PDL Help--I Need to Stop the Withdrawals

Brook, welcome! You've come to the right place for help! :D First, I'm going to post your state law so that we can all see. Then I'm going to address your loans, okay? Hang on!

Arizona State Information

Legal Status: Legal

Citation:
Ariz. Rev. Stat. ???? 6-1251 et seq.

Loan Terms:
Maximum Loan Amount: $500
Loan Term: Min: 5 days
Maximum Finance Rate and Fees: 15% of check
Finance Charge for 14-day $100 loan: $17.65
apr for 14-day $100 loan: 459%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: One
Rollovers Permitted: Three (extensions)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: $25 NSF fee + actual charges assessed by the financial institution
Criminal Action: Prohibited

Where to Complain, Get Information:
Regulator: Arizona Department of Financial Institutions
Address: Financial Enterprises Division, 2910 N. 44th Street, Suite 310 Phoenix AZ 85018
Phone: (800) 544-0708
Fax: (602) 381-1225
Regulatory Contact: Robert Charlton,, Assistant Superintendent of Banks

Actually, let's touch on your bank account situation first, okay? Your account is now in the negative. So, you can't close it. You're going to have to put a hard debit block on it. This way, no debits will go through at all. Nothing. Not even your stuff (ATM, checks, etc.), so you'll want to open another bank account somewhere, if you can, so that you will have a "working bank account". I'm going to post something about closing your bank account for you to read, okay? And do not worry about closing/blocking your account. According to your state law, criminal action is PROHIBITED.

Before you close your bank account due to payday loans eating away at your paycheck, please read this.

Some banks have a policy regarding ach transactions that allows them to force open closed accounts if any ach transactions go through within a certain time frame after the account is closed. This can leave you owing a legal bank $1,000's and reported to chexsystems, instead of owing barely legal (or not at all legal) payday loan companies. Not a good thing. Ask your bank what their policy is on ach transactions on closed accounts before you close the account. It's best to go in person and talk to a branch manager.

If your bank does have this policy, tell them your situation. Don't be embarrassed. Take letters with you showing that you have revoked authorization for each of your payday loan companies to debit your account. Tell the bank to put your account on deposit only, an ach block, or a hard hold before they close the account. Your bank can do one of those, don't take no for an answer. This will prevent any payday loan ach's from reopening the bank account.

It'a always best to close your bank account. Leaving it open gives ways for the payday loan companies to continue to take money out. These companies have many different dba's, so blocking them won't work. They will also produce paper checks and run them through your account. Closing the account is the best way to prevent these companies from taking money out of your account.

Some state laws do allow for prosecution if you close your bank account, but that is usually in cases of fraud. But it's always best to check with your state's attorney general or department of financial institution before you close your account. You want to make sure you are not causing more heacaches!


Last edited by goudah2424 on 17 Jul 2007 15:25

As for your storefront pdl, Speedy Cash, they are a member of the CFSA. This is good news for you! This means that you can go to the storefront (if your loan is current/you have not yet defaulted) and invoke the EPP (extended payment plan). You must go to the storefront BEFORE the loan due date (at LEAST one day before it's due). They will have you sign an amendment to your loan documents breaking down your loan amount into 4 equal payments coinciding with your paydates. No additional fees and all collection efforts stop. So, go to the storefront and ask to invoke the EPP with them. This will help and also get you out of that trap. Pay them off in the 4 payments and be rid of them forever!

That is good news. Thanks for the information. Someone from Speedy Cash called me yesterday; I haven't called them back yet. I don't know if I can afford to make the four payments because of my financial situation, but would like to get rid of them. I'll see what can be done on that . . .

One word of advise regarding a storefront, keep in constant contact with them. Not keeping in contact with them will have them calling every friggin reference you put down and bugging them and also your place of employment. They don't usually do this unless they can't speak to YOU. So, call them and see what you can do. Your payments would be 147.06 if you did the EPP. This is a lot, so I understand. Call them and see if they will make payment arrangements for less than that. It doesn't hurt to ask. Hang on and I'll check on your internet loans for you also.

500FashCash is not licensed/legal to lend anywhere. They would be considered illegal. Thank God they didn't get any more money. You've already overpaid these idiots $200.00! No more money for them.

PayDayYes - what??? Your original loan amount was 400.00 and you've paid them 540.00 (overpaid 140.00) and they want you to pay them 6 payments of 102.00 plus 30.00 for a NSF?? That's paying them a total of $1182.00 for a $400.00 loan! Ummmm.... no. No more money for them.

Little Loan Shop - they're not licensed in your state. Even though your state pdl law allows 3 rollovers/extensions, they're still not licensed to lend in your state. So, in essence, even if they were licensed, you still overpaid. You've overpaid these guys 220.00.

What does this mean, in terms of what I need to do? Should I be sending each of them cease and desist letters? Are there any models available on the site for me to follow?

The first thing you need to do is get your bank account blocked. Can you do this ASAP? This way, the pdls can't hit it any longer and the bank will stop adding all those fees to your account. Can you go to the bank tomorrow and talk to them?

Yes--after I leave work early tomorrow afternoon, I can go down to the bank and do that. What do you think would be my next step after that?

Brook, once you know your bank account is "safe", then you can proceed. You're first step would be to contact the storefront since they are legal. Set something up with them. Tell them your bank account is closed. Tell them THE BANK closed it, okay? Don't say you did it. Then we can send letters to your internets stating they are unlicensed/illegal, that you've overpaid, yada, yada, yada. Yes, there is a letter that we use to send to the pdls. We can do that once we know your bank account is "safe". Also, along in here somewhere, you need to file complaints with the BBB, the FTC, and your state AG against the internet companies. Make sense so far?

Yes--makes a lot of sense. Thanks. Okay--I will go to Wells Fargo tomorrow and get them to put a hard hold on the account. Then call Speedy Cash. Will let you know what happens. Thanks for the information--I'm not exactly feeling better, but feel less overwhelmed than I did.

Brook, we can help you with this every step of the way! The main thing is getting the bank account straight. Then it's all in "your court". That's relief enough right there! We've been there/done that, so we can help you. Let us know how it goes with the bank and the storefront. We can go from there! We'll be here for you! :D

How do i get the phone number and address to MTE financial. I want to pay a loan off rather than keep paying bi-weekly fees. I'm in Pennsylvania

MTE FINANCIAL
Address: 515 G SE
Miami, OK 74355
Email: compliancedepartment(at)mtefs.com

you can try these phone numbers

866-859-6129
866-859-6132

Here's another phone number to try also:

(866) 213-0268

Okay, so I went into Wells Fargo today. They refused to put a freeze on my account--according to them, the bank had major issues with freezes recently and, as a company policy, has decided not to do them. What they could do for me was put a stop pay on the three payday loans from Payday Yes, 500FastCash, and Little Loan Shoppe plus Speedy Cash, which will last until October 25. I asked them about what I could do, in the event that these companies continue to attempt to submit ACH's or checks. They said I could file a fraud claim against them at that point, if I choose.

I figure if the problem continues, I can pay off my account and close it ASAP. They told me once the account closes, they will NOT force it open if a check or ACH is submitted.

In other news, I spoke with Speedy Cash and made a payment arrangement with them. It was actually pretty easy--they told me I had 90 days to pay it off and can spread the payments out over four paychecks and skip a payment if I need to for some reason. They even let me start paying on the next paycheck, rather than this coming Friday when I won't have any money. And I told them my account had been closed, so could I come into the store and pay? The answer was yes. So really good news.

I am still wary about the other three loans, but ready to take the next steps and file complaints and cease and desist letters. I'm wondering where to start with these--are there resources here on the site that I can look at? Any help would be appreciated. Thanks for getting me started on taking control of my finances back!

--Brook

I bank at WF and had no problem with them putting a block on my acct. Could they be feeding you a line of BS? When i spoke with the bank manager at the time, my acct. was OD so could not close it until my next payday, but they did put a block on my acct. and when i got paid they closed the old one and opened a new one with a block on it.

If they are, it was the branch manager who said it. I am still concerned about these companies coming back and trying to debit my account at this point. Not sure what my options are on this, though.

I am concerned too... I am new to this situation so when i came here was guided in what to do about my bank acct. i went to the manager and he was really good to work with..(they had made a TON of money off me with my acct. always being OD at the end of the month, plus i was taking out a DD cash advance. so when i got paid i owed about $900.00 and that was just to the bank. that hadn't even taken into account what i owed the PDLS which was about another $1000.00 then i still had to pay my rent and such. when they agreed to close and reopen with a block i was so glad. You might want to go a step higher than the branch mangager if he/she is not willing to help. You wonder if one of their more "richer" customers for lack of a better word came in and said their ID was stolen and this guy said the same thing to them,I would be moving my acct. to a different bank. Just because you are going through a bad time, shouldn't alow the bank manager to discriminate. So far I haven't had any problems with the PDLs trying to get money, but i do check my acct. on line everyday just to be on the safe side. Just my opinion on the bank manager..but if it were a "company policy" i would have been told the same thing..and i wasn't.

Well, I've sent off the letters via e-mail to Payday Yes, Little Loan Shoppe and 500FastCash. We'll see what happens. I'm afraid they are going to try some tricks. Next step, complaint letters to the BBB, Attorney General, and Department of Financial Institutions. This seems like a full time job--makes me wish it actually paid by the hour!

I am wondering, though, about the Wells Fargo "policy" I was given. If this crap continues, like they try to submit debits under other names, e.g., I may have to go back and push them again. I do think WF likes to make money off the NSF's.

Lord knows they made a TON of money off me with NSFs. I just can't understand where they are saying it is WF policy. Did they give the "policy" to you in writing? If so, then my branch is breaking the "rules".

Sorry forgot to log on...that was me on the last post

Well, I received a phone call from 500 Fast Cash. Has anyone else ever dealt with them? Ebony the "customer service professional" I spoke with claims that my state's laws do not apply to Internet companies and that they would continue to debit my account. I stopped him in the middle of his speech and told him that he could not call me as I had stated in my e-mail letter. He said that didn't apply either, so I told him I was hanging up on him and did.

He then proceeded to call my mother, who called me shortly after. I told her what is going on and if he called again, to tell him the same thing I said--contact me only by letter or e-mail. Unscrupulous. Fortunately, he only has my office number, and nobody ever answers that phone, so it will just ring and ring.

So I am working on complaint letters today. I got my first taste of how yucky these companies really are. It upset me, but I'm even more determined than ever to stop these people.

Well, just sent them another e-mail letter telling them not to call me or any numbers listed on my loan or I would file a complaint with the FTC. Not that it will do any good right now, but hopefully in the long term.

Canr, please advise everyone to check the Utah Better Business Bureau site and search under Payday Loan Yes regarding information with their registration as a commercial lender with the Utah Division of Fianacial Institutions. Please stress to everyone not to do business with this company. I have come through a huge ordeal and even making payment arrangements with these people is NOT WORTH IT-you will pay dearly in the end, I did. Please, everyone be careful!

Well, for the first time in months, there were no payday loan withdrawals from my account on Friday! The block on the loans seems to be working at the moment. And I was actually able to use my paycheck to pay some of my bills. I know the battle on this is just beginning but I am feeling a little more in control of the situation.

The BBB is beginning their investigation of 500 Fast Cash. Those people are ruthless--I don't know if anyone here has dealt with them, but they are a royal pain, rude, and unsurprisingly have a negative track record with the BBB. They called my mother and lied to her when she told them they needed to contact me by e-mail or snail mail--they said they don't use e-mail. That's funny, they received the e-mail I sent to them and they e-mailed me that I needed to contact them about my loan. Hmmm . . .

I posted before about a week or 2 ago titled Stressed over PDLs in Missouri. I too sent my cease and desist letters to CashNetUSA & Nationwide/Ambassador Financial. I've was emailed the following information by CashNetUSA: per contract agreement we have the right to debit your account for the full balance due, if proper payment arrangements are not made in an timely matter, or payment arrangements are broken. I did make arrangements with them but what the representatives put in their notes wasn't what was agreed upon during our phone conversation so by them making this statement what does that mean for me? My account is seriously overdrawn so I can't close the account. Wwhen I spoke with the bank fraud department she said the only way to stop achs would be to bring the account to a zero balance and close it. I received a letter from my saying to contact within 5 days to discuss my overdrawn account and if they don't hear from me they would close it then start with collection process. What do I do here?

karmel what bank do you have?because you should be able to have a hard block put on your account.that means nothing goes through.until you have a zero balance and can close it out.the pdl's are blowing smoke.the ach authorization is revocable and chances are the contract is worthless.what state are you in?

I am in Missouri. I bank at US Bank and I opened a new account at Commerce Bank. Nationwide has found out somehow about my new account with Commerce and debited the account twice and I was able to get the money back but now they're saying that there's no way to block any ach's from coming thru the account. I've spoken with both banks and they both say the same thing.

karmel, your overdrawn at USBank, so you can't close the account until it's in the positive, correct? But you also have another account at Commerce - but Nationwide found it out? And they've been debiting it? Crap. Neither one of these banks will put a block on the accounts? If your account at Commerce is in the positive, I honestly would consider closing it if possible since Nationwide now has that information. Hate to say that, but they found your new account and will kill you with debits unless you do something about it. USBank is confusing me though. Why the hell can't they put a hard debit block on it? Did you speak with the manager regarding this? And, is this the bank that sent you the letter about it being overdrawn and you need to contact them or they will close the account? Hell, let them close the account. That way it won't be debited any further. However, you're going to have to make payment arrangements with the bank for the overdrawn amount owed. And, karmel, I believe that CashNetUSA is licensed/legal. So, when they sent you that email, they're probably trying to stick to their guns (since they should be operating legally) and get your payments. However, you can revoke the right to ACH debits. You can make payment another way (money order/western union/money gram/pre-paid debit card).

Interesting--I haven't heard from 500 Fast Cash in a few days. I've filed complaints with the BBB, FTC, the Attorney General in my state of Arizona, and the Department of Financial Institutions in my state. It's kind of weird not hearing from them at all--makes me a little nervous. My office mate fielded a call from them earlier last week, but that was the last call they made as far as I know. I told my office mate what was going on, and she has been helping me. When they called she was really short with them--told them I wasn't there, that she didn't have time to waste on them, that this was a place of business and they needed to stop calling.

But Payday Yes is starting up the crap now, so they will be the next company I have to deal with. I haven't heard from Little Loan Shoppe either, except for an e-mail about not receiving my payment, and that was before I sent them the cease and desist letter. I wonder if it will always feel like this, that I am on hold, waiting for what they are going to do next. Will be so glad when I can close my checking account finally.

bbm, You are doing awsome. I think it is great that your office mate is helping you out with this. Just hang in there.

Just tell the bank your purse/wallet got stolen and you wanna file fraud investigation and they will freeze the account, they have to its policy....I work at a bank

what do you do if speedycash takes $255 out of your checking account, without your
concent, i have loan do on 5/3/10 for $300, that is the only loan i have with them,
but they said i have to prove i do not owe this, this put my bank account balance
minus $90 dollars, just when i was catching up with everything, so i told speedycash
i was going to stop payment on 5/3/10. that would make everything even plus $35 for
overdraft fee, they said no, i,m going to suffer no food, no gas

do not put a stop payment as they can change the amount,the co name,and even submit a paper check.either open a new account not linked to your old one,or put your account on DEPOSITS ONLY status.see the manager,and only the manager for this.tell speedy cash to jump in the lake.being as they are illegal in most states,you nly owe the principle borrowed.if you have paid that back in illegal fees then go to the sticky titled DEALING WITH ILLEGAL LENDERS.that will help you get speedy cash out of your life.you see,they will debit forever if you allow it.stop the cycle now.