Advise on Proceeding with C&D's without closing Bank Account

Do you have an email address? I can send you a private message.

Email address removed for your protection, and against TOS rules, Shazzers.

Quote:

Massachusetts Internet payday lenders are not legal, either because of restrictive laws, or because the state does not license companies not located in that state, but requires a state issued license to lend. I am going to post some information for you on how to deal with illegal payday lenders.

I hope the information below will help you. :)
You are only obligated to pay back the principal amount you borrowed from an unlicensed/illegal Internet Payday Lender.
[quote]
What should you do?
Close your account asap, if you are unable to close your account, go into your bank and ask to speak with the Branch Manager, tell him/her you need a hard debit block placed on your account immediately! Explain that you are revoking ACH authorizations from unlicensed/illegal companies, and have learned these companies are notorious for ignoring revocation, therefore it is important to BLOCK any withdrawal attempts on your account to protect your interest. This is your privilege, do not accept no for an answer. The following link will provide you important information regarding closing accounts. CLICK HERE

What next?
AFTER your account is secure send each pdl (the unlicensed and illegal) an email similar to THIS (please scroll down to locate letter template). Tailor this letter to your needs, and try to write it with the same basic concept in your own words. You will need to research and locate email addresses/physical addresses if you don't already have them, I suggest that you type the name of the pdl (example: "oneclickcash address") in the search box in the upper right hand corner of this forum. You may also search for addresses HERE at the Better Business Bureau.

File complaints: Most of the time, you can file a complaint online with the following, I encourage you to follow through with doing so, you will need to search the Internet for your state Attorney General's website, however, here are links to file complaints for the FTC, Online complaints: Federal Trade Commission., and the BETTER BUSINESS BUREAU.

Keep in mind that you may not receive a response for days, or even weeks, or, you may receive harassing and threatening phone calls. I have found the best way to deal with this is not to respond or reply, simply hang up.

Side note: If you have paid an illegal/unlicensed payday lender above and beyond the principal amount you borrowed, it might be a good idea to demand a refund and a paid in full letter/receipt. You may or may not get one or both. It still doesn't hurt to include that tidbit in your letter. :)[/quote]

Shazzers,

Thanks for the help. Previously using the guidelines you posted above I've attempted going to Bank of America and closing my account they said it would be forced open if an ACH attempted to debit my account. I was going to attempt to e-mail C&D letters without closing my account (see one i drafted above using template found on this site, and let me know what you think) I even demanded a refund. It's probably not recommend, but I feel like I don't have a choice but to proceed without closing my account but I figured that if i had sent C&D letters my bank would reverse debits once PDLs tried to debit if I could produce proof of revoking ACH authority.

Let me know what you think.....Thanks Again

Sorry about the email question, I dont know how to send a private message, I am still learning the site. I just wanted to tell Treenor exactly what I told BofA to help her.

kstaff24 i believe you just have to click on the "PM" button under one of my post

So i went again today to a different Bank of America branch they were very helpful. I was able to freeze and close my current account and open a new one. I immediately faxed all PDLS and when I got home emailed all PDLS except for Discount Advances and Paydaymax, because I can not find and email address for either. October 31st is when these payments were scheduled.

Any advice on the next step. Ill keep everyone updated.

Thanks

Thats great news Treenor, I also went to a Kinko's and faxed all of them the C & D letter and made sure I got the fax report that it went through. I have already settled 3 of my pdl's since I last posted on your thread. ameriloan, Loanshoponline and Ashland Funding. I am so happy for you that you found someone at BofA to help you, I have since switched banks for security reasons and I will never give out my new bank account to anyone ever again!!!!!!!!!!

Thanks for the support kfstaff!!!! I'm wondering if I should send separate letters revoking authority for wage assignments even though I mentioned it in my original C&D's. Any thoughts on that??? Did you have any problems so far with them trying to take part of your check???

I defaulted on 10/17 and was able to settle with three right away. The first call I got was from Ashland and I was able to settle, the second call I got was from Cash Advance Network so I resent my C & D letter and now they have not called me but have sent me emails. I owe them $120 and I will not pay them a dime more.

I have not heard anything from my Payroll department but I am planning on calling them on Monday morning to tell them they are to revoke any kind of wage assignment (I will also fax them) unless it is court ordered. Thats all I plan on telling them as I do not think my personal business is theirs.

I am no expert but I am guessing if your employer attached your wages for an illegal pdl they would open themselves up for legal problems and most likely would have to return the money to the employee. I am also of the opinion that possibly a government agency (IRS) could attach your wages without a court order but I cannot think of anyone else.

October 27, 2008

Mr. XXXXXXXX
ADDRESS REMOVED

RE: Web Payday Account #XXXXXXX

Dear Mr. XXXXXXX:

I am writing on behalf of Web Payday in response to your letter of October 25, 2008. Web Payday strives to assist consumers with their short term cash needs and is concerned that you were disappointed with your experience. We have noted your request for no future contact by telephone.

Please be advised, however, that your loan was made pursuant to Web Payday????????s license in its home state of Utah . You received documents and disclosures in compliance with federal and Utah state law in conjunction with your loan fully describing how the finance fees are applied and your repayment options. You agreed to these terms, including the applicability of Utah (not Massachusetts ) law to the transaction, with electronic signatures in multiple places. These documents were emailed to you at the time your loan was processed. Should you need additional copies, please visit our website. All information regarding the nature of the debt, applicable finance fees, and governing law is enclosed therein.

Notwithstanding the foregoing, because we do understand that the current economic situation has adversely affected many people, we have agreed to mark your account ???????paid in full??????? pursuant to your request. Web Payday is taking this action without legal obligation to do so because of its ongoing commitment to customer satisfaction and for no other reason.

Thank you for the opportunity to clarify this matter and address your concerns.

Sincerely,



Web Payday

Good for you!!!!!! Way to go.

Thanks I have yet to hear from any of the other eight companies

You know what they say no news is good news. I am waiting with you, I had 7, settled 3 and I am still waiting to hear from 4. So far no phone calls at work or home. Maybe with so many people defaulting they will forget about us lol wishful thinking.