Payday loan hell - Please HELP!

It is true that if payday lending is illegal in your state, then you will be liable for paying only the principal amount to the lender. He won't be able to charge you any extra fees. Once you pay off the principal amount, you can close down your bank account so that the payday lender cannot withdraw any further money from that account. If you've overpaid the accounts, then you can request for the refunds.

Unpaid payday loans will affect your credit score in a negative way. However, once you pay off the debts and the lenders update your account status, you'll find your scores improving.

Thank you!
started the process by closing my accounts and revoking ach authorizations.
Keeping my fingers crossed.

Ok. So I sent out the letters to all the PDL's and thus far have received responses from Pack Management/B&L Marketing and Alpine Direct Services.
Pack's response was "You will have to call to receive assistance. Sorry but this is our policy. Please call 866-943-6712 ." I called them, they refused to give me an address to mail payments, saying that they didn't accept any via mail, said that they do accept moneygram and debit/credit cards. She would not give me the money gram number unless I agreed to pay off the principal plus fees - which I refused.

Alpine Direct's response was " [FONT=Palatino Linotype][SIZE=3]We are a licensed pay day loan company and we are legal to loan in the state of Pennsylvania . The laws in your state do not apply to us. If you choose to stop payment on Alpine Direct Services your account will be reported to the credit bureaus. If you choose to pay your current balance like you agreed to when signing your loan documents, I can go ahead and set you up. Your next due date is 4/22/2011 and the balance is $390, please confirm." [/SIZE][/FONT]
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[FONT=Palatino Linotype][SIZE=3]Are they legal to lend in PA? I'm going with the understanding that payday lending is illegal in PA and she is full of baloney...right?[/SIZE][/FONT]
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Payday loans are not legal in PA. They are not licensed to lend in the state of PA and they DO have to follow your state's laws. Have you filed complaints with the AG and the FTC?

Be sure to file complaints with the AG and FTC in your state. After you file the complaints send each of your illegal lenders an email. Be sure to revoke your ACH and wage assignment with each of them if you haven't already done so.

If they report it to the credit bureau's, dispute it on the grounds they are not licensed to lend, you might also include a copy of your state payday loan laws, see the link below:
paydayloaninfo.org/state-information/46

Thank you guys and gals for your input...much appreciated! I haven't filed complaints with the AG and FTC yet. Will be my next step. I suppose there are sample letters on here for that - will check.

Surprisingly, haven't heard back from any of the others. Only Pack and Alpine. And I suspect they are the same outfit and/or sister companies.

I responded to the lady from Alpine asking her again for an address to send payments, reiterating I will pay only the difference of my principal, told her I researched them and found they are not licensed, but if I'm mistaken to send me a license number to verify. She totally ignored that request and responded by saying:
[FONT=Palatino Linotype][SIZE=3][FONT=Palatino Linotype]"You are correct this is not negotiable because unfortunately that is now how the payment arrangements work. The full balance is $390 which $90 is the finance fee and your principle is the $300. If you want to pay your principle balance of $300 you must pay over the phone with a credit/debit or pre paid card. [COLOR=red]We do not accept mail in payments[/COLOR]. Once again, refusal to pay your balance will result with your account being forwarded to an outside collection agency. If the account gets forwarded to an outside collection agency they will assess $265 on top of the balance forwarded. If you have any other questions or concerns please call or email."[/FONT][/SIZE][/FONT]

So, I guess I'm going to have to file a complaint with my AG and FTC??
Also, I still plan on paying my balance but not the hacked on fees. Question - if I call with a prepaid debit card, can they deduct more than I authorize from the card? Eg. if I call to pay $50, can they deduct the $300?

So, Pack Management has accepted my offer to repay my principal only. But they refuse to accept my payment plan of 3 months and are insisting that I repay my $210 balance in one payment (which I cannot pay). They are also refusing to agree to my payment plan via email and are insisting that I call in and they will work with me.

Should I call? I feel like they might be willing to work with me (even though they keep saying they won't accept my payment plan), but won't put it in writing...
What to do??

Here's what they said:
"
[LEFT]Ma'am, we are not calling and have not called you. We cannot set up the proposed schedule. We are sorry but it is not an option. We will allow you to pay the remaining $210 in one payment on an agreed upon date but you MUST call to set this up. This is our policy and must be adhered to. Again, we will direct you to call 866-943-6712 866-943-6712 . If you do not call, we cannot help you. Unfortunately, we will not respond further unless you call. This is not meant to appear difficult, it is because we have already done more via email than allowed. If you call and make an arrangement, we will happily email you a written statement of the agreement but you must call first. If you do not call, the account will be attempted and when it returns that the account is closed it will be sent to an outside collections. We would really like to work with you before that happens but you need to make an arrangement to prevent that action. Again, please call we HONESTLY would like to work with you to resolve this matter. We gave you the money, when you needed and now, even though you are demanding we break the contract we are still willing to work with you but you must follow our procedures."[/LEFT]

I would remind them that, since they are lending illegally to PA residents, you're not legally obligated to pay them anything BUT, you think it would only be right to repay what they deposited and are only willing to do so on YOUR terms. Period.

Thanks Ohiogal.
I responded along the lines you suggested, telling them that I will only call to provide payment after they agree in writing to my payment plan suggested. And that I refuse to negotiate over the phone and that I am unable to make one payment of $210 but think it's right to repay the balance of my principal.

Will see what happens.

Question - if I don't get a response from this one in particular or any of them in fact, should I still contact them on my next payday to arrange my suggested payment schedule? or should i sit and wait for their response to my emails regarding revoking ACH, request to pay in installments?
I don't want to make the wrong move and make things worse for me. Please advise.

Is your account safe? If so, I would just send an email once per week outlining your payment plan. Actually, even if they don't agree to it, you could send the payments anyway. What are they going to do, send them back? :) This way they will know you aren't going away and you have a record to prove you've been trying to pay.

After reading your thread I am like you feeling very empowered. I just don't know where to begin. I have been reading over the different threads and have an idea of what to do. I want to pay what I owe to these people because they did lend the money to me. But my problem is they keep rolling over and now I'm in the hole with paying my other bills. Sorry if a little off topic but I did have a question.

Did you close your bank account? I really wanted to avoid doing this but I'm not sure if there is another way?

Ohio Gal,
Yes, reported it to my bank on Monday and their procedure was to make a statement of fraud. I gave them copies of the letters I sent to the PDLs revoking ACH authorization. They have put a hard block on my account until I authorize other wise.
I will continue my efforts to get a payment agreement out of them and to make my payments.

Question - as they have not provided a mailing address - do you think it's safe to call them every payday with a prepaid debit card to make my installment payments? I'm scared that I will authorize $50 and they will try to take $210.

Jennifer,
I too, like you was very hesitant about closing my bank account. But these lenders are illegal and can't be trusted. I have two accounts with my bank (Citizens Bank) and I closed my primary one where my direct deposit goes to and I withdrew all my funds from my secondary account. Because I believe once your name is on an account at the same financial institution they can withdraw from the account. Don't quote me on this - but its better to be safe than sorry.

I also got a prepaid debit card and arranged with my payroll to have my direct deposit go there for now. I will reopen a different checking account (possibly with a new bank once the dust clears)

I cancelled all my bills (car payment, insurance etc) that I had set up on automatic payment and either opted back to mail in payments (money orders) or gave them the routing info for my prepaid debit card to withdraw automatically.

I drafted letters to all the PDLs revoking ACH authorization, letting them know I know they are illegal lenders and demanding a payment plan to pay off the balance of principal owed. In some cases, where I had reloaned with the same lender, when I sat down and added up all the fees - I had more than paid off the principal balance - sometimes by twice as much. In those cases I'm demanding a PIF and a refund.

Don't be intimidated by the process or the lenders. You are not the only one going through this and the people on this forum have been very helpful in guiding me step by step.

Good luck to you!

You can tell them all day they are illegal. They will keep rersponding with they are in their state, therefore your state laws don't matter. If you repay the principle and not the intrest/finance fees by the time they turn it in to the Collection companies and the credit bureau's the amount they will claim will be 2X-3X times the original amount you borrowed. And they will turn it over, then leaving you to fight the collectors and bureau's. Some may back down from this scare tactic of calling them on being illegal, but most will not. And since as of yet I have found no proof of the whole pay only the principle thing, I am truely doubting it. Most states AT's will not waste time going after 1 small PDL in another state that will shut down and re-open under a different name in less than an hour so good luck there (been trying it). Still some good advice here, but don't think this is a cure all be all. So far, at least for me it's not working. The one thing that does seem to work though is when I tell them I refuse to speak to them any more EVER and give them the name and number of the attorney I just paid a retainer to.

Try this:

Pack Management LLC
2533 N. Carson St Ste 4074
Carson City, NV 89706

Which payday loan are illegal in California?

Too many to name. What companies specifically are you questioning?

Thank you for the address. I will send them a money order next week in the mail.

Unbelievable with Pack Management! after telling them that I am not financially able to pay the $210 in one payment and stating my intent to repay the balance of the interest and that I would call on my next payday - next week to make my first payment as suggested. The response I received was that they would not be able to take the payment and by that time my account would have been debited.

I'm astounded! I'm trying to do the right thing here and they are playing hardball.

Thankfully my bank account is closed and I'm keeping track of all the correspondence to show my efforts to pay this debt.

I wanted to update everyone on my progress thus far.

I've received PIFs (Paid in Fulls) from Magnum Cash Advance aka International Cash Advance Management and CashJar. Even though I have grossly overpaid them both, I'm happy to not even have to battle them anymore. I am wondering though if I should keep pushing for my refund.

I've been able to work out payment arrangements towards my principal only with East Side Lenders and Pack Management aka B&L Services.

I've heard nothing back from the following PDLs who I've also overpaid;- Vista Holdings/Summit Group, One Click Cash and US Fast Cash.

I tried unsuccessfully to work out payment arrangements with Alpine Direct Services. Mostly because the agent - Janette - seems to be taking it very personally and it extremely rude and aggressive in her communications. Before my next due date arrived she says they sent me to collections with an additional $265 in charges. I said whatever - I tried to work things out with you.

I was able to have my account closed by the bank and a rep at my branch is keeping an eye on the closed account and my one other checking account in case the PDLs try anything funny. But I have my direct deposit going somewhere else.

I have been receiving calls everyday on the hour from 'weird' phone numbers, which I don't answer and they never leave a message - so I'm sure it's one of these illegals or one of the scammers from India calling. Either way - no negotiations over the phone - and if it were a legitimate call/debt/company they would leave a message.

So there you have it!

I feel a hundred times better this payday than I have in a long long time. Able to pay my bills and not feel caught in a vicious cycle from a bad decision. Lesson learnt!

And much thanks to the people on this forum for all the help, advice etc

Will update again, soon. =)