Internet Pay Day Loans

Starr -

Thanks for providing the info, as far as your state, the name of the lender and how much you borrowed.

Now, what we need to give you some accurate advice is the following:

-how much you have paid this company, including all fees/interest paid.

-whether they are internet or storefront based...though they appear to be an internet lender with a name like "web payday loans"

I'm going to check and see if they're licensed in Indiana, and I'll be back. In the meantime, post that other info I asked for, and I'll help you figure out if you've overpaid them already, and by how much.

The Lender: Web Pay Day Loans (www.WebPayday.com) - Borrowed amount: $300 5/31/07 - Their collector - Legal Mitigation Practice - states I now owe: $650... I paid approx $95 in their fees every two weeks from the time that started the loan and then my acount was closed with that bank due to financial difficulty.

Ok Starr - here's the payday lending law for Indiana(just select your state),
http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html

Ok, now for the lowdown on your loan. This company is not listed as "Web Pay Day Loans" under any of the following licensee databases for Indiana:

-Licensed Lenders
-Check Cashers
-Licensed Small Lenders

I would say they are not licensed in Indiana, unless they are operating under a different name.

HOWEVER....since they have rolled over this loan several times, it appears they are not licensed, since rollovers/renewals are not allowed in Indiana. No legal lender would allow rollovers in a state where they are prohibited from doing so.

Criminal action is also prohibited by your state law, so for him to say they are taking legal action against you means nothing at all. The only thing they might be able to do is utilize a wage assignment, if you signed one. Did you sign anything at all - even electronically?

It would be a good idea to follow up your validation letter with a letter revoking their authorization to ACH your (closed) account, and in the same letter, revoke any and all wage assignment clauses in their contract - just to be safe.

Now....for the fun stuff. Your loan was for $300. According to your state law, they can only charge you 13% of the loan amount for a finance charge, which in this case equals $39. So the total you owed this company from Day 1 was $339, per your state law.

Starr -

You have WAY overpaid this company if you've been paying $95 every two weeks since 5/31/07.

You also need to file another complaint with your state - with the Indiana Department of Financial Institutions, as listed in your state law above. Your State's Attorney General may not be much help, since the DFI is the governing body that handles these things.

Let us know if we can be of any more help!

Thanks for the info. I will follow up with the letter your recommended, to be clarify... Since I live in Indiana - even if they are in a different state, they can only legally charge me what is owed in that state?

I appreciate all of your help, i can go to sleep tonight without a knot in my stomach.

Starr - in MOST states, the lender has to be licensed in the state they lend into.

I can almost guarantee you this company is operating illegally in your state - here's how:

-they are allowing rollovers/renewals on loans at a charge to you (rollovers/renewals are prohibited by your state law)

-they are charging you WAY over the allowed amount of interest - demanding $650 on a $300 loan, even after you've already overpaid.

-they won't work out a payment arrangement with you, even though your state law specifies one MUST be offered.

-they are threatening you with legal action - defaulting on a payday loan is NOT a crime, and your state prohibits criminal action.

Based on those things alone, I would say they are illegal.

Also - did the man you spoke to sound foreign? Maybe like from India or something? Many of these companies are based overseas - not even in our country - making them VERY illegal.

Starr - if you have more payday loans you need help with, please post them, and we'll see what we can do to help! :-)

Hi, I currently have a $500 PDL with Amscott. Every two weeks i go in and pay it off and then take out another one in 24 hrs. The fee is $51 every two weeks. I am in such a hole from this now that I have had to retake the loan every two weeks for MONTHS!! I can't get out I tried going down by $50 everytime but that plus the fee is more then $200 a month I cant do it anymore I am so in the hole. I am going to see if there is anyway they can take payments to pay this off instead of the constant paying and renewing. I can't keep doing it. Can they sue me or can I get in legal trouble for not paying it back and doing a payment arrangement? It scares me because they take a check but i think legally if the check is post dated that they cant report me to the bad check system? Has anyone out here gone through Amscot and did a payment arrangement? I am afraid of the repercussion but I know I can't pay it back and can't keep doing this every two weeks. They make a $100 off me every month for probably the past 4 months or more.

Hi Toby! Are you also in Indiana?

This is for starr -

WebPayDay is not licensed. WebPayDay is not overseas. I can believe they already turned you over to collections, which would be an illegal collection agency. I have dealt with WebPayDay. I got it resolved through the BBB alone. I actually received a refund from WebPayDay. However, they "sold" my loan (which was overpaid, refunded, and closed) to a collection agency who tried to collect. God love them. I had to show this collection agency proof that WebPayDay was paid, I was refunded, and the account was closed. However, I filed complaints against the collection agency with all the agencies. You're not going to be in any "legal" trouble. These guys are the illegal ones. File your complaints ASAP. File against WebPayDay and also the collection agency. WebPayDay was quick to respond to the BBB and offer me a refund via email back and forth. They know they are illegal. Please file your complaints as soon as possible. And do not worry about getting into any "legal" trouble.

Just as a point of interest: I am in Indiana and the AG's office was actually more help than the DFI. However it is true...you must be licensed in Indiana and follow Indiana Law.

Thank you, morningstarr! A fellow Indiana resident is always the best to give advice! In my state, the Department of Finance is more helpful! LOL! I guess it depends on what state you're in. So, follow morningstarr's advice. Call your AG and find out what they say regarding internet lending in Indiana. Or, morningstarr, do you already know their stance on internet lending since you've spoken with them?

Hello.. no I am not from Indiana I am in Florida

Hey Toby!! So we can help you better, any way you can start your own seperate topic? Just post new topic, and you can just copy/paste the info you posted here.

That way you will have your own dedicated thread not comingled with Starrs.

In the meantime, I will look up Amscott for you.

HI I BORROWER $170.00 FROM ACE CASH EXPRESS IN THE STATE OF MISSOURI MAY/08. I MADE TWO PAYMENTS FOR 2MO:S THEN MY CHECKINING ACCT WAS CLOSE DUE TO MY BANKPRUTY. THIS ACCT HAS BEEN TURN OVER TO SOME COMPANY NAME LEGAL MITIGATION PRACTICE

THEY CALL ME MONDAY THREATEN TO SERVE ME AT MY RESIDENT FOR WRITTEN A BAD CHECK TO ACE CASH EXPRESS
THEY ARE ASKING ME TO PAY $228.00. IS THIS A LEGAL COMPANY. AND CAN THEY DO THIS.

I took one out and due to seperation from spouse we got seperate accounts. the loan was 820.00 paid 300.00. was called and told that i had to pay and when I went to pay the rest the local store in washington would not take the money as they stated i did not pay it by 12:00. The only problem was it was 12:00 in Georgia that i was to pay. They have threatened wage garnishment and at this time i have no idea what they are doing. Can they just automatically garnish my wages as they stated they were filing a claim on me.

mycashnow us fast cash and pack management are all debiting my acoount like 3 and for times every couple days I live in fl what are the laws here and are these companies legal in my state mycashnow has already been sending me threats in emails talking about taking me to court whats up with that any help would be killer thanks

CLOSE YOUR BANK ACCOUNT ASAP! That is the very first step. Secure your money so that you can pay your bills and eat.

I had used a website called paycheck today to get a loan. It was 300.00. # weeks after i got the loan someone got my information and used store bought checks to write themselves checks on my bank account. I had to close my bank account, get new credit cards evrything. I also have a police report stateing the facts. I emailed Paycheck Today and told them so. I have no phone number or address. The man wanted me to give him my new bank info and I told him I wouldn't because of what happened. He told me to get a debit prepaid card and they would take out the money that way. Call them with the number which I did. Well not even 1 week later they tried to take money from my closed account, the bank notifed me. I emailed them again and told them I would have the Dect. from the Poilce Dept call them. I did what they said. They never tried to take money out of the prepaid card. I have bought. That was in July 2008. That was the last time I had heard from them. No email noe phone calls. Well Jan 2009 I got 3 phone calls at work stating that I stoled their money and said I owed them 540.00 and if I didn't pay it they would start charging me 217.00 evry 2 days. I called my payroll dept and they said unless they had a court order they can't take my money. I live in Ohio. I only have my job for another 3 weeks do to the company closing our store. Help what do I need to do. I don't mind paying back what I owe.