Help! Advice please
Date: Fri, 11/21/2008 - 10:46
I received an online payday loan from Loan Point USA. The principal amount is $400 with a $120 by weekly fee. I have "rolled over" this PDL 5 times so far.
I live in the state of KY, which means technically this type of loan is illegal in my state since they do not have a store front.
I closed my checking account recently (because of multiple PDL's, trying to find a way to resolve them), Loan Point USA tried to post the roll over fee to my now closed checking account - but obv nothing came of that.
Now their collection wing is calling me for payment. I've told them that my financial situation is dire atm, they have offered to settle for $350 total.
Unfortunately, they refuse to accept a Money Order as payment. They tell me only Credit/Debit cards are accepted as payment. My question is....
Should I pay them anything? i.e. this outfit seems pretty shady to me AND I have already paid back more than the principal amount.
I live in the state of KY, which means technically this type of loan is illegal in my state since they do not have a store front.
I closed my checking account recently (because of multiple PDL's, trying to find a way to resolve them), Loan Point USA tried to post the roll over fee to my now closed checking account - but obv nothing came of that.
Now their collection wing is calling me for payment. I've told them that my financial situation is dire atm, they have offered to settle for $350 total.
Unfortunately, they refuse to accept a Money Order as payment. They tell me only Credit/Debit cards are accepted as payment. My question is....
Should I pay them anything? i.e. this outfit seems pretty shady to me AND I have already paid back more than the principal amount.
reply
if you paid back the principle you owe them nothing.i would file AG and FTC complaints.i would also send them a WAGE ASSIGNMENT REVOCATION letter.also an ACH REVOCATION letter.send both certified mail return receipt.
PayDay advances are illegal in your state. You only owe the p
PayDay advances are illegal in your state.
You only owe the principal on that loan which you stated is $400. If you have paid that amount then you are legally doen owing them.
You can send them a letter via email and certified mail stating that fact.
Here is the letter I sent them...
Quote:
After doing research regarding Internet payday loan laws in the State of XXXX, I have found that your Internet payday loans are actually illegal. I hereby revoke any and all ACH authorizations with your company from debiting any of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I also revoke any and all wage assignments I may or may not have signed with your company, 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 have notified my employer about this matter so any attempts to do so on your part will be rejected. 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 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. Due to the fact that Internet payday loans must be licensed in the state of XXXX to be a legal and binding contract, your company should NOT issue loans to Ohio residents. I am requesting that you send me your license number which enables you to offer loans to XXXX residents. The legal amount that could have been charged to my loan is the principal amount, even IF your Internet pay day loan were legal anywhere in the U.S. I am willing to pay the principle amount of the loan only, however, this is only if you provide me with a physical address where I can send payments. As of XX/XX/XXXX the remaining balance of the principal I owe is $00.00 which I will pay in full via Money Order once I receive the physical address. I must also inform you that I will be filing complaints with the Better Business Bureau, the Federal Trade Commission, and the Ohio Attorney General's Office. I expect a response from your company no later than 5 days from the above date regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted. Sincerely, XXXXXXX CC: Better Business Bureau Ohio Attorney General Federal Trade Commission |
Of course you can change this to suite your needs, state ect.
Since you have mostly likely paid the principal you own them nothing and can request a refund of what you over paid but that is up to you. Some people do that and some just are happy to be rid of them.
Good Luck!
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