East side lenders

I have the same problem with Eastside Lenders. I have overpaid them by 162.50 and they still want another 300 dollars from me. I filed a complaint with my state's Department of Financial Regulation and I even looked on Delaware's Financial Site and can't find them as being licensed. So I am wondering what to do next too.

Sorry...that was me above

Can someone please help us? I'm confused and the other forum member is confused. What does this mean? Do we abide by their Delaware law as stated in the letter I received? Or do we abide by our state law? And what's this about going to arbitration? I need help! And so does the other member with the same pdl! Someone with some knowledge, please help us!

What they need to do is stick to your state's laws. I would also check and verify that they are not licensed in your state. If they are not and you have paid back what you borrowed and they are still harassing you, then your next step is to file a claim with the Kentucky Office of the Attorney General. They can tell you that they are bound by Delaware law, but if you have never set foot in Delaware, they are doing business in Kentucky and need to abide by those laws.

I just pm'd you Cannr...please read...

I have not paid them in full. I do owe them money. So what I need to know before I respond to them is do I just tell them I'm paying what is legally owed by the state of Kentucky, not Delaware? Because for a $300 loan, they're going to want me to pay a million dollars and my state law maximum on a $300 loan is $352.05. Plus the fact that they are issuing loans to a state where internet pay day loans are illegal. Does that help me also??

It does--and trust me, they're not going to come after you in court, because then they would have to expose their illegal practices to a judge. Pay back what you borrowed, but do not be pressured into paying an outrageous amount by these people.

So what does it mean they are ready to go to arbitration? What is that? I swear, I'm really not stupid. Only about all this pld stuff! LOL!

I'm not sure what that arbitration stuff is either...

Now you are not stupid, OK?? You came here, right? :D Arbitration isn't court, first off, It's where both parties meet to work out a settlement. If that does happen, you still definately would be smart to get an attorney--but I can't see your PDL really breaking a sweat over a $300 loan across state lines. Really, they would have to pay more to fight it, right? I would stick to your guns and work to pay it off--but at a reasonable rate and what you borrowed, not a thousand percent more.

Come on Cannr...it's like we said before....thousands before us...we know the law...and they are going to throw things at us that we are not sure of...but as long as we follow the law...we will be fine..and right!!! Each of them are the same if they are not licensed in your state. period.

Okay. I feel better now. I'll respond to their letter. At least they did abide by my request to not contact me via telephone. They mailed me the letter. I'll mail them a letter stating my Kentucky state laws again. And then tell them I need a payment plan because I do not have $352.05 to give them. And I would need to pay by money orders. No bank debits, thank you. They are practicing illegally though. Am I correct in this? Because I get really confused when these pdl's argue with me. They argue state laws, but yet they are lending to states where internet pdl's are illegal. So that really confuses me. It's like they're saying "Hey, you owe us $5000 on a $200 loan according to our state law." And I'm thinking, "Hey, you shouldn't be lending to a resident in a state where pdl's are illegal." Do I have the correct thought process? I will pay these people the money I owe them because I did receive the funds. But I can't quite grasp the concept of them arguing state laws with me when it's illegal here to begin with.

are they totally illegal in your state?? If so I think you could just pay the principle??...we are the blind leading the blind...LOL..someone will show up with an answer...kscornell??

You are definately on the right track with this one--and another way to pay if you don't want them in your bank account is by a reloadable Visa card, which you can purchase like a phone card. Just another suggestion for you to think about...

Good tip. Rechargable visa card. Didn't think of that one. Also, after reading morningstarr's post, is she correct in the fact that if internet pdl's are totally illegal in Kentucky, would I just have to pay the amount borrowed? Like she said, we're the blind leading the blind. So we need input from people who know. I know the storefront pdl laws and amounts. But internet is not legal. I'm not trying to get out of paying, but it raises an interesting question for me. How about that? Would they be able to charge their fees and other charges? I know they're all theives trying to get free money, but wouldn't you think they would check to see if it's legal to loan to someone in a different state so that they don't get slammed?

You would think that, but trust me, these companies count on you not knowing your rights and being able to be intimidated. Their threats work on 9 out of 10 consumers and they rarely meet a consumer who knows their rights and knows when they are being scammed.

Cannr...can you call your AG and ask their opinion?? Since it is an unlicensed lender maybe they would be interested?? If you read that thing I posted about Indiana...I think that said if they have no license then the loan was null and void and did not need to be paid back...that would lead me to believe that at the least you would only have to pay the principle..???

Good question, morningstarr. I might just do that. Actually if that's the case, I wouldn't have had to pay anyone a dime! LOL! I know that once I send my pdl letter to the pdl's, two of them immediately refunded my overpayment. And the refund they gave me was the TOTAL amount over the principle. They didn't even include that amount that I stated was allowed by my state law as a "finance charge". They just refunded the total amount overpaid of the principle itself. One other pdl agreed upon the Ky state law amount. 2 others decided to "release the debt" and call it closed - even though I overpaid them, but whatever. So some of them responded to the fact that I stated my state laws and that they were lending illegally. But, boy, these other ones are ready to throw the book at me!

But now you know you can throw the book back...LOL. I wish I would hear from some of mine..it would be nice to get some of the $800.+ I have overpaid to date...

Cannr, This is called judical hiearchry. Yes they are going to tell you that the loan took place in Deleware. However they all told me that and the AG has proved them wrong. They must follow the laws where the borrower resides. Plain and Simple. That is the job of the Attorney General to mediate a solution to a conswumer complaint and they do a very good job of it. That could be the reason for your call this morning. Keep me posted KYSIDE38

Thank you, kyside! I thought that was the deal. But when they send those letters, they make it sound so "legal" and I get confused! But I'm going to abide by MY state laws. I'm not in Delaware! Thank you!

Good one, Morningstar. Throw the book right back at them and make sure it hits them between the eyes! Stay strong, Chris.

I have a problem that I need help solving. I took out a loan for $400.00 with Eastside in October. I continued the loan for 4 payments of $75.00 and then did not hear anything else from them. I had some problems with finances for the next 6 months, but since April 6, someone named SHW Recovery at 1-866-489-0979 has been taking out $75.00 every two weeks. As of today, they have taken out $600.00. I called the number and they said they represent Eastside. I cannot find where Eastside has a license in Florida, nor can I find anything on SHW Recovery on either the Florida Finance Bureau debt collectors lists or the BBB. I believe I have more than paid them for the loan. What should I do next?

Oh my God! You never changed your bank account? Apparently they turned you over to collections and they are now debiting your account. Oh my God! What are the laws regarding pdl's in your state? They are debiting $75.00 a week? You've already overpaid them. You need to contact the collection agency and tell them they need to validate the debt. You need to get on these people. I'm tripping out here! Also, you need to do something about them debiting your account!

Thanks cannr! :D They are not registered as a collection agency in my state and according to the statutes, they cannot do business in my state. I am planning on calling the collection agency today and ask them to validate the debt and also ask them how they can continue to debit my account. I hate to close my bank account. but I may have to go there. :cry:

Oh my goodness! No, they're not licensed to conduct business in your state. Oh my gosh. You need to get on it now (I'm sure you are!) and put it in writing also. This is insane! Since it is only one pdl debiting your account, maybe you can just block the one and that way you wouldn't have to change your bank account? You need to get those pdl debits reversed off your account also! What total creeps! Now I'm all paranoid because I have a pdl with Eastside. Oh Lord.... Please keep posting as to what's going on!!!!

Okay. They keep sending me "payment returned" emails - computer generated. So I sent them ANOTHER email stating the same thing over and over again. I do not deny the loan and am willing to pay it; however, would need to make payment arrangements, blah, blah, blah. These are the people that claimed to be via USPS letter that they are prepared to take me to arbitration. Okay. Now I get a response from them this morning (these people are quick!) and she tells me that I have an outstanding balance of $530.00 and will allow me to make 5 pmts of $106.00 beginning July 27 and once a month thereafter. Here's my question before I even respond to them - Where the hell is $530.00 coming from? I received a $300.00 loan. Even if internet lending was legal, I would only owe a maximum of $352.54 on a $300.00 loan. Why am I asked to pay $560.00? That's $260.00 over the amount deposited into my account! SOMEONE PLEASE HELP ME!!

Well, it's because they aren't charging you the legal rate - They are charging you whatever they want, plus nsf fees for each time they probably try to debit your account.

So you still owe them money on this one? How much? I know i've said this before, but you just have to keep chipping away at them. Some of these places are very hard to deal with. You have to be presistent. You know what your laws are, they are very clear - This companies isn't following them. You know they can't do anything to collect on it. Just keep up the good work you've done so far - It will pay off!

goudah, yes. I owe them the amount of deposit. Their debits kept getting returned, so I do owe the amount deposited of $300. Which I told them I am not denying I received a loan, that I have been trying to set up payment arrangments with them, and also what my state law is regarding pdl's, along with the maximum amount legally owed. However, she's stating $560.00. I mean, she did set payments dates with an amount, but it's over the amount legally owed according to my pdl law. Please help me. Today is not going well. I haven't responded to her yet. Oh. And she said they will only accept Money Gram, Western Union, debit card, or credit card as payment.

Cannr, if they cannot accept a cashiers check or a money order sent by certified mail, than they are not a business that wants people to know where they live. Not good. I have put a stop payment on my bank account for them to withdraw and am disputing the last payment. The only reason that they want it by Money Gram, Western Union, debit card or credit card is so they can post it right away for their commission (at least that is what I have read from other posts on this forum). I would insist that they provide an address where a certified letter can be accepted, that way you can trace who got the money for future reference (if they say they did not get it). Also, ask them to provide a statement every time a payment is received by them (that also is something that they have to do). By the way, I am going to file a complaint to my AG in Florida and suggest that you do the same in your state. It does eventually get results, there is a collection agency that I got involved in (they did not speak English well and went by names such as Matt Hardy and Ashley Simpson, duh!) and now there is an investigation and they have to cease and desist in the collection business. :lol:

Thank you, lilybef, for your information! That helps me in my response to them. I still haven't responded, as I don't feel up to it right now. My strength has been zapped today! But I really can not pay what she's asking & I really do not want to pay with the methods she stated. I'm for money orders sent to an address that I can send certified return receipt. I swear, I thank you guys for all the advice. It does help a lot. At least I have ideas for my responses to these messes.