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Internet payday loan laws for Indiana??

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Please help me. I am in deep with the Internet payday loan demons. I have put a stop payment on one already. I only did it to make ends meet when my husband switched jobs. He is still awaiting his first paycheck, I work full time. We are not bad people.. just in a bad situation. Please, someone give me some advice. Also, I live in Indiana. None of these places have an actual 'live check' but rather the routing numbers to my bank and my checking account number. They are all out of state 'lenders' but in the interim, I don't really want to go to jail while trying to dig myself out of the hole. What is the best way to proceed? I want to stop payment on all of them, and go from there.. but can I?

You have come to the right place. Someone with knowledge of the pdl laws of your state will be along to assist you.


Sub: #1 posted on Thu, 09/27/2007 - 10:35

ladybug ladybug

(Posts: 2757 | Credits: )

Thank you!! Also, I've noticed that all of these places are NOT on the list for approved lenders in Indiana.. I have a feeling I'm getting shanghai-ed even worse than I initially feared.. in the meantime... stop payments? I have about 72 hours before the unnecessary debiting starts... and I want to avoid it if at all possible.. I want to pay them back.. just not all at once and overdraft my bank account. Thank you, ladybug for not being judgmental.. it is out of fear of reprisal that I've not sought help so far. My parents would be so horribly disappointed......

Sub: #2 posted on Thu, 09/27/2007 - 10:44

thisdesertlife24 thisdesertlife24

(Posts: 4 | Credits: )

You will find the Payday loan laws for Indiana here (just select your state), dls-laws.html

Sub: #3 posted on Thu, 09/27/2007 - 10:53

kashzan kashzan

(Posts: 5401 | Credits: )

please list for us who you have loans with, how much you owe, how much in total was paid back to each( fees and principle for one total for each) are your loans internet or store front ? When we get this info we can start to help

Sub: #4 posted on Thu, 09/27/2007 - 10:55

kashzan kashzan

(Posts: 5401 | Credits: )


United 390.00 (loan plus 'renewal fee'), first 90.00 will be due 10/1, then they will charge the 'finance charge' every two weeks (50.00) without paying principal down. After the 4th renewal it will be the finance charge plus another 50.00 200.00. Full payout is 265.00 (200.00 plus 65.00 fees to borrow) on October 12th. This is a place in NM, and they've been fair. I can pay that in full on that date and intend to.

the third one doesn't give an actual name other than Loanshop/Douglas in my online banking records. i have a customer service number for them that was listed with the deposit amount to my bank but calls to it don't put me to a live body. 300.00 plus 60.00 fee.. 360.00 set to debit on 10/5/07. can't pay it.

Sub: #5 posted on Thu, 09/27/2007 - 11:00

thisdesertlife24 thisdesertlife24

(Posts: 4 | Credits: )

Alright, so since my first freak out post this morning, a lot has happened:

1. I contacted a credit counseling service (reputable, local and recommended by my county's Department of Children and Family Services!). My husband and I have an appointment there tomorrow. I also explained my internet payday loan predicament. She advised me to call into my bank.

2. Called into bank's customer service. The rep advised me of the 'no ach debit' codes that need to be put on the account, and referred me to a branch in my area that is not the same one I've been dealing with (I live in a small rural community, and come from the city originally.. and the branch manager treats transplants like sh...crap).

3. The branch manager at the secondary location listened patiently while I explained what was going on, and opened up a new account over the phone. The old one is still open, but only with enough fundage to cover what is still pending, and the new and old accounts have been prevented from accepting ACH debits.

I haven't even been here a full day yet, and the things I've learned on this site have been beyond lifesaving.


Also, in reference to the payday loan companies:

I called all of them to make alternative arrangements. None of them will. I even offered to pay in full one of them immediately and they won't allow it to be paid without the loan reaching term (the smaller one for 265.00). So, the credit counseling agency stated that they *should* be able to work with said companies to recoup their losses, less the finance charges. All of these lenders are in violation of Indiana state laws (one open loan ONLY), so we shall see.

Once again, you guys are awesome! I'll be posting progress updates as they occur, and I know for sure I'll be back for more advice. This place is great!

Sub: #6 posted on Thu, 09/27/2007 - 14:29

thisdesertlife24 thisdesertlife24

(Posts: 4 | Credits: )

I do believe you are dealing with at least two unlicensed/illegal lenders. United Cash Loans and Loan Shop. I'm not sure of the other.

Sub: #7 posted on Thu, 09/27/2007 - 21:16

cannr cannr

(Posts: 9317 | Credits: )

I currently have about five internet payday loans, that I had to take out to pay bills because my husband does not work at this time and I am the sole provider of income in our home. The problem is that these loan sites all hit my checking account at once and overdrew my account, now as of today with overdraft fees I am am withdrawn by over $1,000, and I don't know what to to do. I have no alternative for money, and I am afraid that when my paycheck is direct deposited that that will be taken, and it still wont cover all of the overdraft fees that have occured. I am borderline hopeless, and don't know what to do, is there any advice that you can offer me on what to do. I want to just close my account, and pay off the balance in cash PLEASE HELP!!!!

Sub: #8 posted on Sun, 07/27/2008 - 21:50


Hello Ajudge, I'm really sorry this is happening to you. You really need to get another account open at a different bank asap! Give your new account information to your payroll dept. and ask that they deposit your check into your new account, if it is too late to change the direct deposit, ask that they draft you a check this time around until your next pay period. Call your present bank and ask to speak to the manager, tell him/her that you want a hard debit block placed on this account asap so no more withdrawals can be attempted by these pdl's and you won't be charged anymore NSF charges until you can get this cleared up! If you will start a new topic and list the names of each pdl, whether they are Internet or store front, amount borrowed and amount you have paid so far, and the state you reside in, we can help you plan a course of action to get them taken care of. :)

Sub: #9 posted on Mon, 07/28/2008 - 04:04

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

Hi desertlife,
I am also from Indiana and recently went through the same thing. I don't know for sure, but I don't think CCC works with payday loans. They may have changed their policy, but I don't know. You've already taken care of your account which is good. The next thing you need to do is send out the revokation letter. Below is what I sent. I made sure to include the Indiana laws with the letters as you can see. I also included the letter from Mark Tarpey which states very difinitivley that they MUST be licensed in Indiana or the loan is null and void. So here is a list of things to put in your emails/letters to these loansharks.

    Verification of license to lend in Indiana
    Validation of debt
    Verification of all funds paid by you for either principle or interest
    A copy of the original contract signed by you electronically or otherwise
    Revoke ACH authorization
    Revoke any wage assignements you may or may not have signed (just include it to be safe they are dirty, sneaky, and a lot of other adjectives)
    Tell them you CANNOT take calls at work

Here is a copy of the emails I sent. You can cut and paste if you like and simply change what you need to in order to suit your needs.

Do some research here on this site to get the contact information for these companies if you don't already have it.
For the Loanshop email William Mashburn or Brad Weathers directly, CC a their customer service if you like. mr. mashburn is: wmashburn(at) mr. weathers is : bweathers(at)

If you don't get anywhere sending the letters/emails, of if you just want to "carpet bomb" like I did.. Find out who processes their ACH's, and anybody else who is involved with these companies and send them all the same email. Send it as often as you like, i started sending mine every day. Then in place of "this is your formal request" I put "This is my sencond request" and so forth.

You can also contact the Indiana Attorney General's office at this email :

You can also contact the BBB in the state where the pdl has a mailing address, if you can find it.. pfff...

Make sure you tell them you know they are illegal:
If you have any questions, please ask.
This is my formal request for verification that the company is licensed within the state of Indiana, a validation of my debt and total amount owed including fees, validation of any amounts paid by me towards the principal of the loan, and a copy of my original loan contract and all forms signed by myself, either electronically or otherwise. I am revoking any wage assignments agreements I may or may not have signed effective immediatly (6-24-2008) as well as revoking all ACH authorization. It appears to me that you are in violation of Indiana State Law Ind. Code Ann. ???? 24-4.5-7-101 et seq., and that I have overpaid this loan by at least $200 according to the law. I am requesting that a refund of ALL amounts over paid by me mailed to me at my address on file.

Since you do not seem to be willing or able to provide me with the requested information, I will be filing a complaint with the BBB as well as with the Indiana State Attorney General. You may contact me via email or USPS with the address on file only. Please see information below. Thank you in advance.

Your name
account # xxxxxxx
Investigation by the Indiana Department of Financial Institutions (???????Department???????) has
determined that your company is among several unlicensed entities making or offering
consumer loans to residents of Indiana via the internet.
Depending on the type of loan being offered, your company is in violation of IC 24-4.5-
3-502 and/or IC 24-4.5-7-102. These statutes reference consumer loans, and/or Small
Loans (commonly referred to as ???????Payday Loans???????) and require a license issued by this
office in order to make these consumer loans.
During the recently concluded session of the Indiana General Assembly, there was a
change to the statute governing the territorial application of the Indiana Uniform
Consumer Credit Code, including the Indiana Small Loan Act. Effective July 1, 2007, IC
24-4.5-1-201 requires internet lenders to be licensed, and to comply with Indiana law,
when making loans to Indiana residents. Additionally, IC 24-4.5-1-201( reads ???????If a
creditor has violated the provisions of this article that apply to the authority to make
consumer loans (IC 24-4.5-3-502), the loan is void and the debtor is not obligated to pay
either the principal or loan finance charge, as set forth in IC 24-4.5-5-202.???????
You are advised to Cease and Desist the offering of these types of loans to Indiana
residents unless/until you have obtained the proper Indiana loan license. Consumers will
be advised that these loans are not in compliance with Indiana Statutes and that these
loans are considered null and void, and as a result, uncollectible. Additionally, the
Department may seek injunctive relief under IC 24-4.5-6 in the event of continued noncompliance.
All Financial Institutions operating within the state of Indiana will be advised that
electronic payment and / or paper/check transactions connected with these illegal loans
should be rejected if an entity is unlicensed. Consumers will also be advised on the
procedure to stop electronic debits to their accounts using return codes.
Questions concerning the acquisition of a loan license may be directed to this office.
Information is also available via our website at

Mark B. Tarpey
Supervisor ???????? Consumer Credit Division

Indiana State Information

Ind. Code Ann. ???? 24-4.5-7-101 et seq.

Loan Terms:
Maximum Loan Amount: $500 (not to exceed 15% 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 6 consecutive loans, lender must impose a 7 day cooling off period or convert to an installment loan payable in more than 4 installments at a rate no greater than 36% APR

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

Jen :)

Edited by Shazzers, person info removed for your protection.

Sub: #10 posted on Mon, 07/28/2008 - 04:11

jennifer_bailey75 jennifer_bailey75

(Posts: 154 | Credits: )

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