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Is Elastic.com legal in PA?

Date: Wed, 12/30/2009 - 10:19
Submitted by louis early on Wed, 12/30/2009 - 10:19
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So I before I lost my job a got a loan from elastic.com (Urban trust bank) for $500. I lost my job and was unable to keep up with the payments. They tell me there is no other option other than to make the scheduled payments or let the loan go into default and accept all the additional charges.

So here i am, unable to pay the minimum payments and the amount owed is up to $740. What do I do in this situation. Is this even legal in PA? They say it is because it's a "line of credit" and not a payday loan. Which is also their reason for not offering me any other payment options.

I want to make payments but the minimum they want is too much for me, so making smaller payments will really have no effect on the balance as they will just keep adding on late fees and penalties.

WHAT SHOULD I DO!!!!??!?!?!?


They tell me it is not a loan, it is a line of credit.

I dont understand why they would rather let the loan go into default for 120 days and charge it off when I am willing to make payments. Its just the payments I can make are not as much as they require.


Submitted by on Thu, 12/31/2009 - 04:22

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This sounds like a new way to cover up a payday loan by calling it a "line of credit". I have a question, when you obtained this loan, were you required to pay it off on your next payday in one lump sum, or was there an agreement to pay this off in payments? You should have been emailed a contract, you need to look that over and see what it says. I went to their website and it stating something to the effect of "a new twist to emergency cash". What I see as a problem here is this is backed by a bank, and there are options available to pay this off, making payments etc.


Submitted by Shazzers on Thu, 12/31/2009 - 07:33

Shazzers

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My options for repayment were
1. pay the entire loan back at once
2. pay an extension fee of $2.50 per $20 of the outstanding amount, plus at least %10 of the original amount borrowed.

These people are impossible to deal with. I keep calling them and trying to work something out but they are just unresponsive to anything other than paying the past due amount plus fees that have accrued.

They say I can send whatever money I want to them but if it is not enough to meet the minimum payment due the fees will just keep adding up.

Like I said, I want to take care of this but I just can't do what they are asking.

As it is now every two weeks I accrue another $128 in fees. So i guess at least I could pay the fees every two weeks and the balance won't go up any.

Any other ideas on this one?


Submitted by louis early on Mon, 01/04/2010 - 09:30

louis early

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Quote:

Originally Posted by louis early
My options for repayment were
1. pay the entire loan back at once
2. pay an extension fee of $2.50 per $20 of the outstanding amount, plus at least %10 of the original amount borrowed.
These people are impossible to deal with. I keep calling them and trying to work something out but they are just unresponsive to anything other than paying the past due amount plus fees that have accrued.
They say I can send whatever money I want to them but if it is not enough to meet the minimum payment due the fees will just keep adding up.
Like I said, I want to take care of this but I just can't do what they are asking.
As it is now every two weeks I accrue another $128 in fees. So i guess at least I could pay the fees every two weeks and the balance won't go up any.
Any other ideas on this one?


Do they automatically deduct this from your account? If it were me, I would close my acount and open a new one so they wouldn't have access to it anymore. Them I would contact them via email and tell them I have endured a hardship and will pay them via money order thru the mail. If they are charging this much in fees and interest they aren't operating within the law. You should call your DFI at (717) 214-8343 and ask for thier assistance. Meanwhile, I am going to foward this topic to Paul because he is from Pa. and may be able to help you a lot more than I can, so please keep checking back for replies.


Submitted by Shazzers on Mon, 01/04/2010 - 09:53

Shazzers

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Quote:

Originally Posted by Shazzers
Do they automatically deduct this from your account? If it were me, I would close my acount and open a new one so they wouldn't have access to it anymore. Them I would contact them via email and tell them I have endured a hardship and will pay them via money order thru the mail. If they are charging this much in fees and interest they aren't operating within the law. You should call your DFI at (717) 214-8343 and ask for thier assistance. Meanwhile, I am going to foward this topic to Paul because he is from Pa. and may be able to help you a lot more than I can, so please keep checking back for replies.


sorry shazz,but i'm not from PA my dad was.however PA does not have an provision for CSO'S or anything similar.sounds like an online lender trying to skirt the pdl laws.i would follow shazzers sage advice.also file AG,and FTC complaints.


Submitted by paulmergel on Mon, 01/04/2010 - 10:21

paulmergel

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I have closed my account already. What is DFI?

Thanks alot for the suggestions I will try it out. If anyone has any other ideas let me know.


Submitted by louis early on Mon, 01/04/2010 - 11:16

louis early

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I filed a Complaint with the Better Business Bureau, FTC and my Maine attorney general on 1/18/11. I will keep you posted on what happens.


Submitted by on Wed, 01/19/2011 - 15:42

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