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Need help with Sonic

Date: Thu, 12/28/2006 - 13:28

Submitted by tawsimmons
on Thu, 12/28/2006 - 13:28

Posts: 10 Credits: [Donate]

Total Replies: 11


I'm still paying on that loan with Sonic Payday, my bank will not stop payment on the ACH withdraw and of course Sonic will not stop the ACH. I didn't want to close the account and re-open another because my payroll is automatically deposited and other items are set up to come out, like my student loan. The letter I was given last time i was on this site, can i still use it even if i'm still paying on the loan? Will it get Sonic to stop withdrawing from my account? Also, my bank said they would accept the letter, but couldn't guarantee that they would stop payment of the ACH. Any suggestions, i've been paying on this loan for too long. I am guessing they have collected enough interest to send this letter that I received last time I was on your site.


I know i've been paying Sonic $207 in interest every payday which is twice a month for about a year or so. I'm in Texas and I pulled up the Texas rules for payday loans, but i don't really understand them. Can someone clarify them for me? It was a little confusing to me. Thank you.

Quote:

Citation:
7 Tex. Admin. Code ???? 1.605; Tex. Fin. Code Ann. ???????? 342.251 et seq. and 342.601 et seq.

Loan Terms:
Maximum Loan Amount:
Loan Term: 7-31 days
Maximum Finance Rate and Fees: $10 per loan + 48% annual interest
Finance Charge for 14-day $100 loan: $12
apr for 14-day $100 loan: 309%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified ($500 aggregate loans outstanding to all licensees)
Rollovers Permitted: None (if renewal charge is less than maximum interest rate permitted; otherwise convert to declining balance installment note)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: Not Specified
Criminal Action: Not Specified

Where to Complain, Get Information:
Regulator: Texas Office of Consumer Credit Commissioner
Address: 2601 N. Lamar Blvd. Austin, TX 78705
Phone: (512) 936-7600
Fax: (512) 936-7610
http://www.occc.state.tx.us/


lrhall41

Submitted by tawsimmons on Thu, 12/28/2006 - 13:46

( Posts: 10 | Credits: )


I can't believe your bank won't block the ACH transaction. You should fax that letter over to sonic immeidatly and show your bank the copy. Once you revoke their authorization to debit your account, they have no right to do it anymore. As part of the Regulation E the consumer has the right to stop payment on any pre-authorized withdrawl at least three business days before the transaction. That goes for Orally or written request, if the request is oral some banks may require a follow up written letter within a certain time frame.


lrhall41

Submitted by PinkLady on Thu, 12/28/2006 - 13:53

( Posts: 1720 | Credits: )


Thank you PinkLady, i'm calling my bank right now, and I am typing up the letter to send to Sonic. How can i come up with the total i've paid in without my bank statements? i'm at work and i would really like to get this out asap.


lrhall41

Submitted by tawsimmons on Thu, 12/28/2006 - 14:00

( Posts: 10 | Credits: )


They only go back a few months, i will have to go through them when I get home. I'm on the phone with the bank and it seems whoever I spoke with at the branch yesterday was incorrect and customer service is trying to put a stop payment on it even though I am only giving a two day notice.


lrhall41

Submitted by tawsimmons on Thu, 12/28/2006 - 14:10

( Posts: 10 | Credits: )


Tawsimmons,
Most banks only give 90 days of statements on line, but you can always get more by calling customer service. Banks do archive older statements and they would probably have to be ordered. Your customer service should be able to tell you how long it takes.
Sonic is famous for the voluntary wage assignment, which is a form you sign before they loan, giving them permission to debit your paycheck if you default. You MUST, you MUST, MUST, MUST, call your payroll and tell them you are cancelling and revoking this form!!!


lrhall41

Submitted by kscornell on Thu, 12/28/2006 - 18:39

( Posts: 4407 | Credits: )


kscornell, thank you I will make my office manager aware of the situation with Sonic, thank you for your advice and help. Unfortunately, because of the misinformation we received from the bank on Wednesday, we were able to put a stop payment on the ACH withdraw yesterday, but they couldn't guarantee if it would be stopped since it was the day before the transaction. Of course, this morning, Sonic debited my account and the bank didn't stop it. I work for a law firm and i have one of the lawyers looking it over. So hopefully this nightmare will be over soon. Thanks again for all your help. Have a Happy New Year!


lrhall41

Submitted by tawsimmons on Fri, 12/29/2006 - 07:45

( Posts: 10 | Credits: )