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Pay day loan hell....

Date: Thu, 11/06/2008 - 18:04

Submitted by bristolaljr
on Thu, 11/06/2008 - 18:04

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Total Replies: 12


I have too many(4) that I will never be able to pay off without eating up my check every pay period. My other bills are suffering because of this and I'm at my wits end. Do I have any other recourse than to close my bank account? I live in New Jersey.


I have been receiving calls from Authorized payday. I opened a loan with them in May, they have taken 90 twice a month since then for a 300 dollar loan (that's 720!!) I ended up freezing my bank account because I couldnt understand why they were still taking money. They have called my job and now tell me I still owe $500 on a $300 loan. I tried to ask why it was that much. I have had other payday loans in the past that have paid down each payment, but I cannot believe that not one dime went to the pricipal. Can someone help me to determine what I need to do with them? They are calling my work and my sister (who I put on the 'reference'). I live in Illinois. PLEASE HELP!!


lrhall41

Submitted by on Thu, 11/06/2008 - 20:59

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Hi Beth,
Here are the law's for IL. I believe a pdl lender must be licensed in IL to lend & they must follow IL laws. I will check to see if your company is licnesed:
Quote:

Quote:
Illinois State Information

Legal Status: Legal

Citation:
815 Ill. Comp. Stat. Ann. ???? 122/1-1

Loan Terms:
Maximum Loan Amount: lesser of $1000 or 25% gross monthly income
Loan Term: 13-45 days
Maximum Finance Rate and Fees: $15.50 per $100
Finance Charge for 14-day $100 loan: $15.50
apr for 14-day $100 loan: 403%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Two
Rollovers Permitted: None (cannot rollover)
Cooling-off Period: 7 days after 45 consecutive loan days
Repayment Plan: Yes

Collection Limits:
Collection Fees: One $25 NSF fee (Presentment limit = 2)
Criminal Action: Prohibited

Where to Complain, Get Information:
Regulator: Illinois Division of Financial Institutions
Address: Consumer Credit Section, 320 W. Washington Springfield IL 62701
Phone: (888) 298-8089
Fax:
Regulatory Contact: Phil Sanson,, Acting Consumer Credit Assistant Supervisor
http://www.obre.state.il.us/AGENCY/licenseinfo.htm


lrhall41

Submitted by dawnlango7 on Fri, 11/07/2008 - 08:10

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Hi,

I checked and don't show Authorized payday as being licensed. I would send them a cease & desist letter and report them the the BBB, FTC & IL Attorney General. You can find a copy of the letter by doing a search of the site. You have already frozen/closed your account, so at least your funds are safe. Because you have overpaid them, you can also ask for a refund in the letter you send. You may not get it, but it never hurts to ask.


lrhall41

Submitted by dawnlango7 on Fri, 11/07/2008 - 08:13

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The information below is for the OP (bristolaljr). New Jersey Internet payday lenders are not legal, either because of restrictive laws, or because the state does not license companies not located in that state, but requires a state issued license to lend.


Quote:

New Jersey State Information

Legal Status: Prohibited

Citation:
Consumer loan act applies but rates as agreed to by contract. N.J. Stat. Ann. tit. 17,???? 1 et seq. However, criminal law sets the usury cap at 30%. N.J. Stat. Ann. ???? 2C: 21-19. A check cashing licensee cannot cash or advance money on a postdated check. N.J. Stat. Ann. ???? 17:15A-47.

Small Loan Rate Cap
30% per year

Where to Complain, Get Information:
Regulator: New Jersey Department of Banking and Insurance
Address: 20 West State St. Trenton NJ 08625
Phone: (609) 292-5360
Fax: (609) 292-5461
Regulatory Contact: Ludi Hughes Assistant Commissioner


lrhall41

Submitted by Shazzers on Fri, 11/07/2008 - 20:27

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Could someone please point me in the direction of the Cease and Desist letters that might apply for Authorized Payday? I found the ones for collection agencies, but I didnt know which ones to use.
Thank you


lrhall41

Submitted by on Sat, 11/08/2008 - 11:37

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Hi there Beth, cease and desist letters only apply to a third party collector which means the Authorized Payday would not be bound by law to follow a cease and desist demand, they are however obligated to cease contact with you at your place of employment if you tell them to do so. Some members here have and do send letters which basically demand they cease contact with you, I just wanted you to know that they are not bound by law to do so. Here is the link for a cease and desist letter below, you will need to taylor it to your needs as there is information contained in it that most likely does not pertain to your situation. :)

Tailor THIS (please scroll down to locate letter template). letter to your needs, and try to write it with the same basic concept in your own words. You will need to research and locate email addresses/physical addresses if you don't already have them, I suggest that you type the name of the pdl (example: "oneclickcash address") in the search box in the upper right hand corner of this forum. You may also search for addresses HERE at the Better Business Bureau.


lrhall41

Submitted by Shazzers on Sat, 11/08/2008 - 12:20

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I have one more question, thank you by the way for the template, Shazzers, that's just what I need. I was wondering how I check my state's website to see which of these are legal and which are not in the state of IL. I cant figure out how to look. I received a letter today from the Loan Shop online that said that I owe them 390 on a 300 loan. It's the same situation as with Authorized Payday- I have been paying on this account since May, twice a month and they too state that none of those payments went to the principal. I need to see if they are legal in the state of IL and I just dont know how to check. I will use the template again for them if they are not, but I cannot find them on the IL website. On the letter received, it says that I am to make payment to LTS management services. Can someone tell me how to find it on the IL website or tell me if theyre legal or not??


lrhall41

Submitted by on Sat, 11/08/2008 - 15:29

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If the one listed below is the same one you received a loan from, then no, they are not legal.
Loan Shop
E-Care/Sonic Payday/Cash Transfer Centers/Loan Shop/Northway Credit (these are all one company)
13696 104th Avenue
Surrey, BC Canada V3R 1V9
phone: 1-866-958-3278
fax: 1-866-809-4069
email: customercare(at)cashtransfercenters.com


lrhall41

Submitted by Shazzers on Sat, 11/08/2008 - 19:30

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what does it mean in ohio that criminal charges are not specified?


lrhall41

Submitted by on Sun, 11/09/2008 - 08:48

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