How To Really Stop ACH and PDLs

Forgot to mention, have your contract ready to identify the company name. We all know they have a million names. I'll do my best to help you figure them out.

What about closed accounts? Can the bank still get that info? I would be curious to see exactly how this works, and if it really does work. The concept intrigues me and the notion of perhaps getting the PDL's where they live makes me smile.

Interesting....

Yes, it works. Financial institutions have a need to initiate a transaction. The same people that process the transaction for a monthly gym debit also process PDL debits. I am deeply familiar with processing regulations that are very strict for processors. They will not appreciate a PDL putting through a transaction after an authorization has been revoked and will act accordingly. If you stop them from being able to transact business, or cause enough of a stir to the folks they answer to, you'll find your PDL written off quickly.

Sorry if that did not clearly answer your question about closed accounts. No transaction will even be attempted so it doesn't matter if an account is closed or open. It's basically going over the PDL company's head and using that power to force them to write off your account. It is the way to get their attention.

I am still a little confused about this. Let me see if I have this straight. A PDL gets a revocation for an ACH. They try and submit it to the bank account anyway. (Does it matter if the account has been closed, or just denied due to NSF). So now there is a record of this attempted transaction. I know who has tried to collect, as does my bank. Is there any "additional" info that can be gleened from my bank regarding this transaction that I would need to have? If yes, what is it. If no, then I would assume I would need to take that info back to the processor who put the transaction through. What negative effects does this have on the processor? And....I am assuming that is where the buck stops. So that, in essence, would keep the PDL's from being able to collect as they would have no "middle man"? Would I be out of line asking how you have come to have this information?

Hi llw. Think of it this way...You sign up for automatic withdrawal for your car insurance. The car insurance company selects someone to process their transactions monthly. An electronic file is created by the car insurance company and sent to the processor. The processor has a relationship with the Federal Reserve Automated Clearing House System (ACH). The processor then sends payments (credits/debits or loans/payments) electronically to the individual banks sorted by routing number. 2 business days later the insurance company will receive 1 settlement file. It may have had 1000 transactions totaling $20,000. The file will basically show, for example, 750 paid debits for $15,000 and 250 returns for $5,000. This enables the insurance company to have all payments in 1 place. Otherwise it creates an accounting nightmare.

Payday loans have an extremely difficult time with banking arrangements. Banks simply do not like extra scrutiny or customers that may have questionable legal issues. These processors will not risk doing business with a company whose tactics could bring them trouble. They are aware PDLs are shady, but will turn a blind eye for the sake of revenue. If they are put on notice, however, they are legally bound to the rules of the ACH system which has clear federal guidelines regarding authorization. According to them, a customer can revoke authorization without reason or question. The PDLs take advantage of the fact that people do not know this. However, it is very clearly stated within the contract between the PDL and processor. You really can threaten their livelihood by doing this.

Finally, and im sorry this answer is so long, your bank can give you the processor's information. You can revoke authorization through the processor without even calling the PDL. The processor info will be available from your initial loan, even if you've never made a payment. The processor is a real company with a real address. They have the PDL company's real info. Whether they claim to be out of the USA or not, to access the Federal Banking System there must be a US routing number to go through. You would not be out of line asking. I know the PDL companies very well and I think you'll find my perspective to be unique. I plan to be actively involved in this forum and I hope you find my posts offer value. In time I will range off topic into anything you could ever want to know about PDLs. I look forward to helping and having discussions with the forum.

So basically it boils down to the PDLs doing what they shouldn't and the blame comes on the processor? I can see the logic that if someone is making me look bad, I should kick them to the curb, so to speak. So by knowing who the processor is, you can go back to them and "rat", if you will, on the PDL for pulling a no no. That in turn, should give cause for the processor to "drop" them from the processing list and they will be left high and dry. Is that about it? Correct me if I am wrong. Can I assume you are somehow involved in the "processing" business? If you want to take this to a pm, (I tend to get a little inquisitive) please feel free to do so.

I'm curious, how did you find this information out James? :)

I'm curious as well

Thanks James, that is a great new perspective, for those who are having trouble working with either the pdl or our own personal bank. Especially with the economic stimulus coming, pdls will be especially vigilent in trying to push the ACH through, since they have both our account numbers and the last two of our social security.

I also am pretty familiar with the ACH system and that makes perfect sense. Would it not be sensible to create the revoke authorization letter and have everyone that has issues with the PDL's complete and contact send to the clearing house?

I assume it takes more than one complaint against a company before they are dropped from the clearing house. Because so many people have the same PDL companies perhaps we could create a list of the PDL and find which clearing house they are using. Once this information is made available to the forum it would be easier for each individual to go in and contact the ACH Clearing House.

I would still be interested in hearing the source this information came from. And exactly how it works.

Guest. If you would bother to read the posts you will see that everyone encourages everyone else to repay the principal amount borrowed along with any legal amount of interest they may owe as per their state laws.

PDL Lenders should all be aware of the individual state laws with regards to Pay Day Lending and they should not make loans where they are not legal.

No one is trying to get out of a debt that they owe just can't pay the debt that they owe when they are paying fees that are way to high.

I believe the "guest" is this Nick Jenkins who is hitting up all the threads with his lecture.

I wasn't going to respond but I don't like his insinuation and sometimes can't help myself.

:lol: I hear ya angell!

Same BS on all the threads...if he had a point, its long gone now.

and its not obvious at all, lol

Sometimes I really wish all I had to do all day was stalk forums to put people down.

It really frustrates me to no end to see people so quick to pass judgement.

stalk forums

You hit the nail on the head there Angell!

move on nick....

Thanks for the information..........James! that was very insightful

Mr. Jenkins, Grow up! :roll:

Yes, Angell. Knowing their processors and creating a list really will stop this. That is who they answer to. You'll find the majority of the culprits here use Moneygram International 423-238-5184 is their processing number or Intercept EFT 800-378-3328.

Ok, Nick. Lets address this since you know so much about the folks here. Most PDLs advertise online. They send emails titled "get out of debt". This is predatory lending. They send multiple emails daily. Want to see for yourself? Create dummy Yahoo addresses and fill out applications for each one individually. Watch what happens to your email box. They also use Google Adwords. If a person finds a PDL by searching for a keyword such as payday loan, no fax payday loan, etc then they are aware of exactly what they are getting into. If they are reached out to via a get out of debt type advertising, then shame on the PDL. I suggest before you open your mouth and belittle those that were trapped that you learn the workings beyond the obvious.

How does this work with store front PDL? They have my check. Do I just put a stop payment on the check?

James...thanks for the info. I guess Moneygram would make sense as so many of the PDLs push for that type of payment.....it would just be an added benefit and work to their advantage. I still would like to know how you are affiliated? I did pm you, did you get it?

It's Moneygram, but not in the sense you are thinking Western Union type Moneygram. This part of Moneygram was previously a company called ACH Commerce out of Tennessee. I'll check the PM

I didnt get it. Does it go to my inbox on this site?

It should....I can send one again.

nothing. feel free to ask anything, though

James...I don't know why it is not going to you. I got your pm and sent another immediately. The flag is saying that it has been sent. You passed a comment to me that makes my curiosity peak even more. About tactics and not understanding. Try pming me again....your answer would be appreciated.

I'll start a new post about tactics. Marketing in particular.

read it and posted. Perhaps the light bulb is about to go on.

James:


Would you please provide us with more information to back up these claims? I would be interested in knowing how you made this discovery.

This is great information James! There is always
"behind the scenes" goings on and this is good to know about...thanks!

If someone knowingly gets into a mess like this and is up to no good, then they deserve this. However, a company like CashAdvanceNetwork offers no phone numbers and makes it impossible to pay a loan off. People are forced to stop ACH. The business model of CAN is based on the fact that it will take a person "x" number of weeks to default. Their staff consists of a small number of customer service reps and a massive collections force. That's what they drive people into and, in time, they simply develop a new URL and rise as a different company. It's a business model of predatory lending that offers those in trouble a hand by promising "get out of debt" and bombarding them with emails. Should people read their contract, sure. But the reality is that most don't understand their legal jargon enough and do not realize what they are getting into. What they think is a solution ends up being a problem

We're tired of you Nick. Your posts are meant to tear people down all so you can pump yourself up! You aren't productive on any of these posts and you aren't a registered user. I'm sure if you search you can find a forum of the "perfect" to compare notes with.

Please let people here get on with the business of better educating themselves and taking proactive steps to regain their financial stability. No one here is out to defraud or scam lenders out of money.

Do you sleep good at night knowing you have managed to make so many feel bad about themselves?

Just curious, Nick. You seem to be particularly bothered by my post. Any reason? You're a fan of following contracts. Wondering why you would not want a PDL to follow their banking contracts. That's what this points out. There would be no issue if the banking laws were adhered to.

each copany in any business has the right to do business in the state they are in. they have the right to create the contract per there company. the consumer has the right to chose on who they want to use. there not forced to take loans. they request them and get them. what i am saying is people need to read. instead of being so excited about getting money and thinking of ways to rip companies off. remember these companies have employes that have jobs. just like credit cards each one has fee's and intrest. on a 1000.00 credit card if you pay the intrest only you will pay that loan off for 7yrs. has anyone you known had a pdl for 7yrs? now who are the rip off's. banks charge 30.00 for ret fee's and make billions off it.

Both are ripoffs, genius. Its not a one or the other.

Hmmm; Nicky, I'll take issue with your post - yes, companies can do business in the state they're in, PROVIDED they work within the laws of that state. Same thing goes for other states they work in, they have to abide by the laws of that state as well. If, say, PA, MO,etc. says that you have to follow their guidelines for PDL's in order to provide your "services" within their state and you do not follow these guidelines but are telling your customers that you ARE (as many PDL's do), then you are committing fraud. And it's always been my understanding that if a contract is fraudulent, that it is not binding. PDL's are prohibited or limited as to interest rates in several states, but there is nothing at all - NOTHING! - listed on the websites of most PDL's which mention this. Not even a very general "Void where prohibited!" I tell you what, when I see those ads on TV for PDl's, with all of those smiling, clean-cut faces saying how they "help" people with their money problems, well, it makes me want to put my foot through my TV screen. I seriously doubt that anyone on this forum set out to "defraud" the PDLs; but people DO get tired of ending up paying back their original PDL amount several times over.

in many businesses you pay more then what was borrowed. how about a 200.00 loan 60.00 intrest. you pay the 260.00 off on your next paydate. don't refinance it and if you have to do so then you know what your getting your self into. even then 200.00 loan 60.00 fee on pd then you pay the 60.00 then next pd your bal is 260.00. that is why i always pay mine right off. if need be i can get another loan in 3 days. like i said before i have had many loans and my intrest right now is 15.00 per 100.00. to me thats not bad. again like i stated if you take a loan on a credit card for 1000.00 if you pay the min payment you will pay that loan back for over 7yrs.. my 1000.00 pd loans get paid off in 2 months at the most. lets not forget you can pay on your loan each pd too to make it go down.

Don't know whose post you were responding to, but I wasn't talking about interest rates; I'm talking about the PDL's doing business legally with people they're lending to. PDL's are prohibited in many states, but this fact isn't posted on the PDL sites and if you talk to them and ask if they're legal, they'll swear up, down, and sideways that they ARE legal in your state and even say that people in your state goverment who regulate such things don't know what they're talking about! That's not about the customer not reading the fine print on a contract, that's the lender deliberately lying and misleading the customer.

if there legal in there state there legal. the loan happened in there state. you came to there site. they didn't come to your house and do the loan. you came to them.

ok nick,that little schpiel of yours gave you away.now what pdl do you work for?that bunk about the states and the legality thereof is only something a pdloid would even dare to spew here.
so level with me,how does it feel to leave a reeking trail of slime everywhere you go?i'll wait for my answer.

Actually, Nick, you're wrong again. Here's why. The pdl solicits across state lines. It's called geographic targeting in advertising terms. In essence, they are bringing their product to your home or business and selling it to you there. It holds up in court, by the way. But feel free to try again. Also, their servers are not in the licensed state and they are not in that state...so how exactly is this argument working? I suppose your law allows for them to pick the most favorable state for licensing requirements and deem that to be their home and make that the standard? If they want to make that argument, they need to at least pick their a#$#es up and move to Utah or New Mexico. Next

Nick, you're wrong. Plain and simple. I normally don't respond to trolls, but I'm going to this time, because I don't want your lies and misinformation affecting new visitors to our site who come here for help.

If you live in a state that requires the PDL to be licensed in your state to lend there, that's the only law they follow - your state's law.

I would encourage newcomers to the site seeking assistance with PDL issues to review their state's PDL law in the PAYDAY LOAN HELP FORUM.

wow, been away for a week and come back to the forum and find some ugliness going on...

Is this James on one forum giving great knowlegible advice and who the heck in Nick.....

It seems that these persons really are not giving up much....James, where are you getting your information and why are you such an expert??? Nick; from what I can tell, you just need to keep to yourself and let the good people on this forum do what they do best and that is to help people get through their difficult time and get some good advice so they can at least sleep at night and have a place to go for comfort...