payday loan (scare tactics)

Scare is exactly what it is meant to be. The best defense against these things is to not deal with them. I used to work in collections, briefly, and went through a ton of training. The first and most effective step is to get you on the phone and to get in your ear. If they can't do that, they are useless. Change your phone# or don't answer. Just don't deal with them.

Thank you, you made me feel better, these guys are really scarey. I talked to the police department in my city to ask if they could could come and get me at me work and they laughed about it. I forgot to say that Mr. Steinhart's supervisor told me he was going to enforce the Martha Stewart Act of 2006 and invoke the Constitution of the United States to prosecute me. When I asked them for their address he said they don't have a mailing address, because they don't accept US Mail. I asked what city they are in and he said Jax, FL. I even had him spell it for me, there is no such place. Thanks again.

Use caller id and an answering machine to screen your calls. Don't talk to anyone you don't particularly want to talk to. Check out "call trace" options with your local phone company and find out what that's good for where you live.

I've had the scare tactis on my answering machine. When I call them back they seemed to change their tone a little bit.

I've had this happen to me. When we first went into consolidation they even called my mother-in-law and told her something about "bank fraud", that shook her up. If you're in consolidation talk to your counselor and have your counselor call them back. Send them a cease & desist and don't answer your phone if you have caller ID. Don't let them intimidate you which isn't easy but stand up for yourself. :)

I'm hoping that someone can help me, I have a cash advance with Cash Transfer Centers, which in the last couple of days, I've found out they have many names, PRL...Sonic. Anyway, I defaulted on the loan, I admit that, and it's not that I'm trying to run from my responsibilities, I am actively trying to pay them. I asked if I could make payment arrangements, they said no...they are threatning to garnish my paycheck...I guess what I want to know is if they can do that...why won't they let me make payment arrangements...can they take me to court?...I heard about this place called T & C, but can't find any information on line...Can anybody help me?

Sonic is one of the hardest lenders to deal with. They think that threatening people will get their money faster. You need to send Sonic a wage revocation letter asap. You can fax and send the letter by certified mail with return receipt requested. That way you have proof that they received the wage revocation and give a copy to your employer letting them know you have revoke the wage assignment. I will pm you the info to T&C right now.

Can they really garnish my paycheck though...and will T & C help me if I only owe a small amount like under 1000?

Dream_Big77:

First off, you should probably post this as a new topic or search through the forums for the name of the company.

But, in response, I'd point out that your responsibilities are determined by law. And if the company you're talking about uses a bunch of different names, it's probably not a legal company. If that's true, you have no responsibility to repay them over what they originally loaned you. So you're probably not "in default" because it's probably not a valid debt. If you email me privately, I may be able to help you find the statutory authority that governs such operations in your state.

They can't collect interest, fees, garnish your wages, have you arrested, or any such thing as that legally. What they'll do instead is a series of illegal transfers out of your bank account.

My suggestion is that you close whatever bank accounts you've told the payday loan company about, right quick. And if, for some other logistical reason you can't close those accounts, give the bank written directions telling them not to honor any purportedly preauthorized transactions from those companies. Tell them (at a minimum) only to pay those whom you identify in written instructions personally signed by you. Then if you've got car payments, mortgage payments, insurance premiums, or what have you, you can identify those to the bank in writing as authorized debits.

If you go into the bank's office, you can get one of the desk people to sit down with you and identify the transactions that have already occurred and that will help them stop payment on any future requests that come in over the wire. It's best to close the account, though, because those guys will change the request and pretend to be someone else with a preauthorized transfer.

Do check on your state's law about payday loans, find out whether that company is licensed in your state. Here's a rule of thumb, though - if they don't have a mailing address (that's a refusal to accept tender of payment btw, that waives their right to collect), and you don't know and can't find out the true and correct name of the business, then there is no contract and you don't owe them anything. You can't owe money to a person that doesn't exist.

and I'm from North Carolina, they won't be able to help me, as I've just found out from the postings here :(

I'm not sure whom you're referring to when you say "They" in "They won't be able to help me."

All lenders of amounts less than $10,000 are required to be licensed in N.C. - see the N.C. code, chapter 53, article 15, "Consumer Finance Act".

The maximum interest rate is 36% on up to the first $600 and 15% on anything over that, expressed as an annual simple interest rate which can be assessed daily on the unpaid principal balance. In addition, the lender can charge a fee which is a maximum of five percent or $25, whichever is less. Section 53-173.

Payday lenders are regulated by the N.C. Commissioner of Banks. http://www.nccob.org/NCCOB

See, in particular, N.C. Code ?? 53-190 "Loans made elsewhere".

I notice that neither the "about us" nor the "contact us" sections of the CashTransferCenters website contain any information that identifies a legitimate business name or address. A "whois" check on the domain name indicates it is owned by people in Sliema, on the island of Malta.

Neither "cashtransfercenters", "mycashtransfercenter" or anything starting with "northway" (the name the Malta people are using) are licensed in N.C.

Conclusion: You don't owe those people anything and they can't sue you (except possibly in Malta - do you own real estate in Malta?).

No, I don't own any property in Malta. I don't mean to sound dumb, but I need this explained to me a little simpler (I'm sorry).

Can they garnish my check?
Can they contact my employer?
Will they take me to court?

As far as blocking them from my checking account, I would have to block them under every name they have, is that correct?

>>No, I don't own any property in Malta. I don't mean to sound dumb, but I need this explained to me a little simpler (I'm sorry).

= Sorry, it was a joke - when you sue someone, the usual and best way to collect on a judgment is to seize whatever real estate they own within the same jurisdiction in order to pay the judgment off. The point was, that if you don't own any real property in Malta, then you probably don't care whether anyone sues you there - it can't affect you in N.C.

>> Can they garnish my check?

=No.

>>Can they contact my employer?

Anyone who wants to can contact your employer. A "debt collector" (as opposed to a lender) has to stop doing so if you tell them to. If they do call your employer, tell your employer it's an extortion scheme, 'cause that's what it is; it's no different from "pay us money or we'll burn down your business". That is, tell the employer to ignore the calls, or if the employer's unhappy about the calls, to call the police and report the harassment and interference with the employer's business. You don't owe those people anything, I'm thinking.

> Will they take me to court?

=I'd say it's a safe bet they're not going to take you to court. By protecting themselves from lawsuits by locating in funny places, not getting licensed, etc., they've also given up the ability to sue you in any meaningful way (like I said before, perhaps they could sue you in Malta...).


>>As far as blocking them from my checking account, I would have to block them under every name they have, is that correct?

=That's why I suggested giving the bank a list of the AUTHORIZED debits and telling the bank to block anyone who's NOT on the list. Even if you list all the names you know of now, they'll start using new names you haven't blocked as soon as they find the well's dried up.

Okay, so if I break they payments down in monthly installments, they will take the money right, because like I say I do owe them.

So, I just need to write them a cease communication letter so they can't contact my job, is that true?

dream and virginia legal.. Sonic is known for trying to get employers to honor a voluntary wage assignment. Waht instructions/should dream give to her employer in case they try it?

Hello Virginia-Legal-Defense...you bring up many good points and seem to know lots about this payday loans nightmare that all of us are facing.

I have a couple questions though...
1) Can you please send me the regulated law for Washington state (as you gave a link for NC in previous entry)?
2) You mentioned Northway...I've been getting illegal debits from them on my 'closed' checking account for the past 5 months! B of A has racked up over $800 in NSF charges because they keep on attempting to debit my account. What company is this? do they have any other aka's? And is there an address available for these guys?

Thanks!

Northway is just another name Sonic is using. I think they are up to 6 different names.

quesik, Washington state requires all payday lenders to be licensed incluing internet based ones. You can file a complaint against them with the Washington State Department of Financial institutions. With regards to your bank have you gone in to them and personall talked to them about what is going on?

dfi.wa.gov/consumers/paydaywp.htm.. this page has lots of good info. I am also very familiar with the Washington LAw so feel free to ask questions

SO, if the company is not licensed in your state, what exactly does that mean? You don't have to pay them, or they can't take you to court? I'm sorry I'm so confused.

Hello,
Can someone please tell me the other names Sonic goes by other than Northway? I guess since they've been debiting (or trying to debit) my account, I must've signed up for a loan with them at some point but I don't recognize neither Sonic nor Northway.
Thanks for the info jj. I have talked to my bank personally and they said they will investigate but haven't gotten back to me ... it's been a month already!

In my state, AZ, if a lender is not licensed to lend
high-interest payday loans, he/she has committed a
crime of misdemeanor and the contract for the loan is
void and uncollectable.

Most states have similar laws because we don't live in the 18th century anymore and usary is a crime!

Sonic is also known as Cash Transfer Centers, PRL, Northway. I just found that out today...Hope this helps

quesik:

Did you tell B of A that the charges were unauthorized within 60 days of their having appeared on your statements? If so, then they're liable for the charges, not you. I hope you have documentation, at least a log w/dates and times of your communication to them.

Hello Virginia,

Unfortunately, I just found out about the charges/NSF's last month when I went to B of A to re-open my account! I closed the B of A account I had back in August 2005 but decided to re-open it last month because it was convenient (since they are all around) but they told me my account was still open? and hence I found out the ridiculous fees that were being added on to the account which was supposed to be closed! So to anser your question, it has been well past 60 days...
Later I found out it was a company called Northway that was trying to debit $315.66 every other week...ridiculous. They've been trying to debit this account since September or something.

Hmmm I have heard of this Mr. Steinhart...And I have also recieved this same call from pre litigations, who first called my job... A Megan Plavyk called threatening the same jail and charges.. My loan is with FSM told me she would contact Mr Steinhart who who the supervisor at FSM after putting me on hold for 10 min. she came back to say he agreed to let me make argmnts for payment.. How short of the 820.00 was I... for a loan for 300.00???that I made 2 payments on.. Told me I had till 2 pm the next day.. After coming to this forum and checking around I found out that scare tatics like that are illegal.. thanks guys.... :) So when she called me back today.. I had a LITTLE attitude.. her comment was if your going to have that attitude you will get no where and I will just go ahead and file the papers and have your wages garnished and trust me you will be in jail within 24 hours....... my LITTLE attitude just got a little BIGGER... told her lady "TRUST ME" if you or anyone from your bogus company call me again.. you will be the one facing criminal charges...

Dont let them bully you... Know your rights and if you dont know them... Check into them right now.. and be prepared when they call again..

Yes, you have to watch out for these companies because they pretty much assume you don't know anything about the laws and play you as dumb. ALUMLEY, how did they respond once you gave them your response with the BIGGER attitude? Have they called you since? I'm just curious what happens when you tell a company that you will sue them...do they drop the charges on you and pretty much erase the loan you have with them?

I was called this morning... sunday... by a collections agent saying I missed my court date.... I was never served I replied.... she said she had a signed document.... I asked her to fax it.... she said I was going to be arrested.... is this type of thing even legal for them to threaten like this?????

krstopher -

was this in relation to a payday loan?

If it's for a payday loan, they're bluffing. They can't arrest you for defaulting on a payday loan. And if it was an internet PDL, you can almost guarantee they're acting illegally. They make these types of threats all the time, though the "missed court date with a signed document" is a new one.

Please post more info on this, and we'll try to help you out.

plus calling on a sunday is also illegal, at least in my state. keep a copy of all your phone records and, if you can, keep a journal of your conversations.

This tactic is indeed a new one--and my gut feeling after getting a call like that would be to ask how in the Sam Hill this woman would know anything about that if it indeed were true--and unless she could A. provide a copy of a signed document showing this was true or B. was a verified officer of the court, I would tell her that the call ends at that point and nothing more would be said until she provided evidence to support her claim.

debt collectors use sleazy tactics like harassment, using abusive and obscene language, intimidation and illegal means to coerce money from people. The allegations are too numerous to list. One of the new tactics used by the collectors is to harass people for the debts that they don????????t owe. The consumers pay the money to protect themselves, their families, friends, relatives, and their co-workers from the harassing calls. I was going through an article and was shocked to see that FTC charged that 80% of the debt collected by a renowned collection firm came from the people who do not owe the debt. This is really ridiculous.

this company has tried several times to debit money from my account ach time in different amounts over drawing my account and they are also trying to charge me 29.00 for each debit that they could not take out plus my loan for $500 is now up to 850 because of this. I have offered to make payment arrangements and they will nnot do that. I have stopped payment in my account for this. Please advise what to do further.

The so called Martha Stewart act is referring to:


Which has no bearing (that I an see) on this alleged case. In short they are blowing smoke up your back side.

Hello everyone I live in New Jersey and I just received a phone call from someone who sounded Indian who called my job and told me that he was from the FCD, Financial Crimes Division and he was on a recorded line with the Court House and that US National Bank was filing criminal charges againt me as of 12:00 noon alledging Bank fraud and wire fraud and that they were going to send an officer to my job to arrest me regarding a pay day loan I failed to pay back. Is this legal? is there such a thing as a Financial Crime Division. This has really gotten me so upset I'm on the verge of quitting my job I am so upset. Has anyone else received this type of call? They didn't even mention what company they were from.

First of all, Pay Day Loans are not even legal in New jersey. please do nt be worried. There is no such place as US National Bank. It is a very illegal scare tactic to get you to pay. In New Jersey because these loans are illegal, all you are morally obligated to repay is the principle amount borrowed.Please do not be upset. Noone will come to your job. There is nothing that will happen to you. Please calm down.

that seems to be the false bank a lot of illegal pdls invoke.there is no such bank,it is made up by illegal pdl's as a threat.check your state laws about recording calls,stating he was a federal anything is a no-no in collecting.despite what he claims that is what he is,a collector.

I have received calls from a 'Marshall Law office'..( never heard of them). It was about a PDL. I NEVER heard of this office before. Well......first of all when they called me, it was a 'blocked' number, so I let my voicemail take it. They have called back, SEVERAL times, BUT ( here's the crazy part) when they left messages, I'm gonna ALMOST swear everytime they left one, it was a RE-CORDED message..NOT themselves ( if that makes sense). When I talked to them the FIRST time ( months ago) I told them i would pay back EXACTLY what I barrowed and nothing else. According to the 'law office' I still OWE the'balance' ( which means the % of the loan). They used scary tactics, the FIRST time with me......" gonna show up at my door, take money from my paycheck, etc." I live in PA.....I KNOW they can't do that.

I am in Texas and after reading the very helpful posts from you guys I am going to take the steps to get these payday loan creeps off my back. Can anyone tell me where I need to look to see if a company is registered in Texas? Thanks!

I TOOK OUT A LOAN WITH MY CASH NOW AND HAVE NOW DEFAULTED AND NOW I AM GETTING THREATENING PHONE CALL ABOUT AN ONGOING INVESTIGATION AND THAT THEY CAN GARNISH MY PAYCHECK. i LIVE IN SOUTH CAROLINA WHAT ARE MY OPTIONS AS A CONSUMER.

I got on line a was going to do a cash advance/pay day loan but after filling out the information I decided not to follow through with it. No money was ever deposited into my account from any cash advance place...though i had multiple companies want to put it in there i NEVER confirmed any of the offers...Now i have these people calling me saying there from a law firm I can hardly understand them when they leave messages the are of a forgin decent.. I ended up calling one of them back and he couldn't tell me where this cash advance supposedly came from that had supposedly been put into my bank account nor could he give me the original amount he just told me what i could settle for and that he needed to know my decision that day... I thought it was strange that he couldn't povide me with any of that info but he did manage to have my bank account number...what should i do.

Quote:

i'm from massachusetts. I have a payday loan with jvc processing. They send out an investigator to contact my workplace and cell to tell me that they are charging me for fradulent. I want to know what's my rights are and if they can do that. I'm so scared right now because I can't risk my job and go to jail. They also have my new bank account with my direct deposit going in it. What should I do??? =(

well they can't actually set foot on your workplace.the threat of that is illegal,and btw the loan was illegal so treat everything a collector says on this as an illegal threat.now you say they have your new bank info.did you give them that because of the threats.if so then have your employer give you a live check because unfortunately you will have to change accounts again.please know these facts as lawbreaking pieces of garbage delve in fantasy.

1)pdl's are illegal in your state
2)you can't and won't be arrested for owing a pdl.especially an illegal one.
3)anybody that threatens that,or coming to your workplace should be reported to your local police.
4)also reported to your AG,AND THE FTC.

there you have it,or you can change bank accounts and get your dd switched to the new account.just make sure you see the bank manager for this and also make sure the new account isn't linked to the old one.just don't give in to illegal threats as that is all illegal bottomfeeding slime have...illegal threats.

Thanks paulmergel.

Should I call them back or just ignore them and move forward in changing my bank account. It's such a headache having them call my office number and leaving numerous of messages and they also have my cell number. Calling even on the wkend. =/

try to ignore them if at all possible.if you get caught o the phone hang up without a word,and move forward with the bank knowing that these places can't do a thing they say.