index page

Which avenue to take with PDL entries on credit report

Date: Mon, 03/05/2012 - 07:41
Submitted by royalpain78 on Mon, 03/05/2012 - 07:41
Posts:
Credits:
[Donate]

I wasn't sure to post this here or on the Payday Loan forums, but I thought that since it deals mainly with cleaning up our credit report, I should post it here. I have three entries on my credit report from Allied (collection agency) collecting for what appears to be the same PDL (all have exact same date, account number, and amount) from BMG Internet Payday Loan. Now, I did have an internet payday loan a few years ago, which I paid the principal (and then some)towards but then could not keep up with the payments so I had that bank account closed and haven't looked back. I don't remember who it was through, so I'm not sure if this is even valid but I have to assume it is the same people. I did NOT have three for sure. I live in Louisiana, so how do I go about finding out if a) BMG is even licensed in my state to determine whether or not it is legal. If BMG is NOT licensed to do PDLs in Louisiana, would I send a letter to Allied or BMG? And also, should I do a debt validation letter, or just skip that completely if they aren't even legal? I'm not sure which avenue to take here.


Contact with Louisiana Office of Financial Institutions to know whether or not pdl companies are licensed in your state. If they are not licensed, then you will have to pay only the principal amount. Ask them for the refund, if you have overpaid them. But you will be responsible for both the principal and interest, if your lenders are licensed in your state.


Submitted by Tyler on Mon, 03/05/2012 - 23:12

Tyler

( Posts: 269 | Credits: )


1. Call the Louisiana Office of Financial Institutions and find out if the lender is licensed to conduct operations in your state.

2. If they are licensed, you have to pay up. Since the account is with the collection agency, you can negotiate with them for a settlement. If they are illegal, you don't need to pay anything other than the principal amount. In case you have paid over and above the principal, ask for a refund.

3. Send a debt validation letter immediately to find out if the debt is real and if it is actually owned by the collection agency.

4. Send a letter of dispute to the credit reporting agency.

5. Send the debt validation letter to Allied, not BMG.

6. If the lender is unlicensed in Louisiana, skip the debt validation letter and send the collection agency a Cease & Desist letter.


Submitted by StevenDoyle on Mon, 03/05/2012 - 23:46

StevenDoyle

( Posts: 199 | Credits: )