Help out of the PDL nightmare
Date: Tue, 07/29/2008 - 07:57
Payday One - loaned $500.00 - due $575
ameriloan - loaned $300.00 - due $390.00 (have been paying $90.00 biweekly for 2 months)
Cash Transfer Center (Northway Financial Corporation Ltd) - borrowed $500.00 due $635 (they also have a declaration of wage assessment)
GRC Funding - don't even know where this came from but they have been deducting $90.00 every week from my account and contact to the company has been impossible!
NetCash USA - loaned $300.00 - due $390.00 (they have been taking $90.00 interest from my account for the past two months and the principal has not gone down)
Magnum - borrowed $500.00 on top of the $280.00 that was due - currently due $1059.84
I have contacted my bank and they told me that there is no way for them to stop ACH debits from my account which means that my account will be overdrawn on July 31st and I'll be hit with fees from the bank that I will be unable to pay.
I just want to get out of this cycle and I don't know how. I currently have another bank account that they know nothing about and have no access to.
Are on-line lenders legal in Ohio and what laws must they follow? Are there letters that I can send to these lenders to revoke the authorization to my account and to stop them from harassing me at work?
Any assistance/advice is greatly appreciated.
Quote:Ohio State Information Legal Status: Legal (Applies to
Quote:
Ohio State Information Legal Status: Legal (Applies to check cashers only) Citation: Ohio Rev. Code Ann. ???????? 1315.35 et seq. Loan Terms: Maximum Loan Amount: $800 Loan Term: Max: 6 months Maximum Finance Rate and Fees: $10/$100 + 5% per month Finance Charge for 14-day $100 loan: $15 apr for 14-day $100 loan: 390% Debt Limits: Maximum Number of Outstanding Loans at One Time: One Rollovers Permitted: None (cannot refinance) Cooling-off Period: Repayment Plan: Collection Limits: Collection Fees: Bank charges (if disclosed); $20 collection charge; Court Costs; damages Criminal Action: Not Specified Where to Complain, Get Information: Regulator: Ohio Division of Financial Institutions Address: 77 South High Street, 21st Floor Columbus OH 43215 Phone: (614) 728-8400 |
The only loan you have which is licensed and legal to lend in Oh
The only loan you have which is licensed and legal to lend in Ohio is Paydayone. I suggest you make payment arrangements with them. Your bank has given you incorrect information, your ACH transaction CAN be revoked, that is YOUR right. However, blocking these pdl's will not stop them from debiting your account. What you need to do to put a stop to the debits which are due to hit on the 31st, is go into your bank, speak to the Branch Manager, and tell them you demand a hard debit block be placed on your account immediately. Tell them there is possible illegal activity about to take place on your account and you need a stop put to it.
Regarding Electronic transfers, here is the law that says you ma
Regarding Electronic transfers, here is the law that says you may revoke it, and the bank must comply with your request.
[quote] 907. Preauthorized transfers
(a) A preauthorized electronic fund transfer from a consumer's account may be authorized by the consumer only in writing, and a copy of such authorization shall be provided to the consumer when made. A consumer may stop payment of a preauthorized electronic fund transfer by notifying the financial institution orally or in writing at any time up to three business days preceding the scheduled date of such transfer. The financial institution may require written confirmation to be provided to it within fourteen days of an oral notification if, when the oral notification is made, the consumer is advised of such requirement and the address to which such confirmation should be sent.
(b) In the case of preauthorized transfers from a consumer's account to the same person which may vary in amount, the financial institution or designated payee shall, prior to each transfer, provide reasonable advance notice to the consumer, in accordance with regulations of the Board, of the amount to be transferred and the scheduled date of the transfer.
[Codified to 15 U.S.C. 1693e] [/quote]
PDL addresses
Thank you so much for this information. I noticed on the ohio laws it stated "check cashing only". Does this mean that this law does or does not apply to on-line lenders? How do you recommend I deal with the other lenders that are not legal in Ohio?
I am going to the bank at lunch to place the hard debit block on the account. I'll let you know how that goes.
Does anyone have physical street addresses for these other lenders so that I can send a letter to them.
Thanks!
By the way, you can also revoke the wage assignment, that is str
By the way, you can also revoke the wage assignment, that is strictly voluntary. All you need to do is send all of them an email telling them you are revoking their right to any and all wage assignments you may or may not have signed, then take a copy of this to your payroll person. In fact, if I were you, I would close that account, open a new one, and send these pdl's (the illegal ones) a Cease and desist letter, in that letter include the following:
-A copy of your state laws ( a pdl lender must have a license in the state of Ohio, to legally lend to Ohio residents )
-Revoke wage assignments
-Revoke ACH transactions
-Cease and desist contact with you, your employer, and your references, only contact with you should be done through emails or USPS.
Then you can make payment arrangements with them, all you are obligated to pay back the illgal pdl's is the principal amount borrowed, I suspect you have paid most of them back, if that's true, then you are done with the ones which have been paid what you borrowed. My advice is, get a physical address of the pdl's you owe, send them payments in the form of money orders only, certified, return receipt. :)
Quote:Thank you so much for this information. I noticed on the o
Quote:
Thank you so much for this information. I noticed on the ohio laws it stated "check cashing only". Does this mean that this law does or does not apply to on-line lenders? How do you recommend I deal with the other lenders that are not legal in Ohio? I am going to the bank at lunch to place the hard debit block on the account. I'll let you know how that goes. Does anyone have physical street addresses for these other lenders so that I can send a letter to them. Thanks! |
You're welcome! First I would tell them [the pdl's] that you will need a physical address to send payments to via email, they will probably threaten and harrass the heck of you, even try to scare you with threats of fraud, suing you, arresting you, blah blah blah, but stand your ground, tell them you have discovered they are not licensed to lend in Ohio, they will then toss at you the part in your contract which says "You agree to abide by the laws in which they reside, governed by whatever state or country they are located" that's hogwash, your state law prevails. I would also encourage you to file complaints with your Attorney General, The Federal Trade Commission, and DFI, you might want to throw that information (complaints filed) in your letters also.
Do you think they will contact me at work even after I send them
Do you think they will contact me at work even after I send them the letter? I don't want to be harassed at work.
I'm afraid they will, the best way to handle that is not to resp
I'm afraid they will, the best way to handle that is not to respond to anything they say, simply hang up. They will eventually tire and stop calling you. They can't argue with thin air, so don't say a word to them, just hang up.
Quote:I noticed on the ohio laws it stated "check cashing only".
Quote:
I noticed on the ohio laws it stated "check cashing only". Does this mean that this law does or does not apply to on-line lenders? |
No, it just means that online lenders must also get a license to be a check casher. All legal online lenders for Ohio will have both the check cashers license and the lending license.
def send the letters out, some companies listened to mine.. i wo
def send the letters out, some companies listened to mine.. i would email them as well as send them because getting an address is sometimes hard to get. i have found that most respond to emails. just stand firm, i only have one that's giving me a real hard time. the others listened after i filed reports with the BBB, etc.
Update
Went to Huntington Bank today to demand a hard debit be placed on my account and the branch manager and everyone else said that they had never heard of such a thing and there was nothing that they could do to prevent these debits from hitting my account. They also could not close it because there were pending items.
The only thing that they told me that I could do was to dispute the transactions once they posted.
Question- when they receive this C&D letter do you think they will try and put the ACH debit through anyways?