Payday loan threat by collection agency

Do you remember the name of the payday loans you had?

i would send them a DV letter asap.send it certified mail return receipt.this is a scare letter.notice how they didn't even name the pdl.do a search in the bar above.this is a bottomfeeder.send the DV letter,file AG complaints as well.let them know that you are filing complaints against them.do not send them a cent.

Please DO send them a debt validation letter. I would also forward a copy of this letter to the FTC because they did not include pertinent information that according to the FDCPA they are bound by law to do. Call 1-877-FTC-HELP (1-877-382-4357) and ask them for an email address you could forward this email, explain that you have reason to believe they (the collection agency) has violated the FDCPA (Fair Debt Collection Practices) and would appreciate it if they would read the 'dunning letter'. Also explain that according to the FDCPA; a collection agency must include the following information in a letter of collection:

• How much money you reportedly owe;
  
• The name of the creditor to whom the debt is owed;
  
• That unless you, within thirty days after receipt of the notice, dispute the validity of the debt or any portion thereof, the debt will be assumed valid by the debt collector;
  
• That if you dispute the debt in full or in part within that thirty day period, the debt collector will obtain verification of the debt and mail it to the consumer; and
  
• That upon your written request within the thirty day period, the debt collector will provide you with the name and address of the original creditor, if different from the current creditor.
  

Thank you everyone for your adivce I will send out a DV and complaints to my AG and the FTC.

The payday loans I had were all internet

nationwide cash
mycash now
united cash
kenwood services
titancs
paycheck today

i don't see a legal one in the bunch.not suprised that one of them either hired,or sold it to this bottomfeeder.

I received the same type of e-mail letter and a nasty phone call from TK Financial aka TK Credit Recovery on Sunday. I came onto this forum, found the DV Letter, sent it out yesterday, and I filed a complaint with my AG in California, yesterday.

I believe this guy said my account was for a payday loan with EP Processing or Payments or something like that.....I have tried to reach these folks, but have never received a response. I believe I have a certified return receipt somewhere. I was shocked with this person called me and then sent me that nasty letter. Thanks to this forum, I am now going to contact the FTC ASAP.

While Payday Loans would be illegal in New York, it is only if they have a physical presence in New York and are charging more than 25% interest p.a. However, Payday Loan Companies operate over the internet and are domiciled in States that do not have any usury ceilings. When you take a payday loan you are deemed to be borrowing in that State of domicile and, therefore, the loan is legal. We recommend that you obtain the services of a lawyer to try to get you out of your predictament. If you do not have a lawyer, we recommend the NYS Lawyer Referral Service at 1-800-342-3661.

NYSBD

i said it before.the NY AG has a different point of view.i couldn't care less what the banking division has to say on the subject of legality.the AG says they are illegal.therefore they are illegal.

Paulmergel, you are SO right! I live in MD, my state AG and financial regulatory commission say that PDL's are illegal here, but our 'good friends' at one of the PDL's listed above said that my AG and financial commission didn't know what THEY were talking about!!! (I DO have to admit, the above reply telling the poster they can get lawyer through the NY referral service is an interesting touch! But not required!)

What is a Payday Loan?
Payday loans are obtained from a variety of sources, including payday loan companies -- national
chains and locally owned -- some check cashers, some pawn shops, as well as via the internet.
Payday loans are small-dollar ($100-500) short-term (generally initially two-week) loans that the
borrower promises to repay out of his/her next paycheck or regular income payment. Payday loans
carry an extremely high interest rate that ranges from 400-900 percent on an annualized basis. In
a typical payday loan scenario, the borrower provides the lender with a check or debit authorization
for the amount of the loan plus a fee (the fee is actually interest on the principal amount of the loan).
The payday lender agrees to defer presentment of the check or debit authorization until the
borrower???s next payday or income payment, usually two weeks later. Payday loans typically are
extended without any assessment of the borrower???s ability to pay the loan, i.e., no credit check; all
the borrower typically has to prove is the existence of a bank account and a salary or other source
of income.
If a borrower cannot repay the loan at the end of the two-week period, the lender often offers to
extend the loan for an additional fee, called a rollover, which results in an even higher rate of
interest. Indeed, surveys conducted by various states have found that contrary to the payday loan
industry???s claim that payday loans are short-term, the average payday loan borrower rolls over the
loan numerous times, so that the loan is outstanding for many months and the borrower typically
pays many times the face value of the loan in interest.
Who is the typical payday loan borrower?
Payday loan borrowers typically are low to moderate income individuals who may lack access to
traditional forms of credit for a variety reasons, such as poor credit ratings, lack of home ownership
and thus the inability to obtain home equity loans, and/or overextended credit card debt. Payday
loan borrowers have relationships with a bank or credit union, since a checking account is required
to make the loan. If a payday loan cannot be repaid and the lender attempts to cash the borrower???s
check as security, a bounced check can damage the existing relationship the borrower has with
his/her bank and the borrower could also incur significant insufficient fund fees and damage to
his/her credit history.
What you can do
A Consumers Union study suggests these alternatives to payday borrowing:
??? take small loans from credit unions or take a cash advance on a credit card.
??? make a pawn loan using an unessential item as collateral.
??? seek out a loan from a licensed lender that makes small unsecured loans. Such loans
usually are far less expensive and are available even to those with poor credit.
ResponsibleLending.org offers other alternatives:
??? work out a payment plan with your creditors.
??? seek overdraft protection in your checking account. Beware of ???bounce protection??? programs
with fees similar to payday loans.
??? talk to your employer about granting you a paycheck advance.
If you are experiencing credit-related financial problems or debt collection phone calls, consider
contacting a not-for-profit credit counseling agency that is licensed by the New York State Banking
Department for assistance. Generally, these organizations offer assistance in paying back your
debts for free or at minimal expense.


And a letter from them stating that they could not help. I'm really frustrated.

I'm the original post on here and the NYBD post too. I reside in NY.

This doesnt sound good. I am in NY as well. Am I fighting a losing battle with these PDLs. What is the answer ? Legal ? Illegal ? and according to who.......must admit, this has shaken my confidence a tad.........

Quote:

I know they are illegal have read the court papers from when Spitzer our former AG sued some of these payday loan companies, but it seems our new AG isn't fighting them or something very similar considering both replies I have received. I just don't know what I'm going to do I am not going to pay them twice or three times the amounts of the original loan like they would like me to do, but I certainly don't want to be sued at the same time as they implied in that email they sent to me.

Hello to the entire forum....I had an illegal pdl loan with EPProcessing out of Nevada, I defaulted...begged for a repayment plan, never heard from anyone then received a collection notice from a web collector....asked for a repayment plan and never heard anything....received phone calls from a collection agency, ACR....asked them to validate the debt...via Certified Mail Return Receipt, received the green card back but never received a validation of the debt from the collection agency. Keep in mind that I previously borrowed from this company for almost 2 years and never a problem...I paid back to them, more than $1800 in fees. I sent them letters to the effect that they were illegal and not licensed to doing business in California....never heard from them. Just recently, I received a call from another collection agency about this same debt...he sent me a threatening letter stating that aggressive legal action was being prepared against me....but here's the clincher, I pulled my credit report and found that National Credit Adjusters is reporting me for an open collection account with EPProcessing being listed as the original debtor, NOT THE NEW CA CALLING TO COLLECT ON BEHALF OF EPProcessing.
My question to all of you out there is first, is this legal?
Can two collection agencies go after you for the same debt?
If so, who do you repay?
Can your credit be negatively impacted without receiving validation of the debt?
What can I do to remedy this situation? Also, my original loan amount was for $600?
Finally, if you were me, what would you do to stop these predators?
Help
P.S. I filed complaints with the California AG and FTC against both collection agencies, yesterday.
Oh and for anyone thinking that I am trying to wiggle out of what I owe, this simply is not the case...I will pay what i am legally bound to, but I want assurances that I can make payments over a period of 3 mos, put this behind me and restore my credit...People, the last 2 years have been very tough and I felt that turning to payday loans for help was my only solution...I am carry the regret of my actions, daily. I appreciate and welcome all of your comments

I have received phone calls from several men, ph.# 646-845-1901, saying that they are a legal firm, they won't give me a co. name, or anything pertaining to what they say I owe. They have threatened that I will be arrested, etc. that if I do not pay them that it will be bad for me. They have called my cell ph. # w 2 different numbers which end up being nothing, 1 is from CA area and 1 is from Ontario. They gave me money gram instructions, but the name is to a person not even to any company, somewhere in District Heights, MD. When they called me today and said that I didn't pay yesterday, why I told them that there money gram instructions were wrong, could they give me new information and they wouldn't. Should I call them back and say that I am not going to pay them anything and to give me and address so that I can send them a DV letter. They won't give me any information I ask for. I asked for what company this pd loan was with. They get irate with me when I ask them questions.

yes,state until you receive something in writing.you will not speak to them again.they can't have you arrested.debts are civil matters,not criminal ones.