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Are there any legitimate payday loan consolidation companies

Submitted by on Sun, 10/14/2012 - 05:57
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I need help managing payday loans, got in over my head. Are there any legitimate payday loan consolidation companies out there?


Payday loan and consolidation is something which does not go together and if it appears in the same sentence, preferably beside each other, run away as fast as you can, hide your money and change your name. There were people on the board a few days ago who were complaining about some California scam company which ripped them off by consolidating illegal payday loans.


Submitted by Steve Barris on Mon, 10/15/2012 - 01:59

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Yesterday I was in the live chat looking for some answers and a person responded to me from somewhere in CA and said their law firm could help me with my payday loans - are any of these companies legit?


Submitted by on Mon, 10/15/2012 - 06:15

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I have been doing a lot of research and keep getting different answers. I have gotten myself over my head with Payday Loans and the interest/fees are killing me. I live in New Jersey and here is a list of the vendors I have loans with, the initial amount of the loan, finance fee (paid every 2 weeks), Amount I have already paid in fees, and what seems like the balance that I should have remaining that I owe. I have been told that internet loans are illegal in the state of New Jersey but then was also told that by doing an internet loan, it is just like walking into that state - so I have to follow those state laws. So please advise. I now also have 3 - 4 payday loan consolidation companies calling me everyday. I want this nightmare over with:

Shoreline Finance - 300 - 90 - 180 - 120
Mesa Finance - 300 - 90 - 180 - 120
Ameriloan - 550 - 165 - 495 - 55
Fireside Cash - 600 - 180 - 540 - 60
Sure Advance - 700 - 154 - 462 - 238
Cash Jar - 850 - 255 - 765 - 85
Cash In A Wink 1000 - 250 - 125 - 875
White Hills Cash 500 - 122 - 122 - 398

It was Oakview Law Group that responded to me in a live chat. Also according to each company - this is what I still owe them:

Shoreline Finance - 390
Mesa Finance - 390
Ameriloan - 715
Fireside Cash - 780
Sure Advance - 875
Cash Jar - 850 - 1105
Cash In A Wink 1250
White Hills Cash 621.50


Submitted by on Mon, 10/15/2012 - 07:05

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Payday Loan Debt Relief is the other company that I have done some research on and have found a lot of positive things online about them and the work they do. I am just trying to get this nightmare over with - I got in over my head quickly and everytime I pay off one, two, or three of these stupid loans, I find myself having to take out another one to then help cover everyday expenses since all my money went to the loan fees or the loan itself plus the fees.


Submitted by on Mon, 10/15/2012 - 07:11

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Payday loans are illegal in NJ. You are only morally responsible to pay the principal amount back only, no interest or fees. DO NOT go with a consolidation company. You can do this yourself. Follow the link in Soaplady's post. Follow every step. Take our advice. We are here to help!


Submitted by bingonut on Mon, 10/15/2012 - 07:26

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So I am now only responsible to pay the difference between what I borrowed and the interest charged - and do I get a little time to pay them back. When I send a letter or email - will they start calling me at work to get the debt collected? I am a school teacher and cant afford to have these companies calling me a work everyday trying to collect.


Submitted by Hops44 on Mon, 10/15/2012 - 07:34

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It is my understanding that in New Jersey that any of these internet loan companies cannot garnish or levy wages unless they take me to Civil Court and a judge rules in their favor. So they may contact my work and say that I signed a wage levy or garnishment but that it is not enforceable unless a court of law awards them a judgement. And when I send a letter or email, I thought I read somewhere that internet payday loan companies can be fined $100 - $1000 if they make excessive phone calls to me at home or at work per day - I just have to report them.


Submitted by Hops44 on Mon, 10/15/2012 - 07:45

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I have 3 other companies that I need to find out if they are legal or illegal in the state of New Jersey - Cashcall (Lakota Cash) - they are killing me - I borrowed from them two years ago and they put me on an installment plan - I borrowed $1500 - got assessed a $500 finance fee up front - so only received $1000 and have paid $166.62 once a month for 20 months now. I did notice recently that this company did show up on my credit report. Also - are plain green and great plains lending pdl's or are they legit companies?


Submitted by Hops44 on Mon, 10/15/2012 - 07:51

Hops44

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Based on what I have read here in this forum under numerous categories - it seems as if I owe about $1932 to pay off all the loan balances - as opposed to the $6125 that I am told that I owe based on their numbers. So hopefully this works and also I thought I read somewhere that in the letter/email that I send, I should put in there something about I will not make any more payments until I receive some type of license or license number from the company allowing them to do business in the state of NJ - if they cannot show me the license or license number, I am only obligated (but not required) to pay back the principle borrowed. Can someone confirm this with me before I start running around sending emails and what not.


Submitted by on Mon, 10/15/2012 - 08:12

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Thanks Soaplady for the advice and the link. I have read thru the article and will be taking matters into my own hands - especially since after doing the math I realize that I only owe about $1925 as opposed to $6200 - huge savings especially for someone with a family of 3 that got in over their head.


Submitted by on Mon, 10/15/2012 - 08:19

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I borrowed 700 from the one and 1200 from the other - I have paid around 600 on each.

Why does Cashcall (Lakota) then show up on my credit report? None of the others show up.


Submitted by on Mon, 10/15/2012 - 09:21

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Quote:

I borrowed 700 from the one and 1200 from the other - I have paid around 600 on each.

Why does Cashcall (Lakota) then show up on my credit report? None of the others show up.


Then you owe 100 to one and $600 to the other...that a whole lot less than the $1900 you quoted you owed.

There is no legal requirement for anyone to report to the credit bureaus. You should be able dispute Lakota cash off as unlicensed illegal loan.l


Submitted by SOAPLADY on Mon, 10/15/2012 - 09:47

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One last question - make that two or three last questions - how soon do I start sending emails - do I want until right before the next due date or should I be sending them out in the next couple of days? How does any of this affect my credit rating with these illegal loans? Once I send the email and put in there that they can only contact me - will they still attempt to contact my employer about wage garnishment? How many times can I expect to be called? Should I be nervous as heck about doing this on my own? I feel like I am a tiny soldier walking along a field unaware of the 3000+ army waiting to attack on the other side of hill.


Submitted by on Mon, 10/15/2012 - 09:57

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Do I also contact the FTC, BBB, and the NJ Banking and Insurance offices that I have received illegal loans from these companies?


Submitted by on Mon, 10/15/2012 - 09:59

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Looking for some of these places thru the BBB and it seems some of them have the same address.


Submitted by on Mon, 10/15/2012 - 10:17

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I have been doing a lot of research and am really scared about all of this. I have to close my bank account, and then notify all these companies their ACH privileges and wage privileges are revoked and then just get ready for a ton of collection calls. I live in NJ were these loans are illegal and I have paid quite a bit on these loans - I just think this is going to put me in a really bad situation - BUT I am also running out of options. This sucks.


Submitted by Hops44 on Tue, 10/16/2012 - 10:35

Hops44

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I know that this is my only real defense against this but I am a school teacher and cannot afford to have these people call me at work.


Submitted by Hops44 on Tue, 10/16/2012 - 11:07

Hops44

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Talked to my state banking and insurance depart. And they then had me contact the FTC and when i talked with the FTC, they told me that I am bound to all payday loan contracts regardless of nj law because I willing signed and agreed to the terms of the loans. I also had a validation company now contact me and explain. Their program to me and how it works (payless) and so now I am very confused and terrified about doing this on my own.


Submitted by on Tue, 10/16/2012 - 15:04

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I have to explain it to work because I have to give work something about revoking wage garnishment. So how do I explain that to them? "it has come to my attention that some illegal/scam companies have gotten my information and they are trying to submit documents that I owe them money so do not reply to them."?


Submitted by on Tue, 10/16/2012 - 15:19

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All the state did was refer me to the FTC. The FTC said I was bound to any and all contracts and terms. My state said payday loans are illegal but referred me to the FTC to get more answers.

So now what about this validation company? They act on my behalf and help me get rid of loans. They are called payless.


Submitted by on Wed, 10/17/2012 - 00:21

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I am very nervous about doing this on my own - it really seems like I need professional help to handle all the trouble that I have gotten myself into. I am sure that some of these companies are just like some of these credit consolidation companies and they in fact work for the payday loan companies. I have to think about my family and my job security and not getting harrassed by collection calls and a few of these places seem to say that they will handle all the leg work for me - including taking care of the collection calls. Also the last company said they look into loan validation - so not sure that the lending companies would even consider doing a loan validation with me. I know in my state of nj that the loans are illegal but then there is also "Consumer Loan Act applies in this state, as per which the interest rates on short-term cash advances or just any form of loan must be agreed to by a contract, but in any case, the rate must not be more than 30% per annum. This maximum ceiling on the annual percentage rate has been imposed by the New Jersey payday loan laws. If a lender offers you a loan and then charges an interest rate higher than 30% per annum, you can not just file a complaint against them but you also have the legal right to file a criminal lawsuit against them and ask for compensation for the resulting humiliation and financial torture."

So I am really stuck and running out of time before the next round of payments are due.


Submitted by on Wed, 10/17/2012 - 05:21

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This Payless company is not a consolidation company - they are a validation company - so I guess they would be doing the same thing I would be doing on my own - just charging me a fee for doing it. And as I keep saying I am very nervous and scared about doing this on my own and really dont mind paying a few dollars if a professional can handle this for me. I have read things throughout this forum and somedays I am ready to take on these companies on my own and other days I have to sit back and look at my family and job and think I really cant afford to do this on my own because I really cant afford the problems it could cause if I fail.


Submitted by on Wed, 10/17/2012 - 05:48

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The experts on this site are just as, if not more, professional with regard to PDLs than these jackass scammers at these consolidation companies. Keep in mind we don't have a financial interest here. We are helping you to help you, not to make a buck off you. Please register to the site and we can help you.


Submitted by waffles on Wed, 10/17/2012 - 16:57

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Thanks for all the advice. I am a school teacher and can't afford to have these pdls contacting my employer trying to invoke a wage garnishment or contacting me everyday to collect. This is my major concern. I am wondering if anyone here has a copy of a debt validation document that these "legal teams" send to the pdls. I know in new jersey that in order for a business to do business in the state they are required to have a new jersey business license. However what I don't know is if lenders are required to have one to do business in our state. Does anyone out there know?


Submitted by Hops44 on Wed, 10/17/2012 - 20:15

Hops44

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Looking under another topic - illegal lenders - I saw under new jersey that a lender must have a state issued license to lend. Does this include the Internet?


Submitted by Hops44 on Wed, 10/17/2012 - 20:33

Hops44

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As we have told you, all PDLs are illegal in NJ. You owe principal only, no fees, no interest. Repay them on your terms. Follow the link in my signature for how to deal with illegal lenders. Once you send the letters out keep us updated. I know it is almost hard to believe at first. Once you get in control and realize you are in the right, it is easy as pie.


Submitted by waffles on Wed, 10/17/2012 - 20:47

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NJ's usury rate applies to all loans. If you're being charged more than 30% ANNUALLY, then it's criminal usury.

Period!

Quote:

2C:21-19. Wrongful credit practices and related offenses.

2C:21-19. Wrongful Credit Practices and Related Offenses.

a. Criminal usury. A person is guilty of criminal usury when not being authorized or permitted by law to do so, he:

(1) Loans or agrees to loan, directly or indirectly, any money or other property at a rate exceeding the maximum rate permitted by law; or

(2) Takes, agrees to take, or receives any money or other property as interest on the loan or on the forbearance of any money or other interest in excess of the maximum rate permitted by law.

For the purposes of this section and notwithstanding any law of this State which permits as a maximum interest rate a rate or rates agreed to by the parties of the transaction, any loan or forbearance with an interest rate which exceeds 30% per annum shall not be a rate authorized or permitted by law, except if the loan or forbearance is made to a corporation, limited liability company or limited liability partnership any rate not in excess of 50% per annum shall be a rate authorized or permitted by law.

Criminal usury is a crime of the second degree if the rate of interest on any loan made to any person exceeds 50% per annum or the equivalent rate for a longer or shorter period. It is a crime of the third degree if the interest rate on any loan made to any person except a corporation, limited liability company or limited liability partnership does not exceed 50% per annum but the amount of the loan or forbearance exceeds $1,000.00. Otherwise, making a loan to any person in violation of subsections a.(1) and a.(2) of this section is a disorderly persons offense.

b. Business of criminal usury. Any person who knowingly engages in the business of making loans or forbearances in violation of subsection a. of this section is guilty of a crime of the second degree and, notwithstanding the provisions of N.J.S. 2C:43-3, shall be subject to a fine of not more than $250,000.00 and any other appropriate disposition authorized by N.J.S. 2C:43-2b.

c. Possession of usurious loan records. A person is guilty of a crime of the third degree when, with knowledge of the nature thereof, he possesses any writing, paper instrument or article used to record criminally usurious transactions prohibited by subsection a. of this section.

d. Unlawful collection practices. A person is guilty of a disorderly persons offense when, with purpose to enforce a claim or judgment for money or property, he sends, mails or delivers to another person a notice, document or other instrument which has no judicial or official sanction and which in its format or appearance simulates a summons, complaint, court order or process or an insignia, seal or printed form of a federal, State or local government or an instrumentality thereof, or is otherwise calculated to induce a belief that such notice, document or instrument has a judicial or official sanction.

e. Making a false statement of credit terms. A person is guilty of a disorderly persons offense when he understates or fails to state the interest rate, or makes a false or inaccurate or incomplete statement of any other credit terms.

f. Debt adjusters. Any person who shall act or offer to act as a debt adjuster without a license as required by P.L.1979, c.16 (C.17:16G-1 et seq.), unless exempt from licensure pursuant to that act, shall be guilty of a crime of the fourth degree.


Submitted by OhioGal1 on Thu, 10/18/2012 - 07:20

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If I send these companies the email revoking the ACH privileges and put in the email/letter that they are not allowed to contact me at work - via the FTC DC laws - and quote they are not allowed to call my employment or references - will they still call my work when trying to collect the debt?


Submitted by on Thu, 10/18/2012 - 10:41

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Charged more then 30% annual - I thought per annum meant per renewal period - If that is the case then on a $500 loan - they cannot charge me more then $150 per year, not per 2-week period. Correct?


Submitted by Hops44 on Thu, 10/18/2012 - 10:51

Hops44

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Glad I could make you giggle.

Had an off the record conversation with a person in the banking and insurance department today. Here is alittle thing that these companies don't want you to know. If you fill out an online forms looking for a loan, if you are redirected to a company's website and offered a loan - technically they invited you to do business and they have then entered your state. These pdls try to hide behind their state laws and say you reached out to them so you entered their state and have to follow their laws.


Submitted by Hops44 on Thu, 10/18/2012 - 20:59

Hops44

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How many times a day should I expect to get phone calls and how many calls should I expect my work to receive. I am really scared that once this goes into motion that I could loose my job because they are calling my work number or worse yet - calling my payroll department about the voluntary wage garnishment.


Submitted by Hops44 on Fri, 10/19/2012 - 05:09

Hops44

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I have not done anything yet - still working on the letters - and still trying to decide my best course of action. I have looked over all the pdl contracts and I dont see anything on them about a voluntary wage garnishment - so not sure that i have to include the payroll department in all of this other then when I go over to get my automatic deposit changed and tell them that I had to close my bank account due to my account information being compromised. I am a school teacher and am very embarrased that I got myself into the jam. I cant afford to have any negative things happen to me that could cost me my job - I am a father of 3 and need the job and the benefits.


Submitted by Hops44 on Fri, 10/19/2012 - 05:21

Hops44

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After talking things over with a friend and also with my supervisor - I believe the battle will begin to eliminate these loans. I do owe money, I will pay what I owe - but as far as paying $5000+ with fees and interest - I think I will pay back the $435 that I owe - minus what was paid.


Submitted by on Fri, 10/19/2012 - 11:23

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So if I send them a letter/email stating that I revoke ACH privileges and voluntary wage garnishments - are they allowed to try and contact my payroll department about wage garnishments. Also in reading online the rules of the FTC DC laws - if I send them a certified letter stating they are not allowed to contact my work or reference - that they must communicate with me via mail/email - once I get that little slip back that they signed for - they must stop all calls. Am I reading all this correctly?


Submitted by Hops44 on Fri, 10/19/2012 - 11:28

Hops44

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Contact your HR department and tell them that your bank account was hacked. We have creative options available. You can say your sister took out a loan and happened to know the last 4 of your social and added you to the loan and now people are trying to scam you. Just make something up. Let me ask you this, would you rather your payroll department be forwarded over a wage assignment without knowing what it was, or would you rather tell them ahead of time?

You owe ONLY WHAT WAS BORROWED. No fees or anytihng. THAT'S IT!

Furthermore, they can AND WILL call you NONSTOP. This is a fact you will have to learn to deal with. You are not understanding. When you take out a PDL, the consequences are phone calls in massive volume. These are illegal loans. Lenders operating ILLEGALLY, which is why you only owe principal. Do you think they are going to obey your cease and desist????????


Submitted by waffles on Fri, 10/19/2012 - 15:43

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Again, you're making me giggle.

Your demands mean nothing to them. They will stop when they realize they aren't going to scare you into giving them more money. Until then, they will call, email, etc. If you immediately nip it all in the bud by telling them how it's going to be and telling your references, your employer, etc. that this is a scam and they should ignore the calls, it will stop sooner.

The FDCPA has nothing to do with this until it's turned over to an outside collection agency. Original creditors/lenders aren't subject to the FDCPA and, since these are tribal and/or offshore lenders who are already breaking the law, what makes you thing they would adhere to this law if they're already breaking the law?


Submitted by OhioGal1 on Mon, 10/22/2012 - 10:59

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