Need advice urgently....PayDayOne

I don't know the laws for the state of texas but someone will be along to post your laws. I would read the thread about closing your checking account so that you have full knowledge how that works.

The debt settlement company is exactly right that you need to close your account ASAP so they can't take anymore of your money and they will be likely to work with you then.

Are these local store front pdl's? If so, they are most likely operating legally and will and can sue you if you don't make payment arrangements with them. You need to see if they are members of the consumer CFSA I think that is what it is called where they will let you enter into an extended payment plan.

Not to worry you have come to the right place, there are very knowledgable people on here and we have all been where you are at now, so hold tight...:)

Texas State Information

Legal Status: Legal

Citation:
7 Tex. Admin. Code ???? 1.605; Tex. Fin. Code Ann. ???????? 342.251 et seq. and 342.601 et seq.

Loan Terms:
Maximum Loan Amount:
Loan Term: 7-31 days
Maximum Finance Rate and Fees: $10 per loan + 48% annual interest
Finance Charge for 14-day $100 loan: $12
apr for 14-day $100 loan: 309%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified ($500 aggregate loans outstanding to all licensees)
Rollovers Permitted: None (if renewal charge is less than maximum interest rate permitted; otherwise convert to declining balance installment note)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: Not Specified
Criminal Action: Not Specified

Where to Complain, Get Information:
Regulator: Texas Office of Consumer Credit Commissioner
Address: 2601 N. Lamar Blvd. Austin TX 78705
Phone: (512) 936-7600
Fax: (512) 936-7610
Regulatory Contact: ,
Regulator Website

Licensee Database

Complaint Instructions

Complaint Form Link

Online Resources

These are all internet loans. How do I find out if they are members of CFSA? In regards to the Texas laws posted, I am not sure if I am reading this correctly. Under "Rollovers Permitted" it says "None", but each of these lenders has allowed me in the past and will with the current loans to pay the interest and fees only and extend the loan. They do have a limit of 3 or 4 times of extending without paying on the principal. Is this in violation of Texas law? Also, the $500 aggregate loans outstanding......what does that mean? That the total of all the loans can not be more than $500?

I am sorry I am asking so many questions, I just feel so overwhelmed. I let things get to the point that I can see them getting out of control and I want to stop it BEFORE I end up not being able to pay these or my other bills. I can see them eating all of my extra income up and not having any money left each payday. I have already done a spreadsheet for my next 2 months of paydates and the normal bills I have plus the interest only on these 3 payday loans, and I will have very little left each payday, so I wouldn't even be able to pay on the principal.

Can someone tell me how to find out if it is legal to close my checking account in Texas? The last thing I need is for a payday loan coming to sue me for fraud or something like that.

I found the CFSA website, and I do not see where my three lenders are members. They are:

PayDayOne
PayDayMax
MyCashNow

So, if they are not CFSA members, does that mean they will not help me out with a payment arrangement? Also, should I have not sent the letter to PayDayOne asking them to work out an arrangement with me? I have talked to PayDayMax once today, asking to have a copy of my Loan Agreement emailed to me, and was told by two people there that they did not have access to that since they are an internet company. They were both extremely rude, and I am concerned about approaching them. I am still considering using PDL Assistance, but I am scared to death of closing my checking account and getting into legal trouble over that, and I do not want harrassing phone calls from these lenders.

For me, PaydayOne is licensed in Michigan so I have to pay them plus the interest (which is wayyy lower than any of my other ones... still not fun though). Anyway, I emailed them and told them the money was not in the account and the account was closed and we worked out an arrangement for the next five paydays to make a payment. This worked for me so I okayed it. I'd suggest not talking to anyone on the phone, that's been the best thing for me. Only email and fax! It's a lot less stressful. :) But just know you have a lot of support! I felt just like you when I first came here and now I'm confident I will beat them!

Am I breaking any laws by wanting to settle these BEFORE I have paid any interest on them? Do I need to make payments to them first before I close my account and try to settle? I just feel like I am doing something wrong, but all I want to do is pay back the principal. I added up the $ amounts of the loans I have had with PayDayOne since 2003, and I have paid $6000 to them in principal payments and a little over $3000 in interest payments on all of the prior loans I had. I feel like they have made enough money off of me.

aggie. . .have you listed how much you borrowed on these loans and how much you have paid? When you say "settle" do you mean pay them off, or make a deal? If you can close your account, do so. Someone who knows this information will post shortly to help you with that. BUT do not let them know that you are closing your account before hand. They will take everything and then some if you do. You are not doing anything wrong. Like I said, you could check the processor sticky as several of us have had an unbelievable response from doing so. I can tell you that PayDayMax and MyCashNow use ACHC as their processor. Their number is 1-800-724-8780. There are tons of post regarding using this as part of the process to stop the insanity. James has originated many of them. And yes, you can do this yourself but that is your call. If you need help, do not hesitate to ask. Keep us posted.

I had posted them in another topic, but I will repost them here.

PayDayOne - $1000; have paid $180 (interest); will owe $244 in interest on May 30th
PayDayMax - $750; have not paid anything to them yet; will owe $143 on May 30th
MyCashNow - $750; have not paid anything to them yet; will owe $179 on May 30th

Those are the minimum amounts owed on May 30th. As you can see, that is $566 out of my paycheck just on interest on one paydate. That's over $1100 a month in interest alone. That is why I want to stop this before I get in too deep and can't pay my house bills. I want to pay what I owe them. I called my credit union and was told that they had never heard of anyone being charged with fraud or a felony for closing a checking account. I just want to make sure that what I am doing is legal. I'd prefer to make payment arrangements with them if they will do that, but I am not getting a good response from PayDayMax, and I have not heard back from PayDayOne from the fax I sent them. I can not get in touch with MyCashNow.

What will calling the ACH processor do?

aggie. . .sorry bout that. . . it was me, llw. You could call Intercept EFT 1-800-378-3328 and ask to speak with Cindy. She is very helpful. Ask her if they process for PayDayOne. Give her the date of the last debit and the bank account on which the debit was made she can trace it. Also, if you call ACHC on PayDayMax and MyCashNow have the same info ready for them. I have en email from Gail Sauter which indicates that if you produce that info she will help you. Don't let her tell you she can't. . . .if you need to see the excerpt from her email, let me know. I will see what I can do to help you. Keep us posted.

llw, what does this do for me? Does this stop them from being able to withdraw money from my account? What do I tell the ACH processors as to why I am doing this? Will I still need to close my checking account?

aggie. . . . .have you sent them a C and D letter? You will need to have proof that you have asked them to stop debiting your account. The processor moves the money for the PDLs. You need to tell them that they are illegal companies and you have asked them to stop debiting your account and they will continue to debit on a revoked account. I closed my account for extra good measure. You can't take any chances with the PDLs. Yes, it is a hassle, but at least I knew my money was safe. But please have someone on here help you with the legalities of closing that account. The credit union has told you that no one has been arrested for closing an account and they are probably right, but let someone here verify that for you. Once you touch base with the processors, send an email to the PDLs letting them know that you have contacted their processor. Be specific as to the name and phone number of the processor, what you told them, who you spoke with. I have an ACHC address to send your C and D letter to if they need it, and they probably will. You should also bring it to your bank as proof of the revocation as well. I know this is a lot to absorb but take it one step at a time. Questions. . .we can help you here. Keep us posted.

aggie. . . I too am in Texas. . . and have very recently gone thru the same thing. Put a "freeze" on your account (deposits only), THEN send out the letters and wait for them to contact you regarding payment arrangements. I only have 3 that I have anything to pay back. And they have e-mailed me willing to make arrangements. So far, (in about 10 days) I have received 2 emails marked "paid in full" from other pdls. It hasnt been as horrible as I anticipated. You can do it.

Good for you ut. . .seeing progress is encouragement for those who are still struggling. Doesn't it make you feel great when you clear one of these slugs? Keep up the good work and keep us posted.

In Texas, Payday One is a CSO, not a pdl. They go by a different, much laxer set of laws.

Pretty much all the pdl's that operate in Texas are actually CSO's (Credit Service Organizations).

They are 100% legal.

goudah. . .thanks for that info. Could you explain the difference for those organizations from say, New York and Texas? I use those states as I am a New Yorker and aggie is a Texan. I tried to defer people to those who know so your expertise would be appreciated for my own knowledge.

This explains what a CSO is and why payday loan companies hide behind them. Is that what you are looking for? I'm not really sure what you are asking . . . .

Hi Goudah. -J

goudah. . .I guess I am asking if the same things apply, ie the processors, to aggies situation as it did in mine back here in New York. I know that they are illegal here but I think they are legal in Texas. Is that correct? I just don't want to be having people do things to help them out if it will not help them, nor does it apply. Thanks again.

I spoke with a supervisor at PayDayOne this afternoon, and she agreed to move my next payment date from May 30th to June 13th, with the same interest amount of $244. If I can not pay in full on June 13th or do not want to extend, she told me to call her back and we will set up an EPP of 5 payments for the amount I owe on the account as of right now ($1000 principal plus $244 interest). That will cost me much less then if I extended it then tried to pay the principal myself over several pay periods.

I am going to use my stimulus check that I will receive at the end of May to pay off one of the other payday loans. The other two are with PayDayMax and MyCashNow. I will need to see if I can work out a payment arrangement with one of these companies. If anyone has had any luck with either one of them, pleas advise.

aggie. . .you could call credit protection depot. I dealt with them and I had good results. You can get their number by punching it in at the top of the page. Keep us posted. I have asked Goudah to clarify the difference between PDLs in New York and Texas just for my own information. Good luck.

aggie. . .credit protection depot collects for MyCashNow and PayDayMax. I never dealt with them directly, just CPD.

llw....if I call Credit Protection Depot, what do I tell them? Can they work out a payment arrangement with me? I was just told in another thread that PayDayMax and MyCashNow do not appear to be licensed in Texas, and that they are operating out of Granada. Is it even legal for me to deal with them? I am really confused now. I am not sure what to do with these two lenders.

aggie. . .I am not sure what time of arrangements they will make with you but they were pretty decent to me. They marked account PIF and the other I just paid what was remaining on the original debt. It can't hurt to speak with them. I know that ACHC processes for them and you could try to talking to little Ms. Sauter as well. At this point I would talk to everyone that could possibly resolve this issue.

In New York no pdl is legal - But in Texas some could be legal, you'd have to check.

The processor thing applies to any pdl that you've revoked authorization on and is operating illegally.

Who would be an ACH Process in Indiana?
Thanks

it goes by your PDL...each PDL has their own ACH processor...who is the pdl with?

PRL or Ecare

goudah. . thanks for the info. That is why I defer to someone else. I know that they are ALL illegal in New York but other states are different. Guest you would have to check with your bank and the processors we know of to see who processes for them. Sometimes it is just a bank to bank transaction and no processor is involved.

i had payday one take out a payment on tuesday 5-13-08 and my bank just called me today and told me pday one just tried to take out another this morning. I closed my account today. I have to wonder how long they and others have been taking double payments out that i didn't know about.

PRL

Is this some type of joke ? Not funny......

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