Help with PDL Nightmare in CA

Well, Texas require Internet lenders to be licensed in your state, regardless of where they are located they must obtain a license from the state of CA in order to lend to CA residents legally. I can't seem to get to any licensee data base right now to run a check, I'm not sure if I'm having Internet problems or the site is down. Anyway, CashNetUSA is a legal entity and it would be in your best interest to work out some type of payment arrangements.

Here is a list of your lenders that I know aren't licensed:
Loan Point Usa
Integrity
Northway Financial/zip19

You will need to close your account asap! Your account will never be safe AGAIN since these unlicensed lenders have your account number. It could be a year down the road after you think you have it all settled then all of sudden BOOM, they will debit your account again. CLICK HERE to find out how to deal with illegal lenders.

My husband and I both have direct deposit as this may cause a delay in the account closure so I may have to take another hit on 10/15/09 while we await our deposit to be transferred to a new bank account. I will speak with the bank about this. Thank you so much for replying to my post. I am in the process of looking up the addresses and complaint departments. Do I file the complaints prior to sending the pdl's e-mails and closing my account? or does it not matter the order?

Thank you so much for the link to all the information on what to do about these illegal pdl's. I have already paid them all way over what I initially received so I should not be obligated to pay them anything additional right? I just want to make sure I am understanding this correctly. So the only legal responsibility I have as far as meeting my obligations financially is with the cashnetusa and the two storefront pdl's?
Also, I have three of the original contracts I signed saved in a word document when I received these illegal loans. Is this information helpful to me and if so, could you tell me how and why and what I should do with it?

Hi!

I was recently assisted by Shazzers on this very issue and I live in CA, and I can tell you that you are only required to pay the priciple balance on what you borrowed from any unlicensed/illegal lender. So if you borrowed $300 initially, and you've paid $400 in finance charges, that company techincally OWES you $100. You can send in a letter demanding that a paid in full receipt be mailed to your home, but only do this AFTER you have closed your bank account that the PDL company is debiting you from. You can also demand a refund for the amount you overpaid. It may not always work, but it's worth a shot. Shazzers sent me a draft of what to send to these companies, and I modified it (see below):


"After doing research regarding Internet payday loan laws in the State of California, I have found that your Internet payday loans are unlicensed.

I hereby revoke any and all ACH authorizations with your company from debiting any of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I have blocked any ACH/automated check drafts on my account ending in **** to protect my interest in this matter, per instructions from The CA Department of Finance. I also revoke any and all wage assignments I may or may not have signed with your company, 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 have notified my employer about this matter so any attempts to do so on your part will be rejected.

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 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 or contacting my references listed on my loan. Any threats made against me by your company will be documented and sent up to the Attorney General???s office, the State of California???s Department of Corporations, and the BBB. A copy of this letter has been forwarded to the CA State Attorney General to document these demands.

Due to the fact that Internet payday loans must be licensed in the state of CA to be a legal and binding contract, your company should not issue loans to CA residents at all. I am requesting that you send me your license number which enables you to offer loans to CA residents. As it stands, federal law supersedes anything written in your agreements.

The legal amount that could have been charged to my loan is the principal amount, even if your Internet pay day loan were legal anywhere in the U.S. I am willing to pay the principle amount of the loan only; however, this is only if you provide me with a physical address where I can send payments. I have made numerous finance payments in the amount of $___to your company. Based on your lending status, I will only pay pack the difference in what I borrowed against what you have already collected in finance charges to satisfy the principle balance. To date, I have paid (insert PDL company name) a total of $( __) in finance charges on a $(original loan amount) principle loan, which leaves $ (amount overpaid) owed to me. I am demanding a paid in full letter and refund of $(amount owed) be mailed to my home address once this is received and processed.

I must also inform you that I will be filing complaints with the Better Business Bureau, the Federal Trade Commission, and the CA Attorney General's Office.

I expect a response from your company no later than 5 days from the above date regarding this matter. This response may only come via US Postal mail. Again, no telephone contact is permitted in any regard, to any of my references or friends, home number, or to my employers. I look forward to an amicable settlement of this issue.

Sincerely,

Your Name"

I hope this works for you like it did for me! Don't bother worrying about the contracts that you signed; federal laws always trump anything written in a contract, so based on the illegal status of these lenders you have nothing to worry about!

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Good post Jason! I'm glad to see that you are sticking around to help others!