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Dealing With Unlicensed Payday Lenders

Date: Tue, 02/03/2009 - 11:21
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 sent an email as suggested to an "illegal" lender, and they wrote me back and said my "threats" have reported to their legal counsel. I made no threats, I was actually more polite than I should have been. Anyway, they say the agreement I made is governed by Costa Rica laws, not Texas, and I should not try to change the rules of our agreement. If anyone wants to see the emails in full let me know.

Any suggestions?


Submitted by kaechelle on Fri, 09/04/2009 - 06:38

kaechelle

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I am trying to get out of the payday loan craziness. I have 6 loans and I believe 5 out of the 6 are illegal in Arizona. Does that only make me liable for the principle on the loan? Also do the interest/fees already paid count towards this principle? I have read a lot of posts but Arizona is different then what I have read.


Submitted by Kristin Kebble on Fri, 09/04/2009 - 13:43

Kristin Kebble

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Has anyone got the address to this pdl Centurion LPUSA -8003518820. I have blocked this company from my bank but the bank gave me back only some of the debits. I HAVE PAID THAN 2 TIMES THE AMOUNT I borrowed. The bank said I should of notified them earlier


Submitted by on Sun, 09/06/2009 - 10:39

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I have searched the forums for the letter to sent the pdls .Please help getting no where fast and about to be debitted again.

I have read all the post and getting a feeling of hope that I MIGHT beable to get thru this mess. NJ bankings systems sucks including td bank...


Submitted by on Mon, 09/07/2009 - 05:31

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I did not see any letter templates to be used for letter to illegal PDL providers? Please advise.


Submitted by MB1 on Sat, 09/12/2009 - 15:23

MB1

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Does anyone know about Maryland? I have about 6 payday loans and I can't repay them. Now I'm getting harrassing emails/phone calls. I'm willing to pay back what I owe but the "extension" fees that I've paid have more than paid for them all. I am DESPERATE!!

THANKS IN ADVANCE!!!


Submitted by on Tue, 09/15/2009 - 13:41

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I recently had to close out my banking account and moved in to another Bank. I had 6 payday loans and had paid the principal plus a ton of interest. I sent out the letters stating that I have revoked their ability to do the ACH debit. I also sent copies of the letters to the BBB, Atorney General,and the Fcc. I have received one refund from one of the companies. It was for 945.00. I am now receiving phone calls from some attorney who says they are going to have a lawsuit lodged against me for non payment. If they continue to harass me I will call the Attorney Generals office. They call me at work daily but i just don't answer the phone. I also changed my cell phone number. If you are in trouble with these PDL people please check the laws regarding these loans and the caps on what they can charge for interest and state it clearly in your letters. These people are thiefs and relentless, do not let them take advantage of you.


Submitted by on Fri, 09/18/2009 - 07:00

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I took a loan with CheckNGo for $1125 and have paid them back $1229.
CashNet $1400 and paid them $775.00
PayDayMax $630 and repaid $852.00
ParadiseCashAdvance $350 and repaid $415.00
500FastCash $300 and repaid $90.00
PayDayOne $500 and repaid $231.00
PayDayLoanYes $350 and repaid $105.00
PanAMFastCash $400 repaid 0 so far
MyCashNow $120 repaid 0 so far

I need to know if any of these companies are CSO's or if they are PDL's. I live in Maryland and the loans were taken out in Maryland. They are calling me at work, when I ask to take a message (like it's not me answering the phone) they ask to be transferred to Human Resources. This is insane!!!

Thanks so much for your help....in advance!!


Submitted by on Fri, 09/18/2009 - 17:13

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Quote:

Originally Posted by Anonymous
I took a loan with CheckNGo for $1125 and have paid them back $1229.
CashNet $1400 and paid them $775.00
PayDayMax $630 and repaid $852.00
ParadiseCashAdvance $350 and repaid $415.00
500FastCash $300 and repaid $90.00
PayDayOne $500 and repaid $231.00
PayDayLoanYes $350 and repaid $105.00
PanAMFastCash $400 repaid 0 so far
MyCashNow $120 repaid 0 so far

I need to know if any of these companies are CSO's or if they are PDL's. I live in Maryland and the loans were taken out in Maryland. They are calling me at work, when I ask to take a message (like it's not me answering the phone) they ask to be transferred to Human Resources. This is insane!!!

Thanks so much for your help....in advance!!


PaydayOne is listed as an installment loan in MD, CashNetUSA is a CSO, the rest of your lenders are not licensed.


Submitted by Shazzers on Fri, 09/18/2009 - 17:25

Shazzers

( Posts: 17344 | Credits: )


Thank you soooo much for your help!!! I can't tell you how much I appreciate it! My checking account is currently negative $200+. I called them to tell them the situation and to stop the ACH's but they said that if I signed the authorization they can't stop it unless I can get them a paid in full receipt. I can close the account but the negative balance has to be paid first.

Thanks again for your help!


Submitted by laurak220 on Fri, 09/18/2009 - 17:38

laurak220

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Quote:

Originally Posted by paulmergel
actually cashnet is registered as a CSO(credit service organization) therefore are legal,and exempt from the pdl laws.you will have to make arrangements with them.

this is cashnetusa not cashnet

OOPS i meant cashnetusa.there are a couple with that name.


Submitted by on Mon, 09/21/2009 - 06:34

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Quote:

Originally Posted by Anonymous
I have 3 loans and need to know if they are PDL or what please?

FBDloans
1800899cash
cashnetusa

Thank you


We need more information, what state are you in, are these Internet or store front loans, how much did you borrow and pay back so far. Please start a new topic with that information and someone will do their best to help you.


Submitted by Shazzers on Mon, 09/21/2009 - 11:54

Shazzers

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im in ohio.

i have 3 loans

cashnetusa borrowed 600 (ohios max is 500) paid 150 so far paying 50 every two weeks

1800899cash borrowed 400 paid 245

fbdloans borrowed 300 paid 200

They were all done on the internet


Submitted by on Tue, 09/22/2009 - 03:39

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Quote:

Originally Posted by Anonymous
im in ohio.

i have 3 loans

cashnetusa borrowed 600 (ohios max is 500) paid 150 so far paying 50 every two weeks

1800899cash borrowed 400 paid 245

fbdloans borrowed 300 paid 200

They were all done on the internet

1800899cash is not licensed to lend to Ohio residents. CLICK HERE to find out how to deal with illegal lenders. I believe that CashnetUSA is lending as an installment lender, look at the contract closely to find out how they are listed, it will make a difference in the interest they charge. FBD Loans are also an installment lender I believe.


Submitted by Shazzers on Tue, 09/22/2009 - 16:11

Shazzers

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hello


Submitted by on Wed, 09/23/2009 - 02:16

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I live in Missouri and have the following online loans:
Ameriloan - 260
Acepayday - 260
zip.19 - 240
cashnetusa - 390
advancecash - 390

can you tell me if any of these are illegal in missouri. thanks


Submitted by on Wed, 09/23/2009 - 13:37

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Quote:

Originally Posted by Anonymous
I checked on the ohio payday loans law website it says FBDloans is not liscensed in ohio either?


However, I think they are an installment lender which means they wouldn't abide by the payday loan laws, it might be best for you to call your DFI and ask.


Submitted by Shazzers on Wed, 09/23/2009 - 14:34

Shazzers

( Posts: 17344 | Credits: )


Quote:

Originally Posted by Anonymous
I live in Missouri and have the following online loans:
Ameriloan - 260
Acepayday - 260
zip.19 - 240
cashnetusa - 390
advancecash - 390

can you tell me if any of these are illegal in missouri. thanks


Only cashnetusa is licensed that I know of, I'm not certain about advancecash, the others aren't.


Submitted by Shazzers on Wed, 09/23/2009 - 14:35

Shazzers

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If I only have to pay back the principal that I owe and they have been taking interest fees every two weeks for the last 2 months, do those interest fees count toward the principal. I live in Iowa and have several internet payday loans and want to pay them off and get them out of my life.


Submitted by on Thu, 09/24/2009 - 09:20

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Quote:

Originally Posted by Anonymous
If I only have to pay back the principal that I owe and they have been taking interest fees every two weeks for the last 2 months, do those interest fees count toward the principal. I live in Iowa and have several internet payday loans and want to pay them off and get them out of my life.


Yes interest counts, they shouldn't charge you ANY interest or fees, just deduct whatever you have paid them from the amount your originally borrowed.


Submitted by Shazzers on Thu, 09/24/2009 - 12:36

Shazzers

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I am so glad that I have found this site and after reading through this thread I have a quick question.

I got on the Merry-go-round with Zip19 which is not licensed in NE. Since the first of the year I have borrowed a total of 13400.00 including a current outstanding balance of 1500 and have paid them over 14000. Am I still liable for the 1500 or can I leverage the entire amount I have paid this company to get them off of my back and maybe get a refund?


Submitted by on Sun, 09/27/2009 - 09:07

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Quote:

Originally Posted by Anonymous
I am so glad that I have found this site and after reading through this thread I have a quick question.
I got on the Merry-go-round with Zip19 which is not licensed in NE. Since the first of the year I have borrowed a total of 13400.00 including a current outstanding balance of 1500 and have paid them over 14000. Am I still liable for the 1500 or can I leverage the entire amount I have paid this company to get them off of my back and maybe get a refund?


Whatever you have paid them deduct from whatever you borrowed.


Submitted by Shazzers on Sun, 09/27/2009 - 09:13

Shazzers

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Quote:

Originally Posted by Anonymous
I'm in ohio and have a pdl with 1800899cash. I have paid the principal off, Now what do I do?
thanks
tara

Well, you probably know they aren't licensed lenders in Ohio, so, basically go back to page one of this thread and read it through. All of your questions will be answered there. :)

Edited in red for a typo.


Submitted by Shazzers on Mon, 09/28/2009 - 10:24

Shazzers

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