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payday loan/bank says can serve jail time

Date: Thu, 08/22/2013 - 08:50

Submitted by anonymous
on Thu, 08/22/2013 - 08:50

Posts: 202330 Credits: [Donate]

Total Replies: 7


I just got off the phone with my bank. I have gotten myself into payday loan hell. These are all internet payday loans. I closed my account so they would quit draining it. Now I have gone through a divorce and am in no positon to pay back what I owe right now. The guy I spoke with at the bank told me that payday loan companies were able to get some law passed that protects them. They can sue you and you may have to pay up to 25,000.00 in fines and serve 5 years in jail for breaking the contract. Is this true? It does seem to me these loan sharks should have such protection. I'm not trying to get out of paying my loans, I just can't right now. Has anyone heard of this?


It would help to know what state you are in but it is unlikely that you are going to jail for breaking a contract with a payday (or any other) company.




In many states payday loans are illegal and in others the amounts and legal recourse are regulated. In Florida for example, a payday lender can only bring civil action and the amount they can collect is limited.


Specific laws are posted at the top of the forum by state.


lrhall41

Submitted by Scubus on Thu, 08/22/2013 - 09:47

( Posts: 44 | Credits: )


thanks for responding. I am in North Dakota. I think my state regulates how much you can take out and the payday loan company has to be licensed in our state. That just really scared me when this banker told me that.


lrhall41

Submitted by on Thu, 08/22/2013 - 09:55

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whoever that was at your bank should be jailed for moronic stupidity.the EFTA AND REG E are still in force making anything this moron at your bank nothing but asinine.what is the name of this bank and who told you that?i would file a complaint with your AG and the DFI about this bank,and the idiot in general.bottomline you can revoke anybody's ACH rights and as scubus mentioned PDL'S are prohibited in alot of states,and tightly regulated in others.bottomline time to switch banks asap.


lrhall41

Submitted by paulmergel on Thu, 08/22/2013 - 09:57

( Posts: 15514 | Credits: )


Here is the law for ND:


Loan Terms:
Maximum Loan Amount: $500
Loan Term: Max: 60 days
Maximum Finance Rate and Fees: 20% + databasing fee
Finance Charge for 14-day $100 loan: $20
APR for 14-day $100 loan: 520%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified ($600 aggregate loans outstanding to all licensees)
Rollovers Permitted: One (renewal fee not to exceed 20% of amount being renewed)
Cooling-off Period: 3 days
Repayment Plan:

Collection Limits:
Collection Fees: $20 NSF fee (if disclosed)
Criminal Action: Prohibited (Unless account was closed on date of original transaction)

Where to Complain, Get Information:
Regulator: North Dakota Department of Financial Institutions
Address: 2000 Schafer Street, Suite G Bismarck ND 58501
Phone: (701) 328-9933
Fax: (701) 328-0290
Regulatory Contact: Aaron Webb, Assistant Commissioner



http://www.paydayloaninfo.org/state-information/42


lrhall41

Submitted by Scubus on Thu, 08/22/2013 - 09:59

( Posts: 44 | Credits: )


The bank is USAA. It was a guy in customer service who told me this. Thanks for feedback. I feel much better.


lrhall41

Submitted by on Thu, 08/22/2013 - 10:02

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Just so you know there are a lot of banks being warned by regulators for allowing these predatory lenders access to consumer funds -- read here -- http://www.reuters.com/article/2013/08/08/us-usa-banks-subpoena-idUSBRE97703T20130808

The guy that told you that was a complete idiot.


lrhall41

Submitted by momofthree27 on Thu, 08/22/2013 - 10:07

( Posts: 358 | Credits: )


thank you so much for the info. I really appreciate it.


lrhall41

Submitted by on Thu, 08/22/2013 - 10:07

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