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Online Payday Loan Trap

Date: Sat, 08/27/2011 - 07:43

Submitted by milkman0923
on Sat, 08/27/2011 - 07:43

Posts: 9 Credits: [Donate]

Total Replies: 7


I currently find myself in this trap. I have two $300 loans with a $90 fee so total for each loan is $390. Its been a month since I recieved these loans and ive already paid $180 to both company's yet my balance is still $390 to each. What is the best way to get out of this cycle. My bills are already tight, so I have not been able to pay in full. Anyway I can use some of the money already paid towards my balance? I have contacted my bank about unauthorized debits, but they will not resolve it, they say I have to work something out with the loan company since we've already had an existing relationship. Would I be able to get this money back if i went into my local branch?Whats your best advice?


The loans are with Galaxy Funding / Money from the galaxy and also the longboat group / aka Cutter Group.


I also live in Florida if that helps.


http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html

You can look up the laws for Florida. My guess they are illegal. Rollovers are not permitted and you can only have one loan at a time. My advise is to go to your bank and close it and open up a new account. Tell them that these are illegal loans and will likely ignore ACH revocation.


lrhall41

Submitted by SOAPLADY on Sat, 08/27/2011 - 08:40

( Posts: 17315 | Credits: )


Neitehr lender is legal in the state of FL. First step is to do as Soaplady says and that is close your account and open a new one that is not connected to the first. Then go to the sticky on the front page titled dealing with unlicensed lenders and follow it. You will also want to file complaints with the FTC, Florida AG, and most importantly the Florida Office of Financial Regulation, just search the name on google and you will find it. Since neither lender is legal you only owe them the original $300 minus any fees they have charged. So in your case that is 300 - 180 so you only owe them $120 each. Do not let these places scare you with their threats because in the state of FL since neither lender is legal the loans are considered [COLOR=black]unenforceable and uncollectable[/COLOR]. But remember the most important complaint that you can make is to the Florida Offfice of Financial Regulation on both. This office has helped me with all my illegal loans.


lrhall41

Submitted by tousi76 on Sat, 08/27/2011 - 11:50

( Posts: 141 | Credits: )


Another thing is how do you know if one is illegal or not? When i looked at florida PDL laws it says, so is it illegal b/c there is more than one or b/c of the way they structured the contract with high interest and roll overs? i also had a previous outstanding loan at Amscot in my area, so technically I already had one outstanding loan at the time
Florida Payday Loan Laws

State Legal Status
Lending of payday loan is considered legal in the State of Florida.

Loan Specifications


  • Maximun Amount of Loan - $500
  • Term of Loan - 7 to 31 days
  • Maximum Rate of Finance and Fees- 10% + Fees for verification
  • Finance Charge on $100 loan for a 14 day period - $15
  • APR for $100 loan for a 14 day period - 390%


Debt Limits

  • Maximum Number of outstanding loans permitted at a time - 1
  • Permissible number of Rollovers - None (Rollover cannot be done)
  • Cooling-off Period - 24 hours
  • Repayment Plan - Yes


lrhall41

Submitted by milkman0923 on Sat, 08/27/2011 - 12:52

( Posts: 9 | Credits: )


With your bank just let them know that neither is a licensed lender in the state of FL. As for looking up the license for a PDL go to the web site for the Florida Office of Financial Reglation and then click on verify a licnese, go to Money Services Businesses and search by name of the lender.


lrhall41

Submitted by tousi76 on Sun, 08/28/2011 - 15:32

( Posts: 141 | Credits: )


Ok thanks for the info. i will be heading to the bank tomorrow. I will keep you posted with my status and any questions i may have. thanks again. after reading some of these threads Im glad I caught it early and only have 2 loans. I feel for some of these people that have paid outrageous amounts of interest and fees


lrhall41

Submitted by milkman0923 on Sun, 08/28/2011 - 17:05

( Posts: 9 | Credits: )