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Could someone help me? I have a payday loan with Pay Co
300 dollar loan finance charge of 143. I have paid this refinance charge at least 3 times now and my checking account is closed. I have seen bad reviews from this company as far a legal issues and how they harass consumers and I do not think they will work with me for payment arrangements and after looking at laws from other states, it could be the case that they owe me a refund since they are not abiding by Indiana law, this PaY Co has stated that they would contact my supervisor if necessary. Could someone review Indiana law and advise me on what letters to send and how to go about handling this matter

PDL laws in Indiana are: -

Loan Terms:
Maximum Loan Amount: $550 (not to exceed 20% of borrower's monthly gross income)
Loan Term: Min: 14 days
Maximum Finance Rate and Fees: 15%: $0-$250; 13%: $251-$400; 10%: $401-$500
Finance Charge for 14-day $100 loan: $15
apr for 14-day $100 loan: 390%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: One per lender; Two total
Rollovers Permitted: None (cannot renew, repay, refinance or consolidate)
Cooling-off Period: 7 days after 6 consecutive loans
Repayment Plan: After 3 consecutive loans, lender must offer an extended payment plan of at least four equal installments at no additional cost

Collection Limits:
Collection Fees: One $20 NSF fee; additional charges may apply when check or authorization to debit was used to defraud another
Criminal Action: Prohibited

If you think that you have overpaid them then you can follow the following steps as suggested by one of our moderators, Shazzers: -

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.

Sub: #1 posted on Fri, 08/22/2008 - 03:53

phoenix phoenix
(Posts: 1445 | Credits: )

Here is a sample letter which you can write to the PDL companies: -


Name Of PDL

Your Name
City, State
Account #

After doing research regarding Internet payday loan laws in the State of _______, I have found that your Internet payday loans are actually illegal. I have also found the following laws to be true applying to payday loans in the State of _____ in general:

Your State Information

I hereby revoke any and all ACH authorizations with your company from debiting any of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I have closed my account with the XXXXXX to protect my interest in this matter, per instructions from The _____ Department of Finance. I also revoke any and all wage assignments I may or may not have signed with your company, I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for your collection purposes. I have notified my employer about this matter so any attempts to do so on your part will be rejected.

I demand that any contact be made through US Postal mail or email only. I will need everything in writing to keep accurate records of all communication as per instruction from my Attorney General's Office.
I prohibit you or your affiliates to contact me via telephone at my place of employment or my home
telephone number. I also prohibit you from calling my references listed on my loan.

Due to the fact that Internet payday loans must be licensed in the state of ____ to be a legal and binding contract, your company should NOT issue loans to ____ residents at all. I am requesting that you send me your license number which enables you to offer loans to ____ residents.

The legal amount that could have been charged to my loan is the principal amount, even IF your Internet pay day loan were legal anywhere in the U.S.. I am willing to pay the principle amount of the loan only, however, this is only if you provide me with a physical address where I can send payments.

I must also inform you that I will be filing complaints with the Better Business Bureau, the Federal Trade Commission, and the ____ Attorney General's Office.

I expect a response from your company no later than 5 days from the above date regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted.


Your Name
Better Business Bureau
Ohio Attorney General
Federal Trade Commission

Sub: #2 posted on Fri, 08/22/2008 - 03:58

phoenix phoenix
(Posts: 1445 | Credits: )

Hi there Alazae, according to some of the posts here at this forum Payco is also known as AIP, they are based out of the UK, so they will not be licensed to lend anywhere in the U.S. Please make sure you secure your bank account BEFORE you send a letter to this company, and inform your employer that unbeknownst to you, you are dealing with an illegal lender and need to make them aware that you have revoked wage assignments.
Payco - they're really AIP
2207 Concord Pike
Wilmington, DE 19803

Sub: #3 posted on Fri, 08/22/2008 - 04:09

Shazzers Shazzers
Moderators Cum Industry Expert
(Posts: 17345 | Credits: )

So what happens if the address provided for PAY CO is not ther correct address and what about legit ipdl's that charge more than what they should legally charge on finance, does the amount that I have paid in excess of Indiana allowed charges get applied towards the principal and are there any suggestions on how to settle or deal with them I have closed my account and have six active loans I need some serious advice??

Sub: #4 posted on Fri, 08/22/2008 - 15:35


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