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 Posted: Fri Jan 04, 2008 11:30 am |
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I live in TN and have 4 payday loans out right now. I could not continue to let most of my paycheck go towards fees, so I closed my bank account. I absolutely have every intention of paying these loans back, I just can not pay what they want, when they want it. Now these payday loan companies are not wanting to accept the payments I offer ($75 to $100 a month). I am scared, because they are talking legal action. One manager I talked to even mentioned FRAUD. I am in such a hole right now I feel like I can't breathe. These loans on top of all of my other bills are suffocating me. I am trying to find out if these companies are legal in my state (TN). If the ARE NOT, does that mean that can not take legal action against me if I can only pay them $75 a month until my loan is paid off? I am so confused by all of this & I feel like such an idiot for getting myself into this mess.
My Loans are:
One Click Cash $500 Paid $435 (fees) Owe $500
PayDay Select $450 Paid $551 (fees/prin) Owe $615
MyCashNow.com $450 Paid $251.37 Owe $580
NationwideCash.com (Ambassador) $300 Paid $180 (fees) Owe $390
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samanthabryan
Joined: 04 Jan 2008
Posts: 2
Debtcc Points: 130
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| Posted: Fri Jan 04, 2008 11:35 am |
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Samantha - I split this off the other thread so you will get more responses.
None of the companies listed above are going to take legal action against you. They are trying to scare you into paying them what they want when they want.
Payday Select is going to be the easiest to deal with. You've paid them enough. Send them a letter with your state laws and demand they mark your account paid in full. They do it all the time. Technically the laws of Deleware would apply to this transaction, but they are so easy to get a PIF from, since you've paid more then you borrowed it's worth a shot.
The other ones will be harder, but the same rules apply. None of them are licensed in your state, but Nationwide is licensed in New Mexico. That puts them in a gray area . . . . Technically the laws of New Mexico would apply to this transaction.
The other 2 are blatantly illegal. One Click you have paid enough, they are done. My Cash Now you still owe them $198.63, that's all.
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How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
Last edited by goudah2424 on Fri Jan 04, 2008 11:40 am |
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goudah2424
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| Posted: Fri Jan 04, 2008 11:36 am |
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| Quote: | Tennessee State Information
Legal Status: Legal
Citation:
Tenn. Code Ann. §45-17-101 et seq. and Tenn. Comp. R. & Regs. § 0180-28-.01
Loan Terms:
Maximum Loan Amount: $500
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: the lesser of 15% of the check or $30
Finance Charge for 14-day $100 loan: $17.65
APR for 14-day $100 loan: 459%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: 3 (2 per licensee)
Rollovers Permitted: None (cannot renew or otherwise consolidate)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: One $30 NSF Fee; Court Costs
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Tennessee Department of Financial Institutions
Address: 511 Union Street, Suite 400 Nashville, TN 37219
Phone: (615) 741-2236
Fax: (615) 532-1018
Regulatory Contact: Bart Daughdrill,
http://www.tennessee.gov/tdfi/ |
Email to and from TN Banking Dept
Hello,
I'm trying to make sense of the payday loan laws in Tennesse. How would I go about calculating the allowable interest?
Thanks!
Response
From: Steve Henley
Sent: Friday, March 02, 2007 1:08 PM
To:
Subject: Re: calculating pdl interest
Dear Ms , technically it is not an interest rate but service fee and this is how it works. The fee cannot exceed the lesser of 15% of the check amount or $30. So if you have a check amount for $100, the service fee would not exceed $15 (15% x 100). Keep in mind the fee is on the check amount, not cash amount. If the consumer requests $100 in cash, the check amount would be $117.65. The check amount of $117.65 x 15% equals $17.65, and cash is $100 ($117.65 - $17.65 = $100). If the customer asks ... "how much should I write the check for if I want $50?"
You can back into the check amount by taking $50 and dividing it by 85% or .85. In other words $50 divided by .85 = $58.82. You can verify by multiplying $58.82 x 15% = $8.82 service fee. $58.82 - $8.82 = $50.
Remember the service fee is limited to $30 on all checks exceeding $200.
I hope this helps but please let me know if you have other questions.
615-532-6993 Steve Henley
Reply:
Hello,
Can you tell me if internet based payday lenders with no physical location in TN need to be licensed by TN to lend legally? Or would they only need to be licensed by another state? And which state's laws would they need to follow?
Thanks!
Response:
From: Steve Henley
Sent: Monday, August 27, 2007 8:12 AM
To:
Subject: Re: Internet Payday loans
Dear Ms , our statute does not address internet activity, but to obtain a license from Tennessee the entity must first have a physical location in this state.
Please let me know if you have other questions.
615-532-6993 Steve Henley
What does this mean?
They can charge 15% of the face value of the check in fees.
Rollovers are not allowed.
Internet companies do not need to be licensed by TN. As long as they are licensed in another state they can lend legally. They must follow the laws of the state they are licensed in.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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goudah2424
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Posts: 8007
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| Posted: Fri Jan 04, 2008 11:42 am |
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Thank you so much. PayDay Select is the one that caused me the most grief recently. I spoke to a manager there who wanted me to pay my loan off within 90 days - plus my account is continuing to accrue interest & fees. My balance today is more than it was last week. When I told him $75 was the best I could do, he is the one that said if I did not repay this it would be fraud because I closed my checking account. He also refused to give me their mailing address, saying that they will not accept my $75 payment. I had to go online to find their address.
So, if I can send them a letter with the laws, they will really write this off?
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samanthabryan
Joined: 04 Jan 2008
Posts: 2
Debtcc Points: 130
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| Posted: Fri Jan 04, 2008 11:45 am |
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Out of all the payday loan companies, they are the easiest. I'm not saying it's still not some work, but they are usually the easiest ones to deal with.
Also, file complaints against them. That will help too.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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goudah2424
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Joined: 31 Oct 2006
Posts: 8007
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| Posted: Fri Jan 04, 2008 11:47 am |
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Payday Select is also Payday OK. If you do a search for both of them on this site you will read many success stories with them.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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goudah2424
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Joined: 31 Oct 2006
Posts: 8007
Debtcc Points: 111523
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| Posted: Fri Jan 04, 2008 1:26 pm |
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Thank you for your help. You have no idea. Until I found this forum, I was honestly considering bankruptcy as the only way to stop them from "legal actions" as they have threatened. But I don't even know if these could be included. Either way, I have definitely paid them a lot more than these loans were worth! I just want to be done with all of this payday loan drama.
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| Posted: Fri Jan 04, 2008 1:30 pm |
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If this is your only major debt problem, BK is not the way to go.
These can be cleaned up on your own. It will take some time and some work, but you can do it.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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goudah2424
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Joined: 31 Oct 2006
Posts: 8007
Debtcc Points: 111523
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| Posted: Fri Jan 04, 2008 1:39 pm |
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Yeah - I see that now. Really these are the only debts I have. That's the ironic part. I CAN pay them back, just over a longer of period of time than they are willing to offer me. I just thought about BK because I absolutely can not have them garnish my paycheck or something. But I am going to send out a letter to PDS today & wait for their response.
This forum is a life saver. I wish I had known about it 6 months ago! 
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| Posted: Fri Jan 04, 2008 1:44 pm |
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I have been on this board for a long time, and have only heard of one internet company that will sue people. It's not one you are dealing with, so don't worry about being taken to court.
One thing you need to do - Sometimes these places put a clause in their contracts saying that if you default you give them persmission to attach your wages. This is like garnishment, only it's not court ordered and they can take what they want. Good news is that it's 100% voluntary. You need to send each company a letter asap revoking this. All it needs to say is:
"I hereby revoke any and all wage assignments I may have signed with Company X."
Send it certified mail, return reciept so you have proof, and save a copy in case they try to do it anyways.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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goudah2424
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Joined: 31 Oct 2006
Posts: 8007
Debtcc Points: 111523
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| Posted: Fri Jan 04, 2008 4:08 pm |
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One last question: Do you have a template for the letter I should send to PDS to have my account marked paid in full? I just want to be sure to do this right. Thanks again for all the info.
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| Posted: Mon Jan 07, 2008 8:04 am |
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You would need to register here so we can send you private messages. Once you do so, post here and someone can send you a copy of a sample letter.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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goudah2424
Moderator
Joined: 31 Oct 2006
Posts: 8007
Debtcc Points: 111523
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