What are my options pertaining to THIS situation?? Cash Loan
Date: Sat, 06/21/2008 - 12:37
I was struck. Several years ago, I was sucked into the cash loan vacuum. At the time, I was never smart with my money and found myself in one financial bind after another which just snowballed when I began taking out cash loans. Since then, I've paid them off and thought that bad time was in the past.
Flash forward to today... I have a much higher paying job and a new checking account. However, my car suddenly needed massive work and instead of turning to credit cards (which I worked hard to pay off), I decided to use my checking account. The payment left me a little in the mud. So to have some extra cash in my pocket, I decided to do a payday loan... knowing that I could afford to pay it back with my next paycheck. I filled out an app with a website who will send it to several lenders. I received several offers (of course- these people know they're making tons of bucks off of us) and settled on one with a company I thought seemed professional and organized (and most of these places ARE NOT). I was approved and the funds were deposited in my account earlier this week.
Yesterday, I noticed a strange pending debit in my account for $400 which left me in the negative. I was bomblasted by this and spent the entire morning on the phone with the bank trying to determine who the charge was coming from and attempting to get help from the bank (they could do nothing...or so they said). Turns out the charge was from Loan Shop Collections. I had absolutely no idea who this was. All the bank could tell me was to wait until it posted, go to a branch the next day, file an affidavit, research will be done to see if it was fraud, and if proven, I have my money back in the next 2-3 weeks.
I did research all day yesterday. I finally went to the Better Business Bureau and found out that Loan Shop Collections actually is associated with a company known as XPress Cash... and this was one of the places I took out a loan from several years ago.
I have determined that this must have been a cash loan that fell through the cracks when I was attempting to pay the many I had off (yes, I learned a VERY hard lesson back then). When I recently filled out the application for a new cash loan, The Loan Shop or XPress Cash must have received it too, saw that I was an old customer who owed them money, and sent the charge to my bank account.
Now... if I did indeed still owe them money, of course I should pay them back. HOWEVER, the original contract I signed would have stated they could debit my OLD checking account (which has been closed for over 3 years). I never re-signed a contract with them while I've banked with the new institution... nor did they ever contact me to warn that they found me and needed authorization to debit the new account number they found (which I would have then said 'Payment plan?'). Instead, they just routed the debit to my bank and today it posted. My mom helped me out by depositing funds yesterday to help cover the negative balance and cover a check and a debit that hadn't gone through yet... and she saved me from multiple NSF's.
I still plan to file a grievance with my bank. I also filed a complaint against XPress Cash with the Delaware BBB. While I don't deny that perhaps I owe them money, they NEVER had the authorization to take it out of my current account... nor did they contact me. I am livid and $400 short. After doing some research, I realized that perhaps what they did was illegal. They cannot access a checking account without my authorization... and again, I was using a different bank and account when I used them as a lender several years ago.
I called an actual 'The Loan Shop' in Midland ,TX yesterday to see if I ever had an account with them. They confirmed that I did with XPress Cash. I then left a message with an account manager they forwarded me to asking that she call me back immediately concerning an old account. I'm still awaiting a call back.
I'm determined to get the full amount back and instead set up a payment plan with them. They had no right doing what they did... and this week I've learned yet another lesson: Even though I know I'm now financially able to take out an emergency loan and pay it back immediately, JUST DON'T DO IT... EVER... AGAIN!!!
But in the meantime, what are my other options? Do I have a case to get the money refunded and then set up a payment plan with them instead? Isn't accessing an account they had no legal right to contractually or otherwise illegal?
Flash forward to today... I have a much higher paying job and a new checking account. However, my car suddenly needed massive work and instead of turning to credit cards (which I worked hard to pay off), I decided to use my checking account. The payment left me a little in the mud. So to have some extra cash in my pocket, I decided to do a payday loan... knowing that I could afford to pay it back with my next paycheck. I filled out an app with a website who will send it to several lenders. I received several offers (of course- these people know they're making tons of bucks off of us) and settled on one with a company I thought seemed professional and organized (and most of these places ARE NOT). I was approved and the funds were deposited in my account earlier this week.
Yesterday, I noticed a strange pending debit in my account for $400 which left me in the negative. I was bomblasted by this and spent the entire morning on the phone with the bank trying to determine who the charge was coming from and attempting to get help from the bank (they could do nothing...or so they said). Turns out the charge was from Loan Shop Collections. I had absolutely no idea who this was. All the bank could tell me was to wait until it posted, go to a branch the next day, file an affidavit, research will be done to see if it was fraud, and if proven, I have my money back in the next 2-3 weeks.
I did research all day yesterday. I finally went to the Better Business Bureau and found out that Loan Shop Collections actually is associated with a company known as XPress Cash... and this was one of the places I took out a loan from several years ago.
I have determined that this must have been a cash loan that fell through the cracks when I was attempting to pay the many I had off (yes, I learned a VERY hard lesson back then). When I recently filled out the application for a new cash loan, The Loan Shop or XPress Cash must have received it too, saw that I was an old customer who owed them money, and sent the charge to my bank account.
Now... if I did indeed still owe them money, of course I should pay them back. HOWEVER, the original contract I signed would have stated they could debit my OLD checking account (which has been closed for over 3 years). I never re-signed a contract with them while I've banked with the new institution... nor did they ever contact me to warn that they found me and needed authorization to debit the new account number they found (which I would have then said 'Payment plan?'). Instead, they just routed the debit to my bank and today it posted. My mom helped me out by depositing funds yesterday to help cover the negative balance and cover a check and a debit that hadn't gone through yet... and she saved me from multiple NSF's.
I still plan to file a grievance with my bank. I also filed a complaint against XPress Cash with the Delaware BBB. While I don't deny that perhaps I owe them money, they NEVER had the authorization to take it out of my current account... nor did they contact me. I am livid and $400 short. After doing some research, I realized that perhaps what they did was illegal. They cannot access a checking account without my authorization... and again, I was using a different bank and account when I used them as a lender several years ago.
I called an actual 'The Loan Shop' in Midland ,TX yesterday to see if I ever had an account with them. They confirmed that I did with XPress Cash. I then left a message with an account manager they forwarded me to asking that she call me back immediately concerning an old account. I'm still awaiting a call back.
I'm determined to get the full amount back and instead set up a payment plan with them. They had no right doing what they did... and this week I've learned yet another lesson: Even though I know I'm now financially able to take out an emergency loan and pay it back immediately, JUST DON'T DO IT... EVER... AGAIN!!!
But in the meantime, what are my other options? Do I have a case to get the money refunded and then set up a payment plan with them instead? Isn't accessing an account they had no legal right to contractually or otherwise illegal?
Wow! Sometimes it just seems that you can't escape! I don't kn
Wow! Sometimes it just seems that you can't escape! I don't know much about PDL's, but I just wanted to respond to you and let you know that if you hang in there, someone else with more knowledge in this area will certainly be along soon to advise you!
