Pay day loan nightmare

Please tell us what you have paid in total to each. I will post your state laws.

Michigan State Information

Legal Status: Legal

Citation:
Mich. Comp. Laws 487.2121 et seq.

Loan Terms:
Maximum Loan Amount: $600
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: 15% of first $100, 14% of second $100, 13% of third $100, 12% of fourth $100, 11% of fifth $100, 11% of sixth $100 + any database verification fee
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 with licensee or more than one with any other licensee
Rollovers Permitted: None (cannot renew; lender may extend only if it does not charge a fee)
Cooling-off Period:
Repayment Plan: Yes

Collection Limits:
Collection Fees: One $25 returned check charge
Criminal Action: Prohibited

Where to Complain, Get Information:
Regulator: Michigan Office of Financial and Insurance Services
Address: P.O. Box 30220 Lansing MI 48909
Phone: (877) 999-6442
Fax: (517) 335-4978
Regulatory Contact: ,
Regulator Website

Licensee Database

Complaint Instructions

Complaint Form Link

Online Resources

I see you did tell us what you paid,how much were the oruginal loans for

Can anyone respond to this post?

What do you need an answer to. We need to know the original amounts of your loans. We have responded, but are now waiting for your answer

Hi Everyone,

Sorry to bump this up but I have not posted any response so far. I have been reading these posts like a madperson for a week now and I have been compiling all kinds of information. This a such a great forum and I am so thankful i found it! I wasn't sure if i was going to be able to do this by myself but I think i would like to try. My status so far is this: I have defaulted on 3 loans now. I closed my account a week ago, althought i am in the negative by $230.00 because of NSF fees. Everything else is due to hit my bank account next Friday, the 18th. I have sent wage and ACH letters via internet to LittleLoanShoppe, Paydayone and The Loan Co. I have paid something on all of these loans, if not more than what i originally borrowed, except for Magnum. I haven't paid them anything. Will they view this as a fraudalent act? The collection agency has already called me at work and he is a really nasty person.

Please tell us the original amounts borrowed vs what you have already repaid to each

Hi Kashzan,

They are all listed on the top of this thread. Made payment arrangements with check n go. I paid 225.00, have two more payments. Little Loan shop is being somewhat cooperative and also Payday ONe. The others are all due to hit next Friday.

What you paud is listed . not what you borrowed.

Think Cash - borrowed 1,000
One step cash - borrowed 300
my cash now - borrowed 400
JVC-borrowed 250.00
Paydayone-borrowed 500
zip19-borrowed 400
worldwide cash-borrowed 300
the loan co-borrowed 300
checkngo-borrowed 600

little loan shop-borrowed 300
magnum cash advance- borrowed 500

Think cash is an installment loan , so you need to make arrangements with them asap. we need to see if these are licensed in your state. Some may be overpaid.
have you checked for licensing on these loans

I'm not really sure about the licesing of these PDL's other than what i have read about so far. I went to the AG's website for the state of Michigan but had no luck. I called them and ask if The Loan Shop was licensed and they said no.

I could not find any of your internet loans to be licended in your state. For loans to be legal in Michigan they must hold licenses there. For these you are only obligate dto repay the original amount borrowed and not a cent more. If your account is already closed you can send them a letter we use and start to make arrangements with the ones that you still ow. It does not appear to be a lot of money.
Take the ORIGINAL amount borrowed, and subtract what you paid to get the amounts that you owe.

I wasn't sure about some of those. So even if they are licensed in another state to lend, they are still not allowed to lend here in Michigan? I am not bound by the laws of the state in which they are lisenced?

You are not bound by any state law but the state you reside in.

I am going to try and start sending out these letters. I am so overwhelmed by all the information. I need to take take this one letter at a time and see what i can come up with. I was almost tempted to go with Langhorne and let them deal with this for me, but they charge almost 1,500. So i thought i better do it myself. I just hope i don't get my wages garnished or get sued.

You will not get a wage garnishment. That needs to be court ordered. An illegal company can not easily get a legal court order.
What you need to do is send a letter revoking any and all wage assignments you nmay have signed. These are strictly voluntary and can be revoked. give a copy to your payroll person also. All you need to say is that you revoke any and all wage assignments taht you may have signed for them or any of their affiliates. send it to all your pdls

Thanks, I will do that. As for Magnum Cash Advance, this collection person from National Collection Agency is calling me and really being a jerk. He would not even give me his address, was just bullying me. I hung up on him. Should I send a cease and desist letter to him? I haven't received anything in the mail from this company yet, so I don't even know what the amount is going to be. Last time i talked to Magnum, I had borrowed 500.00 but my payback was going to be 900.00! I afraid of how much its going to be now. I have not paid anything on this loan yet.

If its illegal all you owe is the principle amount borrowed which would be 500.00. Does not matter what they say the pay back is. If its not legal its not legal

Thanks so much for the info. I will be back later to read the boards after work. Any other info you have for me, please post and i will read later.

I defaulted on a loan with Magnum Cash Advance and now this collection company is calling me at work. Do I send a cease and desist letter to the collection agency? Also, should i send a debt verification letter? Can anyone from Michigan help?

Yes , you can do both.