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My Journey in Dealing with Unlicensed Virginia PDLs.

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I have, like many others on this forum, gotten myself into a world of trouble by taking out several payday loans. It started with one payday loan when I was in a tight spot for cash, and developed into a pattern of pulling out more payday loans to cover the recurring payments from previous loans and other bills. Most on this forum are familiar with this vicious cycle I am sure. I understand that I am at fault for getting myself in this situation, but I am now unable to pay all of my payday loans and my normal bills each month. I am considering the option of consolidating these debts, but was curious as to whether or not this was a good idea. Does anyone have any suggestions of reputable companies that would be willing to work with me? At this point I am running low on options and am getting desperate. All of the loans that I have received are internet loans and are detailed with my balance on each below (I reside in the state of Virginia):

Money Key - $400
Next Day Cash - $500
CK Marketing - $500
RD STN Financial (RedStone) - Unknown
PDL Now - $409
Plain Green Loans - $619
EZ Payday Cash - $520
Seasside Cash - $1,040

You can probably tell based on my balance with some of these companies that I have successfully paid off a loan or two before only to borrow again, this time with the "benefit" of being able to borrow more money than before. Some of my bi-weekly payments are going towards the above balances, but most are not. To date I hate to even imagine the thousands and thousands of dollars I have spent each month making these recurring payments.

One side note: after doing some research on the forums here, I have noticed others having issues with RD STN Financial (Redstone) and that they may not be a licensed or legit company. I am unable to track down any information on this company to get my balance/initial loan. If my memory serves me correctly I borrowed $300 well over a year ago. In 2012 alone I paid them well over $2,000 in charges. If anyone has information on how I can get in contact with this company and/or their experience with dealing with them (maybe even getting a refund) I would greatly appreciate it.




I dont believe any of these lenders are legal lenders. FOllow the link in my signature line for information on how to deal with them. You owe principal only...no fees, no interest. Rollovers are not permitted in your state.


Dont count on getting a refund. Just work on reclaiming your life.


Virginia Payday Loan Laws

State Legal Status

Lending of payday loan is legal in the State of Virginia.


Loan Specifications


Maximum Loan Amount - $500

Term of Loan - Minimum two pay periods

Maximum Rate of Finance and Fees- 36% annual rate of interest + verification fee of $5 + 20% of the loan

Finance Charge on $100 loan for a 14 day period - $26.38

APR for $100 loan for a 14 day period - 687.76%


Debt Limits


Maximum Number of outstanding loans permitted at a time - 1

Permissible number of Rollovers - None (cannot be renewed, refinanced or extended)

Cooling-off Period - One day after pay, forty-five days after the fifth loan, ninety days after payment plan

Repayment Plan - Yes, once per annum


Limits of Collection


Collection Fees - a) NSF fee of $25; b) Costs of court; c) Fees of a reasonable attorney (should not exceed $250)

Criminal Action - Prohibited


File your Complaint and get Information


Regulator - Virginia Bureau of Financial Institutions

Address - State Corporation Commission, 1300 East Main Street, Suite 800 Post Office Box 640 Richmond VA 23218

Phone - (804) 371-9657

Fax - (804) 371-9416

Regulatory Contact - Susan E. Hancock,, Deputy Commissioner, Consumer Finance


Sub: #1 posted on Tue, 04/23/2013 - 06:54

SOAPLADY SOAPLADY
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(Posts: 17272 | Credits: )

Thanks so much for the prompt reply. Since lending is legal in the state of Virginia, is it safe to assume that none of the lenders I have listed are licensed in Virginia, or that Virginia requires them to be licensed in my state? I can say with certainty that I have paid well over the principal on all of my loans. Probably thousands over. I apologized for my ignorance, but what is considered a "rollover"? Does this mean that they cannot keep charging me just an interest rate without any of my payments actually going towards my balance?


Sub: #2 posted on Tue, 04/23/2013 - 07:19

jomap jomap

(Posts: 36 | Credits: )

I have decided to move forward in my process of getting myself out of this payday loan payment cycle. According to my research, all online payday loans are illegal in Virginia, as they are not located within the state. I found a great article here for any other VA residents going through the same problems as me:


DELETED PM


I have decided to open a new bank account at a different bank, as I am not overly attached to my current bank. I have begun the process of opening my new account and will be closing my old account as soon as this is complete. I will continue to provide updates on my progress, along with replies from different lenders and any harassment or (hopefully) cooperation and refunds I receive.


sorry,but no personal or solicitory info including links permitted per TOS...PM


Sub: #3 posted on Tue, 04/23/2013 - 09:34

jomap jomap

(Posts: 36 | Credits: )

Does anyone have an email address for RD STN Financial (RedStone)? I have sent letters to all of the above companies except for them as I can't track down an email.


Sub: #4 posted on Tue, 04/23/2013 - 11:45

jomap jomap

(Posts: 36 | Credits: )

You may be able to check your loan docs. There may be an email address there (that is if you have them)


Sub: #5 posted on Tue, 04/23/2013 - 13:12

bingonut bingonut

(Posts: 1433 | Credits: )

Unfortunately these are the only loan docs that I do not have. Their website seems to have fallen off the face of the earth. I am not so concerned with it now that I have shut down my bank account and I know that they are illegal, but I was hoping for at least a shot at a refund, as I have been paying $89 every two weeks for about a year and a half.


Sub: #6 posted on Tue, 04/23/2013 - 13:35

jomap jomap

(Posts: 36 | Credits: )

So far so good. Just received this email:


Dear *************,


This is in response to your email regarding your account. Please understand that there are indisputable facts with respect to your account with us:


1. You pro-actively sought out a loan with us. With your signed permission, we deposited the funds into your bank account. During this process, you did not raise any objections to the validity of your loan


2. Your current balance is $520.00. Because we do not provide loan to customers in the state of Virginia, we voided your loan, discharged your past due balance and fees in the amount of $520.00


3. Your account is closed and you have no loan balance and no further obligation with our company.


4. Please be advised your application from Virginia State will be automatically denied in our system if you attempt to apply again.


EZ Payday Cash Customer Service


No mention of the refund I requested, but they backed down very quickly. Is it worth fighting for the refund, or should I just let it be?


Sub: #7 posted on Tue, 04/23/2013 - 14:32

jomap jomap

(Posts: 36 | Credits: )

Another one bites the dust.


Dear ***********:


Thank you for your email. We appreciate the opportunity to clarify Seaside Cash's business practices.


Seaside Cash is located in Belize. As we state clearly in loan agreements, the law of Belize applies to your loan. Courts in the State of Virginia recognize and enforce choice of law provisions such as the one that is included in your loan agreement with us. Thus, your statement concerning "permissibility" of this loan in your state are simply incorrect.


As a courtesy, and with no obligation to do so, we will mark your loan paid in full and as final settlement of your dispute with us. However, you will not be able to access Seaside Cash's services in the future.


Sincerely,


Seaside Cash


Sub: #8 posted on Tue, 04/23/2013 - 14:51

jomap jomap

(Posts: 36 | Credits: )

Great News on all of the above.. keep us posted on more progress. Remember two things - print these out and keep in a safe place and if you do receive refunds - do not cash or deposit in your bank - take to a check cashing place.


Sub: #9 posted on Tue, 04/23/2013 - 20:21

HelpinAZ HelpinAZ
Moderators
(Posts: 1873 | Credits: )

More Success:


Mr. ****


My name is Jonathan Krauklis, Payment Solution Manager here at MoneyKey. Your email has come across my desk and I wanted to address this issue with you personally


I would like to start by acknowledging your “Revoking of ACH Authorization”. No further transactions will be processed through your account. In addition, it has been documented on your account that all communications will be via email only.


As detailed in the agreement you have signed with MoneyKey, you have acknowledged that you are accepting a loan from an out of state lender. According to Virginia state law, the maximum finance rate and fee is 36% annual interest + $5 verification fee and 20% of the loan. Despite this agreement, we will have your loan closed as “Paid In Full” and we will refunded your account for $70. This amount is the difference between the payments you have made over the $500 principal ($175) and the maximum finance rate permitted in Virginia ($105). Kindly reply to this email granting me authorization to have the credit of $70 deposited into the bank account we have on file and I can have the funds in your account the next day.


Once the refund transaction is completed, we will release you of all liability for the remaining portion of your agreement however, you will no longer be able to re-loan with MoneyKey going forward.


Kindly get back to me and let me know if I am ok to process that credit through your account.


I have not, and do not recommend anyone give them permission to credit your old account or a new account. In this instance I replied and requested that a check be sent to my address.


Sub: #10 posted on Wed, 04/24/2013 - 05:28

jomap jomap

(Posts: 36 | Credits: )

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