Getting out of the rut
Date: Wed, 08/10/2011 - 12:34
Went to my bank today and issued stop payment orders for both loans for this Friday ($70 fee!). Friday morning I'm going to close the account and move the funds (and my direct deposits) to another bank. What should I expect to happen next? Although I believe both lenders are licensed in Calif.- I'm confused by the fact that the Calif. limit on PDL's is $300 - obviously both of these loans exceeded that amount.
Hi jnichols, Unfortunately, payday loans are legal in Californ
Hi jnichols,
Unfortunately, payday loans are legal in California. Moreover, you've stated that your payday lenders are licensed to operate in your state. In that case, you'll be liable for paying them the principal balance as well as other charges and fees. Closing your bank account is definitely a good step that you've taken. Once you close down your bank accounts, contact the payday lenders and negotiate for a debt settlement. This will help you pay off the debts faster and in a easier and affordable way. However, this might have a negative impact on your credit report.
Take care.
It does not sound like either are operating legally. Max loan is
It does not sound like either are operating legally. Max loan is $300 and max term is 31 days...no rollovers permitted. Call the agency listed at the bottom.
California Payday Loan Laws
State Legal Status
Payday loan lending is considered legal in the State of California. A payday loan company is guided by the payday loan lending laws applicable in California.
Loan Specifications
- Maximun Amount of Loan - $300
- Term of Loan - Maximum 31 days
- Maximum Rate of Finance and Fees- 15% of the check
- Finance Charge for $100 loan for a 14 day period - $17.65
- APR for $100loan for a 14 day period - 459%
Debt Limits
- Maximum Number of outstanding loans permitted at a time - 1
- Permissible number of Rollovers - None (fees cannot be charged for extension)
- Cooling-off Period - None
- Repayment Plan - Voluntary (fees may not be charged in relation to payment plan)
Limits of Collection
- Collection Fees Amount - NSF fee of $15
- Criminal Action - Prohibited
File your Complaint and get Information
- Regulator - California Department of Corporations
- Address - Financial Services Division, 1515 K Street, Suite 200 Sacramento CA 95814
- Phone - (866) 275-2677
CashNetUSA is a CSO and not subject to payday loan laws. It sou
CashNetUSA is a CSO and not subject to payday loan laws. It sounds like you've either worked out an extended payment plan with them already or you obtained an installment loan from them.
Redstone is tribal. Did you obtain this loan online?
Yes, the Redstone loan was obtained on line. Supposedly Redston
Yes, the Redstone loan was obtained on line. Supposedly Redstone is not tribal - in that it is owned by a sole member of a tribe. I can't find any record of Redstone being licensed in CA - although that was only through an online search.
Redstone is tribal and not licensed in CA. You only have to rep
Redstone is tribal and not licensed in CA. You only have to repay the principal. If you've already done that, you owe nothing further.
Unfortunately, stop payments aren't going to work. You need to close the account and send them the illegal lender letter you can find in the sticky at the top of this thread.
Did you already work out an arrangement with CNU or do you have an installment loan with them? They are legal so you're going to have to call them and set up a payment arrangement if you can't stick to the one you already have.
Thank you OhioGal! Yes, I'll be contacting Redstone AFTER they
Thank you OhioGal! Yes, I'll be contacting Redstone AFTER they discover their payment is being rejected by my bank tomorrow (the account will also be closed tomorrow). I have made two payments (2x $140) on this $400 loan - thus leaving a "legal" balance of $120, which I have no problem paying - if that resolves the matter. As a side note, I had a previous pdl from Redstone (now paid off, of course) in which I made over $900 in payments on a $300 loan.
As far as CashNet is concerned - that was set up as an installment loan- I will contact them also after they discover their payment was rejected. I don't want to default - but I need some breathing room to catch up on other obligations. From what I've read, CashNet is a bit more "friendly" in working these things out.
If you overpaid a previous loan with them, you should subtact an
If you overpaid a previous loan with them, you should subtact any overpayment on that loan from your current loan. You're actually owed a refund. I'd ask for it. Even if you don't get the refund, I wouldn't give them another penny.
Was I correct that you have an installment loan with CNU or have you already been put on an extended payment plan with them?
The existing loan with CashNet is an installment loan - it is no
The existing loan with CashNet is an installment loan - it is not a payment plan that I negotiated with them.
OK. If you're having trouble paying the CNU loan as ageed, you
OK. If you're having trouble paying the CNU loan as ageed, you could try a couple of things with them.
1. renegotiate your repayment plan. They may be able to reduce (but extend) your monthly payments.
2. Try to negotiate a settlement. Take a look at how much you borrowed vs. how much you've already paid and make them a reasonable offer with payment terms you can afford.
For example, you could tell them you understand you still owe $1500 according to their records. Let them know the bi-weekly payments are difficult and that since you've already paid a reasonable amount of fees (I'm guessing you've already paid back close to the principal amount?), that you'd like to settle the loan for the remaining $1500 by paying $300 per month for 5 months. It's worth a shot.
I successfully changed my checking account to another bank. I h
I successfully changed my checking account to another bank. I have worked out a suitable repayment plan with Cashnet.
I have not heard anything from Redstone however and it's been several weeks. Redstone is an illegal tribal lender. I'm beginning to think they just let the charges roll up and then sell the debt to a collection agency.
I had the $400 pdl with them and made 2 $140 payments before changing checking accounts (leaving a "legal" balance of $120). Any thoughts as to why I have not heard from them?
nope you are correct
you answered your own question.yes they are trying to debit to jack up their so called fees,but now that you know it's a tribal loan and therefore illegal you only owe 120.00.no matter what else that is what you owe,and that is what you pay.
Actually, you owe them nothing. They OWE YOU $480. According to
Actually, you owe them nothing. They OWE YOU $480. According to your previous post you overpaid a previous loan with them by $600. Subtract what you owe from this loan and you've still overpaid. Don't give them a penny more.