Payday Yes

Welcome Ed...I am also in CA.

I see you borrowed $600..how much in fees,etc have you paid back so far? I am also going to post the CA laws for you and they shouldnt have loaned you that much...exceeds the maximum loan amount allowed in CA from a PDL.

Dont worry....its going to be ok. These people will scare you with everything under the sun to get you to pay! Your first priority is to take care of yuor family!

You will find the Payday loan laws for California here (just select your state),
http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html

Ed-Couldnt find anything under the CA Dept of Corporations for Pay Day Yes..tells me they arent licensed in CA.

So what do I do with this information now? I haven't paid anything so far because I didn't get paid for 3 months and I just went back to work. I can only work 4 hours a day until my doctor releases me from my restrictions. Anyways, what do I do now? Do I call them and tell them the laws or write some kind of letter stating the laws? Also, how do I pay them back? I want to at least pay back the amount I borrowed but they want to be unreasonable. Could you walk me thru the steps I need to take because I just don't know what to do? Thanks, Ed. Thanks Volleyballmom for replying and trying to help. I feel alittle better that I'm not alone, but I just want to take care of this. My family doesn't know I took out this loan and all the stress is just another problem I have while I get better.

I'm sorry. The above post is from me, Edhue1000. I don't know how had to put my screen name on the quick reply. Sorry.

HI Ed! No you are absolutely not alone! This site helped me a lot and I want to help others who have gone through this mess. I am glad to hear you feel a bit better...there are many people out there in the PDL mess and I had no idea this was happening to so many!

Question...you havent paid them anything, understood, but how did you not pay them? Did you close the checking account? Most PDL's auto-debit something every 2 weeks anbd typicaly the only way to get them to stop is to close the account.

They were trying to get my money from my savings account but I didn't have any money in it.

So they have your savings account information; however, they have been unable to debit any payments since there is no money in there, correct? So in all actuality, you owe them the original $600? They didn't receive any payments?

Ok I see...so you signed up for the loan using a savings not a checking account.

I wouldnt put any more $ into that account and if you need an account, open a new one.

You will need to get a letter out to them Asap...here is their address:

Payday Yes
501 Silverside Road Suite 125
Wilmington, DE 19809


Send the letter certified w/ return reciept. I can post an example of the letter...

Send them this....change some of it around as you need to and you can use this letter to propose a payment plan.

DATE

Name of PDL
Address


After doing research on internet payday loan laws in the state of CALIFORNIA, I have found that your internet payday loans are actually illegal and your company is not licensed in the state of California. I have also found the following laws to be true applying to payday loans in the state of CALIFORNIA in general:


Citation:
Cal. Fin. Code ???????? 23000 to 23106
Loan Terms:
Maximum Loan Amount: $300
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: 15% of check
Finance Charge for 14-day $100 loan: $17.65
apr for 14-day $100 loan: 459%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: One
Rollovers Permitted: None (cannot charge fee for extension)
Cooling-off Period: None
Repayment Plan: Voluntary (no fees may be charged in conjunction with payment plan)
Collection Limits:
Collection Fees: $15 NSF fee
Criminal Action: Prohibited


Your company should actually not issue loans to CALIFORNIA residents at all as you are not licensed in CALIFORNIA

I have contacted the CALIFORNIA Office of Financial Institutions and the CALIFORNIA State Attorney General????????s Office regarding your internet payday loans and was informed they are indeed illegal in CALIFORNIA and was advised to pay what is due according to principle amount only of the loan.

The legal amount that could have been charged to my loan is the principal amount of $XX even if your internet pay day loan was legal in CALIFORNIA. I only owe $XXX to have this paid in full as your company has exceeded the maximum loan amount and has exceeded the maximum finance rate and fees. I am willing to pay the amount of $XXX to pay the principle amount of the loan only, as advised by my Department of Financial Institutions and my state Attorney General's office.

I demand a physical address to mail payments to, as you are no longer authorized to debit my bank account. You must provide me with a physical address to mail my payments. I will not Money Gram or Western Union any payment. If no physical address is provided for me to mail payment to, no payment will be made.

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 state 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. Once I inform you of this, you must stop the telephone contact immediately or you will be once again breaking the laws of the state of CALIFORNIA.

You are also hereby notified that I am revoking any voluntary wage assignment I may or may not have signed. 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 am revoking your right to debit my checking account any longer. You, your company, or your affiliates are not authorized to debit my checking account at all. Please be aware that I have informed my financial institution of this situation and they will also be receiving a copy of this correspondence. Any further attempts at debiting my account will be rejected by my financial institution.

I must also inform you that I have filed complaints with the Better Business Bureau, the Federal Trade Commission, and my state Attorney General's Office.

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





YOUR NAME
SSN


Cc:
Better Business Bureau
Federal Trade Commission
CALIFORNIA State Attorney General
CALIFORNIA DFI


Certified Mail
Fax

Thank you very much for all your help. I will draft up this letter ASAP. I have a couple of questions. How do I send this letter to the BBB, FTC, etc... Also, on the bottom of the letter you put "certified mail, fax". What am I supposed to put there. Thanks again for all your help, Ed.

I just put that on there so the PDL can see that you are keeping track of how it was sent to them...so they know it was sent certified and faxed.

Here is their fax # too!

Fax: 1-888-468-0511

Heres the link to the CA State complaint form.
http://www.corp.ca.gov/pdf/doc29.pdf

When you go to the BBB, there is a link to draft a complaint.
PLease come back with any other questions :D

Hi Volleyball mom. I am typing the letter you have given me and I really appreciate your help. I do have a question: My loan was $600.00 but what amounts should I put in this paragraph?

The legal amount that could have been charged to my loan is the principal amount of $XX even if your internet pay day loan was legal in CALIFORNIA. I only owe $XXX to have this paid in full as your company has exceeded the maximum loan amount and has exceeded the maximum finance rate and fees. I am willing to pay the amount of $XXX to pay the principle amount of the loan only, as advised by my Department of Financial Institutions and my state Attorney General's office.

I'm sorry for keeping on bothering you. How should I make payments and also can I set-up my own payment plan? I figured I will pay $100.00 every month. Also, how can I know that the loan will be marked paid in full. Thanks again, Ed.

Hi Ed-
Try this...

"The legal amount that could have been charged to my loan is the principal amount of $600. Additionally, I would like to point out that this loan exceeds the maximum loan amount allowable of $300 in CALIFORNIA even if your internet pay day loan was legal in CALIFORNIA. I only owe $600 to have this paid in full as your company has exceeded the maximum loan amount and has exceeded the maximum finance rate and fees. I am willing to pay the amount of $600 to pay the principle amount of the loan only, as advised by my Department of Financial Institutions and my state Attorney General's office. "
I will propose to pay this amount in Six installments of $100 a month begining XXXX. Upon the reciept of the final installment, I demand that my account be marked Paid in Full and this be sent to me in writing.

....and its no bother! :D Feel free with any other questions!

One last question. How should I pay them? I don't want to use a personal check or give them my bank account. You have been my saving grace and I wish there were some way I could pay you back. Thanks for everything, Ed.

Ed-Money order (perferably bought from the post office as they are tracable) or pre-paid Visa card. And you are on the right track..no bank account info! :D

Knowing you are getting a handle on this is "payment" enough! :D Just come back and let us know how you are doing....and then perhaps you can also help others with your knowledge. :wink: