Negotiating with payday lenders

Can you list the internet PDLs for us? The state of California requires all online PDL companies to be licensed by them. Are you sure that the PDLs are licensed in California?

I have researched that, but don't know if they are practicing under a different business name. The PDL's are as follows:
United Cash Loans- borrowed $500, have paid $1225 in fees and paydowns still owe $225
One Click Cash- borrowed $500, have paid $975 in fees and paydowns still owe $225
Loan Shop- borrowed $400, have paid $960 in fees, no paydown
SCS Processing/Everest- borrowed $500, have paid $1050 in fees, no paydown

I have had my checking account for over 20 years and it would be difficult for me to close it as I have most of my other personal loans that run ACH debits and I was wondering if I could negotiate with them because they have been charging me almost 700% APR when in my state the maximum they can charge is around 400% APR.

None of your lenders are licensed to lend in your state, and some aren't even licensed to lend anywhere. They aren't entitled to collect any fees or interest. Perhaps you could go to your bank and speak directly to the branch manager (no one else will do), explain the situation and explain that you have MORE than paid these lenders off. These lenders are nothing more than criminals and will stop at nothing to take as much money as they can from you. As the branch manager if they could assign your account a new number, meanwhile, CLICK HERE to find out how to deal with illegal lenders.

Shazzers- Can I call the ACH processors of these particular PDL lenders and place a block on them once I have detested the loan? I was unaware that the laws of my state protect me from paying too high of an interest rate. I never intended to not pay them, but I do feel they should abide by our state laws to protect the consumer.

Quote:

Okay here is the update-
I did not close my bank account as I don't think that I should have to alter my life for those that have broken the law. What I did is, I sent a letter to both United Cash Loans and One Click. In the letter I did not state that I was not going to pay them, but simply stated the laws for payday lending in the state of California, and the interest that I had paid them to date, what was still owed, versus what should have been paid to them under my states laws, and claimed to them that I have over-paid them and the amount. I simply asked them to explain to me their legal ground to charge me more, when my state has a cap on interest and fees.
I have not received an email back from them, but when I went online to access my account (I was going to print out my loan documents to submit to the California Corporations Commission), I cannot access my account and a memo beneath my access information said this:
We are sorry you are unable to access your account at this time. If you need assistance, contact us at: [EMAIL="compliancedepartment@unitedcashloans.com"]compliancedepartment@unitedcashloans.com[/EMAIL]
Not really sure what that means. I have not told them I would not pay, but merely requested an answer to why they feel they can charge me more than my state allows.
Earlier in the week, I was able to access my accounts with them and the status of my loan, and now they both say that and I cannot access my loan status information and that little memo.
Any thoughts on this Shazzers? It's interesting because I did not threaten them, or say that I would not pay, nor was I going to default, I was merely going to report to authorities and ask for a refund of what I had over paid based on what the laws says. I have not closed my banking account, nor have I threatened to. I just asked them to explain to me how they can do this legally and stated I was furious to learn this.

I can post a copy of my letter if anyone is interested. I will find out tomorrow if they deduct a payment from my account or not. I really don't know what they are doing, but they cannot make me pay in full, because I did not tell them I was defaulting or refused to pay, just to explain to me how they can legally charge me 30% interest, when my state has a cap of 15%.
I'll keep you posted.

I found some more interesting news- The Loan Shop has been issued a Desist and Refrain order in 2007 from the State of California Department of Corporations for issuing payday loans without a license in the state and for over-charging the consumers of this state fees in excess of the 15% allowed. I wonder if I can request a full refund less what I had borrowed because they already have a court order not to lend to State of California residences.
It's funny how I learned about these illegal lenders from one phone call from a debt consolidator which got me to start researching this. I had no idea I was being over-charged interest/fees and that there was a cap on what can be charged in my state. This forum has been great.

[QUOTE=SJohnson;734632]Okay here is the update-
I did not close my bank account as I don't think that I should have to alter my life for those that have broken the law. What I did is, I sent a letter to both United Cash Loans and One Click. In the letter I did not state that I was not going to pay them, but simply stated the laws for payday lending in the state of California, and the interest that I had paid them to date, what was still owed, versus what should have been paid to them under my states laws, and claimed to them that I have over-paid them and the amount. I simply asked them to explain to me their legal ground to charge me more, when my state has a cap on interest and fees.
I have not received an email back from them, but when I went online to access my account (I was going to print out my loan documents to submit to the California Corporations Commission), I cannot access my account and a memo beneath my access information said this:
We are sorry you are unable to access your account at this time. If you need assistance, contact us at: [EMAIL="compliancedepartment@unitedcashloans.com"]compliancedepartment@unitedcashloans.com[/EMAIL]
Not really sure what that means. I have not told them I would not pay, but merely requested an answer to why they feel they can charge me more than my state allows.
Earlier in the week, I was able to access my accounts with them and the status of my loan, and now they both say that and I cannot access my loan status information and that little memo.
Any thoughts on this Shazzers? It's interesting because I did not threaten them, or say that I would not pay, nor was I going to default, I was merely going to report to authorities and ask for a refund of what I had over paid based on what the laws says. I have not closed my banking account, nor have I threatened to. I just asked them to explain to me how they can do this legally and stated I was furious to learn this.[/QUOTE]
You need to do what is best for you, I just hope that by not closing your account they (United Cash Loans) will not change their name and debit your account under a different name because they have been known to do that, but worse than that, illegal lenders will either sell or give away your personal account information to other illegal lenders, then suddenly you will find yourself with a negative account, just letting you know what you could expect to happen.

The reason they blocked your access to the website is for the very reason you were trying to access it, so you couldn't pull any information from it and use it against them. This is common practice.

One Click and United Cash Loans did not debit my account today. I did not request them to, they just didn't. My letter to them was more of an explanation letter. Like I mentioned before, I never intended to default as I am not in the position that I don't have the funds, but merely disputing the interest/fees that are being charged. I wanted to hear what they have to say and what their justification for being noncompliant with my states laws is. They have not made any threats nor did I threaten them. So, I will see where this goes. I have had and paid in full a couple of loans with them and have always made good on all my loans. And again, I never told them I wouldn't pay them. So, kinda interesting. If other illegal lenders access my account, I will dispute the charges at my bank and I have been at my bank for 25 years. Ain't gonna work for them. Also, if unauthorized to do so, I will file criminal charges and it would get ugly for them.
Loan Shop debited my account the fees. So, I will send them another explanation letter and include the information about the desist and refrain order that is in place, just to remind them.
I'll keep you posted, I know that closing the account is the optimal avenue, and I recommend those reading this thread to take the advice they have been given in this forum. I have just decided to allow them a chance to make things right, and I hope they have.

I'd urge you to listen to what Shazzers says; having dealt with United Cash Loans myself, I can tell you now that they are VERY persistent and will try all types of tactics to get your money. As far as filing criminal charges against these companies; some of them are located on Indian lands within the US and certain laws can't touch them as long as their address IS on these lands. And of course of the PDL is overseas, criminal charges won't do much good. However, as Shazzers said, you have to do what is right for you, and I certainly hope it works out. Please keep us posted.

The worse case scenario is that I pay in full which is only $250.00. They can't get more than that out of me. My bank is really good with transactions that were not authorized, and like I said, I never threatened these folks that I was rescinding on my loan with them, but to merely answer to my letter regarding the fees they have charged me in excess of what the law in the State of California permits. They also have resist and refrain orders against them in this state, that is a court order. I don't mind paying as I took out the loan. what has got me enraged is the interest/fees they are charging me. I've been paying it, but I have to stand up somewhere at sometime and say "Whoa, stop, this isn't right." Now that I am aware of the state laws, I am more angry at myself for getting into this situation in the first place. Typically, when I have an issue with a company, I will state my claim and show that the claim is valid, and go from there to resolve an issue. What they have done at this point was their choice, I didn't ask for it or deprive them of it. They just accepted my stance on this issue. That's how it appears to me at this point. Yes, it could come back to bite me in the rear. I'll keep you posted.

I too am currently fighting with Unitedcashloans. Just sent them 2 more emails, they continue to call my cell phone, but do not leave a msg. I google the number received, and of course it's unitedcashloans. Just sent them an email letting them know I would be more than happy to send them the FTC complaint# I filed. I doubt that will get their attention, but I figured it was worth the effort. I borrowed $400, paid them $805.00. Told them I wouldn't pay another penny as they are illegal in my state. I will keep hammering them until they get the message.

Good luck with them!

I hope everything works out in your favor, please do keep us posted.

Here's the update for those that are interested-
United Cash Loans called me and made an offer to settle for the principal balance of $250.00 and agreed to break it up into two payments. they would have allowed three without fees, whch I agreed to. They have not tried to make any ACH debits on my account since they received a letter from me.
One Click Cash has not called me nor have they made any ACH debits on my account. I assume they will be trying to contact me to make the same type of arrangement as United Cash Loans, which will be fine.
Loan Shop Online made one ACH debit on my account after I sent a letter to them, but they did not debit my account this week. The information on the loan and proof of ACH debits is now in the hands of the California Department of Corporations. There is a Desist and Refrain order that was issued in November, 2009. The Department of Corporations has contacted me and I have been corresponding this week with an agent providing her with all my documentation via email. The Department of Corporations emailed me very quickly and are hot on this, let me tell you. They may be in big trouble as the California Department of Corporations said they are in violation of that order. I have not heard from this company yet and I may not. It seems like they don't send letter or replies back in response to any emails, I don't know if it is because in my letter I stated "please be advised that all correspondence may be viewed by other organizations/agencies." If anyone has a loan with Loanshoponline.com send an email to: [EMAIL="dhaakens@corp.ca.gov"]dhaakens@corp.ca.gov[/EMAIL] an agent dba California Department of Corporations. They will love to hear from you. I'll keep you posted.

You've paid over $1,200 on a $500 loan to United Cash Loans and they "generously" offer to settle for $250? Someone else here might want to correct me but I'd say THEY owe YOU a refund! They're illegal, all you're morally obligated to do is pay the amount of the principle and you've done that twice over. Same with OneClickCash, you've overpaid them if they're not legal in your State.

Yes, you are right about that. I cant forsee any refund from these people. I may with Loan Shop, but with United and One Click they are still litigating their issue about tribal lands and the laws of the states. I've read all the civil action cases and none have precedence. I am just glad that I wont acrue additional fees on the balance. A down fall to not closing your account which I cant do because of other loans that I have on ACH transactions. It would be very difficult for me to have the account closed. My issue has not been the legality of the loan but the excessive charges. I have also submitted all the information to the California Department of Corporations, if they pursue the case, then maybe I can recoop some of those fees if not all. It's a little iffy regarding United and One Click. I am working on them. The state has all they need from me to present a nice case and at the very least, others may be protected in the future.

According to the Oklahoma Department of Consumer Credit which regulates licensing in the State of Oklahoma, where United Cash Loans states they are doing business from, United Cash Loans is not bound to the laws of the state regarding payday lending. They state that you have to go to "Indian Affairs Commission" based in Miami, Oklahoma. These folks hide behind the Indian Tribe and are able to run if you will, legal racketeering, and are not bound to the laws of any state. Interesting huh? The BBB in Oklahoma State cant get a response from them and complaints go unanswered or fulfilled without further investigation of the legality of this business to practice in this state or not. If they don't respond, then all is forgotten. Maybe the Federal Goverment should step in and put a little heat on them to prove that they are really part of the tribe.