Default Online Payday Loan
Date: Fri, 05/18/2007 - 08:12
According to a governement agency I spoke with, when doing business with an online payday lending service, you are technically doing business with them in their state and not vice-versa. Because the state can not regulate their citizens and keep them from doing business in another state, the state you live in has no jurisdication over the lender. But according to several posts I have read the lender must be licensed to do business in the state I reside in. If this is so, they do have to follow the guidelines of my state or theirs?
Also, according to the loan agreement with CashNet, once the loan goes into default they can charge annual interest at the Nevada prime rate + 10% which comes out to 18.75% or $12. That can't be right. They can charge these astronimical fees while the loan is current, but can only charge this nominal fee after you stop paying?
Also, how long does it normally take to send these to collections - 30 days, 60 days, 90 days? And if they decide to take you to court, do they file against you in your state or their state, if they are techically doing business in the state they are domicilled in?
Also, I extended the loan by one pay period, which technically makes the loan due on 05/31. But they have the 'end of loan' action defaulted at extend the loan. I've sent them something writing to tell them I want the end of loan action changed to pay in full, although I won't be paying in full. I am not giving them the authorization to keep extending it so they keep charging me fees. I spoke with a collections guy and he said I can't change it until I make a pay arrangement, which I'm not prepared to do. I think I read somewhere that they can not extend the loan without my consent, but I can't remember where.
I think that's it to start. Please help.
cash net
CashNetUSA is one of the few PDLs that is very careful about following the rules. They are licensed in every state that they do business from what I understand. They will work out arrangements with you if you are up front with them and tell them your situation. That was my experience. If you don't contact them they can be relentless collectors and will call your references to find you and your place of business. The interest they charge is not that high compared to others. I would call them and make arrangements. As far as them being required to follow the laws of your state that depends on what state you live in. Pa. for example accepts the laws of wherever where other states do not.
It depends on your state laws what the pdl's have to follow. Mo
It depends on your state laws what the pdl's have to follow. Most, but not all, states have "long arm" statutes that say if a business transacts with a consumer in another state they are doing business in the state that the consumer resides in. Your state may be one of the few that does not have this law.
What state are you in?
The pdl backed by a bank does usually get to follow different laws then normal pdl's.
And yeah, it's messed up that most of the time you are much better defaulting on a pdl then paying the rollover fees. It's ridiculous!
Isn't that the truth Goudah??? Otherwise, they just suck you dry
Isn't that the truth Goudah??? Otherwise, they just suck you dry!
I'm in Minnesota. I contact the state Attorney General's office
I'm in Minnesota. I contact the state Attorney General's office and he said that because it's online, that basically the state the pdl is domiciled is the laws that regulate them. I've contacted both pdl's. ThinkCash are very accomodating and I feel bad defaulting on them. There are willing to help. So that give me some comfort. So far, the main problem I'm having with CashNet is the uneducated collection reps they have working the phone. They don't seem to know much about the loan agrement and I can't get an answer on the extension of the loan issue. I think staying in contact with them is the key thing. And be nice no matter how ignorant they come accross hehe.I regret this is my only option, but better this then being homeless, car-less and hungry. I have every intention of paying them, just not as quickly as they'd like.
Be careful with CashNet. Even if you notify them to stop the ACH
Be careful with CashNet. Even if you notify them to stop the ACH debits and arranged a re-payment plan, they will still hit your account.
As far as how long they take to send you to collections, I defau
As far as how long they take to send you to collections, I defaulted with CashnetUSA and they have not sent me to collections yet. They did call my mother in law the other night, though.
Yeah, I was looking through the CashNet loan agreement and there
Yeah, I was looking through the CashNet loan agreement and there is the stipulation in there that the ACH authorization stays in place until you notify them to revoke it AND your indebtedness is paid in full. But I looked at the FDIC Consumer Protection act under Title IX - Electronic Funds Transfer and basically it says that the consumer has the ultimate right to withdraw the authorization no matter what agreement is in place. No payee can purposely waive the consumer rights. Yeah, they're tyring to be sneaky with the NSF fees and extensions since they can only legally charge low interest after the loan goes into default. But I'm following everything and I know what I am obligated to pay and not. I am only communicating with them through email and certified mail so I have documentation of everything. And I'm keeping in contact with them. So if for some reason this goes farther and they try to charge more, I now what regulations they are violating and I have a defense if it goes to court. I think for most people in this situation, especially online loans, everyone should print the loan agreement as soon as possible, before the lender locks you out of the website. They ultimately have to go by what the agreement says. They don't want to be fined by the FDIC or the Attorney General. And they defintely do want to be looked at too closely.
Note, I've read some stories about mycashnow and I just wanted offer the information that in their loan agreement they have a stipulation that once you give them the ACH authorization, they can take the funds you owe out of whatever financial bank account you have in your name. Meaning that if they find out through Teletrack or somewhere else that you have a new account if you closed the original one, you have given them the right to take the funds out from the new one.
Also, according to the Electronic Funds Act anyone taking electronic funds out of your account has to give you notification of the intent to withdraw. If not, they are in violation. Be Aware. Read the agreement and know the regulations that govern the situation.
PDL's
I have 7 PDL's and I cannot afford to pay them all at once. I am going to close my bank account and contact them to make payment arrangements. Is that best way to handle them or should I do something else?
Hi Renee, Can you tell us: the state you live in the names of
Hi Renee,
Can you tell us:
the state you live in
the names of the companies
if they are store front or internet
amount borrowed
amount paid back to date
Once we have the above info we can help you out...
PAYDAY LOANS
I HAVE 3 STORE FRONT PAYDAY LOANS IN ARIZONA AND 1 ONLINE LOAN FROM PAYDAY1. I AM THINKING ABOUT DEFAULTING ON THEM, BUT I DON'T KNOW IF THEY ARE WILLING TO MAKE PAYMENT ARRANGEMENTS ON THEM. I WANT TO PAY THEM BACK, BUT RIGHT NOW I AM HAVING FINANCIAL HARDSHIP. I DON'T KNOW WHAT TO DO. WHAT CAN I DO?
Payday Loan Help - Making Arrangements due to losing job
Hi!
I was just laid off and cannot make the loan payments that I have without a check coming in. I live in Ohio and have the following loans:
Internet:
Paydayyes: $300 no payment yet
National Payday: $400 paid $25
GRC: $400 paid $240
I don't really want to close my account, because all our bills are direct pay and my wife's work is direct deposit as well as the unemployment that will be coming soon. Is there a way to block them so I can make payment arrangments with the company instead? Any help is appreciated. Thanks!
Hi Mike, Here are the law's for Ohio. I will check to see if
Hi Mike,
Here are the law's for Ohio. I will check to see if the conpanies are licensed. IS GRC Geneva Roth?
Quote:
Quote: Ohio State Information Legal Status: Legal (Applies to check cashers only) Citation: Ohio Rev. Code Ann. ???????? 1315.35 et seq. Loan Terms: Maximum Loan Amount: $800 Loan Term: Max: 6 months Maximum Finance Rate and Fees: $10/$100 + 5% per month Finance Charge for 14-day $100 loan: $15 apr for 14-day $100 loan: 390% Debt Limits: Maximum Number of Outstanding Loans at One Time: One Rollovers Permitted: None (cannot refinance) Cooling-off Period: Repayment Plan: Collection Limits: Collection Fees: Bank charges (if disclosed); $20 collection charge; Court Costs; damages Criminal Action: Not Specified Where to Complain, Get Information: Regulator: Ohio Division of Financial Institutions Address: 77 South High Street, 21st Floor Columbus OH 43215 Phone: (614) 728-8400 Fax: Regulatory Contact: Robert M. Grieser,, Deputy Superintendent for Consumer Finance |
Hi Mike, I checked all the companies and none of them are legal
Hi Mike,
I checked all the companies and none of them are legal in Ohio. Unfortunalty the only way to stop them from debiting your account would be to close it. I am posting some additional info for you:
Quote:
Quote: What should you do? Close your account asap, if you are unable to close your account, go into your bank and ask to speak with the Branch Manager, tell him/her you need a hard debit block placed on your account immediately! Explain that you are revoking ACH authorizations from unlicensed/illegal companies, and have learned these companies are notorious for ignoring revocation, therefore it is important to BLOCK any withdrawal attempts on your account to protect your interest. This is your privilege, do not accept no for an answer. The following link will provide you important information regarding closing accounts. CLICK HERE What next? AFTER your account is secure send each pdl (the unlicensed and illegal) an email similar to THIS (please scroll down to locate letter template). Tailor this letter to your needs, and try to write it with the same basic concept in your own words. You will need to research and locate email addresses/physical addresses if you don't already have them, I suggest that you type the name of the pdl (example: "oneclickcash address") in the search box in the upper right hand corner of this forum. You may also search for addresses HERE at the Better Business Bureau. File complaints: Most of the time, you can file a complaint online with the following, I encourage you to follow through with doing so, you will need to search the Internet for your state Attorney General's website, however, here are links to file complaints for the FTC, Online complaints: Federal Trade Commission., and the BETTER BUSINESS BUREAU. Keep in mind that you may not receive a response for days, or even weeks, or, you may receive harassing and threatening phone calls. I have found the best way to deal with this is not to respond or reply, simply hang up. Side note: If you have paid an illegal/unlicensed payday lender above and beyond the principal amount you borrowed, it might be a good idea to demand a refund and a paid in full letter/receipt. You may or may not get one or both. It still doesn't hurt to include that tidbit in your letter. |
please let me know if you need any more info :D
pdl's
I HAVE 3 STORE FRONT PAY DAY LOANS IN ARIZONA WITH SPEEDY, BUCKEYE CHECKSMART, AND ACE CASH EXPRESS. I ALSO HAVE 1 ONLINE LOAN WITH PAY DAY 1. I LOST MY JOB AND I CAN'T AFFORD TO PAY THEM RIGHT NOW. I WAS THINKING ABOUT DEFAULTING ON THEM, BUT I DON'T KNOW IF THEY WILL BE WILLING TO MAKE PAYMENT ARRANGEMENTS. I ALSO DON'T WANT TO CLOSE MY ACCOUNT WITH CHASE. WHAT CAN I DO??? HELP!!
CashNet USA
ok, here is the story. On July 6, 2006 I took out an online loan with Cashnetusa and pd them back July 31, 2006 Then I took out another loan on Aug 3, 2006. They tried to take out a payment on Oct. something, but I stopped payment because I didn't have the funds in the account. Then because of other things, my BANK closed my checking account. I don't remember why. Well anyway, I haven't heard from these guys until today. The debt collection company is Eastern Asset Management. The Chief Investigator is William Turner. Well anyway, they are slapping me with civil suit for $900! They said that I took out $900 on Aug 31st of 2006. I went to my bank, checked to see if they could pull up my statements on my closed account. There is no such transaction on Aug 31st like he stated. Just the Aug 3rd transaction. Oh yeah, when he called he said that there were a couple of bad checks and they were also suing me for theft! Can they do this? I never wrote a check and nothing had been returned. I had totally forgotten about this loan, but like I said, I haven't heard from them in 3 yrs. HELP! It's not that I don't want to take care of this debt, but totally forgot and I have health issues since then and I can't do it as soon as they like. I called the Collection Agency number that is online and they said that they sold my account to All Gate Financial who then must of sold it to these guys. When I pull up the Eastern company, it comes up that they are a bogus debt company and not to do a damn thing. I don't know what to do. I really don't want to go to jail for something that I haven't even had a chance to defend. I live in MN, so what are the statues for my state.
CashNet USA
ok, here is the story. On July 6, 2006 I took out an online loan with Cashnetusa and pd them back July 31, 2006 Then I took out another loan on Aug 3, 2006. They tried to take out a payment on Oct. something, but I stopped payment because I didn't have the funds in the account. Then because of other things, my BANK closed my checking account. I don't remember why. Well anyway, I haven't heard from these guys until today. The debt collection company is Eastern Asset Management. The Chief Investigator is William Turner. Well anyway, they are slapping me with civil suit for $900! They said that I took out $900 on Aug 31st of 2006. I went to my bank, checked to see if they could pull up my statements on my closed account. There is no such transaction on Aug 31st like he stated. Just the Aug 3rd transaction. Oh yeah, when he called he said that there were a couple of bad checks and they were also suing me for theft! Can they do this? I never wrote a check and nothing had been returned. I had totally forgotten about this loan, but like I said, I haven't heard from them in 3 yrs. HELP! It's not that I don't want to take care of this debt, but totally forgot and I have health issues since then and I can't do it as soon as they like. I called the Collection Agency number that is online and they said that they sold my account to All Gate Financial who then must of sold it to these guys. When I pull up the Eastern company, it comes up that they are a bogus debt company and not to do a damn thing. I don't know what to do. I really don't want to go to jail for something that I haven't even had a chance to defend. I live in MN, so what are the statues
Have you checked to see if this company is licensed to collect i
Have you checked to see if this company is licensed to collect in your state?
also which company do I look up....CashNet, All Gate or this Eas
also which company do I look up....CashNet, All Gate or this Eastern Asset Management?
If Eastern Asset is the Collection Agency they must be licensed
If Eastern Asset is the Collection Agency they must be licensed to collect in your state. They must also validate the debt. Send them a DV letter. Contact the Department of Financial Institutions for your state and ask if they are licensed.
I looked on the MN database and did not find Eastern Asset as a
I looked on the MN database and did not find Eastern Asset as a licensed CA.
This collector is scum that buys up old debts.
Read more here
Use the addresses on that link and send them a C&D letter.
Then tell them when they call to piss up a rope.
what to do?
HAVE THREE ONLINE LOANS THAT I HAVE DEFAULTED ON, CPD HAS SENT ME AN EMAIL STATING THAT THEY CAN REPORT ME SO I MAY NOT BE ABLE TO WRIGHT CHECKS, IS THIS CORRECT? I HAVE HAD A GOOD HISTORY WITH ALL OF THEM BUT HAVE HIT A ROUGH PATCH AND EVERY TIME I TRY TO MAKE ARRANGEMENTS WITH THEM THEY WOND ACCEPT WHAT I CAN PAY. I THING THEY ARE GETTING READY TO GO COLLECTIONS, WILL THIS BE EASIER TO WORK WITH. I DID CLOSE MY ACCOUNT SO THEY CAN NOT DEBIT MY ACCOUNT AND I WILL ONLY WIRE THEM MONEY. I HAVE EVERY INTENTION OF PAYING THEM JUST CANT DO WHAT THEY WANT ME TO DO.