Can someone please help me with these internet payday loans?

Hello mscljaxon and welcome. We will need a little more information from you:

What state are you in?
Whom did you borrow from?
How much did you borrow from each one?
How much have you paid back to each one?

There are many of us that have been where you are and some still are and are working their way out of the payday loan trap, so you are not alone.

If you will provide the information I asked, someone will be able to help you out in your quest. Hang in there, there is light at the end of the tunnel!

I am from KY.
Tendollarpaydayloan.com-borrowed $300 pd-270-interest fees
Eastsidelenders.com-borrowed $600- pd200 towards principal-350 interest fees
Cashdirectexpress(gecc)-Borrowed $350- pd100 towards principal-608 fees
500fastcash.com-Borrowed $300-nothing due 6/22
itsmypayday-national opportunities-borrowed $500 pd187.50 fees
nothway credit(cashtransfercenter)-Borrowed $400 pd nothing due 6/13
soniccash-Borrowed $200 pd-80.00 fees
ameriloan-Borrowed $300 pd-$90 fees

You will find the Payday loan laws for Kentucky here (just select your state),

http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html

I'm sorry, how does this help with online payday loans.

First there is a set rate on how much they can charge you as far as fees on the loan.

Second, rollovers are not permitted, which means that they can't keep charging for "renewal" fees. They should have taken the whole amount of the loan out at one time and not keep renewing it

Third, it says only 2 loans permitted at a time, you have 7....means they messed up.

And someone correct me if I am wrong, it is saying check cashers only, I think that means that they are the only ones permitted to do loans??? Someone may have to help me out with that one.

I can help. I'm in Kentucky. You have a few of the same pdl's that I have out and working on. Don't freak! Internet pdl's are illegal in the state of Kentucky. However, since you received funds, you must pay back the loan according to Kentucky state law. You only owe the principal plus the maximum of $17.65 per $100.00 borrowed. So add up your principal amount loaned and then add $17.65 per $100.00. That's all you owe. Kentucky state law does NOT permit "rollovers" or "renewals" so all that money you paid in fees, they have to apply to your principal loan amount + the $17.65 per $100. You've OVERPAID a huge amount to Cash Direct Express (one of mine also). You still owe on many of them, but not as much as you think. A $200.00 loan will only cost you $235.30. A $300.00 loan will only cost you $352.95. A $250.00 loan will only cost you $276.48. A $600.00 loan will only cost you $705.90. See how it works?? So don't let them take you for another fee!! CLOSE YOUR ACCOUNT NOW! They will not be able to take any more debits out. CLOSE IT NOW! Then you can regain control. Read this forum and find out your rights. You have the Kentucky laws regarding pdl loans - but they are still illegal in Kentucky. But pay what you borrowed plus what KY law says they can charge you in fees, which is $17.35 per $100.00.

LEgally you are only obligated to pay back what you legally owe(see above post from cannr). Also, you need to file complaints with the KY attorney general so that they can begin their own invesitgation on this matter. These companies will threaten you with jail time...but do not fret because all it is-a threat. You cannot and willnot go to jail over defaulting on a PDL. Pay them back what you legally owe. ANd yes, close that bank account and open a new one because they will just continue to debit you to death...

contact langhornedebtsolutions.com . that is the only place i know that can help

msc, do you still need help with your pdl's? As I stated, I am also in Kentucky. And, as 2ndband posted, the pdl law is for check cashers only. Internet lending is illegal in the state of Kentucky. Please post if you need help. You're pdl's are not licensed at all. We can help you out of this. :D

I am in the same situation, where I need help with paying these internet payday loans. I want to be debt free, please help me.

Hi Karen-We can help but will need a bit more info. Can you please tell us what state you are in, who you owe, how much you have paid and the original amount of the loan.

Thanks!

Before closing your bank account read the sticky on closing your bank account. That has very valuable information on it. Also when you open up a new account make sure that it is not at the same bank. Go to a totally different one to be safe.

ladybug

Hi - you guys are so informative! I'm so glad I found you!! I have a pdl through National Money Store that I got while in a pinch. It's my first one and what a doozy! I got a $500 loan and have paid $750 so far. In July I stopped pmt on the ACH funds from being taken out of my account. With my bank this is good for 6 months i think. I rec'd a call today from A.S.& Associates in Texas stating I needed to pay the balance of $1035 by 2 p.m. Friday (today is Tuesday) or they would file charges against my husband (whose name the loan is in) for misdemeanor B charges due to the apparent NSF. I told him we stopped pymt/unauthorized the ACH in lieu of a different payment method, which is true. I sent NMS a request for alternate methods several weeks ago and have not heard anything to date. They just turned it over to these people to collect. I sent them an e-mail requesting a workout before I read from this site. I wish I would've read this first. Do I not owe all of this money if I live in Kentucky? From what I'm reading, it sounds like I've overpaid! I would rather pay this than any action being taken, but I obviously don't want to if it's more than I am legally obligated to pay. I'm on a 2 day time limit apparently! :roll: Help!

mom, is National Money Store an internet pdl? And do you reside in Kentucky? And what is the full name of the collection agency they turned you over to?

Yes, they are internet. I believe they are located in Costa Rica. They have a website of National Money Store.com, I believe. Yes, I do reside in Kentucky. The name of the agency (law firm they said) is A. S. & ASSOCIATES.:
16350 PARK TEN PLACE STA 100-1
HOUSTON TX 77084
1-866-331-6161 EXT. 204
I requested something from them...basically to make sure they were who they said they were. He sent me a fax of a breakdown of fees and charges, etc...Wanted me to take care of it with credit card or western union and gave me that information. Thanks so much!

Close your account. Don't pay them a dime. Dispute the debt. Be done with them.

mom, this is illegal in Kentucky. I don't give a flying crap if some 'attorney' is trying to collect on this illegal debt. Which is what it is. An 'illegal debt'. Illegal. Need I say it again? Let me see what I can find regarding this so-called 'attorney'.

mom, they are not a "law firm". They are a collection agency. This is a collection agency trying to collect on an illegal debt. Illegal in Kentucky. In Kentucky, internet lending/verbal agreements are illegal. Trying to collect on an internet loan/verbal agreement is illegal. The debt is not considered a "legal debt" in the state of Kentucky thus making it uncollectible. A verbal agreement - for the information of your stupid ass collection agency - is null and void. There are no signed documents. It is illegal. They have nothing to "validate" the debt. There is nothing to "breakdown into fees". There is nothing. We're talking major illegal here. You need to file complaints with the BBB, the FTC, and the Kentucky State Attorney General against both the pdl with the "verbal agreement" and with the collection agency trying to collect on the illegal debt. You need to do something regarding your bank account now. There is a "sticky" at the top of this site page regarding closing your bank account. Read this and read it carefully and understand it. If you have any questions regarding the bank account issue, post anything. If you have any questions regarding the legality of this transaction, post anything. Believe me, I've been there. Here is the information on your so-called "law firm".

A. S. & Associates Recovery Experts, Inc.
16350 Park Ten Pl., Ste. 100-1
Houston, TX 77084

The BBB reports on members and non-members. If a company is a member of the BBB, it is stated in this report.

Original Business Start Date: 01/01/92
Principal: Sharon Norris, VP
Phone Number: 281-579-6161
Fax Number: 281-579-1356
Email Address: asarecovr(at)aol.com
Web Site Address: asrecoveryexperts.reliabilitymall.com
Membership Status: This company is a member
Date Joined BBB: 06/28/96
Type of Business: collection agencies

Thanks for everyone's input. Cannr, I do actually have a signed document. This was set up via fax as a regular loan, but they are not a local pdl company. It was set up as such that it could be "renewed" 4 times I think and then after that it could be extended if need be. It is $250 per month until the $500 is paid. Basically, to this point, I have only paid the $250 renewal fee each month and nothing towards the $500. The 1035 is including that $500, plus fees I guess from after I stopped them from drafting from my account up to this point. I'm wondering if I am stuck with this one since I have a signed "loan" document. What do you think? Waiting to hear back from my e-mail to the NMS to see what they say. Hmmmmmmm. Loopholes, loopholes, loopholes...Thanks for your help!

mom, they had you sign loan documents? Do you still have the documents? Did you agree to any sort of "wage assignment"? Please answer these questions for me. They are still illegal in the state of Kentucky. They are sucking you dry. I repeat, they are still illegal in Kentucky. Unless they have a physical location in Kentucky (and I think Costa Rica doesn't constitute as being in Kentucky), they are not legal. However, post regarding your "loan documents". And $250 a month??? What???? :shock:

I absolutely have a copy of my documents. I keep everything. I don't see anything under "wage assignment." What might this be under? They look like typical loan documents. I have to send a payment today, so please let me know. I wish I could show you these documents. Thanks again!!

You have to send a payment today? No, you don't. Who are you sending a payment to? And is it the $250 payment? To who? The actual pdl or the collector?

They agreed to divide up the balance. Supposed to send half today and the rest within 30 days. Sending to collector. Verified with NMS that they do use this company for collections to make sure they were legit. If I do not send the payment today they will turn over tomorrow to prosecute because of the NSF from where they tried to take the money out and couldn't. They are keeping the money that I send today in a separate account and holding until the remaining amount is sent in. They said if they accept the first half and apply it as payment, then it gets changed from a bad check charge to a debt and they would lose their rights to prosecute for the bad check NSF part of it. I really don't need that to happen. Since I've only known about this for a day and a half, it hasn't given me much time to check with an attorney to see if the loan document I have gives them a leg to stand on. I can't have them calling my husband at work either. What to do!! Running out of time fast!

mom, I'm searching these guys. Right now all I get from the bbb is this:

National Money Store
n/a
Alden, IL 60001
Telephone: (877) 913-7500
Fax: (187) 791-2750 ext. 0
nationalmoneystore.com

Just to be safe, I searched Kentucky licensee datatbase (knowing it wasn't going to be there since it's internet). No license. I also searched the Kentucky licensee database on the collection agency. No license. I then went to Illinois licensee database to see if the pdl was licensed. Nothing came up. I'm still searching for any more information I can find. In the meantime, do you have an address for them (Costa Rica??). Post what you have for me. Hang on because these guys are feeding you a load of crap.

Okay, mom, I hope you're on here. Here's the deal.
#1. This loan is illegal in the state of Kentucky. It is an internet loan. Pay day loans are only legal in the state of Kentucky if they are physically located in Kentucky. These guys are not.
#2. They are charging you "renewal fees". Even if they were legal in Kentucky (which they are not), these fees are prohibited by Kentucky law.
#3. They turned you over to a collection agency, of whom is not licensed in Kentucky, to collect on a debt that is not recognized as a "legal debt" by the state of Kentucky.
#4. The collection agency, first of all, presented themselves to you as a "law firm". Ummm... no.
#5. This debt should have been validated by this collection agency before any payment arrangement should have been made. They would NEVER have been able to validate this debt. It is an illegal debt.
#6. You took out a loan for $500 and you have paid $750 to date. You have actually overpaid this loan by $250 as of this date.
#7. The collection agency is demanding that you pay $1035 for this debt. Ummmm.... no.
#8. They are threatening you with a "bad check charge". There was no check involved, therefore, no "bad check".
#9. Criminal action is prohibited by Kentucky state law even if there WAS a check involved (which there wasn't).

I am posting Kentucky state pdl law just for you to see. And, keep in mind, these laws are for LEGAL pdl's. Not internet pdl's. Internet pdl's are illegal in Kentucky. Period. Internet pdl's are uncollectible in the eyes of the state of Kentucky as they are not recognized as a legal debt.

mom, I have all this information straight from the Kentucky Department of Finance. The friggin Compliance Manager of the state agency himself told me this. And, yes, I have the email to prove it.

Like I said, I'm posting the law just for you to see. You need to NOT make another payment. No more. You have overpaid this illegal loan. They're damn lucky they got one dollar from you, let alone $750.

You need to NOT make this payment. No charges are going to be brought against you (or your husband). None.

You need to write a letter to this scummy assed collection agency and demand that they VALIDATE this debt. You need to do this in writing. And say you need debt validation. They can not, I stress, can not validate this debt in the eyes of Kentucky. So, they can have a good time with that one.

You need to immediately send that letter of debt validation to the collection agency. And you need to mail it certified. You keep documentation of every single piece of paper, every single telephone call, everything. If you have been dealing with them over the phone, write down everything you remember. What they said, what you said, what the agreement for payments were, etc. Everything.

You need to file complaints with the BBB, the FTC, and the Kentucky Attorney General. They will be sooooooooooo all over this one.

If you read this (and I hope you're reading it and not out sending that friggin $250) and have ANY questions, just post. Please trust me on this one. If you need any more information, just post. Please. Do not make another payment to them.

Here's the law IF they were legal, but they're not, but I want you to see that Kentucky does not allow "renewals/extensions/rollovers" and that Kentucky states criminal action "prohibited".

You will find the Payday loan laws for Kentucky here (just select your state),

http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html

Thanks so much! I'm stressed!! I haven't sent the money yet. I told him I would be sending it later tonight. What do I do IF they can validate the loan? He faxed me a customer loan and payment history. Should I call as well as fax a request and ask him to send me a validation on this debt to see what he has? He's saying it's not considered a debt anyway and that it is actually considered a class B misdemeanor for bad check charges. He said they have all of the information that NMS sent to them such as work info, pay info, even SS# for my husband. All of this was given on the loan papers. Can they garnish his wages for this? I'm just worried that if I don't send this $621 I'm going to burn my bridges IF there's a loophole we're not seeing and I actually am supposed to pay it. They originally wanted the total amount to stop charges being filed, but he was willing to divide it up. So, if they tried to deduct the funds from my account and they came back NSF or stop payment, then they can't prosecute for that in any way at all? Also, could they be licensed under a different name in Kentucky? The address in Costa Rica is: National Money Store S.A. 700 Central Avenue Apdo.409-2400 Desamparados San Jose', Costa Rica 877-913-7300. If I don't have to pay this legally, at what point will I get them to not call? I have a feeling if I say I'm NOT going to pay it, I'm going to start to get harrassed and I can't have them calling my husband at work. BTW...What part of Kentucky are you in by the way? Just curious!:wink:

Cannr, There is a section that says "Governing Law" on the loan papers and reads, "This Note is governed by the laws of San Jose, Costa Rica, except as federal laws may apply. On the loan papers, there's a "disclosure of credit terms"(this loan is unsecured), "Promise to pay", "How interest is charged", "Default", "Post dated check (if ACH is not authorized as payment)." Under "Payment options" is the "Renewal" part, "Partial Payment," "Pay off," "Right to cancel," "Prepayment Refund," "Governing law," "Privacy Rights," "Agreement to arbitrate all disputes," "Agreement not to bring, joint, or participate in class actions," and ACH authorization form. These are the headings with the details under them. What do you think?

Cannr, There is a section that says "Governing Law" on the loan papers and reads, "This Note is governed by the laws of San Jose, Costa Rica, except as federal laws may apply. On the loan papers, there's a "disclosure of credit terms"(this loan is unsecured), "Promise to pay", "How interest is charged", "Default", "Post dated check (if ACH is not authorized as payment)." Under "Payment options" is the "Renewal" part, "Partial Payment," "Pay off," "Right to cancel," "Prepayment Refund," "Governing law," "Privacy Rights," "Agreement to arbitrate all disputes," "Agreement not to bring, joint, or participate in class actions," and ACH authorization form. These are the headings with the details under them. What do you think?

Okay, I'm not sure if this is Kentucky...found something that says "reversing the funding method (ie. chargeback) is considered fraud and will be prosecuted to the fullest extent allowable by law." He said that it was considered fraud and that is why it would only be a class B misdemeanor.??? :?

Okay. Time to calm down. You just proved right there in your postings that you are indeed dealing with an illegal pdl. Tip off number one is that they state "the note is governed by the law of costa rica" or whatever it says. No. The laws of Costa Rica do not apply to us. The laws of Kentucky do. And, what your collection agency sent you was actually what I would call a debt verification. This just states who the debt is with, your personal information, how much the loan was for, and your payment history. This is NOT validating the debt. debt validation involves a hell of a lot more than that. I can post a copy of a debt validation letter for you. This gets a lot of illegal collection agencies because they are unable to validate the debt. Your collection agency is threatening you and using illegal tactics to get you to pay. In Kentucky, they can not charge you with a "bad check" unless they have a check written by you in their hand. Do they have a check written by you in their hand? No. Is their loan legal? No. Would those loan documents stand up in a court of law in Kentucky? No. Has the collection agency provided you with debt validation on this loan? No. They are breaking both state and federal law. Would you like for me to post a copy of a sample debt validation letter for you to see? Then you will see all the information they MUST provide to you regarding the debt. It's amazing. When dealing with illegal pdl's, there is no possible way to validate the debt with all the necessary information required. I am going to find it and post it for you.

Okay, so since they are illegal in Kentucky, they can't prosecute for the NSF ACH? That's REALLY the only thing I'm worried about because of the time limit. I'm ready and willing to fight a regular "debt" but if they put it in the terms of "fraud" because of the NSF situation....Also, if I request a debt validation, can they harrass me or try to prosecute me while I'm waiting on that? I was reading that you can be prosecuted for "NSF ACHs" as well as "bad checks,"which is the only reason I'm asking so many questions about that aspect. Is that not accurate? You know, I was thinking too, would this technically be considered a PDL or more of a personal loan? Would that change things? I hate to be such a pain, but I've been given 2 days to figure this out, and if my husband has charges filed against him and ends up with a record he'll lose a management job with a company that he's been with for a long time. I just like to cover all bases and don't like surprises. I know we can fight the "renewal/illegal" aspect of it, I just worry about the NSF thing since I did sign an ACH authorization. BTW...how can they prosecute me in Kentucky from Texas? I'm gonna owe you BIG TIME when this is all said and done! Thanks so much for your help and time in this.

mom, they can't. They would have to come to Kentucky, take you to court (for an illegal debt), spend tons of money doing so, and get it thrown out anyway. They know this. This is why they are on your ass so hard about making payments (ungodly payments, I might add). NationalMoneyStore.com - that is an internet loan. I went to their website. It's not an installment loan. They loaned you $500. They are charging you $250 per month as a "renewal". That is not an installment loan. They have applied nothing towards your principle balance. As for being harrassed by them, I feel as though you are already. They're calling you and demanding outrageous illegal payments on an illegal loan. However, since you did bring it up, in the debt validation letter, it does also include for them to cease and desist communication with you until they can actually VALIDATE the debt. Of which you then have 30 days thereafter to "investigate" the accuracy of their validation. Do you know how to use the pm? Where we can send messages to each other? I can pm you a debt validation letter and you can see exactly what I'm talking about.

If I may jump in here...mom, I have dealt with several collection agencies over the last couple of years..for legal debt, that I really did owe..They NEVER forced me to make a payment like that. I requested a validation of the debt and then, once I received that, then we worked out a payment plan. These people sound like they are trying to scare you to make you pay them. Please, think about this logically, I am not saying I was treated nicely by some, however, they understood that by law I was able to make this request.

Thanks so much!! I should also say that this ACH was out of a savings account and not checking. I don't think they can't create a paper check to try to take anymore out. How do I pm you?

mom, are you registered as a member, If not we need you to become a member so Cannr can pm you. You still need to block their access to you bank account.

Thanks RoxyNY. If you don't mind my asking, did yours include ACH/check returns also? Like I said before, my main concern was the prosecution possibility because of the returns on the ACHs and that it wouldn't be treated like a "debt" as opposed to a "fraud" or whatever they are labeling it. The ACH was actually "stopped" but is showing in their system as NSF, and we were charged as such. On one attempt they broke the 1 payment down into 3 parts and we were charged for each of those! How long does it take to get a validation on a debt? I always thought a collection agency had to offer that when a debt was turned over to them anyway. This was turned over to the collection agency just Tuesday. I haven't rec'd anything by mail that I am aware of.

mom, that's why I keep telling you they are illegal. They are illegal. You need to not feel safe because the ACH debits were from your savings account. You need to prevent them from debiting anything. RoxyNY resides in the same state we do. Yes, they should have sent you something in the mail in writing telling you they were collecting a debt. They did not do this. They should have validated the debt before any payment arrangement were have made. They are illegal. I can not say it enough. In order to pm anyone, you have to become a "member". You are just a "guest" right now. You need to sign up to become a member of the site and we can pm each other and other members. You do not have to sign up for the consultation. You can just sign up to become a member. Can you do that? Once you are a registered member, I can pm you a debt validation letter for you to send.

mom, I am also dealing with the pdl situation like you. And like you I have received those phone calls..however, based on past experience, I knew what they were trying to do did not follow the law. I told them if they wanted my money, they needed to send me a letter advising me they were collecting on a debt and that in retun I would be sending a request for debt validation and that they were to no longer to contact me by phone but by USPS or e-mail only. (So I had all of their correspondence in writing as documnetation, for when I file with the different agencies on them). I have not gotten another phone call, nor a letter but did send them a debt validation letter because of the phone call. Please listen to Cannr. She has been in this fight a long time and is wise to the ways these companies work. These are predatory companies..especially the ones off shore. Please think about this..They can not do anything to you..in our state, these loans are not recognized as legal debt so you can not be prosecuted. It says right there in the law..Criminal action: Prohbited..this means they can not arrest you. These companies are not licensed and should not do business anyway. You have to have a license to do business in this state. It does not mean they will not try to scare you but they do not have a legal leg to stand on. You do need to register so we can help you better. Roxy

mom, please put a post on here. I understand that you've registered. Post something on here for us. We can pm you information. :D

Cannr, I registered last night and sent you a note. It has my user name as tghans for some reason and I can't change it. Did you get my note that I had registered? I'm trying to learn the ropes of the site! How can I see if NMS is registered in Kentucky? We know they aren't licensed, but someone said something about whether they were registered or not???

Okay, the posts that RoxyNY and Cannr just left today JUST showed up on my computer. I NEED CHOCOLATE!! LOL I left a msg on the CA voice mail that I wanted debt verification and the license # and name that they operate under in Kentucky. I told them I would be submitting this information in writing as well. You guys are good! I'm just a worry-wart when it comes to things like this. It's the first (and last) one of these I've done. Not a good experience!

Okay, mom. I'm posting this for you so that you can see that we are not retarded and we are telling you the truth. These emails are directly to and from our Kentucky Department of Financial Institutions Compliance Manager. Okay? Read this, from our state agency, and you will see exactly what I am talking about.

Quote:

Thanks guys!! Please don't think that I didn't believe you were telling the truth or that I didn't trust you. I've just slipped through some unseen loopholes in other situations, so I can be a bit hard to convince and am always looking for cracks! I signed the papers and they didn't do anything that they didn't say they would do, I just didn't realize that they weren't authorized to do it in Kentucky!Now, the question is how to convince them that I don't OWE what they say I do. I really don't want to get calls on this for the rest of my life. I definitely don't want them sending anyone to show up on my doorstep. Morally I would have definitely wanted to pay back what I did receive anyway, but I've technically paid back what I received from them PLUS 50% interest. :shock:

You have OVERPAID them. You were "done" after your 2nd payment of $250.00. Plus the fact that this entire transaction is illegal. Okay? I'm going to pm you a debt validation letter that you need to send to your illegal collection agency. Now, remember, this is a "sample" letter. You change it to fit your needs and your situation. However, these are the things that need to be validated by your illegal collection agency. I'm pm'ing it now.

mom, be sure to let me know if you've received your pm so I'll know you got it. :wink:

Cannr, please see my PM. Also, any idea how to change my author name? I've gone into edit and changed it, but it doesn't show the change. When I go back in to edit again, the tghans thing is back there again.

How's this!....just got a call and msg stating figures we have changed our mind about working this out, and we are making a big mistake if we think we don't have to send anything at all. Wants me to CB and work something out. If not, it will "released" (I'm assuming for prosecution) and "good luck to you this weekend." WTH?! Just so you know what I did, I left a msg for verbal request this a.m.(and told them I would be submitting a written one as well) for validation of the debt as well as to send me the name and license # that they and NMS operate under in KY. The ball was in their court. They have my fax # and e-mail and I have received NOTHING. GRRRRRR.....and it starts.

Good Job..Hold your ground. If you want to change your username pm Mike and he can do it for you.

Wait a minute. I need you to clarify your last post. I really don't understand what you're saying. I know you were mad while typing, but I'm not getting it. What happened?