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Payday loan troubles

Submitted by jcattz on Mon, 02/02/2009 - 13:05
Posts: 13

I need help. I have 7 payday loans and I can't seem to pay any of them off because I'm just paying the minimum to get by. I read about how if they are a member of CFSA then they are required to accept the EPP for 4 installments. Can anyone let me know exactly how this works? All of the loans are through the internet and as far as I can see, only two are CFSA members.

First of all, please list the following information so we can help you. CLICK HERE to locate your state pdl laws.
-Names of each pdl company.
-Whether they are store front or Internet.
-How much you borrowed.
-How much you paid so far.
-The state in which you reside.
I'm sorry to tell you this, but there is only one sure way to stop the withdrawals, and that is to close your account. If that isn't an option, then tell the bank to put a hard debit block on your account. Before you close your account, read this information at the link below.

Please do not let any of these pdl's know you are going to close your account, until AFTER you have done it!

Submitted by Shazzers on Mon, 02/02/2009 - 13:10


( Posts: 17344 | Credits: )

'' ($300), ''($500), ''($600)''($900), ''($500), ''($300), ''($260). All internet. The amounts in the parentheses are the amounts without interest. I live in Nevada. I just keep paying the minimums for close to a year now. :(

Submitted by jcattz on Mon, 02/02/2009 - 13:31


( Posts: 13 | Credits: ) Illegal/Unlicesned company!
Centro Colon, 8 avo piso, Oficina 8-4
San Jose, Costa Rica
Phone: 888-269-2303
Strategic Funding, Inc. in Salt Lake City, Utah.

PaydayOne is legal, you will nned to make payment arrangements with them.

Cash transfer Center is illegal and based in Canada and Malta.
Cash Transfer Centers
Email: customercare(at)
Fax: 866-809-4069
Level 8 Suite 3
Plaza Commercial Center
Bisazza Street
Sliema SLM15, Malta
phone: 1-866-958-3278
fax: 1-866-809-4069

is legal, you will need to make payment arrangements with them also.

Checkcity I am unsure of.

Payday max - Also known as Credit Protection Depot
Paydaymax is illegal.
support (@)

Ameriloan is not licensed anywhere in the U.S.
3531 P Street NW Miami, OK 74355
Phone 800-362-9090

Submitted by Shazzers on Mon, 02/02/2009 - 13:55


( Posts: 17344 | Credits: )

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.
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]

Submitted by Shazzers on Mon, 02/02/2009 - 13:57


( Posts: 17344 | Credits: )

I put a block on my account over a week ago and when the pdl's came through they were all returned and Bank of America didn't charge me any fees. As of today, my hold is still on the account due to the fact the I'm STILL anxiously awaiting my tax refund check, which should have already been there, but none of the pdl's have tried to go into my account again. My bank actually gave me a $450 credit on on of the pdl's that I filed a claim against for overpayment. I'm hoping that my refund will be here within the next week so I can close the account permanately. Good luck and make sure you go into the bank and talk to someone who knows what they are doing.

Submitted by on Mon, 02/02/2009 - 15:19

( Posts: 202330 | Credits: )

Make sure you speak to the bank manager. Mine was very helpful and was well aware of the PDL trap. She even waived the fee the first time as I was in the negative.

If they can't do the hard block then I would close the account if you can. Closing the account is the final way to stop the ACH transactions from going through.

If you do close it make sure that it can not be opened back up and charged NSF charges. Also make sure that if you open a new account at the same bank that the new account can not be touched.

Submitted by nohiogal on Tue, 02/03/2009 - 02:56


( Posts: 2582 | Credits: )

Can anyone tell me the procedure in handling payday loan companies if I file bankruptcy?

Submitted by on Wed, 02/04/2009 - 10:28

( Posts: 202330 | Credits: )

I have put the hold on my bank account but I am having trouble coming up with the letter to write and email to these pdl's. I have looked at a lot of examples of letters but I was hoping that I could get an example from someone based on being a Nevada resident. I am actually in fear right now because I know the calls will start coming and I have dealt with them, they are not nice and I am :)

Submitted by jcattz on Thu, 02/05/2009 - 13:07


( Posts: 13 | Credits: )

Please see the first letter I have drafted to the first company in question. Since Nevada law as far as I can tell does not care about the percentage rates, I am not demanding money back. I am just asking for the loan to be done with. Can anyone take a look at this and let me know if it looks good or if anything should be added? Thanks so much, I am very nervous about this...

February 6, 2009

To: Cash Transfer Centers

To Whom It May Concern:

Regarding: Payday Loan of $600.00

After doing research on payday loan laws in the state of Nevada, I have found the below laws to be true; Nevada requires Internet based pdl's to be licensed in Nevada. I also found out that you are not licensed in the state of Nevada to issue loans.

I have listed the Nevada state law below:

Nevada State Information

Legal Status: Legal

2005 Nev. Stat. 414 (A.B. 384)

Loan Terms:
Maximum Loan Amount: 25% of expected gross monthly income
Loan Term: Max: 60 days
Maximum Finance Rate and Fees: Not Specified (After default: interest rate must be equal to or less than the prime rate at the largest bank in the State of Nevada plus 10 %)
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: Not Specified
Rollovers Permitted: Not Specified (Lenders cannot extend payment period beyond 60 days after expiration of initial loan period)
Cooling-off Period:
Repayment Plan: Yes

Collection Limits:
Collection Fees: $25 dishonored check fee (max. two fees for insufficient funds; max. one fee for closed account) Court Costs; Reasonable Attorney's Fees; Service of process costs
Criminal Action: Prohibited (Unless customer acted with criminal intent)

Where to Complain, Get Information:
Regulator: Nevada Financial Institutions Division
Address: 2785 E. Desert Inn Rd., Suite 180 Las Vegas, NV 89121
Phone: (702) 486-4120
Fax: (702) 486-4563
Regulatory Contact: , Supervisory Examiner

Nevada State Information regarding internet payday loan companies doing business with someone in Nevada without a license are subject to penalties. I have listed the information below.

(Added to NRS by 2005, 1708)

NRS 604A.910 Administrative fines for unlicensed activity. In addition to any other remedy or penalty, the Commissioner may impose an administrative fine of not more than $50,000 upon a person who, without a license, conducts any business or activity for which a license is required pursuant to the provisions of this chapter.

(Added to NRS by 2005, 1709; A 2005, 22nd Special Session, 101)

NRS 604A.920 Other remedies for unlicensed activity. If a person operates a check-cashing service, deferred deposit loan service, high-interest loan service or title loan service without obtaining a license pursuant to this chapter:

*1. Any contracts entered into by that person for the cashing of a check or for a deferred deposit loan, high-interest loan or title loan are voidable by the other party to the contract; and

2. In addition to any other remedy or penalty, the other party to the contract may bring a civil action against the person pursuant to NRS 604A.930.

(Added to NRS by 2005, 22nd Special Session, 101; A 2007, 943)

This loan is void. I demand that my loan be marked as PAID IN FULL and that any actions to collect will be stopped. I also demand that any contact to me must be done through EMAIL ONLY so I can keep accurate copies of any correspondence in case I need to file a formal complaint.

I also demand that you do NOT attempt to contact my place of employment, or my references. You, your company, or any affiliate are not authorized to attach any part or my wage or contact my payroll department for your collection purposes. Please be aware that I have contacted my payroll department of this correspondence.

I am revoking your right to debit my checking account. Please be aware that I will provide a copy of this revocation to the branch manager at my bank and I have already revoked my account to be debited whatsoever. They seem to be completely aware of illegal payday companies and immediately took action. Any further attempts will be rejected by my financial institution.

If the above demands are not met I will have no other option than to file a formal complaint with the Nevada Attorney General and the Better Business Bureau.

I expect a response no later than February 28, 2009 or I will have no choice but to file the complaints. Please be aware that I have sent this correspondence via email as well as certified return-receipt mail. I have also kept a copy for my records in the event that formal action needs to be taken. I expect my refund to be issued in a timely manner. As long as my loan is marked with a PAID IN FULL status, I will not file a complaint with either of the above mentioned parties.


Submitted by jcattz on Fri, 02/06/2009 - 12:59


( Posts: 13 | Credits: )

FYI: I did not mean to keep this in the letter... "I expect my refund to be issued in a timely manner." I am taking that out :)

Submitted by jcattz on Fri, 02/06/2009 - 13:04


( Posts: 13 | Credits: )

you have done your homework i included the wage assignment revocation.i would give a copy to your HR or payroll person before sending.they will try the wage assignment anyway.bset to have your bases covered.

Submitted by paulmergel on Fri, 02/06/2009 - 13:09


( Posts: 15514 | Credits: )

I don't understand how they can try the wage assignment if the are illegal to do business in Nevada. How will they attempt to do this? Will they call my work? This would be so embarrassing... I have always kept my personal life personal and I work for a very small company. Maybe I should just negotiate paying this off over some time and do this with all of them. I really don't want a lot of trouble :(

Submitted by jcattz on Fri, 02/06/2009 - 14:05


( Posts: 13 | Credits: )

You are not in trouble.

What some people do when they take the form to HR is explain that they have been a victim of fraud and if some of the PDLs you have are illegal then they is not a lie.

You can explain that you have been working with your bank and you are closing your account and the bank suggested you put in wage assignment revocation to be on the safe side.

This will also help to explain any calls you get at work. If you do get any just hang up.

It will be okay :) You are doing great!

Submitted by nohiogal on Fri, 02/06/2009 - 14:20


( Posts: 2582 | Credits: )

Can you tell me what the outcome is? Do these companies eventually drop it because they are illegal or do you end up having collections on your credit? Thanks :)

Submitted by jcattz on Sat, 02/07/2009 - 10:35


( Posts: 13 | Credits: )

It really depends on the lender.

Some crawl back under their rock and you never hear from them again.

Others, illegal and legal ones, hound you for weeks until they give up.

If you search the name of your PDL you can get an idea of what they may try and what works to get rid of them. It may take a little time and energy but it is well worth it.

Things will get better.

I know you are scared but we are all pulling for you. I swear if we could answer the calls for you I think most of us would.

Just do not let the illegal lenders intimedate you. You have control now.

Submitted by nohiogal on Sat, 02/07/2009 - 13:23


( Posts: 2582 | Credits: )

Please read below: "This outstanding amount has been listed on your Teletrack Report and, at this time, is negatively affecting your credit score. This may result in the loss of any credit privileges extended by creditors who use Teletrack. This may also have a negative effect on any existing credit where the creditor is a Teletrack subscriber. Pay this loan in full in one payment and your Teletrack score will be updated."

Are they really reporting me to Teletrack? Is this something that will screw with my credit or writing checks in the future? Thanks again for all of answers... truly appreciate it!

Submitted by jcattz on Wed, 02/11/2009 - 13:53


( Posts: 13 | Credits: )