Payday Loan help in PA
Date: Sun, 12/28/2008 - 18:16
I have been reading a few posts on this site and it seems like there are others with circumstances similar to mine.
I currently have 4 Payday Loans with online lenders (details below):
CashNetUsa - $1050.00
PayDayOne - $550.00
PayCheckToday - $500.00
InstantCashUsa - $400.00
2 of the lenders have already debited my checking account for partial payments. Currently my account is $720.00 in the negative. It appears that my bank (Wachovia) cleared the withdrawals even though I did not have the funds in my account. I have since changed my direct deposit and opened another account.
My concerns are the following:
What should I do next? I am thinking of going to my local Wachovia branch to speak to the manager and explain my mess. I may also try to close my account to stop the transactions.
Can my wages be garnished?
Can these lenders contact my employer? I don't want that to happen however I am aware that it is likely to happen.
I have read several posts in respect to being arrested for defaulting on a payday loan but I am still worried about that. Can this happen?
I would greatly appreciate any help you might have to offer.
Thank You
First of all welcome to the forum. You can NOT be arrested for o
First of all welcome to the forum. You can NOT be arrested for owing money. At first glance, looking at your lenders I know for certain that CashNetUSA and PaydayOne are legal, therefore it's very important that you make payment arrangements with them. If I were you, I would opt to pay them through the mail with money orders, this is why. It appears the other two lenders you have may be unlicensed/illegal, I need to double check that though. Anyway, if my suspicions are correct about the illegal lenders, you will need to get your account closed ASAP! I would suggest that you tell the legal lenders there has been some illegal and suspicious activity on your personal account so you had to close it right away, tell them you can not open a new account until it is all cleared up, and that may be a long time. Also, for your information, PA is a non-garnishment state!
Paychecktoday (Illegal/Unlicensed) 515 G NE Miami, OK 74354-82
Paychecktoday (Illegal/Unlicensed)
515 G NE
Miami, OK 74354-8224
1-866-756-0600
fax at 1-800-671-0131
Instant Cash USA (Illegal/Unlicensed)
515 G SE
Miami, OK 74354-8224
phone: 1-888-255-1110
fax: 1-877-660-2030
email: customercare @ instantcashusa.com
I hope the information below will help you. :)
You are only obligated to pay back the principal amount you borrowed from an unlicensed/illegal Internet Payday Lender.
[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. :)[/quote]
Quote:Pennsylvania State Information Legal Status: Prohibited
Quote:
Pennsylvania State Information Legal Status: Prohibited Citation: Check cashers are specifically prohibited from making payday loans under Check Cashing Licensing Act of 1998, ???? 505(a). Otherwise, consumer discount company act applies. 7 Pa. Cons. Stat. Ann. ???? 6201 et seq. Small Loan Rate Cap $9.50 per $100 per year discount or 24% per year Where to Complain, Get Information: Regulator: Pennsylvania Department of Banking Address: Market Square Plaza, 17 N. Second Street Harrisburg PA 17101 Phone: (717) 214-8343 Fax: (717) 787-8773 |
Pennsylvania allows an Internet based payday loan company to len
Pennsylvania 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.
What next?
Thank you for the information. I have not taken any action yet but I think my first stop is going to be my local Wachovia branch.
Ok so CashNetUsa and PayDayOne are legal and InstantCashUsa and PayCheckToday (looks like the same lender actually) are not.
I will contact CashNetUsa and PayDayOne to make payment arrangements however what will they be willing to do outside of the loan agreement? I certainly can't make payments on the loans as agreed. I guess I will just offer what I can afford.
In respect to the other ones InstantCashUsa and PayCheckToday should I contact them? What payment agreement? Only on the principal balance?
Sorry for the elementary questions. I am thoroughly embarassed with myself and the fact that I created this mess. I wan't to clear this up and move on but I realize that might take some time.
Put everything in writing when negotiating with a creditor, emai
Put everything in writing when negotiating with a creditor, emails work nicely with Internet lenders.
jkeller996, How much have you already paid for InstantCashUs
jkeller996,
How much have you already paid for InstantCashUsa and PayCheckToday? If you haven't paid the principal back, then yes, you are only obligated to pay the principal.