Internet PayDay Loans

Hi and welcome!
We are very glad you are here and we have ALL been there, trust me. A few things: First, this is a very common scare tactic these companies use. Hopefully, you did not give them account or debit card information? You have absolutely done the right thing in closing your account and not giving out the number, so I applaud you for that.
To the best of my knowledge, internet PDL's are illegal in Pennsylvania, which would mean you would only have to pay back the principal, which is what we advocate.
Go back over your bank records to see how much you actually paid them and subtract that from the principal. Then propose a payment plan on YOUR terms.

thanks for reply, the loan was i think from july last year so i will have to do some research but this collection agency Turning Point Solutions in NY sent me a letter via email which I ddnt give instead of a fax and I asked him for all the info which meant debt validation...the letter he sent says that the loan outstanding is 976.00 and that if I make a payment of 500.00 that my account will be considered paid in full but how the heck can they charge me 500.00 on a loan that the principal rate was 300.00 and I think I made 1 or 2 payments of 90.00 before I had to close my account with TD..should I send them the letters that you suggest? like a debt validation ltr and C&S so they do not contact me at work? there is no way i owe them that much and i want to pay what I am supposed to according to the PA laws......and not a penny more, can u give me a step by step on what i should do in the meantime until i found out what i actually paid them....thanks and this group is the best!

Here's the thing, payday loans are illegal in the state of PA so, "according to PA laws," you don't owe anything, technically.

Since this is a third party contacting you, validation is the way to go. Even if they send you a copy of your contrract, that contract is technically void since PDLs are prohibited.

Respond in writing (email is fine) requesting validation of the debt (you may have already done this but I got the impression that your request was verbal). Include PA laws regarding PDLs in your email.

[quote]
PA


Pennsylvania State Information

Legal Status: Prohibited

Citation: Check cashers are specifically prohibited from making payday loans under Check Cashing Licensing Act of 1998, 505(a). Otherwise, consumer discount company act applies. 7 Pa. Cons. Stat. Ann. 6201 et seq.

Small Loan Rate Cap
$9.50 per $100 per year discount or 24% per year

Where to Complain, Get Information:
Regulator: Pennsylvania Department of Banking
Address: Market Square Plaza, 17 N. Second Street Harrisburg PA 17101
Phone: (717) 214-8343
Fax: (717) 787-8773
Regulatory Contact: Jim Keiser Administrator of Non-Depository [/quote]

Bottom line, I do not recommend that you give this CA a single penny. They can't collect on an illegal loan. Their threats are idle. File a complaint with the PA Attorney General's office and the FTC. I would also contact the PA Dept of Banking (info above) for further guidance.

thanks so much, I will start and let you know the results!