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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]


Here's an idea- if you take out a loan, PAY IT BACK! Or, if you won't be able to pay it back, DON'T BORROW THE MONEY! This is another example of the Nanny-state mentality. I get myself into trouble and expect someone else to fix it or take the blame. The terms are stated up front. If you don't accept the terms, don't take out the loan. Period!


Submitted by on Wed, 11/25/2009 - 08:43

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Quote:

Originally Posted by Anonymous
Here's an idea- if you take out a loan, PAY IT BACK! Or, if you won't be able to pay it back, DON'T BORROW THE MONEY! This is another example of the Nanny-state mentality. I get myself into trouble and expect someone else to fix it or take the blame. The terms are stated up front. If you don't accept the terms, don't take out the loan. Period!


here's an idea humanoid.go back to your bottomfeeder,and quit looking like a fool.i love the pay it back line.places like your bottomfeeder debit forever if we let you.how's that gonna pay it back.my want is that everyone involved in the internet pdl scam is sued into such destiution that you are living in tents.btw mope.a license is required to do business.no license you get no more than what was borrowed.now scram!!!!!!!!!!!!!


Submitted by paulmergel on Wed, 11/25/2009 - 09:00

paulmergel

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Good Afternoon everyone,

I have gotten myself over my head with internet PDL'S and now I need some help on how to get myself out of this mess.

Heres the info:

NamaKan (taken out Aug 09) inital 300.00 payed 540.00 as of today
Zip19.com (taken out Oct 09) inital 340.00 payed 408 as of today
Cardinal Management ( Taken out Oct 09) initial 300.00 payed 90 as of today
US FastCash (taken out Nov 09) inital amount 350.00 payed 105 as of today
United Cash Loans (taken out Nov 09) inital amount 350.00 ,payed 105 as of today.

I have spent the better part of 4 hours looking through all the information on the forums her , but I am still clueless on how I should progress. Are these companies not following MN law? some postings say yes, some say no...
Should I close my account with my bank, I am fortunate that I have 3 other checking accounts I can use have my payroll desposited into.
Is the information listed at the beginning of this thread my starting point?
I have also read in this forum that due to new MN law as of 12/01/08, that the company must be licensed in MN to be authorized in this state MN, to be able to provide loans.... Is is necessary I pay them back if they are not licenced?

I need some help please!!!
Thank you


Submitted by Glenn Coleman on Thu, 11/26/2009 - 10:54

Glenn Coleman

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I am trying to get ahead of the game. I am not yet in default on 2 PDL's but after reading many threads on this site I understand that as they are not listed as liscensed in Louisiana, my state of residence, they are illegal. I am more than willing to pay what I originally borrowed, but the fees are outrageous.
The first loan is with WAGESFAST.com - borrowed $200.00 - pay $76 every 2 wks. pd 3X's
The 2nd loan is with USFASTCASH.com - borrowed $400 (which is over the legal limit in LA) - pd $120 1X with the next installment due on 12/11/09

Should I put the payment block on my acct (I cannot close my acct at present) and then send the letters letting them know they are illegal and I am willing to pay what I borrowed but nothing more? Should I email or call them to get physical addresses? Will they try to debit my acct immediately if I do that?

Any and all advice is appreciated. Those of you replying to the posts really seem to know what you are talking about and are helping those of us who don't immensely!


Submitted by on Fri, 12/04/2009 - 10:23

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Shazzers: Thank you so much, this is very helpful for me. I, like the last poster am in California I will get in touch with the attorney general office to see if they are illegal here. I will follow up with my bank asap. Again I really appreciate the info.
Eamonn.:)


Submitted by eamonn on Mon, 12/07/2009 - 20:46

eamonn

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I was curious if anyone is aware of payday loan legality in the state of Wy. I am a resident of Wy. and have been paying on PDl's for several months. These loans are with the following companies...

CMG Group LLC 8665163100
SOLOMON FINANCE 8887291329
Lazer Lending 8667331291
DollarQuick 8664350347
LOANSHOP/PD6 VEN 8008069971
TREMONT FINANCIA TREMONT
FBDLoans.com 8664207157

Just curious as I have already paid over the principal in each of these loans and just wish to break the cycle.


Submitted by on Tue, 12/08/2009 - 11:23

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Can someone tell me what internet payday lenders are legal or illegal in the state of Mississippi. I have loans with total lending and quickest cash. I have defaulted on total lending and are one my credit report. The balance for the total lending account is more than I actually owed.


Submitted by on Tue, 12/08/2009 - 14:57

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Quote:

Originally Posted by Anonymous
Can someone tell me what internet payday lenders are legal or illegal in the state of Mississippi. I have loans with total lending and quickest cash. I have defaulted on total lending and are one my credit report. The balance for the total lending account is more than I actually owed.


Are they Internet or store front lenders?


Submitted by Shazzers on Tue, 12/08/2009 - 15:27

Shazzers

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Quote:

Originally Posted by Anonymous
Can someone tell me what internet payday lenders are legal or illegal in the state of Mississippi. I have loans with total lending and quickest cash. I have defaulted on total lending and are one my credit report. The balance for the total lending account is more than I actually owed.


Mississippi requires Internet Payday Lenders to be licensed by your state, click the link below for your payday loan laws:

http://www.paydayloaninfo.org/stateinfo/MS.asp

I don't think either of those are licensed in your state but you can call your DFI at (601) 359-1031 to find out for sure.


Submitted by Shazzers on Tue, 12/08/2009 - 15:30

Shazzers

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Quote:

Originally Posted by Anonymous
Hoe do you know if a payday loan illegal or not

Are the following PDL Lenders licensed in North Dakota?
Sonic
East Side Lenders
Rocky Boy
US Fast Cash


Submitted by on Mon, 12/14/2009 - 17:13

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I also had a loan with Kenwood Services. I asked for a copy of their license, and they would not provide one. They offered to settle for 155.00 I asked them how they wanted the payment sent and they ignored my request and debited my bank account for 120.00. I contacted them to ask them how they wanted the additional 35.00 and they now wanted 190.00 I have everything regarding the settlement documented. Now I got a letter today from William G Sokol ESQ with a balance of 240.48. I am going to write a dispute letter and send it certified.


Submitted by on Thu, 12/17/2009 - 17:10

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I also had a loan with Cardinal Management LLC. When I asked them for a copy of their license, they offered to settle for the principal now I got a letter today from William G Sokol ESQ wanting 511.02. Both of these loan companies offered me loans at the same time. It seems suspicious that they both use the same attorney. These companies have been overcharging me the legal interest limit allowed in AZ. I will figure out the amount I was overcharged according to State law and deduct it from the principal and they will probably owe me.:0)


Submitted by on Thu, 12/17/2009 - 17:14

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Same situation. Went through VIPLOANSHOP and got a 300 dollar loan. Debiting 90 bucks a payday and as of last count 540 has been paid. Anyone know if these are illegal in PA? Email was sent to them yesterday with no response. Calling today.
thanks!


Submitted by on Tue, 01/12/2010 - 04:32

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I have defaulted on my payday loans with zip 19, us fast cash, ameriloan, payday one. Is there a way to find out if they are all ilegal lenders in Illinois? I am aware that zip 19 is illegal and is registered out of malta. I faxed and emailed them a cease and desist letter and also revoked all wage assignmets. What can these companies legally do to me? And how can I find out if they are legal or illegal?


Submitted by on Thu, 01/14/2010 - 06:46

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I currently have several internet pdls. I defaulted on them about 2 weeks ago when I closed my checking account. My loans are through zip 19,ameriloan, payday 1, and americash.How do I find out if they are legally allowed to lend in Illinois? I have faxed and emailed zip 19 a cease and desist letter and revoked any wage assignments. what can these companies legally do to me?


Submitted by on Thu, 01/14/2010 - 06:57

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Hello,

I live in south carolina and I've worked with two online payday loan companies. One is called 10 dollar payday loan and this was back in 2006. they debited my account for about a year 60 and 75 dollars at a time. Unknowingly I thought they were taking them as payments so I called them repeatdely and never got a reply. when they continued to take from my account after the whole amount was paid I stopped payment through my bank. No one ever called me, then in 2008 i was getting calls saying I owed them 898. Dollars. I disputed with the company that called and I never received anything in the mail. In 2009 another caller called and very politley told me that i owed only 275.00 so i told her ok, so you all can get off my back. i paid through a moneygram the whole 275. This week a lawyers office called me Hoffman & Schwartz and they tell me again that i owe this company 898 dollars. I've talked to two people, the first one was gruff talking, she called me work phone and told me that if i don't pay the money they will be sending out a court order for me. I told her i would call her back as soon as i got away from my desk. I called back about 10 minutes later and a guy answers the phone. I explain the situation to him and then he tells me he needs to speak with the lady i talked to before. I'm on hold and the lady comes on the lady and says very fast like. Ms. Simmons i have your number i'll call you back. Still no call.
I've read through several of these threads and i haven't seen anything referring to SC. Is there somehting else i can do?


Submitted by on Fri, 01/22/2010 - 12:56

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Hi "Anonymous" -
I also live in MA and have sent letters to all of the payday lenders I had borrowed from and they are still harrassing me by phone, although I asked them not to and I told them I was a MA resident and they said it did not matter, that I had to abide by their state laws but when I called the American Bar Association in MA, they said that we are "protected" by the state that we live in. What did you do to get them to zero out your accounts? Some of the loans I have paid on, some I have not, as I do not have any money. Any information would be greatly appreciated.


Submitted by on Fri, 01/22/2010 - 13:02

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Quote:

Originally Posted by Anonymous
Hi "Anonymous" -
I also live in MA and have sent letters to all of the payday lenders I had borrowed from and they are still harrassing me by phone, although I asked them not to and I told them I was a MA resident and they said it did not matter, that I had to abide by their state laws but when I called the American Bar Association in MA, they said that we are "protected" by the state that we live in. What did you do to get them to zero out your accounts? Some of the loans I have paid on, some I have not, as I do not have any money. Any information would be greatly appreciated.

Read the first page of this topic.


Submitted by Shazzers on Fri, 01/22/2010 - 13:48

Shazzers

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I'm retired on fixed income and tried to pay off my 7 loans I had with PDL companies that pay for you well after 4000.00 later paying the two companies I still owe on my loans I live in New York my question is what if I paid all the amount I borrowed and request a letter stating the loans are paid in full . can I do that and from what I found is that all payday loan companies are illegal in New York State correct


Submitted by on Mon, 01/25/2010 - 13:04

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I have using a payday loan company for years. I have borrowed about 35 times. Since I have to pay the entire amount off every payday, does this only count as one loan each time? I think they are an illegal company in my state. I would pay them if I had the money
but, I just don't have it right now. What should I do?


Submitted by on Mon, 01/25/2010 - 13:08

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I am in payday hell and have been reading through the thread. I know that four of my lenders might be illegal in the state of Maryland. These are Wagesfast, 500FastCash, Upfront Cash and one called Namakan Capital. My bank is wachovia. From what I understand I should close or make my account deposit only. Then I should revoke the ACH with the Pdl's through email, fax or hard copy. Then I should write C & D letters with the BBB, FTC, and Maryland Attorney General's office. Then I should contact the ACH processors of these lending sites. Is this about right? Does anyone know the ACH processors of any of those lenders? Where can I get some good sample letters for the ACH revocation and the C & D letters? I thank you guys for this site, I am really in a jam. Any other advice or help would greatly be appreciated.


Submitted by on Thu, 01/28/2010 - 13:00

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anybody have phone number vip loan shop in louisiana


Submitted by on Fri, 01/29/2010 - 07:54

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How about the state of texas.. is online payday loans illegal in tx?
i owed Cash Net USA
and also Ace cash advance
thanks


Submitted by on Mon, 02/01/2010 - 08:33

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not quite a year ago i took out a payday loan with cmg,paying 60.00 dollars every two weeks. i paid about 600.00 dollars to them and finally i closed my account because i couldnt get them to quit drawing the 60.00 dollars out so i could just finish paying them off. now im getting calls from a company called ACS inc.telling me that if i dont pay them 200.00 dollars out of my next check and 100.00 out of my next three checks i will be arrested for internet fraud. tell me what i should do?


Submitted by on Mon, 02/01/2010 - 11:21

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Quote:

Originally Posted by Anonymous
not quite a year ago i took out a payday loan with cmg,paying 60.00 dollars every two weeks. i paid about 600.00 dollars to them and finally i closed my account because i couldnt get them to quit drawing the 60.00 dollars out so i could just finish paying them off. now im getting calls from a company called ACS inc.telling me that if i dont pay them 200.00 dollars out of my next check and 100.00 out of my next three checks i will be arrested for internet fraud. tell me what i should do?


well seeing as CMG is illegal,and you paid back the 600.00.i would file AG,and FTC complaints against ACS as they are as illegal as CMG.ACS won't do anything to you but threaten you.if you serach in the bar top right you should find an address to send this bottomfeeder a cease and desist letter.send it certified mail return receipt.again ACS is an illegal bottomfeeding collector that collects on illegal loans.do not pay them or talk to them again.


Submitted by paulmergel on Tue, 02/02/2010 - 05:26

paulmergel

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Hi all,

I have read all of the posts and wonderful advise. I want to make a new post to make sure nothing has changed the posts are kind of old. My check is pretty much gone and i'm single, and terrified of being evicted and having my car reposed and on top of that scared of keeling over over all the stress. I made such a stupid stupid decision and I have to get out of this. I called my bank today chase and they basicly told me that since it was a payday loans involved they would not close the account (the guy read me a speal). He then said I could do stop payments but the other person told me that stop payments are based on the company and the $$ amount. So I would have to do a million stop payments if the company gets tricky.. please help me asap I'm seriously desperate. Here is my info:

Companies and $$ of original loans:
1)SDS Processing (I think this maybe united cash loans) because that is what pops up on their "final notice"- $250.00 total paid: 480.00
2)SSM Group- $250.00 total paid: $480.00
3)Ace Cash Services-$350.00 total paid: $560.00
4)One Click - $300.00 total paid:$605.00

And lastly I live in Portland, Oregon. Also I am curious how much time does all of this take to get through this hell, I don't know how much I can take :-( oh and what about the references that are put on the apps do they harrass them too? please help thank you for letting me get all this out.


Submitted by Bethany Brewer on Tue, 02/02/2010 - 20:22

Bethany Brewer

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I have a payday loan from Northway Financial and I just want to make sure that I understand everything correctly:
I live and sign the contract in California. Northway Financial is in Malta or wherever, and Northway Financial claims to be unaware that they need to be licensed in California in order to conduct business there. That they are not aware that a contract is void if it is against the law. That states have jurisdiction over businesses that enter their states to conduct business, regardless of where the business is actually located. That even in Malta, Article 5 of the Treaty of Rome states that the law of a consumer's country of residence is applicable to the credit agreement.
And since California clearly has jurisdiction and Northway is unlicensed in California that section 23060 relating to deferred deposits (payday loans) of the California Financial Code voids the contract.

23060. (a) If any amount other than, or in excess of, the charges
or fees permitted by this division is willfully charged, contracted
for, or received, a deferred deposit transaction contract shall be
void, and no person shall have any right to collect or receive the
principal amount provided in the deferred deposit transaction, any
charges, or fees in connection with the transaction.
(b) If any provision of this division is willfully violated in the
making or collection of a deferred deposit transaction, the deferred
deposit transaction contract shall be void, and no person shall have
any right to collect or receive any amount provided in the deferred
deposit transaction, any charges, or fees in connection with the
transaction.

That legally I signed the contract in California and the contract wasn't legal in California and therefore the contract is void, and neither party can collect the principle or any charges or fees. Is all this correct? Or am I missing something?


Submitted by on Wed, 02/03/2010 - 06:07

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A couple of questions:
1. I have loans out with Oneclickcash and Usfastcash. Apparently they are run by the Miami Tribe in OK. They had an action against them in CA which went nowhere because the courts couldn't determine if they had jurisdiction over a sovereign tribe. The tribe feels like they should be regulated by EFTA (the Electronic Funds Transfer Act) and not the state of California. Any thoughts about that?
2. I have asked my bank (Chase) to close my account and I've asked them to stop payment on all items, but apparently that is meaningless to them. I have about $2500 in insufficient funds fees in about a month and a half. I think I need to dispute the charges. Do I dispute all the charges from the illegal payday loan people including the deposits? Or do I dispute just the debits? Will that reverse the nsf fees as well?
I'd appreciate any help.

Thanks.


Submitted by on Thu, 02/04/2010 - 04:00

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the whole tribal thing has been discussed many times but in never found a clear answer on this..
about your bank, i would go straight to corporate as well as report them. you can revoke your ach at anytime and they should have closed your accounts or at least put a hard block on it. this is not right.


Submitted by bea2ls on Sat, 02/06/2010 - 16:38

bea2ls

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Quote:

Originally Posted by Anonymous
A couple of questions:
1. I have loans out with Oneclickcash and Usfastcash. Apparently they are run by the Miami Tribe in OK. They had an action against them in CA which went nowhere because the courts couldn't determine if they had jurisdiction over a sovereign tribe. The tribe feels like they should be regulated by EFTA (the Electronic Funds Transfer Act) and not the state of California. Any thoughts about that?
2. I have asked my bank (Chase) to close my account and I've asked them to stop payment on all items, but apparently that is meaningless to them. I have about $2500 in insufficient funds fees in about a month and a half. I think I need to dispute the charges. Do I dispute all the charges from the illegal payday loan people including the deposits? Or do I dispute just the debits? Will that reverse the nsf fees as well?
I'd appreciate any help.
Thanks.


First you need to send a letter to the pdl companies revoking their rights to debit any of your accounts, then take a copy of the letter to the bank and show it to them, you may also want to print out a copy of the EFTA law and include it with a copy of the revocation letter. A little heads up though, the revocation may work for awhile, but, the pdl companies will change their names and debit your account again, then the process starts all over again, it's a vicious circle, that is why closing your account is the only sure way to stop these illegal lenders, your account will never be safe again as long as they have your account information, it's no different than handing a criminal your bank account number.


Submitted by Shazzers on Sat, 02/06/2010 - 20:21

Shazzers

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1. Okay I'm not saying this because I don't want to pay. I am perfectly willing to pay the principle, I have no problem with that, but no doubt even if I do pay the principle they will continue to harass me. It bothers me that they can do that with impunity.
So from what i understand about Calfornia law:

23060. (a) If any amount other than, or in excess of, the charges
or fees permitted by this division is willfully charged, contracted
for, or received, a deferred deposit transaction contract shall be
void, and no person shall have any right to collect or receive the
principal amount provided in the deferred deposit transaction, any
charges, or fees in connection with the transaction.

I know in any void contract neither party has a right to sue to collect or receive anything not even the principle. Also I didn't know the contract was illegal, I didn't plan to take advantage of them, but they knew it was a void contract and willfully took advantage of my ignorance. I should have known better but they really should have know better.
Anyway is it wrong of me not to pay the principle. I will abide by whatever you think?

2. Also
1) I asked to close my account and chase said i had to pay it off first
2) I asked to stop all payment and chase said i had to pay it off first and if didn't pay it off after a couple of weeks they will have to close my account
So at this stage is my next step to file complaints with corporate and the occ. Or would I try to file a dispute first. Or does asking them to close my account and stop payment roughly the same as filing a dispute?

I know this is long, I appreciate all your help.


Submitted by on Mon, 02/08/2010 - 23:45

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