Internet payday loans? Indiana what can I do?
Date: Wed, 12/03/2008 - 09:16
The loans were through:
NLS Cash Advance
The Loan Shop
National Payday
CAN credits
Outback Bucks
Payday YES
Upfront Money
3B Finiancial
Now I did know about 3 of these, but the rest were from my spouse, I didn't know about them until the debits came through.
Hi Amy, Here are the payday laws for Indiana. A pdl must be
Hi Amy,
Here are the payday laws for Indiana. A pdl must be licensed to lend. I will check on the companies in your list to see who is legal:
Quote:
Indiana State Information Quote: Legal Status: Legal Citation: Ind. Code Ann. ???? 24-4.5-7-101 et seq. Loan Terms: Maximum Loan Amount: $550 (not to exceed 20% of borrower's monthly gross income) Loan Term: Min: 14 days Maximum Finance Rate and Fees: 15%: $0-$250; 13%: $251-$400; 10%: $401-$500 Finance Charge for 14-day $100 loan: $15 apr for 14-day $100 loan: 390% Debt Limits: Maximum Number of Outstanding Loans at One Time: One per lender; Two total Rollovers Permitted: None (cannot renew, repay, refinance or consolidate) Cooling-off Period: 7 days after 6 consecutive loans Repayment Plan: After 3 consecutive loans, lender must offer an extended payment plan of at least four equal installments at no additional cost Collection Limits: Collection Fees: One $20 NSF fee; additional charges may apply when check or authorization to debit was used to defraud another Criminal Action: Prohibited Where to Complain, Get Information: Regulator: Indiana Department of Financial Institutions Address: 30 South Street, Suite 300 Indianapolis IN 46204 Phone: (800) 382-4880 Fax: Regulatory Contact: Mark Tarpey,, Supervisor, Consumer Credit Regulator Website http://www.in.gov/dfi/ |
Here is some additional info: Quote: What should you do? Clo
Here is some additional info:
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. |
Your welcome, I am looking up the companies now and will have so
Your welcome, I am looking up the companies now and will have some info for you in a few minutes :D
O looked up the companies, I didn't find any of them on the IN d
O looked up the companies, I didn't find any of them on the IN database so it seems they are all illegal In this case you are responsible for the amount borrowed, any fee's you have paid go towards this. Once you figure out if you owe them anything or if they owe you a refund, you can send this letter.
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, |
HI, thanks again so very much for the help. The letter you show
HI, thanks again so very much for the help. The letter you show is for state of Conn. do I just change this for Indiana, is the law the same then?
No, you would need to update it for Indiana and insert their law
No, you would need to update it for Indiana and insert their laws.
Amy, I am not sure if you did your letter yet, but I too am i
Amy,
I am not sure if you did your letter yet, but I too am in Indiana and in the pit of PDL hell - here is my letter (much like one above) that I am going to send to my PDL sharks, complete with Indiana Law. You'll just need to change your name, the amount of your loan and the loan company.
Date: 12/05/2008
Paydaymax.com
Credit Protection Depot
Katrina Cunnington
Indianapolis, IN
Account #
After doing research regarding Internet payday loan laws in the State of Indiana, 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 Indiana in general:
Indiana State Information
Legal Status: Legal
Citation:
Ind. Code Ann. ???? 24-4-4.5-7-101 et seq.
Loan Terms:
Maximum Loan Amount: $550 (not to exceed 20% of borrower's monthly gross income)
Loan Term: Min: 14 days
Maximum Finance Rate and Fees: 15%: $0-$250; 13%: $251-$400; 10%: $401-$500
Finance Charge for 14-day $100 loan: $15
apr for 14-day $100 loan: 390%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: One per lender; Two total
Rollovers Permitted: None (cannot renew, repay, refinance or consolidate)
Cooling-off Period: 7 days after 6 consecutive loans
Repayment Plan: After 3 consecutive loans, lender must offer an extended payment plan of at least four equal installments at no additional cost
Collection Limits:
Collection Fees: One $20 NSF fee; additional charges may apply when check or authorization to debit was used to defraud another
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Indiana Department of Financial Institutions
Address: 30 South Street, Suite 300 Indianapolis IN 46204
Phone: (800) 382-4880
Fax:
Regulatory Contact: Mark Tarpey, Supervisor, Consumer Credit
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 have closed my account with the State Bank of Lizton to protect my interest in this matter, per instructions from The Indiana Department of Finance. I also revoke any and all wage assignments I may or may not have signed with your company, and 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 Indiana to be a legal and binding contract, your company should NOT issue loans to Indiana residents at all. I am requesting that you send me your license number which enables you to offer loans to Indiana residents.
The legal amount that can be charged to my loan is the principal amount only, or $300, and that is only IF your Internet pay day loan were legal in the U.S. I am willing to pay the principle amount of the loan; however, this is only if you provide me with a physical address where I can send payments via money order.
I must also inform you that I have filed complaints with the Better Business Bureau, the Federal Trade Commission, the Indiana Department of Financial Institutions, and the Indiana 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. If I do not receive a response within 5 days, I will assume that this matter has been handled and that my account will be marked as ???????paid in full.???????
Lastly, since you have operated in the State of Indiana illegally, I would encourage you to read the following information sent to me by the Indiana Department of Financial Institutions:
A change to the statutes which took effect July 1, 2007, IC 24-4.5-1-201( 8 ) reads: "If a creditor has violated the provisions of this article that apply to the authority to make consumer loans (IC 24-4.5-3-502), the loan is void and the debtor is not obligated to pay either the principal or loan finance charge, as set forth in IC 24-4.5-5-202.
Sincerely,
Katrina Cunnington
CC:
Better Business Bureau
Indiana Attorney General
Indiana Department of Financial Institutions
Federal Trade Commission
