Tips on dealing with Payday loans

Thanks John for this post.

Quote:

I had a valid and legal Wage Garnishment from a past debt. Not a payday loan - had nothing to do with payday loans. It was from a past credit card.


I learned quit a bit going through the legalities with a payroll rep at my company. He explained to me how there has to be a court order complete with a Judges signature and full details of the creditor who sued for it.

Going through that I can tell you that checking a box in an online application is not going to cut it. Its all completely voluntary and if the payday place does contact your employer then they legally cannot deduct your salary without your written permission authorizing it. And you can revoke it at any time. Voluntary means just that - voluntary. You did not legally commit to anything by checking that box.

Check the laws in your state but I am sure they are pretty much all the same.

Hi Stanley!

I am having a hard time myself trying to find a list of the states tha ban payday loans altogether, but I am still looking!

~Mary

Payday lenders will try anything to collect on a defaulted loan. I know because I am currently going through this experience. My loans are listed with a debt consolidation company but they still try to pursue other avenues. You must learn your state and federal laws, your rights, and not be a victim to these loan sharks anymore. I would suggest contacting your payroll department to see what their rules are, let them know what is going on. When I was having problems with Sonic, I just stated that I enrolled in debt consolidation and that the lender was listed on there. You don't have to go into the full story. I know this situation can be embarassing but the more you talk about it, the stronger that you become. I'm not afraid to fight back against those lenders who are try to take advantage of me. I'm not trying to run away from the debt but I'm not going to pay anymore illegal fees that they try to assess on top of what I already owe. Keep everything documented on letters, phone calls, messages etc. You may need this information to file a formal complaint against the company down the road. There are places that you can do this because you DO have rights. Don't let them tell you otherwise. You can revoke the wage assigment as stated in the previous posts. I find it to be a good idea even though it is voluntary. These companies are sneaky so you have to be on your toes.

After going through few online articles and browsing net vigorously, I have prepared the list of states that have banned payday loans. Check it-

Arkansas
Connecticut
Georgia
Maine
Maryland
Massachusetts
Michigan
New York
New Jersey
North Carolina
Pennsylvania
Vermont
West Virginia

Texas has set some limit of payday loans. It has capped apr and loan amount too.

However, payday lenders are still operating in these states as a partner of some out-of-state financial institutes. Few states have started working on these lenders specifically.

If anyone knows something more on this, please post it here. Thanks.

[quote]The payday loan company is insisting you to sign a post dated check on the date when you are entering into a contract with them.
In the contract, you might have authorized them to take out money from your checking account by giving them the account details and some other personal information.
You might have allowed them to do a wage assignment which allows the company to take out 15% of your wages out of your paycheck.



Alright everybody, if the aforementioned information is not proof positive that these people are a bunch of charlatans, what is? Hats off to my homestate of Massachusetts for banning them! Just waiting for Florida to follow suit..

There nmay be some issues with Utah and Colorado as well. In the not too distant past, I had loans for a while with a "Quickpayday" out of Utah, loaning to me in Colorado.

Many months went by since I finally paid off with them, and I got a check in the mail from them (written on Wells Fargo) for the amout of interest I paid over the months...almost 2 grand.

I'm still not sure what happened, but they no longer operate in Colorado.

egw

That's great Eric. They were sued by the AG's office there I believe because they overcharged customers. So it's a step in the right direction in fighting these loan sharks.

Thank you so much for posting this information. It was very helpful on my part!!! :lol:

Also, there's something called universalcashadvance.com that is no longer issuing loans at all...they are probably also in some sort of litigation.

I have a loan with universal cash advance that is listed with my debt consolidation company. Where did you find this information?

If you go to their website, it claims that they are no longer issuing "new" loans. Either they ran out of money, or someone has them on legal ropes!

This is worth checking into further. Thanks for the heads up! I know I received a letter from a CA from them but that's all the responsed I've had from them in over two months. They used to go by another name too and I can't remember what it was.

I just checked out their website. There it is in big red letters, interesting.

Hi, in Canada the PRLDirect.ca website has a statement on it saying the following:
Quote:

I think Sonic is on their way out. Finally all of our complaints are finally being heard and investigated.

Can someone give me the name of a consolildation company? I have payday loans that I need to pay off and am having trouble doing so. I really need some help. Thank you.

Well, finally a bit of good news regardng Sonic. It sounds like they are under heavy investigation in Canada.

Sonic is the toughest one and they are badly focused because of their illegal wage assignment process. Maybe, if the investigation can bring out positive results, a lot of problems can get solved from the base. I wish Sonic shuts down completely because of their unfair predatory lending business.

John I think I speak for anyone who has dealt with Sonic that we agree with you 100%.

I know that I do :) I'm actually thinking of filing a class action law suit against them or even a civil suit for all the harassment I've taken from this company.

I saw where someone said that payday loans were banned in Pennsylvania, but I know that Advance America is operating in PA and has an office where they issue cash. Are they operating illegally in PA? Please someone advise me. I have a loan with them.

Dorothy,

I have found a very very useful topic for the Pennsylvania consumers. Attorney General already has taken step against illegal payday lending practices. Consumers can get refund if they think they have overpaid already.

Good job, Stan! As always!

~Mary

OH yeaH! After my distressing day yesterday of emails with Xpress cash, this news couldn't have come at a better time...I knew their silence had to mean something....SO glad that I might be free of Sonic!!!!!

Now let's go get Cash Today......

I live in Arkansas and have several online payday loans. I'm willing to say that I have probably paid well over what they originally loaned me on all of them. I see that these loans are banned in Arkansas, is that only if they are located in Arkansas? Also, can anyone tell me where I might be able to find Arkansas law regarding payday loans? Thanks!

Hi kswesterman

Check with the attorney general of Arkansas who has put some regulations on the payday loans.

Arkansas uses the citation Ark. Const. art. 19, ?? 13.; Ark. Code. Ann. ?? 23-52-101 et seq. to payday and small loan laws by jurisdiction. The loan contract should be given to you in writing disclosing the TILA and the posting of the fees.

The maximum amount of loan advanced in Arkansas is $400 for a period of 6 - 31 days. The permissible fee is $10 fee + $5 origination fee + 10% (personal check or money order); or 5% if check is public assistance; or 6% other checks

Check with the attorney general of your state or visit the website at http://www.ag.state.ar.us/

Thank you curlycarl for your help!

A payday loan company is allowed to take only the interests from you. They can't charge any other fees except a $25 fee if an electronic debit or a check does not clear.

You can't be sent to jail or threatened to use criminal processes for defaulting on the loan amount. In case, there is a bad check, the lender can't file a criminal complaint against you.



Does that apply for payday loans from store fronts here in Ohio? I've been reading up on the laws and regulations for check defaults/bad checks for Ohio, and I'm getting confused. It looks to me like in Ohio, you can be prosecuted for defaulting on a payday loan when the check bounces. If anyone can give me a clearer understanding of Ohio's position is on check defaults with payday loans, I'd be forever grateful to you. I'm closing in on D-Day for me, and I'm worried again. :(

Thanks!

DeeDeeNay

Hi DeeDeeNay

Ohio State does not specify any criminal actions for defaulting on a payday loan. If you are in default, you are just required to pay the bank charges if disclosed, $20 collection charge and any court cost damages. Otherwise, there are no other prosecutions for defaulting on a payday loan when the check bounces.

so if my home state of arkansas is banning payday loans, does that mean online loans or store front or both. Because, I still see many store front pdl out there. What does this mean for my loans?

Rtcmom, quite possible! Basically, the state authorities mean to restrict any kind of loans operating in the state. But you must confirm this with the licensing dept of your state

thanks curlycarl!

My pay day loan with Payday2go stated that I could not revoke their wage assignment and they are taking money out of my account now - 20% for 3 months

Wage assignments are voluntary. You can revoke it at anytime if you are unable to pay the debt. Send a revocation letter to Payday2go and a copy of it must be sent to your payroll dept also. After understanding the situation, your company will not allow the wages to be deducted from your account. Read more about the wage assignment process in the page below for a clear understanding.

http://forums.debtcc.com/forums/wageassign-legal.html