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Indiana PDL Loan Help

Date: Wed, 12/10/2008 - 10:52

Submitted by bloominhim
on Wed, 12/10/2008 - 10:52

Posts: 3 Credits: [Donate]

Total Replies: 5


Hi. I have eight pdls all acquired via internet. Some I have been paying for quite some time (Sagamore, Summit Group and Loan Point USA) so I am not actually sure how much I have paid in whole. I just need help in stopping this vicious cycle I would be open to making payment arrangments with each (no more interest attached, just working on paying down the principal) but they are usually unwilling to do this. I would appreciate any advice that could be provided. Here is a list of the loans and the entire amount I currently owe if I were to pay them off today:
Sagamore-260 (paid down principal from 300 to 200)
One Click Cash - 455 (borrowed 350; interest 105)
Cash Advance Network- 390 (borrowed 300; interest 90)
PDL Loan Center-390 (borrowed 300; interest 90)
Instant Cash USA- 520 (borrowed 400; interset 120)
US Fast Cash - 650 (borrowed 500; interest 150)
Summit Group- 390 (borrowed 300; interest 90)
Loan Point USA- 650 (borrowed 500; interst 150)

Thanks for your help!


Hi Bloom,

Here is some info on Indiana, I will check to see if any of the companies are licensed. When you get a moment, can you tell us what you borrowed and try to find out how much you have paid on each one including all of the fee's:

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Quote:
Indiana State Information

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 n 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/


Quote:
NOTICE TO UNLICENSED INDIANA LENDERS WHO ARE SOLICITING
BUSINESS IN INDIANA

Investigation by the Indiana Department of Financial Institutions (???????Department???????) has determined that your company is among several unlicensed entities making or offering consumer loans to residents of Indiana via the internet.

Depending on the type of loan being offered, your company is in violation of IC 24-4.5- 3-502 and/or IC 24-4.5-7-102. These statutes reference consumer loans, and/or Small Loans (commonly referred to as ???????Payday Loans???????) and require a license issued by this office in order to make these consumer loans.

During the recently concluded session of the Indiana General Assembly, there was a change to the statute governing the territorial application of the Indiana Uniform Consumer Credit Code, including the Indiana Small Loan Act. Effective July 1, 2007, IC 24-4.5-1-201 requires internet lenders to be licensed, and to comply with Indiana law, when making loans to Indiana residents. Additionally, IC 24-4.5-1-201( 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.???????

You are advised to Cease and Desist the offering of these types of loans to Indiana residents unless/until you have obtained the proper Indiana loan license. Consumers will be advised that these loans are not in compliance with Indiana Statutes and that these loans are considered null and void, and as a result, uncollectible. Additionally, the Department may seek injunctive relief under IC 24-4.5-6 in the event of continued noncompliance.

All Financial Institutions operating within the state of Indiana will be advised that electronic payment and / or paper/check transactions connected with these illegal loans should be rejected if an entity is unlicensed. Consumers will also be advised on the procedure to stop electronic debits to their accounts using return codes.

Questions concerning the acquisition of a loan license may be directed to this office.

Information is also available via our website at www.in.gov/dfi
Sincerely,

Mark B. Tarpey
Supervisor ???????? Consumer Credit Division


lrhall41

Submitted by dawnlango7 on Wed, 12/10/2008 - 12:16

( Posts: 1147 | Credits: )


OK, I have checked on the companies for you, it appears that they are all illegal, hopefully if I am incorrect someone will advise. I am posting some helpful info for you:

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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.


lrhall41

Submitted by dawnlango7 on Wed, 12/10/2008 - 13:09

( Posts: 1147 | Credits: )


Assuming that the companies are all illegal, here is a letter you can use. You will need to tailor it for your situation. Once you figure out how much you have paid the companies, you can use that info as well:
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, 12/10/2008 - 13:10

( Posts: 1147 | Credits: )


I just went through all of my bank statments including one pdl I didn't realize I have had for 1 year! Here is what I have paid:
Sagamore- Opened 12/4/2007, Have paid $2515 and they just started applying $50 towards my principal so I supposedly have a balance of $260.
One Click Cash-$0 paid, finance charge of $105 due 12/12/08
Cash Advance Network- $0 paid, finance charge of $90 due 12/12/08
PDL- 390 $0 paid, finance charge of $90 due 12/12/08
Instance Cash- 520 $0 paid, finance charge of $120 due 12/12/08
US Fast Cash- Reloaned 11/26/08, as of 12/19/08 I will have paid $300 in finance charges
Summit Group- 7/31, opened, as of 12/19/08 will have paid $900.
Loan Point (Centruion)- 11/7 opened, as of 12/19/08 I will have paid $450 in finance charges

Thank you so much for your reply above. How do I avoid my references being harassed if indeed I contact them and submit the recommended letter! I keep seeing this T&C mentioned...would they be able to help me with this situation?


lrhall41

Submitted by bloominhim on Wed, 12/10/2008 - 14:14

( Posts: 3 | Credits: )