We can help you.

Posted: Fri Nov 17, 2006 1:41 pm Subject:

They will tell you that they don't have to follow your laws, b/c there company is not there. They have to "follow the laws of the state that the consumer resides in"...

Posted: Fri Nov 17, 2006 1:41 pm Subject:

Know the laws in your state. The pdl place should not charge more than the rates fixed in your state.

Go to your bank and get the statements. Review the transactions of the pdl place and find out how much you have paid to them. Keep the state laws in front of you. If you have paid the full amount, you need to call the lender and get the account marked closed. If there is a balance, send the money through money order and get the PIF letter from the loan company.

Posted: Fri Nov 17, 2006 1:43 pm Subject:

If you close you acct, do not give them the no info, no matter what they say.

EmmieJ · Posted: Sat Nov 18, 2006 8:18 am Subject:

it was off the internet, i live in pa, and the company was called route 66 funding..so the principal amount that i borrowed was $200, but with the fee it was $280..so i pay back $280 correct? No payments have been made actually. so basically i just want to send them a money order in the amount of $280? im sorry..im just so confused and i really didnt know what i was getting myself into. thank you for all the help!

Posted: Sat Nov 18, 2006 4:25 pm Subject:

Hey, we have all been there before so don't beat yourself up. We are also trying to correct our mistakes. So you have come to the right place.

Make sure to close your accounts and start fresh. And then contact the state that you live in and tell them what has been going on. You may not have to pay back anything at all.

I would also recommend that you contact the loan company and tell them what has happened and see if they want to make arrangements with you. But if you are dealing with Route 66, I would really recommend the previous advice. Those guys are not good at all.

Posted: Sat Nov 18, 2006 4:44 pm Subject:

Pay day loans are illegal in your state, which means you are only morally obligated to pay them back the original amount borrowed. They are not entitled to any fees because they are operating outside the law. Report them to your attorney general's office. Also find the template PDL letter found in Pollyandsay's blog. Tell them they are operating illegally and that you are reporting them to your attorney general and that because they are operating illegally, you are only paying them back the principal. Demand that your account be marked "paid in full." Remember, you have the law on your side. They had no business doing any transactions with you. Don't back down from them. Good luck.

Posted: Sat Nov 18, 2006 5:27 pm Subject:

Dbaker:

That is incorrect. PDLS are absolutely NOT illegal in PA. It has been discussed numerous times on this board. The AG will confirm that while PDL's cannot obtain licensing from the PA department of financial institutions, that as long as they are licensed somewhere they have a green light to do business with PA residents. They do have to follow their states laws though.