Internet PayDay Loans are hazardous to your sanity and bank
Date: Mon, 04/23/2007 - 23:49
Submitted by Anthony Lemons
on
Mon, 04/23/2007 - 23:49
Total Replies: 6
Internet PayDay Loans are hazardous to your sanity and bank acco
Internet PayDay Loans are hazardous to your sanity and bank account
We have all seen the advertisements on television, and in pop-up ads online; "Quick Cash!!!" and "All you need is a job, checking account and a pulse." The pulse part is my added sarcasm. Anyway, there are thousands of Internet payday loan companies to choose from if you are ever in need of extra cash; but is it truly worth the heartache. Let me run the most typical scenario by you, and you will see what I mean. I have done a lot of research on this industry, and I must say, if you are not informed of your state laws, you can be screwed out of your money, and it won't end. Now, back to the most typical scenarios that consumers face when seeking an online loan. First you will be required to fill out an online form, with information such as your employment, employment address and phone number, supervisor, your pay schedule, and if you have direct deposit for your paychecks. Then they will have you submit this form by clicking 'submit'. In a few moments, in some cases longer, you will receive an approval in your email inbox. Within a day or two, sometimes three, you will see that this company deposited the amount requested into your checking account. The first payment on this loan will usually be due within a week or two, depending on the company. However, and this is where it starts to get ugly, monetarily speaking. The first payment due is just the interest and fees. The second payment due is also just for the interest and fees, and on and on it goes. Lets say you applied for three hundred dollars. If you do not completely repay this in the first week, this three hundred dollars can turn into three thousand dollars. How can these loan companies charge so much in interest and fees on such a small loan? Simply put, legally they can not, but most consumers, you and I, are not informed of the laws that govern these online crooks. You see, every state has laws, which differ from state to state, but are similar in that they protect the consumer. These laws control how much you must pay back on a loan and how many times a loan company can allow you to 'roll over' a loan. Also, most Internet payday loan companies are not even licensed to operate in most states, or licensed to collect in those states. Lets say you borrowed that three hundred dollars again, but this time you pay back only what is legally allowed. You would end up paying back about three hundred and sixty dollars. That is a huge difference from the original three thousand dollars. The difference is information. The difference is knowing the laws and consumer protection acts. If you currently have online loans which you are still paying on or gave up paying (defaulting) all together, do not worry. Please check with your state laws regarding online loans. If an online loan company is ripping off your bank account by taking money without authorization, then tell your bank to cease any debits from your account, and report the loan company, immediately to the Attorney General Office of your state, as well as the AGO of the loan companies state. You will be surprised at how many online loan companies are already under investigation for stealing, lying, deceiving consumers and so on. If you can stay away from online loans, then that would be great, but if you must apply for one, get informed. Research to see if the online loan company is licensed to even operate in your state. Also, if you do not pay back what you owe, you can not be arrested, like some collection companies try to threaten consumers with. You also are not committing any white collar crimes, another tactic used to scare people into wiring them money. Most tactics used to collect are illegal. If you are ever contacted by either a loan company or collection company, and they threaten arrest or accuse you of any crimes, they are the ones violating the laws. Please get informed. You are not alone.
SEND THIS LETTER TO THE COLLECTION COMPANIES: Sample Debt Valid
SEND THIS LETTER TO THE COLLECTION COMPANIES:
Sample Debt Validation/Cease and Desist letter. Do not pay a collection agency any money without first sending this letter. If you have any questions, please contact Anthony.
Quote:
(Your name) (Your address Collection company name Company address (Date) Re: Acct# 00000000 To whom it may concern: This letter is being sent to you in response to a notice sent to me on March 8th, 2050. Please be advised that this is not a refusal to pay, but a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) that your claim is disputed and validation is requested. This is NOT a request for "verification" or proof of my mailing address, but a request for VALIDATION made pursuant to the above Title and Section. I respectfully request that your offices provide me with competent evidence that I have any legal obligation to pay you. Please provide me with the following: 1. What the money you say I owe is for 2. Explain and show me how you calculated what you say I owe 3. Provide me with copies of any papers that show I agreed to pay what you say I owe 4. Provide a verification or copy of any judgment if applicable 5. Identify the original creditor 6. Prove the Statute of Limitations has not expired on this account 7. Show me that you are licensed to collect in my state 8. Provide me with your license numbers and Registered Agent At this time I will also inform you that if your offices have reported invalidated information to any of the 3 major credit Bureaus (Equifax, Experion or TransUnion) this action might constitute fraud under both federal and State Laws. Due to this fact, if any negative mark is found on any of my credit reports by your company or the company that you represent, I will not hesitate in bringing legal action against you for the following: 1. Violation of the Fair Credit Reporting Act-reporting inaccurate information 2. Violation of the Fair Debt Collection Practices Act-continuing collection activity on a debt which has not been validated Also during this validation period, if any action is taken which could be considered detrimental to any of my credit reports, I will consult with my legal counsel for suit. This includes listing of any information to credit reporting repository that could be inaccurate or invalidated or verifying an account as accurate when in fact there is no provided proof that it is. REQUEST FOR CEASE AND DESIST OF CONTACT BY YOUR OFFICE: I would also like to request, in writing, no further contact, either in writing or telephone be made by your office to my home or to my place of employment, unless it is to provide validation or release of liability of the debt. If your offices attempt telephone communication with me, including but not limited to computer generated calls and calls or correspondence sent to or with third parties, it will be considered harassment and I will have no choice but to file suit. It would be advisable that you assure that your records are in order before I am forced to take legal action. This is an attempt to correct your records; any information obtained shall be used for that purpose. Thank you, Signature Printed name |
I agree with the above post.. But the other day I looked and rea
I agree with the above post.. But the other day I looked and read the t&c's for a loan ( not to take just to see) and they although not legal it does say that they will take the money (intrest)every 2 weeks and that after 5 or 6 what ever it is take the full amount now before you jump on me I was also taken by IPDL's and agree they are scum.. But I never read the small print I needed money and would have done or agreed to anything to get the money I needed at that minute..
so yes fight back and report the to the AG and all other agencys BUT read the small print. Again I dont agree with the tactics and that they steal your money and it is not legal.. BUT we or I did sign the contract...
I know I will get a lot of hate mail for this.. But I for one have learned to read the whole contract before i SIGN anything again...
Good job Anthony Lemons! I think this was very interesting and v
Good job Anthony Lemons! I think this was very interesting and very informative. I was taken by several IPDL companies as well and I admit at the time I was so desperate for money that I didn't even read the fine print. I just knew I needed the money. I agree with poptartsmom, I am never signing anything ever again without reading every word of the contract.
And the fact that none of us read the fine print at the time we
And the fact that none of us read the fine print at the time we took out our IPDL's is very true--but realistically, don't you think these companies take advantage of that fact and prey on their victims, er, customers? I mean, we all wanted the dollars, right? We do own part of the responsibility, but these companies aren't blameless!!
I never said they were blameless Just that at some point we do h
I never said they were blameless Just that at some point we do have some responsibilty. And yes we were their pray. But again I needed money and never thought to read what I was getting into. I am only saying that we need to step up pay what is LEGAL and learn from our mistakes. NEVER sign anything without really reading the fine print.
I am in the middle of a lay off at work and about to get my package until a couple if weeks ago I thought not a issue I would sigh the package then something happened with HR and I realized even after 10 years of "Trusting" this company i will read EVERYTHING all the fine print..