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PDL Help in Wisconsin

Date: Fri, 01/09/2009 - 09:26

Submitted by rellafella74
on Fri, 01/09/2009 - 09:26

Posts: 10 Credits: [Donate]

Total Replies: 20


I’m so glad I found this site. I’ve been in PDL misery for months now and I’ve decide this is a new year and I need to start it out right by getting out of this hell I’ve created for myself. I look back and can’t believe I’ve gotten so far deep in trouble that I can’t find my way out. I’ve been taking out loans to help pay interest on loans I already have out. It’s a cycle that has gotten beyond my control. I definitely want to pay back what I owe, I just need a method that will work so I can pay back what I owe as well as my other bills.


As ashamed as I am to admit, here is my information:
State: Wisconsin

Loans: 7 Internet Loans
500FastCash -- Bal: 325, Paid: 675
CashNetUSA -- Bal: 1250, Paid: 350
Impact Solution – Bal: 390, Paid: 180
MyCashNow -- Bal: 812.55, Paid: 805.79
PayDayOne -- Bal: 993.73, Paid: 487.50
PDL Loan -- Bal: 390, Paid: 180
USFastCash -- Bal: 455. Paid: 420

Store Loan:
CheckIntoCash -- Bal: 640, Paid: 0

My loans will be coming on 1/16/09. It sounds like one of the first things I need to do is to figure out what to do about my checking account. I would really hate to close it as I’ve had that account for 15 years and I have many other bills that automatically are withdrawn from it. What can I do?

Please let me know if there is any other information you need from me.

Thanks in advance for all help and advice!


Hi rellafella74,

Here are the payday loan lawa's for Wisconsin. I believe that a pdl has to be licensed to lend in the state, but I will verify that in a moment. I will also post some other info for you.

It looks like at least 3 of your loans are going to be legal, the storefront loan, CashNetUSA and PaydayOne. You will need to make some arrangements with these companies. I will check on the rest of them.
Quote:


Quote:
Wisconsin State Information

Legal Status: Legal

Citation:
Wis. Stat. ???? 138.09

Loan Terms:
Maximum Loan Amount: Not Specified
Loan Term: Not Specified
Maximum Finance Rate and Fees: No Limit
Finance Charge for 14-day $100 loan: No Limit
apr for 14-day $100 loan: No Limit

Debt Limits:
Maximum Number of Outstanding Loans at One Time: No Limit
Rollovers Permitted: Not Specified
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: $15 NSF fee if check returned due to no account open at bank, insufficient funds or insufficient credit. Check presentment limit: two times.
Criminal Action: Prohibited (per Wisconsin worthless check law, a check given to secure a loan isn't "worthless")

Where to Complain, Get Information:
Regulator: Wisconsin Department of Financial Institutions
Address: Wisconsin Consumer Act Section, P.O. Box 8041 Madison WI 53708
Phone: (608) 261-9555
Fax: (608) 261-7200
Regulatory Contact: Paul Egide,, Consumer Act Director
Regulator Website

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 Fri, 01/09/2009 - 09:38

( Posts: 1147 | Credits: )


Here is another option for residents of Wisconsin. You can learn more about it by searching the website:
Quote:


Quote:
About Chapter 128

WHAT IS CHAPTER 128?
Chapter 128 is a voluntary debt consolidation plan through the Wisconsin Circuit Court system. It is not a consumer credit counseling plan and it is not bankruptcy.


CHAPTER 128 vs. BANKRUPTCY
There are two major differences: Bankruptcy is Federal. Chapter 128 is strictly a State of Wisconsin plan. Also, Chapter 128 is the opposite of bankruptcy: you are repaying the debts.


ABOUT THE NEW BANKRUPTCY LAWS:
The Federal Government overhauled the bankruptcy laws, which went into effect October 17, 2005, making it much more difficult to file bankruptcy. This does not effect Chapter 128 proceedings and in fact may make it a much more attractive option to debtors: if you do not qualify for bankruptcy, you may be able to file a Chapter 128 instead.


The following is a partial list of the advantages of a Chapter 128:

Is unique to the State of Wisconsin and is open to all Wisconsin residents.
Unlike bankruptcy, you are not required to list assets and property is not in jeopardy.
You do not need to list all the debts you owe, unlike bankruptcy.
A very attractive alternative if you do not qualify under the new bankruptcy laws.
Stops garnishments.
Debt gets repaid.
Not listed in newspapers.
Interest on debts is uncollectible.
Easy and inexpensive to file.
May file more than once.
No Court appearances.


lrhall41

Submitted by dawnlango7 on Fri, 01/09/2009 - 09:39

( Posts: 1147 | Credits: )


hi,

Here is what I found for your pdl's:
500fastcash - illegal
CashnetUSA - legal
Impact Solution - ? I can't find anything for them, is there another name on your loan documents?
Mycashnow - illegal
paydayone - legal
pdlloan(impact cash) - illegal
usfastcash - illegal

As I said above, you will need to make arrangements with the 2 legal companies, if you close your account, you want to keep them in the loop so you can pay them off. Once you tell me what each loan amount was, you can figure out if any of the illegal companies owe you a refund. From what I can tell, its looks like 2 possible 3 might. here is a letter you can use for the illegal pdl's:
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 Fri, 01/09/2009 - 09:51

( Posts: 1147 | Credits: )


Here is update info with amt borrowed:

500FastCash -- Bal: 325, Paid: 675, Borrowed:350
CashNetUSA -- Bal: 1250, Paid: 350, Borrowed: 1000
Impact Solution ??? Bal: 390, Paid: 180 , Borrowed: 300
MyCashNow -- Bal: 812.55, Paid: 805.79, Borrowed: 785
PayDayOne -- Bal: 993.73, Paid: 487.50 , Borrowed: 750
PDL Loan -- Bal: 390, Paid: 180, Borrowed: 300
USFastCash -- Bal: 455. Paid: 420, Borrowed, 350

Store Loan:
CheckIntoCash -- Bal: 640, Paid: 0, Borrowed, 500


lrhall41

Submitted by rellafella74 on Fri, 01/09/2009 - 10:08

( Posts: 10 | Credits: )


Here is your updated list of internet lenders:
[quote]
500FastCash ??? They owe you a refund of $325
CashNetUSA -- Bal: 1250, Paid: 350, Borrowed: 1000 ??? legal, need to make arrangements
Impact Solution ??? You owe $120
MyCashNow ??? they owe you a refund of $99.21
PayDayOne -- Bal: 993.73, Paid: 487.50 , Borrowed: 750 ??? legal, need to make arrangements
PDL Loan ??? You owe $120
USFastCash ??? They owe you a refund of $70
[/quote]


lrhall41

Submitted by dawnlango7 on Fri, 01/09/2009 - 10:55

( Posts: 1147 | Credits: )


Dawn is correct on the licensing. Here is some additional info...

All lenders must be licensed by the the Wisconsin DFI. A storefront license is sufficent to offer internet loans as long as the loans are processed in WI. This means that if I have one store in Madison, I may offer internet loans to the entire state as long as the "processing center" is located at the licensed location. If I choose to process them at another site, in state or out, that requires another license.

The bottom line is that there may be a DBA somewhere for some of these lenders that are being listed as illegal. Not positive, just speculation based on my experience. I would still suspect some/most are illegal based on history.


lrhall41

Submitted by on Fri, 01/09/2009 - 11:13

( Posts: | Credits: )


Thanks so much for all the input so far! So it sounds like I need to find out if Impact Solutions and PDL are illegal? What should my next steps be? Call the PDLs that are legal and try to work out payment arrangements? What should I do about my checking account? As I said before I would rather not close if I don't have to. What other options do I have?

Sorry I have so many questions, I just want to go about this the right way.

Thanks again!


lrhall41

Submitted by rellafella74 on Fri, 01/09/2009 - 12:43

( Posts: 10 | Credits: )


Yes, you want to make contact with the legal pdl's and get arrangements with them...

Unfortunatley in regards to your checking account, unless you close it or put a hard debit block on it, the pdl's will continue to withdraw money. If they find out that you aren't going to pay them anymore, they can and have taken out the full amount either through the withdrawal or a paper check...it is a mess when you have so many thing's coming out, but it is worth it in the long run.

I had my account for 10 years and I had to close it and open another due to the pdl's, it was much easier than I expected.


lrhall41

Submitted by dawnlango7 on Fri, 01/09/2009 - 12:48

( Posts: 1147 | Credits: )


I???m not sure what to do next. I contacted Cashnetusa and PayDayOne to set up payment plan. I was able to set up payment arrangements with PayDayOne, but I wasn???t able to with Cashnetusa. They sent me an email saying that they are required to provide one CFSA payment plan within a 12 month period. I had completed a payment plan with them once back in July. Now I don???t know what to do. I will have to call Cashnet back and talk to someone in their collections department.

My bank account is already overdrawn and I have loans coming due on Friday and Monday so I will be way over on my account. I???m sure they won???t let me close my checking account with a negative balance. I???m not even sure what my next step should be. I receive a paper check from work, should I open a new checking account at a different bank? I???m so stressed and confused as to what I should do now.


lrhall41

Submitted by rellafella74 on Wed, 01/14/2009 - 13:36

( Posts: 10 | Credits: )


They gave you correct information regarding the EPP. I would suggest that you call them back and speak with a supervisor. The "frontline" people that answer the phones are generally "programmed" with what to say and therefore they cannot deviate. Don't be afraid to work your way up the ladder until you find someone that will work with you, it will happen!

As for your checking account. Yes, get one open ASAP and DO NOT use for any additional PDL business, loans or payments. Regarding the old account, try speaking to the branch manager about clearing the fees and getting it closed. If they do not do it at you request, it will be forced closed by the bank eventually because they do not want to get in the collections business with it getting futher and further negative.


lrhall41

Submitted by on Wed, 01/14/2009 - 13:45

( Posts: | Credits: )


If I???m able to get my account closed or at least have a block on it so no debits are taken out, what happens next? From my understanding of WI PDL laws, as long as the PDL company is licensed anywhere, they are legal. Is this true? I guess I???m a little confused on how I find out if a company is legal or not.


lrhall41

Submitted by rellafella74 on Wed, 01/14/2009 - 14:32

( Posts: 10 | Credits: )


My husband has a loan with mycashnow and when he lost his job they continued to try & withdraw money from his acct. Now the bank has closed his acct. due to the withdrawals. Is there any recourse that I have being that they are an illegal entity in WI with the bank because now they are threatening litigation (garnishments). The balance is paid but they are still trying to collect. How do I proceed?


lrhall41

Submitted by on Fri, 04/10/2009 - 14:48

( Posts: | Credits: )