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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]


LOOKING FOR THE LETTER TEMPLATE..CAN'T FIND. i LIVE IN TX AND HAVE 2 PAYDAY LOANS.
ONE WITH MYCASHCREDIT.COM AND OTHER WITH AMERICAN CONSUMER CREDIT. i LEARNED FROM A PAYDAY LOAN CONSOLIDATOR THAT THE MYCASHCREDIT IS ILLEGAL IN THE US. aNYTHING i CAN DO TO GET RID OF THEM?


Submitted by on Fri, 10/23/2009 - 09:06

( Posts: 202330 | Credits: )


Quote:

Originally Posted by Anonymous
LOOKING FOR THE LETTER TEMPLATE..CAN'T FIND. i LIVE IN TX AND HAVE 2 PAYDAY LOANS.
ONE WITH MYCASHCREDIT.COM AND OTHER WITH AMERICAN CONSUMER CREDIT. i LEARNED FROM A PAYDAY LOAN CONSOLIDATOR THAT THE MYCASHCREDIT IS ILLEGAL IN THE US. aNYTHING i CAN DO TO GET RID OF THEM?


Go to the first page of this thread.


Submitted by Shazzers on Fri, 10/23/2009 - 12:12

Shazzers

( Posts: 17344 | Credits: )


Help, Ihave 8 payday loans and am drowning in interest, how do I find out if I have paid back enough and what to do next???
Arrowhead inv $400.
integrity adv $300.
one click cash $250.
American consumer credit $300.payday loan yes $350.
Loan point usa $600 zip19.com 300 all are online paydays please help me.


Submitted by on Sat, 10/24/2009 - 08:37

( Posts: 202330 | Credits: )


Quote:

Originally Posted by Anonymous
Help, Ihave 8 payday loans and am drowning in interest, how do I find out if I have paid back enough and what to do next???
Arrowhead inv $400.
integrity adv $300.
one click cash $250.
American consumer credit $300.payday loan yes $350.
Loan point usa $600 zip19.com 300 all are online paydays please help me.


What state are you in? :)


Submitted by Shazzers on Sat, 10/24/2009 - 11:25

Shazzers

( Posts: 17344 | Credits: )


Thank you so much, I feel a little better reading that I am not the only one in this nightmare and there is a way out. I have written down all the info on how to close the acct like you guys have said and then i have copied the template of the letter to send to each and everyone of these companies. i have read these posts through and through and hopefulla i will be able to follow the instructions and get out of this nightmare. thank you so much for showing me a light at the end of this tunnel and i hope they are able to abolish these so nobody else will have to go through this. thank you for your help. Tracey Chieco


Submitted by on Sun, 10/25/2009 - 11:19

( Posts: 202330 | Credits: )


Just remember that you bank has a wealth of information and help. My bank explained in simple terms how to close the account and how to deal with PDL. One thing I was told, because I initially just wanted to stop payment with a PDL is, as long the PDL lender has your bank info, and even if you have a stop payment for them, they can still get your money. I stopped a ACH for GFSIL (thieves) for $68 a pay. What they did is went under another name and had the money sent to another account and they also chage the withdrawal amount so no "bells' go off at my bank. My bank can only stop ACH for a specific PDL name and amnount, if anything is changed they can get your money. If you again have money taken out, you have to go to the bank and do a new stop payment with the new PDL info. What a nightmare!


Submitted by wchambe641 on Sun, 10/25/2009 - 16:25

wchambe641

( Posts: 129 | Credits: )


I am also stress over my payday bills as well. I currently reside in the state of Illinois and have loans with the following. One click cash borrowed 500 paid 300 back. United cash loans borrowed 500 paid back 300 nationwide paid back 360. None of what I paid has went toward by principal balance. Are any of these places legal to lend in Illinois. Do I have a right just to send the principal amount.


Submitted by on Tue, 10/27/2009 - 14:48

( Posts: 202330 | Credits: )


being in illinois myself i can say you only owe one click and united cash 200.00 each as they are both part of MTE,and illegal in every way.so is nationwide.since all are illegal anything debited goes toward the loan.the pdl's hate it when we post that,but it's true.how much did you borrow from nationwide.deduct 360.00 from that.


Submitted by paulmergel on Tue, 10/27/2009 - 14:52

paulmergel

( Posts: 15514 | Credits: )


Regarding Ohio, the way I read the law (website below) out of state internet PDL are illegal. Please click on the links in my signature, they may help. I took out a loan with a Deleware company, Eastside Lenders (ESL), my $300 ended up costing $705. I sent a complaint to the Deleware BBB and they in turn sent it to ESL. ESL agreed/admitted that the are not to operate in Ohio and charged me for the prinicple only.


Submitted by wchambe641 on Tue, 10/27/2009 - 20:53

wchambe641

( Posts: 129 | Credits: )


I felt I was beyond help until I saw your website. I have several illegal payday loans. I have read many of your messages and decided that I would send letters revoking the ACH transactions, tell them my loans were paid in full and demand a refund. The loan with Pack Management was for $300.00 and I have paid them a total of $635.00. They tell me today that they will consider my loan paid in full if there are no returns and they keep saying that I will not get a refund. I really need the refund so I went to the bank and filled out ACH dispute papers. What are the chances that I will be able to get a refund?


Submitted by dbonner on Wed, 10/28/2009 - 12:58

dbonner

( Posts: 6 | Credits: )


Quote:

Originally Posted by paulmergel
being in illinois myself i can say you only owe one click and united cash 200.00 each as they are both part of MTE,and illegal in every way.so is nationwide.since all are illegal anything debited goes toward the loan.the pdl's hate it when we post that,but it's true.how much did you borrow from nationwide.deduct 360.00 from that.


I borrowed 300. I spoke with them today and that said they are liscensed in deleware and they don't need a liscense to lend in illinois since I took the loan out from them in deleware? Is this true


Submitted by on Wed, 10/28/2009 - 16:12

( Posts: 202330 | Credits: )


I already paid 360 in fees to nationwide. I borrowed 300 hundread does that mean I am owed a refund or should I take a paid in full letter and report them. They and another company take there fees out tommorrow, should I close my bank account and tell the other one that they will only be getting the principal.


Submitted by on Thu, 10/29/2009 - 09:43

( Posts: 202330 | Credits: )


I have several illegal payday loans and have spoken with someone in the State of Alabama Banking Dept. She has told me that she is unable to enforce the law because they are unable to locate them. What do I do when I have paid them back the principal and more to get them to say the loans are paid in full? I have sent the letters to revoke the ACH. Eastside Lenders said:
[COLOR=#333399]East Side Lenders, which is located in Delaware, is licensed by the State of Delaware to make small loans. All such loans are approved and funded in Delaware, with repayment to be made in Delaware. The East Side Lenders loan agreement and website contain all disclosures required by Delaware and federal law and make it clear that all transactions are governed by Delaware law. On the advice of counsel, East Side Lenders maintains that the choice of Delaware law as controlling in the loan documents would be upheld, as all of the significant contacts in the loan transaction occur in Delaware. The loan agreement is legal and enforceable. In responding to your correspondence, East Side Lenders notes and reserves all available legal and equitable objections to the points you have raised.[/COLOR]
[COLOR=#333399]East Side Lenders provided this service as a convenience to you. We still consider your loan to be outstanding and are prepared to go to arbitration as provided for in the Loan Agreement between us. As an alternative, if you are experiencing financial hardship, we will be happy to speak to you about payment arrangements through which you can successfully meet your payment obligations. East Side Lenders will consider doing so because of our continuing commitment to servicing our customers and not because of a legal obligation to do so. [/COLOR]
[COLOR=#333399]Should you have any further questions regarding this matter, if you wish to speak about payment arrangements, please contact us at (800) 689-5603.[/COLOR]
[COLOR=#333399]Sincerely,[/COLOR]
[COLOR=#333399]Customer Service[/COLOR]


Submitted by dbonner on Thu, 10/29/2009 - 10:22

dbonner

( Posts: 6 | Credits: )


Dbonner, I had issues with Eastside lenders (ESL). My $300 loan ended up costing $705. I told them I am aware I missed a payment but this is robbery. Anyway, I filed a claim with the Delaware BBB and they in turn sent the complaint to ESL. With in a week they agreed to $300 plus the NFS fee. The Delaware BBB siad it sounds good since I did take a $300 loan from them and a payment bounce. I provided the Delaware BBB with a link to Ohio AG office and the Ohio law that states Out of state internet loans are illegal in Ohio. If you file qa complaint with an out of state AG or BBB, I think it is easier if you give them with as much ammunition as possible. Good luck. If I can be of any help send me a message.


Submitted by wchambe641 on Thu, 10/29/2009 - 20:42

wchambe641

( Posts: 129 | Credits: )


I live in IN and called the IN Dept of Financial Institutions and was informed that GRC Funding and Payday Loans are not licensed in the state of IN and are, therefore, illegal. I owe them nothing! I wish I would have made that call, thousands of dollars, sooner. If you live in IN and you want to check for yourself, the phone # is 317-232-3955.
Have a glorious day and God bless! Joyce


Submitted by on Fri, 10/30/2009 - 16:15

( Posts: 202330 | Credits: )


Quote:

Originally Posted by Anonymous
I live in IN and called the IN Dept of Financial Institutions and was informed that GRC Funding and Payday Loans are not licensed in the state of IN and are, therefore, illegal. I owe them nothing! I wish I would have made that call, thousands of dollars, sooner. If you live in IN and you want to check for yourself, the phone # is 317-232-3955.
Have a glorious day and God bless! Joyce


Thanks for sharing this information.


Submitted by Shazzers on Sat, 10/31/2009 - 07:31

Shazzers

( Posts: 17344 | Credits: )


After I close my bank account,do I send a letter telling them that they don't have a licensed in my state therefore I am only obligated to pay back what I borrowed, and since I paid 360 in fees and only borrowed 300 that I want a paid in full letter.


Submitted by on Tue, 11/03/2009 - 10:26

( Posts: 202330 | Credits: )


I live in AZ and have 4 pdls.
ACC 400.00 loan- pd 1000.00
Integrity 300.00 loan- pd 920.00
Cashnet 500.00 new loan have pd 167.68
LoanPoint 600.00 new loan have pd 360.00
Could you please tell me if they are legal pdls and how can I get a copy of the letter to send to settle with these companies.


Submitted by on Tue, 11/03/2009 - 14:08

( Posts: 202330 | Credits: )


Quote:

I live in AZ and have 4 pdls.
ACC 400.00 loan- pd 1000.00
Integrity 300.00 loan- pd 920.00
Cashnet 500.00 new loan have pd 167.68
LoanPoint 600.00 new loan have pd 360.00
Could you please tell me if they are legal pdls and how can I get a copy of the letter to send to settle with these companies.


By the looks of it they are online lenders and are Illegal in the state of AZ. Double check with your state AG to be sure.

First thing you will need to do is secure your bank account ASAP. Please stop into your bank and place a debit hold on your account or either close it all together untill you get this resolved. The lenders will take and take untill there is nothing left :(

You have overpaid by hundreds to ACC and Integrity, they owe you a refund! For the two new loans all you owe is the remaining balance of the principal borrowed not a PENNY more.


Submitted by Cool_Abyss on Wed, 11/04/2009 - 05:45

Cool_Abyss

( Posts: 2936 | Credits: )


Hello, My wife and I have gotten into some trouble and I have been reading different threads to get out of the payday loan trap. We have taken these loans out and refinanced and refinanced and could have paid these months ago with that money. I have seen that some of these places could be illegal and that steps can be taken to resolve getting further sucked in. Where can I look to find out if these places are illegal and if they are what can I do??? I am in the process of closing by bank account but it's in the red and I have to wait until I get paid to fix that. I realize that some places are legit, what can I do with them to work out payment arrangements? What is the best way to do this? Please help!!!

The lenders are:

Cashnetusa

Loanpoint USA

One Click Cash

Cash Direct Express

East Side Lenders

Integrity Advance

Cash Advance Network

VIP Loans

United Cash Loans.


Submitted by on Fri, 11/06/2009 - 10:47

( Posts: 202330 | Credits: )


Quote:

Originally Posted by Anonymous
Hello, My wife and I have gotten into some trouble and I have been reading different threads to get out of the payday loan trap. We have taken these loans out and refinanced and refinanced and could have paid these months ago with that money. I have seen that some of these places could be illegal and that steps can be taken to resolve getting further sucked in. Where can I look to find out if these places are illegal and if they are what can I do??? I am in the process of closing by bank account but it's in the red and I have to wait until I get paid to fix that. I realize that some places are legit, what can I do with them to work out payment arrangements? What is the best way to do this? Please help!!!
The lenders are:
Cashnetusa
Loanpoint USA
One Click Cash
Cash Direct Express
East Side Lenders
Integrity Advance
Cash Advance Network
VIP Loans
United Cash Loans.


Hi there, hang on a minute while I do some research.


Submitted by Shazzers on Fri, 11/06/2009 - 10:48

Shazzers

( Posts: 17344 | Credits: )


Arizona requires Internet lenders to be licensed in your state, so, the link below contains legal licensed lenders. The only one I see that is probably legal for sure is CashNetUSA, I don't think they offer payday loans to AZ residents (though I could be wrong), check over your contract, it might be an installment loan, if that's the case then they wouldn't follow the payday loan laws of your state.
Anyway, here's the link: http://azdfi.gov/Lists/Lists.htm
You'll need to click the "download" button.


Submitted by Shazzers on Fri, 11/06/2009 - 10:51

Shazzers

( Posts: 17344 | Credits: )


Quote:

Thank you very much!! Where do I look on that website? If they are not listed there than does that mean they are illegal? If it's an installment loan what can I do with that?


When you search your states PDL licensee database and they do not appear in the system. Then most likely they are not licensed in that state. However, you may want to call and ask if the company has any other "doing business as names" These "d/b/s" names can change alll the time, some state SCC catch them but some do not.

As for the installment loans, PLEASE call the compnay and try to work out a alternate re-payment plan. Installment loans are the toughest to deal with.


Submitted by Cool_Abyss on Mon, 11/09/2009 - 09:27

Cool_Abyss

( Posts: 2936 | Credits: )


I live in Pennsylvania. I am thinking about working with Oak View Law Group to consolidate my pdl's, do I have any other options?

My loans
Elastic.com - $500
Check n Go - $550
Mycashnow.com - 400
Ameriloan.com - $195

Are these legal? Should I use OVLG? HELP!


Submitted by on Mon, 11/09/2009 - 09:36

( Posts: 202330 | Credits: )


In addition to my post above - As of now I am current with all the loans I have listed. I will however in the next couple weeks not be able to remain current so I need to figure something out.

I know this is my fault I made a mistake getting into this. How do I dig myself out?


Submitted by on Mon, 11/09/2009 - 09:46

( Posts: 202330 | Credits: )


I've been reading these forums and following the advice on how to deal with illegal pdl's, I live in KY. I've closed my checking acct and emailed the letters revoking their right to remove funds from my accts and requested mailing addresses to mail in what I owe the companies. My question is, today is Monday, I closed my account last week, the withdrawals were scheduled for this past Friday, so far I have heard nothing from the companies, in fact when I go on the websites and look up my acct. it says that my payment was received, how is this possible when I closed my acct. Will it take a few days for them to realize that they do not have the money. I spoke to my branch manager at the bank when I closed the acct and explained my situation, and she suggested closing the account so I dont think they would be able to pull from the account and it closed. Can someone explain this to me. Thanks,


Submitted by on Mon, 11/09/2009 - 22:23

( Posts: 202330 | Credits: )


i have 2 pdls> Little Loan shoppe and Loan piont USA. I have emailed both and demanded the stop drafts to my accounts. I have spoken to the bank and have also done ach stop payments. Loan point responded back and stated it was legal and that I honor the legal contract. The Little Loan Shoppe said I now owed them 29250.00.
Little Loan Shoppe 500.00 paid back 575.00
Loan piont 400.00 paid back 680.00
What should I do next?


Submitted by on Tue, 11/10/2009 - 15:45

( Posts: 202330 | Credits: )


Quote:

Originally Posted by Anonymous
i have 2 pdls> Little Loan shoppe and Loan piont USA. I have emailed both and demanded the stop drafts to my accounts. I have spoken to the bank and have also done ach stop payments. Loan point responded back and stated it was legal and that I honor the legal contract. The Little Loan Shoppe said I now owed them 29250.00.
Little Loan Shoppe 500.00 paid back 575.00
Loan piont 400.00 paid back 680.00
What should I do next?


What state are you in?


Submitted by Shazzers on Tue, 11/10/2009 - 16:19

Shazzers

( Posts: 17344 | Credits: )


Im amazed at the sheer number of these businesses that are out there! I was just scanning looking for help about one of them; its a shame its so easy to get I can see how it happens too...an emergency comes up and you take whatever and however much you can get...they arent exactely forthcoming with all the rest of it.

Anyway, in Florida I use a payday loan place that is an actual store...Advance America and they seem reputable; I have a very good relationship with the girls that work there. I think they are completely legal...however *(there is always a however, right), I found myself in a panic-mode situation and applies for an online lender. They have hit my acct a week early for the fee only, and I want to be sure they do not get more than the principle. Before I do that, am I within my rights? Are they not allowed to charge interest and other fees above the principle online ANYWHERE or just in certain states? The link for info is not in service for individual state info...
Thanks!
Cara Dee


Submitted by on Mon, 11/23/2009 - 11:10

( Posts: 202330 | Credits: )


Who is this lender? If they are doing business legally in your state then they can charge both interest and fees.

In Florida payday lenders can operate as CSO and that would make them perfectly legal even when they are not licensed by the state. You may need to reread the contact to learn the proper nature of their business.


Submitted by SC on Tue, 11/24/2009 - 01:10

SC

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