Panadvance aka Usa Advance
Date: Thu, 10/12/2006 - 07:27
Below is what I emailed him and asked him regarding AL law about
Below is what I emailed him and asked him regarding AL law about payday loans and the his fee:
Hello, I had to cancel my direct deposit and close out my account because of some fraudulent charges that came thru to my bank account. I need to make arrangements to pay off this loan. I had to go through an attorney's office to consolidate some debts and this is one of them. However when going over the information he told me that in the state of Alabama the law (Section 5-18a-12) the max interest rate is $17.5% and the largest the payday loan can be is $500.00, so on a $500.00 loan the maximum interest rate allowed would be $87.50. My question is if the max int. rate fee on a $500 loan be $87.50 how am I being charged a fee of $90.00 on a $300.00 loan. That $90.00 fee is above the maximum fee allowed. Why am I being charged so much?
This is his reply:
Anita
Fee payment is of $30 for every $100 that is why fee for $300 is of $90 so, due date is tomorrow and processing has to be done today, please let me know, what should I do.
Online payday lenders are notorious for charging illegal interes
Online payday lenders are notorious for charging illegal interest/finance charges on loans. Unless you happen to live in the same state that an online payday lender is based in, you can pretty much assume they are not licensed, such as in your situation with USA Advance.
How much have you paid in fees on this loan before you defaulted?
I have paid them one fee of $180.00 in fees. I have not defaulte
I have paid them one fee of $180.00 in fees. I have not defaulted as of yet. They are scheduled to take monies out tomorrow but the funds will not be available. When I took out the loan I was not aware of what the fees where or how much he was actually going to deposit into my account.
I had requested a loan through a website and then I recieved an email requesting me to fax over my bank statement, paystub and id. I did that and then I called and checked the status of my application. He said that he did not recieve it because he was having problems with the fax machine. Three days later there was the deposit of $300. When I called and asked how much the fees where he told me $90.00 and I just thought that was outrageous. How can I find out if they have a license to lend in Alabama?
I did a search on ALs licensing website, and they are not regist
I did a search on ALs licensing website, and they are not registered to lend there in AL. Don't worry about his response- he's hoping you'll just go "Oh, okay," and pay the money. If you've already paid $180, you only have $120 left to pay off to cover the original loan amount. Try responding and telling them that due to the fact that they are 1) not licensed in AL 2) they are violating the interest caps mandated by AL law and 3) they never provided a paper copy of a loan contract, you will pay the remaining $120 if they agree to mark your account paid in full.
If they come back and say "Well you agreed to the interest, etc,
If they come back and say "Well you agreed to the interest, etc," then tell them that you will pay the remaining $120 of your original loan, and that you will pay $52.50 for interest fees, which is the 17.5% interest rate on your $300 loan allowed by AL. Does this make sense?
Yes, that makes alot of since. Thank you for providing this info
Yes, that makes alot of since. Thank you for providing this information. I just did not know what to say to him when he sent that reply, that is why I came straight to my friends here :)