Need advice on dealing with payday loan companies

First, have you given them an ACH Revocation so they cannot take out money anymore? The ACH revocations must be given to them no sooner then 3 days (regardless of what the contract says) before the next transacation date.

Close your bank account so they cannot take anymore money.

Btw, here's the laws for TN Tennessee State Information. I believe that the payday lenders have to be legal in the state of TN in order to lend (Not sure, someone that knows more about TN laws will be along soon)
Legal Status: Legal

Citation:
Tenn. Code Ann. ????45-17-101 et seq.

Loan Terms:
Maximum Loan Amount: $500
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: the lesser of 15% of the check or $30
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: 3 (2 per licensee)
Rollovers Permitted: None (cannot renew or otherwise consolidate)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: One $30 NSF Fee; Court Costs
Criminal Action: Prohibited

Where to Complain, Get Information:
Regulator: Tennessee Department of Financial Institutions
Address: 511 Union Street, Suite 400 Nashville TN 37219
Phone: (615) 741-2236
Fax: (615) 532-1018
Regulatory Contact: Bart Daughdrill,

Tennessee allows an Internet based payday loan company to lend legally as long as it is licensed in any US State. They would need to follow the laws of the state they are licensed out of, not the state the consumer is in.

Thanks for the info. I looked at Delaware laws (that is where Payday One are it seems) and the maximum loan amount says $500 but we have $650 on each loan. They are meeting all the other requirements though... four rollovers max etc. Do I have any recourse because they loaned us more than the maximum the law states? Has anyone worked with Payday One on a repayment plan?

I am not sure what to look at regarding Nationalpayday.com and the other company. National appear to be doing business based out of Costa Rica according to the contract. NOt sure about paydaymax.com, I am trying to get that info.

Thanks again :)

On a more specific note - on our Payday One loans - does it mean anything that the Delaware laws state a max loan amount of 500 and they loaned us 650 on each loan? I calculated fully now and we have paid more than the amount borrowed on each loan and around 4K on the previous loans that were paid off and reloaned on the same day and so on. I have no idea what to expect as far as repayment arrangements and what would be an acceptable timeframe to them to pay this off.

Does anyone know anything about whether the following company is legal? I have found that the others are legal from researching previous posts but still not sure about this company since they seem to be in Costa Rica. I have paid them more than the original amount borrowed.

Oops - meant to add - the company I am still wondering about is Nationalpayday.com

Lesley, have you checked with your states department of financial institution? They are great at answering if any of the payday lenders you have are legal.

I'm pretty sure Payday One is licensed in your state, I could be wrong though, if they are, you would follow the laws of TN.

I haven't checked with the state, but I will do that first thing tomorrow. Someone mentioned above that in TN, they say that the state of the internet lender's laws apply. I will call them tomorrow to clarify. I thought that PayDay One were one of the more "legitimate" ones so I guess I was surprised that they were violating any of the laws.

So if they are, and are charging too much or have loaned above the limit, what happens then? Sorry for all the questions, I have done a lot of research online but its a lot to take in. I talked to my bank today and they said that all I can do is close the account but would be forced open again if an ACH went through.

Lesley, did you do a Ach revocation to all your payday lenders? If so the bank CAN'T force open the closed account. If they do report them to your states DFI for breaking the Electronic funds Transfers act. If you HAVEN'T given them the Ach Revocations, do it now, and give copies to the bank.

Electronic Funds Transfers Act

Consumers have the right under either federal law or industry rules to stop a payday lender from electronically taking money out of a bank account. This does not settle the debt but these rights help consumers stop the drain of repeated finance charges or bounced check fees while working out payment arrangements.

Loans with built-in renewals: If your online payday loan has built-in loan renewals, the lender cannot require you to pay electronically under the Electronic Fund Transfer Act (EFTA at 15 U.S.C. 1693a(9)). You have the right both to stop payment on a specific withdrawal and to revoke authorization for all future withdrawals by a lender. In both cases, the bank can impose its stop payment fee.

For a loan with built-in renewals, to stop an individual withdrawal, you must notify your bank orally or in writing at least three business days before the transfer is scheduled. The bank may ask you to also give them a written confirmation of the stop payment order within fourteen days of the oral notification. If you fail to provide the written confirmation, the stop payment expires at the end of fourteen days.

In addition, if you notify the bank that your debit authorization is no longer valid, the bank must block the next withdrawal as well as all future payments for the specific debit sent by the online lender.

To stop future electronic withdrawals, write a letter to the payday lender that it is no longer authorized to debit your account. Make a copy of your letter to give to your bank.

Your bank may ask you to confirm that you have notified your lender that you no longer authorize the payments to be automatically debited from your account. Write a letter to your bank to give written notification within 14 days of your oral notice to the bank. Otherwise the bank may honor subsequent debits to the account. Check your bank statements and report any unauthorized withdrawals from your account to your bank.

One-time payment loans: While federal law does not give consumers the right to stop payment on a one-time debit transaction, the lender has agreed to comply with rules issued by a private organization that provide this right.

The online payday lender is required by industry rules to disclose that the consumer may revoke authorization to debit a bank account. Notify your lender and your bank at least three days before the withdrawal is to take place (the due date on the loan.) The lender must tell you how to revoke authorization. Read the fine print of the loan agreement for instructions on where and how to stop electronic access to your account.

Industry rules require you to contact the lender that you are revoking your authorization and to then notify your bank. Contacting the online lender may be hard to do if you don't have a copy of the loan documents or if you borrowed from a lender that fails to post contact information. Internet payday loan contracts typically require you to give three days' advance notice before the payment is due if you want to revoke electronic authorization.

I am dealing with PayDay one and was wondering if you have any further details of dealing with them or other info. that could be helpful.

Forum discussions on PaydayOne may help you further: -
Payday One -anyone get a settlement?

Payday One, Payday Ok,Think Cash, Langhorne debt solutions

I have also found a page which deals with Closing of bank account. Hope this article helps.
IMPORTANT - Read before closing your bank account due to pdl