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bank acct closed, letters sent; what about the legal lenders?

Date: Tue, 05/05/2009 - 21:03

Submitted by anonymous
on Tue, 05/05/2009 - 21:03

Posts: 202330 Credits: [Donate]

Total Replies: 5


Background story to my question (to skip story and just read question scroll down): So, I'm in MD with 8 payday loans (at least that is what I'd thought I'd signed up for). I'm aware now after all the excellent, priceless and sincerely appreciated advice from members on this forum that Payday Loans are actually illegal in the state of Maryland. I have closed the bank account by going in person to Wachovia and explaining the situation. They were extremely understanding and immediately placed a "debit restraint" on my account since it was overdrawn-- unable to be closed w/ a negative balance-- and w/ a direct deposit on its way into the acct that very evening. The restraint stopped any ACH from hitting my account and I actually saw my paycheck that next day for the first time in months!!! At that point w/ the debit restraint still in place, I had to return to the bank and close my account-- now in the black-- in person. I chose to simply re-open a new account at Wachovia, which was done w/in an hour's time.

QUESTIONS:
so, I was a little bit confused and thought all of the payday loans I took out were actually payday loans and were illegal in the state of MD. However, I'm beginning to see that a few of them are not. Please correct me if the following is not right.

ILLEGAL PDLS in MD:
1) United Cash Loans
2)Cash Transfer Centers/Northway to my bank (illegal EVERYWHERE)
3)EZpayday Cash/UC (immediatelyl emailed me a PIF after I sent the letter I found under the "dealing w/ illegal pdls" sticky. Thanks!!)
4)Ameriloan
5) Payment Direct????? (not so sure about this one)

LEGAL??:
1)Cashnet
2)Magnum
3) Cash Central

What makes the Legal ones legal?? They all come up when searching for payday loans.

I sent them all the same letter I found under the dealing w/ illegal pdls sticky. So, I suppose what I will do is call the three legal guys/collection agencies if they've been sent and work out payment plans.

And one more question is how long a period of time is it reasonable to expect the illegal ones to wait for their repayment? Since I need to deal w/ the legal guys first, it may be 7 months from now that I am finally able to make the first payment towards the first one on the illegal list. Should I be making tiny payments to all of them at once, or larger payments one by one?

Sorry so long winded. My main concern here is that I NOT break the law and do the least amt of damage to my credit as possible. Any suggestions? Am I doing this right? Have I left something out?
thanks!
rg


Cashnet USA is a Credit Service Organization, which sets them aside from a payday lender, basically, they do the same thing as a payday lender; ei., they charge ridiculous interest rates legally, and do not have to abide by the payday loan laws. What makes you think that Magnum is legal? Unless they are operating as a CSO (Credit Service Organization) they would NOT be lending legally to Maryland residents, the same goes for Cash Central. I'm not at all familiar with Cash Central, but you could type them into the search box located in the upper right hand corner of this forum and read what others have written about them. :)


lrhall41

Submitted by Shazzers on Tue, 05/05/2009 - 21:13

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Sounds like you asked similar questions to me and your situation sorta parallels mine as I spelled out in my "Payday Lenders, Illegal or otherwise... and possible refunds in PA" thread, but only nohiogal gave me some feedback so far. Your thread caught my eye, and shazzers advice on searching the various PDL's may be helpful to us in determining their legality in our respective states... good luck to you... there's more to MY PDL story than I have "revealed" in my recent thread, but I'm getting back to being able to handle my finances after the nightmare of 15 PDL's on my back at same time and doing what I felt I had to remedy the situation. I know, I know, I wasn't too bright piling one after the other, and fell prey to the ease of getting so many, but this forum has been very supportive and helpful.............


lrhall41

Submitted by on Wed, 05/06/2009 - 04:33

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I am in MD too and I had a loan with CashnetUSA. All you have to do is call them and ask them to put you on a extended payment plan. They will break your loan in 3 or 4 payments depending if you borrowed less or more than 1000$.
The only trick is that they will start debiting your account right away...as in your next pay date. You cannot postpone the payments.


lrhall41

Submitted by on Wed, 05/06/2009 - 06:45

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