Missouri PDL and Missouri Law
Date: Tue, 07/07/2009 - 05:00
this site :) and
Joe Crider (Refulatory Contact Consumer Credit)
Regulator-Missouri Division of Finiance
Consumer Credit Section
P.O. BOX 716
301 W. High Street
Jefferson City, MO 65102
(573)751-3242
(573)751-9192 Fax
I called the above number got Joe's secretary and she put me straight through to Joe.
I explained my situation to Joe: Single mother on Social Security Disability with 2 (internet) payday loans that just keep rolling over and getting socked with outragous finance fees. With my income no way to pay off...example: $25 applied to the loan amount, $100 applied for the rollover.
He advised me to go to my bank and submit to them in writing to revoke all "ach transactions" on my checking account. He said that when signing the loan contracts "we" agree to allow the online pdl companies to debit our accounts using "ach transactions" and at any time it is our right under federal law to revoke that right. It takes a week, sometimes 2 weeks depending on the bank to get the "revoke ach transaction" notice in affect...so allow enough time to get it in place before your next payment is due!
But DO NOT CLOSE THE CHECKING ACCOUNT!! Because under Missouri Law:
Collection Limits:
Collection Fees: NSF fee; Collection costs (including court costs and reasonable attorney's fees) Licensee cannot use a series of ACH transactions to collect a single check.
***CRIMINAL ACTION: Prohibited ("UNLESS" check returned due to CLOSED ACCOUNT or stop-payment by maker)
2.) Mail or Fax a copy of the same above action (revoking the ach transactions) to the payday loan company.
3.) Call the pdl company and try and work out a payment plan. Joe Crider said that once they are unable to just zap you checking account to get their funds...they will be more than likely willing to work with you. Also, WITHOUT the high refiance (rollover) fees. Document the date and time of the call, along with exactly what was discussed. However if they are unwilling to work with you and work out a payment plan you can afford...then it is their problem, because you have made every attempt to work out a way to pay them.
He also said...You CAN NOT be arrested or threatened for not paying a payday loan. It is just like any other loan...example: a bank does not have you arrested for not paying on a signature loan.
Joe Crider-Regulator-Missouri Division of Fiance told me that if they say they are going to have me arrested or threaten me (which they often do) to call him back and he will contact them.
Hope this helps!
thank you for this information. I too live in missouri.
thank you for this information. I too live in missouri.
wow! you are right. I just got off the phone with Joe Crider th
wow! you are right. I just got off the phone with Joe Crider this afternoon after reading your post. He knows exactly how to handle the payday loan companies.
He advised me what to do! Freeze my checking account and revoke ach transactions. Call the payday loan lenders and tell them I have revoked the ach transaction agreement, and have frozen my bank account. I now need to work out an extended payment plan that I can afford. I know the payday loan collection laws in the state of Missouri, and also the federal law. I can NOT be arrested, threatened, or harassed.
Joe Crider said to file complaints with the state attorney general and the better business bureau. The more complaints filed and on record will help with changing the laws and practices of the payday loan companies.
He also told me to call him if I had another further problems or needed additional help. Joe Crider is a god-send!
Thank You Candie for posting Missouri PDL, Missouri Law, and putting me in touch with Joe Crider.
Stephanie