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Payday loan nightmare - new to site :(

Date: Tue, 10/20/2009 - 10:40

Submitted by anonymous
on Tue, 10/20/2009 - 10:40

Posts: 202330 Credits: [Donate]

Total Replies: 27


Hi everyone,

I'm so happy to find this site and forum - I'm too embarassed to talk to anyone about the hole I've gotten myself into! . Payday loans have been a nightmare for me and are eating up all of my salary, to the point where I can barely pay my rent anymore.

These are the current payday loans I have:

MyCashNow - 387.78 + 87.78 finance fee
500Fastcash - 455 + 155 finance fee
Nationwide cash - 700 + 105 finance fee
Cashyes - 400 + 120 finance fee

If I just pay the finance fee, that equates to over $900/month (paid every two weeks). I can't believe I never actually looked at it this way before. I am drowning!! I don't even know where to start...


Quote:


MyCashNow - 387.78 + 87.78 finance fee
500Fastcash - 455 + 155 finance fee
Nationwide cash - 700 + 105 finance fee
Cashyes - 400 + 120 finance fee


Hello and Welcome to the boards :)

All the loans listed above are illegal lenders meaning all you owe is the principal on the loan. Have you secured your bank account or is it still open? Please tell us what state you are in and the amounts paid on each loan so we can help you further.

Read this link for additional information on dealing with Illegal lenders. http://www.debtconsolidationcare.com/paydayloan/illegal-pdl-dealings.html


lrhall41

Submitted by Cool_Abyss on Tue, 10/20/2009 - 10:43

( Posts: 2936 | Credits: )


Thanks, I see I'll be spending a lot of time here!
My bank account is still open, and I'm in NJ. To be honest, I keep paying them in full and then taking out larger loans to make up for bills and everything. Or I let them roll over a few times and then pay in full. I'm not even sure how to calculate how much I've paid! I was thinking of joining some kind of debt management plan..anything to make the payment lower, but I'm not sure where to start.


lrhall41

Submitted by on Tue, 10/20/2009 - 11:02

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these loans are illegal in NJ i would not pay someone to manage or consildate them, the laws are on your side and it is easier than you would think. perhaps request old bank statements and than see what you borrowed and what was paid back for your current loans. nothing more than the principal is owed. you will need to close your bank account, it is the only way to keep your money safe. if you need time for your direct deposit or something than a hard block will work but closing it is best.
after your bank account is secured, there are letters we have templates for send out. there is a sticky here that goes over details of dealing with illegal loans. please let us know how we can help you more.


lrhall41

Submitted by bea2ls on Tue, 10/20/2009 - 11:16

( Posts: 3840 | Credits: )


As stated above PDLs are ILLEGAL in NJ. Look through your old bank statements and add up how much you have paid in fees towards each company. Example, if you borrowed $200 and paid $175 in fees and then all you owe is $25. If you have overpaid in fees and rollovers on a loan then the company owes you a refund ;)

I would definately secure the bank account first, then send out ACH revoke letters to each PDL company. This will inform them that you are denying them any future access to debit your account. Also it will inform them that you have researched and found PDLs to be Illegal in the state of NJ and you are entitled to any refunds for overpayments. Please read the link I posted to give you a better understanding on the whole process.


lrhall41

Submitted by Cool_Abyss on Tue, 10/20/2009 - 11:17

( Posts: 2936 | Credits: )


Quote:

Originally Posted by Lisa Parchem
I have a "Mycashnow" payday that I haven't paid off yet and they are now saying it's over $900 -- the original was $300. I am in WA state.... I saw the second post that states these are illegal lenders. How do I go about resolving this?



Hi Lisa,

Having dealt with an illegal pay day lender myself (and after receiving the best financial advice ever on this forum), the best thing to do is to:

1) Close out your bank account entirely; placing a "freeze" or a "hard hold" on your account will initially prevent mycashnow from debitng your account, but they WILL go in and write out a paper-check and run it through your account, often with exorbitant service fees and late charges attached. So it is always recommended that you close out your bank account and open a new one. DO NOT GIVE out your new account number to anyone.

2) After you have closed your account, send an "ACH Revocation" letter (see below for a sample) to mycashnow, both via fax, email, and certified mail. Bombard them with the same letter because they will use the "I never received your letter" tactic which is a complete lie on their end.

..."After doing research regarding Internet payday loan laws in the State of Washington, I have found that your Internet payday loans are unlicensed.

I hereby revoke any and all ACH authorizations with your company from debiting any of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I have blocked any ACH/automated check drafts on my account ending in **** to protect my interest in this matter, per instructions from The WA Department of Finance. I also revoke any and all wage assignments I may or may not have signed with your company, I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for your collection purposes. I have notified my employer about this matter so any attempts to do so on your part will be rejected.

I demand that any contact be made through US Postal mail or email only. I will need everything in writing to keep accurate records of all communication as per instruction from my Attorney General's Office. I prohibit you or your affiliates to contact me via telephone at my place of employment or my home telephone number. I also prohibit you from calling or contacting my references listed on my loan. Any threats made against me by your company will be documented and sent up to the Attorney General???s office, the State of Washington's Department of Corporations, and the BBB. A copy of this letter has been forwarded to the wA State Attorney General to document these demands.

Due to the fact that Internet payday loans must be licensed in the state of WA to be a legal and binding contract, your company should not issue loans to WA residents at all. I am requesting that you send me your license number which enables you to offer loans to WA residents. As it stands, federal law supersedes anything written in your agreements.

The legal amount that could have been charged to my loan is the principal amount, even if your Internet pay day loan were legal anywhere in the U.S. I am willing to pay the principle amount of the loan only; however, this is only if you provide me with a physical address where I can send payments. I want to rectify this issue with your company ASAP and am demanding a paid in full letter be mailed to my home address once this is received and processed.

I must also inform you that I will be filing complaints with the Better Business Bureau, the Federal Trade Commission, and the WA Attorney General's Office.

I expect a response from your company no later than 5 days from the above date regarding this matter. This response may only come via US Postal mail. Again, no telephone contact is permitted in any regard, to any of my references or friends, home number, or to my employers. I have notified my HR Department to decline speaking with you or your affiliates. I look forward to an amicable settlement of this issue."

3) File your complaints as listed in the letter and wait to hear back. After that, the ball is in their court!

4) Keep track of all communications via email, fax, and certified mail.

Don't worry or feel intimidated...we've all been there and this forum has been an awesome source of knowledge and support!!


lrhall41

Submitted by on Wed, 10/21/2009 - 14:50

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i have closed my acct and have sent letters all the payday loans letting them know that they are illigel pdl i have recieved this email from Northway Financial
[FONT=Arial][SIZE=2][FONT=Arial][SIZE=2][LEFT]you will see that Northway Financial
Corporation Ltd. is a Financial Institution licensed and regulated in accordance with the Financial
Services Directive of the European Union (EU). As such, the laws of the Republic of Malta (member
State of the European Union), not the state of California applies to its terms. We provided you with this
notice so that you would understand the terms of your loan.[/LEFT]
We are prepared to offer a repayment arrangement in the amount of four (4) equal payments of $200.00

what do i do. do i make arrangements to pay them or do i send response to the fact that they are not legal
[/SIZE][/FONT][/SIZE][/FONT]


lrhall41

Submitted by big cynth on Wed, 10/21/2009 - 17:41

( Posts: 6 | Credits: )


[QUOTE=big cynth;485985]i have closed my acct and have sent letters all the payday loans letting them know that they are illigel pdl i have recieved this email from Northway Financial
[FONT=Arial][SIZE=2][FONT=Arial][SIZE=2][LEFT]you will see that Northway Financial
Corporation Ltd. is a Financial Institution licensed and regulated in accordance with the Financial
Services Directive of the European Union (EU). As such, the laws of the Republic of Malta (member
State of the European Union), not the state of California applies to its terms. We provided you with this
notice so that you would understand the terms of your loan.[/LEFT]
We are prepared to offer a repayment arrangement in the amount of four (4) equal payments of $200.00
what do i do. do i make arrangements to pay them or do i send response to the fact that they are not legal
[/SIZE][/FONT][/SIZE][/FONT][/QUOTE]
Nope, reply to them in this way:
Please note I am not a resident of Malta, have never prescribed to be a resident Malta and have no Malta presence, as such am not subject to the Malta laws you detail.
You will meet my terms or there will be no terms at all.


lrhall41

Submitted by Shazzers on Wed, 10/21/2009 - 21:17

( Posts: 17344 | Credits: )


I have 4 payday loans. I reside in California. Companies are as follows: Sandpoint Capitol, Speedy Cash, StarCash Processing and Payment Direct I think.

I have all the emails ever receivied still. I found that at least 2 of them are not licensed in California. Working on finding out about the other 2. Please help.

My bank reccomended that I close out my account and I did as to orevent them from taking more money. One of these asshole companies even signed me up for ID theft. WTF? That is what alerted them to make the recommendation. Was told by the rep to never do another payday loan.

Getting calls about a loan I took out back in 2006 from B&L marketing stating I owe $820 instead of the $300 i think it was.

Please help as I don't know what to do.


lrhall41

Submitted by on Thu, 10/22/2009 - 10:03

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Quote:

Originally Posted by Anonymous
I have 4 payday loans. I reside in California. Companies are as follows: Sandpoint Capitol, Speedy Cash, StarCash Processing and Payment Direct I think.
I have all the emails ever receivied still. I found that at least 2 of them are not licensed in California. Working on finding out about the other 2. Please help.
My bank reccomended that I close out my account and I did as to orevent them from taking more money. One of these asshole companies even signed me up for ID theft. WTF? That is what alerted them to make the recommendation. Was told by the rep to never do another payday loan.
Getting calls about a loan I took out back in 2006 from B&L marketing stating I owe $820 instead of the $300 i think it was.
Please help as I don't know what to do.


Which are store front and which are Internet?


lrhall41

Submitted by Shazzers on Thu, 10/22/2009 - 10:05

( Posts: 17344 | Credits: )


I was in the same situtation.I had five loans at one time. I took out my last PDL last year and finally I got them off of my back. With all of my loans, I got the Ohio AG, BBB and FTC involved and in the end I ended paying back only the principle. I will tell you though, when you file a complaint with these agancies may ask you, "What do you want us to do"?. These agencies are so overwhelmed that they don't have the time or manpower to be playing the phone game with consumers. For example, when I used the Deleware BBB, I told them I am willing to pay back the principle and nothing more. The BBB included that in the complaint to Eastside Lenders, and two week later they accepted and the matter was resolved.


lrhall41

Submitted by wchambe641 on Thu, 10/22/2009 - 10:50

( Posts: 129 | Credits: )


All of the loans were online. I never went to a store front.


lrhall41

Submitted by on Thu, 10/22/2009 - 11:30

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Thanks for your help. I will follow the process you did to get this matter resolved. Anyone else with any help, please assist.


lrhall41

Submitted by on Thu, 10/22/2009 - 11:32

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Impact Cash
I took out a $300 loan -- made 4 payments of $90 (to roll it over) and then it started like this:
$50 +$75
$50 + $60
$50 + $45

Based on what I have been reading the $75, $60 and $45 shouldn't have been charged because the interest is suupposed to stop once you enter the "payment plan" so technically I have paid $330 and they say I still owe them $175. If that is the case then I will pay it - but I wanted a second opinion before I send them anything that states that this is technically paid in full already as the prinicpal has been covered. Thanks to everyone on this site. It really does help to know I am not the only person dealing with all of this. I don't feel so "alone" anymore.


lrhall41

Submitted by tyleeash on Thu, 10/22/2009 - 15:26

( Posts: 143 | Credits: )


I'd like to ask a question. While resolving my payday loans (all of which are illegal and were done over the internet) I often hear responses such as the PDL is located in the state of DE and as such when you took out a loan over the internet you agreed to be bound by those laws governing our state. How do I respond to that statement? I've been saying that I reside in the state of KY and as such internet lending is illegal period (found this out after I took out the loans and got into a mess where I couldn't afford to pay anymore). I offer to pay the principle minus any fees paid plus one return check fee if provided with a USPS mailing address and if they will accept money orders. Am I responding inappropriately?


lrhall41

Submitted by DeDe on Thu, 10/22/2009 - 15:59

( Posts: 70 | Credits: )


I did check and only Speedy Cash is licensed in California. Thanks for the information. How should I go about the approach of paying them?

Speedy Cash and Star Cash Processing are willing to take payments and that will be it for the $300 and the $15 for Speedy Cash and Star Cash is $289 plus $89 for a total of $379. What about the ohter 2?


lrhall41

Submitted by Aloha Kitty on Thu, 10/22/2009 - 16:44

( Posts: 10 | Credits: )


Quote:

Originally Posted by DeDe
I'd like to ask a question. While resolving my payday loans (all of which are illegal and were done over the internet) I often hear responses such as the PDL is located in the state of DE and as such when you took out a loan over the internet you agreed to be bound by those laws governing our state. How do I respond to that statement? I've been saying that I reside in the state of KY and as such internet lending is illegal period (found this out after I took out the loans and got into a mess where I couldn't afford to pay anymore). I offer to pay the principle minus any fees paid plus one return check fee if provided with a USPS mailing address and if they will accept money orders. Am I responding inappropriately?


Just tell them your state law prevails, and you have no presence in DE (or whatever state they are talking about). Or, if you really feel spunky, tell them:
Please note I am not a resident of xxxxx, have never prescribed to be a resident xxxxx and have no xxxxx presence, as such am not subject to the xxxxx laws you detail. Have a nice day!


lrhall41

Submitted by Shazzers on Thu, 10/22/2009 - 19:16

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