payday loans

what state do you live in

First, what state are you in? State the names of your lenders. How much was originally borrowed? How much you have paid back so far? You are only morally obligated to pay back the original amount borrowed. DO NOT go with a consolidation company. You can do this yourself. Answer the questions, and we can help you further.

I live in North Carolina.

Im sorry im new to this lol but i posted the qeustion i live in north carolina my lenders are spot on loans and plain green loans i borrowed 400 from spot on ive just made my first payment but my payments are 120 every two weeks and the plain green i borrowed 500 ive been paying on since may its 98 every two weeks and i checked my account yesterday to see what i owe and its 442. how in the world is that possible?

Payday loans are illegal in North Carolina. You only have to pay back the original amount borrowed, no interest or fees. Click Forums on this site, then click payday loan help, then click sticky on how to deal with unlicensed lenders. Follow every step, do not skip. Again, DO NOT go with a consolidation company, you can do this yourself, and, besided, you will be wasting your money. :p

It's possible because the lenders are operating illegally. You owe principal only to illegal lenders. follow the link below for "dealing with illegal lenders"

Ohh ok thanks guys that helps out alot!! I definetly will NOT be consolidating those but it just seems strange that they woulkd even loan me any money seeing as how i live in a state where it is illegal. And if i paid more than what i borrowed does that mean they have to give it back to me?

Damn right... plain green usually will give you like a 50 percent refund or something if you press them hard enough.

They lend to you because they assume you don't know the laws; 90% of consumers just fall for it and pay them back on their illegal terms. The more reputable PDL companies will not lend in states where PDLs are illegal.

Ok so i received a call at my job today from a man named scott mitchell from the nc legal department. this is the first time i have had local people call me about these situations. he stated that he needed to speak with the hr or office manager about someone that worked here. Well i am the office manager and it was a case about me so he said he could not tell me anything but to call this number and gave me a case number. so i called i spoke with two different people they said they were calling about a payday loan i received from hydra financial and i didnt pay back. I told her that yes i did stop payment on it because i found out payday loans are illegal in NC and i only owed principal not interest she then stated what i paid was interest and not principal and that i owed 355 and if i didnt pay or set up arrangements then i would have a judgement against me in my county. she put me on hold to speak with the "head advisor" she stated that even though payday loans are illegal in NC anyone can go online and apply anywhere that they just could not acctually have a dept in NC and that when i submitted my app i was signing a legal document agreeing to the terms of the lender and that since i broke that contract it is the same thing as fraud and that i could have a judgement against me. I have no clue what to do now.

This is more BS. Remember, you CAN NOT be arrested for illegal payday loans. If same number keeps calling, simply pickup and hangup. You do not need to speak with these scumbags.

Call your state AG. You were speaking to an impersonator. He committed a felony

Ok i went to the Aty Gen web site and filed a complaint. So in the mean time what will happen if i do not pay these guys can they actually take me to court for this i mean i really dont want my employer to find out that im in this big mess. Im just scared about going to court and them calling here and harrassing me and my employees.

No they cannot take you to court. This is not even a real CA you're speaking to; it's a scammer committing a felony by impersonating a police officer with intent to defraud. Give me the phone number and I will refer it to the FBI as well.

Ok thank you sooo much for helping me!! The company is called united and the number is 877-628-9378.

Ok i know that when these companies are being paid it comes directly out of my checking account. Is an ACH debit the same thing as a check? And if so does that mean that they could take me to court for righting bad checks or trying to steal or something like that im completley terrified at the moment. I am so scared that i am about to get into some trouble.

Kayla,

We've answer the same question for you several times.

No, an ACH isn't the same and bad check laws don't apply to payday loans.

Please stop freaking out and listen to us.

Ok i sent this letter to Plain Green Loans one of my lenders


Dear Lender,

It has come to my attention that payday loans are prohibited in my state. Therefore, the loan contract that I have with you, according to my state???s laws, is not enforceable. Although I am not required to do so, I am willing to repay the principal balance of the loan. To date, I have received $500 and have made 5 payments of $98.65 leaving a balance due of $6.75. I am willing to repay the balance via credit card on October 1, 2012.

At this time I am revoking ACH authorization. You are no longer authorized to withdraw payments from my checking account. I am also revoking any wage assignment I may have signed. I have given a copy of these revocations to both my bank and my employer. Any future attempts to collect funds in this manner will be blocked.

Please contact me to set up payment arrangements as outlined above.
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I will post something when they respond or if they respond.

Perfect. Plain green will accept right away... they don't beat around the bush.

Ok so i have sent out letters, closed my bank account, and contacted the AG. I havent heard anything form the payday loan companies, but i have recieved a letter from the AG office. Can someone please explain this comment to me? dont really understand what it is saying. Thios is part of the letter sent to one of the lenders i reported.

Loans made by out of state lenders to NC residents can be subject to our usury laws. NC Gen Stat 24-4.1 states that nay solicitation to lend priginating outside of this state but forwarded to and recieved in this state by a borrower who is a resident of this state shall be deemed to be an offer or agreement to lend in this state. Further, under the statute any communication to borrow from a NC consumer to an out of state lender shall be deemed to be an acceptance to borrow in this state.

It is basically completely steamrolling any claims made by these lenders that they only have to follow A) the laws of their (their as in the lender) state B) the laws of their tribe, or C) the laws of their country. Essentially your AG is saying "if you lend to someone in our state you are subjecting yourselves to our regulations".