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Dealing With Unlicensed Payday Lenders

Submitted by Shazzers on Tue, 02/03/2009 - 11:21
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Updated on July 14, 2010: At the bottom of this post is a newer version of a letter template which you may or may not want to use, make sure you use your own words, this is only a sample.

If everyone will just give a link to this thread to the new members who come here for guidance it may be more helpful and less work for the experienced members who are researching information. I wrote this awhile back and am most happy to share it. THANKS!

You are only obligated to pay back the principal amount you borrowed from an unlicensed/illegal Internet Payday Lender.

What should you do?

Close your account asap, if you are unable to close your account, go into your bank and ask to speak with the Branch Manager, tell him/her you need a hard debit block placed on your account immediately! Explain that you are revoking ACH authorizations from unlicensed/illegal companies, and have learned these companies are notorious for ignoring revocation, therefore it is important to BLOCK any withdrawal attempts on your account to protect your interest. This is your privilege, do not accept no for an answer. The following link will provide you important information regarding closing accounts. CLICK HERE
What next?
AFTER your account is secure send each pdl (the unlicensed and illegal) an email similar to THIS (please scroll down to locate letter template). Tailor this 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.
File complaints: Most of the time, you can file a complaint online with the following, I encourage you to follow through with doing so, you will need to search the Internet for your state Attorney General's website, however, here are links to file complaints for the FTC, Online complaints: Federal Trade Commission., and the BETTER BUSINESS BUREAU.
Keep in mind that you may not receive a response for days, or even weeks, or, you may receive harassing and threatening phone calls. I have found the best way to deal with this is not to respond or reply, simply hang up.
Side note: If you have paid an illegal/unlicensed payday lender above and beyond the principal amount you borrowed, it might be a good idea to demand a refund and a paid in full letter/receipt. You may or may not get one or both. It still doesn't hurt to include that tidbit in your letter. :)
[QUOTE]
Date:

Name Of PDL

Your Name
City, State
Account #

This letter is to inform you that I am aware of the FACT that the loan you issued to me, is NOT legal or binding in my state. For your convenience, I have included my state payday loan laws below.

(Insert Your State payday loan laws here)

(Insert either (a) OR (b) which ever statements below which applies to you)

(a) The state of (insert your state) prohibits payday loans, therefore, I am bound by the state laws where I reside. As I have no presence in your state or country (only insert one choice, state or country, depending on your situation.), therefore I have no legal obligation to the 'governing laws' you may have detailed.
OR
(b) The state of (insert your state) requires Internet payday lenders to be licensed in MY state. I have already researched this information, your company does NOT have a license to lend in the state of ___________, if I am mistaken I will need proof in the form of a license number so that I may verify it with my Attorney General. I am bound by the state laws where I reside. As I have no presence in your state or country (only insert one choice, state or country, depending on your situation.), therefore I have no legal obligation to the 'governing laws' you may have detailed.


Be advised that as of today (insert todays date) I am revoking ANY and ALL ACH authorizations with your company from debiting any AND all of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I also revoke ANY and ALL wage assignments I may have signed, by you, including but not limited to; any of your affiliates, dba's, and collection agencies assigned to this account. None of the above no longer have my permission to access my accounts or impose a wage assignment.


I will only communicate to resolve this matter via email. If you ignore this notice and attempt to contact me or any of my references via telephone, you will be ignored and any payments owed will be delayed. I am willing to pay the principle amount of the loan only, however, no address means NO payments, this is not negotiable.

If you do NOT reply to this notice within 48 hours I will be forced to file complaints with my Attorney General (insert name of your attorney general), the BBB and the Federal Trade Commission. If you reply to this notice with any misleading legal implications or menacing course of actions you are unable to follow through with, I will be forced to take actions against you which could cause you to lose your license in the state of (insert the state they are licensed in) < (only use this statement if the illegal lender is licensed to lend in a state other than yours) and cause damage to your reputation, which could potentially decrease your clientele!



Sincerely,

Your Name[/QUOTE]


I have a few payday loans and need to get out of the cycle. Any info form Minnesota?


Submitted by on Tue, 04/02/2013 - 07:58

( Posts: 202330 | Credits: )


List your lenders, original principal balance borrowed, and how much you have paid back so far. Answere these questions, and we can help you further.


Submitted by bingonut on Tue, 04/02/2013 - 09:00

bingonut

( Posts: 1428 | Credits: )


Hoe do you know if a payday loan illegal or not


Submitted by on Thu, 02/05/2009 - 14:51

( Posts: 202330 | Credits: )


I live in MA. How do I determine if they are illegal payday lender or not. I have only paid the fees each pay period on each loan (no principle) however the total fees i have paid are greater than the original loan already. These are the current PDL companies I am paying:

500fast cash
United Cash Loans
Mesa Financial
DJR Group
Arrowhead Investment
East Side Lenders

PS - This afternoon after reading some of this I sent an e-mail to Upfront Pay day only saying that I would file a complaint with MA. With in ten minutes zeroed my account!


Submitted by mjhayes75 on Thu, 02/05/2009 - 16:03

mjhayes75

( Posts: 6 | Credits: )


CLICK HERE for the MA payday loan laws. ALL Internet lenders are illegal in the state of MA. Please get your account closed BEFORE you send out ANY letters. Go to your bank and fill out a formal dispute on these illegal debits, tell them you want your funds back asap! Also explain to your bank manager all of these lenders are illegal, print out a copy of the payday loan laws and take it to your bank manager. You would be better off closing that account, now that these lenders have your account number they will debit your account to death! :shock:


Submitted by Shazzers on Thu, 02/05/2009 - 16:51

Shazzers

( Posts: 17344 | Credits: )


when you click the actual link to the MA site it states that they can not help you when you do business with unlicensed lenders! Also, my checking account is with ING there is no bank manager to speak with!


Submitted by mjhayes75 on Thu, 02/05/2009 - 17:07

mjhayes75

( Posts: 6 | Credits: )


Legal / illegal payday lender not sure:
I live in CT and I'm not sure if all of my payday loans are illegal/unlicensed loans. I saw a post that stated I can e-mail the ACH revocation letter but I do not have contact information for each of my lenders? If anyone can help with this information I would appreciate it. I am hoping to close my account and send these letters before I get paid Friday. Hopefully I can finally see some of my pay. I have not seen any money yet this year and my bills are beyond suffering. My loans are as follows:

I have the following loans currently:
7/10/09 500fastcash borrowed $300 paid back $975 (in full)
10/10/08 Centurion/loanpoint USA (I think) borrowed $500 thus far have paid back $1200 (and they continue to debit $150 each paycheck)
10/17/08 CityviewCash borrowed $300 thus far have paid back $635
10/30/08 Webpayday borrowed $500 thus far paid back $1080
11/3 CMG borrowed $300 thus far have paid back $660
11/5/08 PaydayLoanYes borrowed $350, on 11/21 payday they debited $175, $175, and $30 total $380 (have no clue what that was about but was quite hostile when I called and of course there is nothing they can do)
11/25/08 First West coast/Atlas money online (I think) borrowed $350 thus far have paid back $420
11/25/08 MTE Financial borrowed $300 thus far paid back $450
11/26/08 Ameriloan borrowed $300 thus far have paid back $390
12/3/08 Avantis Financial borrowed $300 thus far have paid back $442.80 (the way they figure out the finance charge is quite odd and come out with change ?!?)
12/13/08 Sagemore borrowed $300 thus far have paid back $300 and counting(what do ya know!)
12/15/08 500Fastcash (yes another one. the first one was overly paid in full) borrowed $350 thus far have paid back $315

Thank you everyone. I can finally begin to see there is a light at the end of the tunnel......

Holding on :)


Submitted by mzbeonita1 on Mon, 02/09/2009 - 06:22

mzbeonita1

( Posts: 9 | Credits: )


go to the links that shazzers has outlined.as with MA pdl's are
prohibited in CT.follow the links she has set up and you will have the tools you need to get these people out of your life once and for all.


Submitted by paulmergel on Mon, 02/09/2009 - 06:26

paulmergel

( Posts: 15514 | Credits: )


Hi, I am really wondering how FL law deals with multiple online payday loans. I have several online payday loans - but the state of FL says you are only allowed to have one. Does that mean that these lenders are illegal?


Submitted by on Sat, 02/14/2009 - 21:49

( Posts: 202330 | Credits: )


Hi, I am really wondering how FL law deals with multiple online payday loans. I have several online payday loans - but the state of FL says you are only allowed to have one. Does that mean that these lenders are illegal?


Submitted by on Sat, 02/14/2009 - 21:49

( Posts: 202330 | Credits: )


THANK YOU!!!!! Ive had these guys debit my acct till it was forced closed by my bank. I have now filed the letters with them, and they have zero'ed my accts and are also issuing me refunds for all amounts paid. As I am a MA resident they were quick to have me happily zeroed!

Trust me, there are always silver linings!


Submitted by on Thu, 03/12/2009 - 13:16

( Posts: 202330 | Credits: )


I live in CA. how do i know whether they are illegal payday lenders or not.
payday one, cash central, zip19, paydaymax, ezpayday,national payday, and integrity(iadvancecash.com) they are all internet based. i need whatever help i can get to get these paid off!


Submitted by on Wed, 03/18/2009 - 08:48

( Posts: 202330 | Credits: )


I live in GA and have 2 payday internet loans. Are these illegal?


Submitted by on Wed, 03/25/2009 - 06:03

( Posts: 202330 | Credits: )


"Side note: If you have paid an illegal/unlicensed payday lender above and beyond the principal amount you borrowed, it might be a good idea to demand a refund and a paid in full letter/receipt. You may or may not get one or both. It still doesn't hurt to include that tidbit in your letter. "

So how does this work with lenders that don't allow you to make interest only or principal + interest payments? The ones that require you to pay in full and then reloan?

For example I'm basically paying $200 a month for a $300 loan, and have been for the last 6 months, however they only offer full repayment, and then reloaning, as an option.

1) Am I able to apply the interest paid for the same loan amount, at least during this year?

2) This is a company I have confirmed is illegal in my state and is not a CSO, so does it even matter? If the lender is illegal would I technically be required to repay them anything at all, even if I had just taken out the loan?


Submitted by on Wed, 04/01/2009 - 08:27

( Posts: 202330 | Credits: )


well stu,if you borrow you should at least pay back what you borrowed.we always advocate that.they can't however charge interest or fees.ant contract they come up with is worthless as they are unlicensed.two questions.
how much was borrowed?
how much was debited total by this pdl?
that would help us help you.


Submitted by paulmergel on Wed, 04/01/2009 - 12:10

paulmergel

( Posts: 15514 | Credits: )


Hi Paul. I have my own thread with all my info, I was just wondering about that one aspect of dealing with PDL's. From doing searches it looks like I'm going to have to work out paying the principal on these, but thats fine. As long as I'm freed from that insane interest and can set reasonable terms for the repayment.


Submitted by on Wed, 04/01/2009 - 17:24

( Posts: 202330 | Credits: )


I live in Texas and currently have 3 PDLs ..Thinkcash, Paydayone and Discount advances. All are internet based.
I am not sure how to tell if they are legal or not. Is there anything I can do to get out of this mess


Submitted by on Thu, 04/02/2009 - 13:23

( Posts: 202330 | Credits: )


Think =cash is not a PDL, it is an installment loan backed by a FDIC bank. They are Legal and you should contact them to try and work out a settlement.
??
Paydayone is a PDL and is also Legal. They have a reputation for being reasonable in working out repayment plans.
??
I am not to sure about Discount Advances. I will check them out and get back to you. This PDL might be registered as a CSO in Texas.


Submitted by Cool_Abyss on Thu, 04/02/2009 - 14:08

Cool_Abyss

( Posts: 2936 | Credits: )


Has anyone dealt with payday lenders in New York State I understand that they are illegal and was wondering what has happened after closing your bank account because I closed mine last week and they are calling and sending crazy emails.


Submitted by on Fri, 04/03/2009 - 15:12

( Posts: 202330 | Credits: )


I live in Virginia and have 6 pdls out -
Sonic Payday - $731. ($503,92 & $217.47 for nonpayment of last loan
Payday Services - $650.
Cashadvancenetwork - $500.
Paycheck Today - $420
Cash Today - $420.
do I have to pay them back -They have tried debiting my checking account twice and each time they were returned because of insufficient funds and I had over 900 in NSF How do I go about telling them I don't have to pay because I know they are illegal in the Commonwealth of VIrginia but the pdls are in different states I have also applied for debt consolidation help with the Oak View Law Group. Please let me know what to tell them when they start calling me on
Monday and they do call me at work. ALso where can I find the letters about ach and abour revoking the loans

Karen


Submitted by on Sat, 04/04/2009 - 18:01

( Posts: 202330 | Credits: )


I live in Ga and have 4 internet payday loans, Cashtree,Lakota Cash, 1800899cash.com and Payday loans of America. Please Help.


Submitted by on Thu, 04/09/2009 - 10:35

( Posts: 202330 | Credits: )


I live in the state of Ga, I have 4 internet pdls. I lost my job recently so now when they go into my account every two weeks for payment, no funds are available. Do I have to repay the loans since they are illegal in Ga?


Submitted by on Thu, 04/09/2009 - 11:15

( Posts: 202330 | Credits: )


I live in Ga. and I have a loan with 1800899cash.com, wanted to know if they are a payday lender or what?


Submitted by on Thu, 04/09/2009 - 12:49

( Posts: 202330 | Credits: )


I live in Ga and have a loan with 1800899cash.com,are they a payday lender or a different type of loan company?


Submitted by on Fri, 04/10/2009 - 09:21

( Posts: 202330 | Credits: )


I live in Ga and have a loan with 1800899cash.com,just trying to find out if the Ga PDL Laws apply to them.


Submitted by on Fri, 04/10/2009 - 15:25

( Posts: 202330 | Credits: )


I wanted to thank you all and post what you guys and girls helped me do. I also hope it helps others.
I HAD 7 pay day loans -
Astra Lending - $300 - paid $1850 (could not get them to debt the full balance)

Sagamore - $300 - Paid $1100 (was paying down $50 + fees)
LoanShop #1 - $300 Paid $600
LoanShop#2 - $200 Paid $300
TJF Corp - $300 Paid $700
A2BCash - $200 Paid $450
Red River - $400 Paid $600

I sent letter (from samples I found on the site) as I learned the PA payday loan laws here as well. PA = No payday loans
5 of the 7 acted just on the letters I mailed and faxed.
Here is the result:
Astra Lending - Paid in full - Refund $1550 (had to send several letters to get the refund)
Sagamore - Paid in Full (PIF)- $800 refund
LoanShop #1 - PIF - $300 Refund
LoanShop#2 - PIF - $100 Refund
TJF Corp - PIF No refund yet
A2BCash - PIF no refund yet
Red River - PIF no refund yet
Other measures I took called Bank of america, had account made "deposit only" then closed when employer was all set on my paycheck stuff to new account. BoA helped me by finding me legitimate bills I pay to make sure I told everyone my new account number. BoA notified me that Astro, A2B, and TJF all attempted to take ach's after they had been notified, astra had even already sent me the PIF letter.

I am able to pay all of my bills and can even put money away incase I need some extra money. I will issue my own payday loans to myself from now on :).

I really Appreciate it, I cant tell you enough!!


Submitted by on Mon, 04/13/2009 - 17:32

( Posts: 202330 | Credits: )


I wanted to thank you all and post what you guys and girls helped me do. I also hope it helps others.
I HAD 7 pay day loans -
Astra Lending - $300 - paid $1850 (could not get them to debt the full balance)

Sagamore - $300 - Paid $1100 (was paying down $50 + fees)
LoanShop #1 - $300 Paid $600
LoanShop#2 - $200 Paid $300
TJF Corp - $300 Paid $700
A2BCash - $200 Paid $450
Red River - $400 Paid $600

I sent letter (from samples I found on the site) as I learned the PA payday loan laws here as well. PA = No payday loans
5 of the 7 acted just on the letters I mailed and faxed.
Here is the result:
Astra Lending - Paid in full - Refund $1550 (had to send several letters to get the refund)
Sagamore - Paid in Full (PIF)- $800 refund
LoanShop #1 - PIF - $300 Refund
LoanShop#2 - PIF - $100 Refund
TJF Corp - PIF No refund yet
A2BCash - PIF no refund yet
Red River - PIF no refund yet
Other measures I took called Bank of america, had account made "deposit only" then closed when employer was all set on my paycheck stuff to new account. BoA helped me by finding me legitimate bills I pay to make sure I told everyone my new account number. BoA notified me that Astro, A2B, and TJF all attempted to take ach's after they had been notified, astra had even already sent me the PIF letter.

I am able to pay all of my bills and can even put money away incase I need some extra money. I will issue my own payday loans to myself from now on .

I really Appreciate it, I cant tell you enough!!


Submitted by deavvaed12 on Mon, 04/13/2009 - 17:53

deavvaed12

( Posts: 2 | Credits: )


I am equally worried about loan sharks as we call some payday lenders here in the UK who use all sort illegal tactics to compel debtors to pay up.
Someone was wondering how they could identify such lenders.
It is as simple as making sure you visit the sites of reputable firms or comparison companies to find out how to borrow with little risk.
One example of such is Only Finance, which you could search for on Google.
You could compare offers here and only go for the best.
Best of luck :D [/url]


Submitted by on Wed, 04/22/2009 - 12:36

( Posts: 202330 | Credits: )


What letters did you send to get a refund?????
My Cash now owes me $3900!!


Submitted by on Wed, 04/22/2009 - 14:15

( Posts: 202330 | Credits: )


"Posted: Wed Apr 22, 2009 2:28 pm Subject:

--------------------------------------------------------------------------------

You can use the standard letter but add in the letter that you demand a refund.
_________________
To infinity, and beyond"

Hanna






I DID THIS... WILL THEY RESPOND?


Submitted by on Fri, 04/24/2009 - 12:19

( Posts: 202330 | Credits: )


Well now, my interest has been piqued again with this particular thread and its overall theme... I had asked this before, but didn't get all the info I needed (most likely "my bad", as all of you are so helpful, responsive and kind). It would seem that deavvaed12 had major success in receiving refunds.... and what's this I'm reading that internet pdl's aren't allowed in PA(???)..... The internet payday lenders I have dealt with in the past folllow.............

I keep hearing that these 2 companies are legal, reputable, easy to work with, etc., so I may not luck out and/or be eligible for any refunds for monies paid paid beyond principle:

CashNet USA
PayDayOne

Others not totally sure of their legality in PA (or at all), but I have paid back the principal and months (some even over a year) of interest/finance charges between 2007 and 2008:

US Fast Cash
United Cash Loans
Pay Day Loan Yes!
Paycheck Today
Cash Advance Network
FastWire Cash
Cash Central
Cash Transfer Centers (I know this is the one in Malta)
Little Loan Shop
Impact Cash USA
Quickest Cash Advance
Cash Direct Express

May I please ask that the standard "letter" be posted again (or referenced to where I can find/see it) and I realize that each letter should contain a "refund demand" as well.

Thanks for any and all help/advice.

Grahamzzzzzzzzzzzzz


Submitted by on Tue, 05/05/2009 - 07:53

( Posts: 202330 | Credits: )