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payday loans

Date: Tue, 11/11/2008 - 21:00

Submitted by anonymous
on Tue, 11/11/2008 - 21:00

Posts: 202330 Credits: [Donate]

Total Replies: 12


hi, i live in arizona. currently have 4 internet loans

cashnetusa, 500, fee 62
paydayone 500, fee 72
cashadvancenetwork, 400, fee 120
paychecktoday, 900, fee 270

i have already set up a new bank account and changed my direct deposit, so far i am current on all the loans but come payday 11/21/08 things will go crazy. i want to be prepared and have everything in place when everything goes down. please any advice is appriciated. thanks


Hi there,
I am going to post the law's for AZ. An internet lender must be licensed in AZ to lend. I believe that Cashnet USA is legal, but I will check on the others:
Quote:

Quote:
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


lrhall41

Submitted by dawnlango7 on Wed, 11/12/2008 - 05:41

( Posts: 1147 | Credits: )


OK, I checked on your companies,

CashNetUSA - legal
Paydayone - legal
Cash Advance Network - illegal
Pay Check today - illegal

You would need to work with the 2 legal companies & try to set up some sort of payment arrangement. Do you know how much you have paid the companies in total? I will post some additional info for you and a letter that you can use for the 2 illegal companies.


lrhall41

Submitted by dawnlango7 on Wed, 11/12/2008 - 06:36

( Posts: 1147 | Credits: )


Quote:

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.



You have already closed your account so you are already off to a good start.


lrhall41

Submitted by dawnlango7 on Wed, 11/12/2008 - 06:37

( Posts: 1147 | Credits: )


Here is the letter you can use for the illegal pdl's. You would need to tailor it to your state & needs. Once you figure out how much you have paid or over paid the illegal pdl's, you can tell them that you will pay the difference between the fee's paid & the amount borrowed or ask for a refund.

Quote:

To Whom It May Concern:

After doing research on internet payday loan laws in the state of Connecticut, I have found that your internet payday loans are actually illegal. I have also found the following laws to be true applying to payday loans in the state of Connecticut in general:

Legal Status: Prohibited

Citation:
Usury act applies or small loan act applies. Conn. Gen. Stat.???? 36a-563

Small Loan Rate Cap
30.03% apr or $17 per $100 up to $600; $11 per $100 up to $1,800; add-on interest.

I have contacted the Connecticut Office of Financial Institutions and the Connecticut State Attorney General's Office regarding your internet payday loans and was informed they are indeed illegal in Connecticut and was advised to pay what is due according to principle amount only of the loan.

To date, I have paid $525.00 DOLLARS on my $250.00 DOLLAR loan. The legal amount that could have been charged to my loan is the principal amount of $250.00 DOLLARS even if your internet pay day loan was legal in Connecticut. I have paid $525.00 DOLLARS on this loan by your debits of my bank account. Please mark this account as PAID IN FULL.

I demand that any contact be made through US Postal mail or email only. I will need everything in writing to keep accurate records of all communication as per instruction from my state Attorney General's Office.

I prohibit you or your affiliates to contact me via telephone at my place of employment or my home telephone number. I also prohibit you from calling my references listed on my loan. Once I inform you of this, you must stop the telephone contact immediately or you will be once again breaking the laws of the state of Connecticut.

You are also hereby notified that I am revoking any voluntary wage assignment I may or may not have signed. I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for your collection purposes.

I am revoking your right to debit my checking account any longer. You, your company, or your affiliates are not authorized to debit my checking account at all. Please be aware that I have informed my financial institution of this situation and they will also be receiving a copy of this correspondence. Any further attempts at debiting my account will be rejected by my financial institution.

I must also inform you that I have filed complaints with the Better Business Bureau, the Federal Trade Commission, and my state Attorney General's Office.

I expect a response from your company no later than 5/2/2008, regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted.

Thank you,


lrhall41

Submitted by dawnlango7 on Wed, 11/12/2008 - 06:45

( Posts: 1147 | Credits: )


thanks dawnlango7 for all the helpfull info. one question i have is when you ask how much i have paid them so far, does that mean on one continueous loan, so the way i am understanding it because the state of az you can only extend it 3 times then you have to pay it off, of course then you have to take out the whole loan again. so even though its the same ongoing loan it is technically a new loan if i have paid it off then taken it back out so they would say i havent paid anything towards it? sorry if thats confusing its early in the morning. now the 2 illegal loans i have have a weird pay schedule, they will debit your acct on your due date for the finance fee only up to 5 times. then after the 5th time they will debit the finance fee plus $50 for the principle. and the intrest is outrageous 30.00 per every 100 you borrow. so even on a 200 loan you are paying 60 a paycheck for 5 times so that equals 300 paid and nothing going to principle. i know that definetly doesnt fit into arizona quidelines.

its all pretty much overwhelming. i'm still not sure what i want to do, i've been doing research on those payday negotiater companies, i know you will pay them a little more but they pretty much handle everything for you. then my other option is to let the 2 illegal ones go and try to keep paying off the 2 legal ones, i gues i need to call them and see if they will do a settlement because i'm not getting anywhere because of the intrest. but anyways i appriciate the advice.


lrhall41

Submitted by on Thu, 11/13/2008 - 05:48

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Hello, I live in Arizona as well and I have been working with my pdl's since 10/17. What Dawnlango is asking is in regards to your two illegal internet payday loans as they are not licensed in Arizona therefore they should not be lending to AZ residents.

Amount Borrowed/ Amount Paid So Far for example:

Cash Advance Network borrowed $300 made 3 payments of $90 totaling $270. With illegal lenders any amount paid by you can be applied to the principal amount. In this example you would only owe CAN $30.

Your other two lenders are licensed to lend in AZ and I would recommend you call them and ask for an EPP (Extended payment plan) You are allowed to ask for this plan once in a 12 month period. Make sure you do this before you default.


lrhall41

Submitted by kfstaff24 on Thu, 11/13/2008 - 06:24

( Posts: 1448 | Credits: )


ok so i talked with progressive debt managment. they were really nice and helpfull. i was almost sold but then i did some calculations, my toatal payday loan debt comes to 2900 and some change. the guy qouted me 300 a month for 12 months. by my figures that would equal 3600. i really dont know if it is worth paying them 700 to do the dirty work. it did say in their add that they negotiate with the pdl company to settle for lower amounts. if thats the case then why am i still paying the full amount + an extra 700 in fees? doesnt make sense. but today i am going to call all 4 of my lenders to see what they will work out with me then i will decide what exactly i am doing. i will keep an update on my situation. any other advise will be really helpfull. thanks again.


lrhall41

Submitted by on Wed, 11/19/2008 - 05:55

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so i just got off the phone with paydayone, now to my suprise after dealing with paychecktoday and cashadvancenetwork they were really nice and proffessional. they worked out a great repayment plan that i know i can afford. i feel better because thats one down and 3 to go.

i did call cashnetusa, they were nice and proffessional as well but wernt as leiniant on their repayment plan. but on the upside that means i will just pay them off sooner than later.

as far as paychecktoday and cashadvancenetwork i just put to the bottom of my list, they will get paid but i am going to knock out these two first and get them done. i feel better now that i have atleast a partial plan in place now i just have to follow through. its rough in the begining because you dont know what is going to happen, i missed a few nights of good sleep worrying about everything. it feels good getting your life back in control. thanks for everyone that has helped me along the way. i know i am still just begining and have a long way to go but atleast i can see light way far in the distant tunnel.


lrhall41

Submitted by on Tue, 11/25/2008 - 17:50

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