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Payday Loan Nightmare in New Jersey

Submitted by aubrey on Mon, 07/20/2009 - 13:02
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Yesterday I went to my bank (TD Bank) and had ACH revocations done for 6 payday loans which were scheduled to debit my account this Friday 7/24. They were for: Eastside Lenders, US Fast Cash, National Payday Loan, Biggest Cash, Web Payday and One Click Cash. Some had already renewed.

I have a government check direct deposited and an ACH coming out for Internal Revenue Service, so I can't close the account. It takes the government 8 weeks to change banks.

What's my next step to get out of this payday nightmare?


Well, Pay day loans are illegal in New jersey.
Without closing your account, I am afraid they will not stop debiting. You can change your direct deposit. I had ach debits coming out for the IRS and it took a few weeks to change banks.In the mean time I paid them with a debit card. You are only liable to repay the principle amount borrowed. All fees and interest are applied to that total. Before you secure your account, I would not tell the pdls anything


Submitted by on Mon, 07/20/2009 - 13:06

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your next step would be to close the account. :(
i am sorry, but that is the only way to stay safe. payday loans are prohibited in NJ so these companies are acting illegally and are not to be trusted. TD can put a hard block on them until you get your deposits straigthend out but it will affect your ACH. tell the manager the situation, TD gave me a tough time and i lost a lot of money dealing with mine because they kept letting them take it out. also, TD has to close the account a certain way or the ACH will push the closed account back open.
how much did you pay each company?


Submitted by bea2ls on Mon, 07/20/2009 - 13:07

bea2ls

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Eastside Lenders $600. The others $300 plus $90 fee, except for One Click which is almost paid off. I guess close to $1,000. Don't have the exact figures - am at work. I wanted to wait until Friday when I got my direct deposits to close the account. With the revocations, do you think this would work until I get my money to put into another account???

You'd think the revocation would be enough


Submitted by aubrey on Mon, 07/20/2009 - 13:18

aubrey

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the revocation will not be enough. ask them to put your account on a hard block.
you cannot even block the companies out, they will go under different names to take your money.
all you morally owe is the principal amount you borrowed because these loans are legal. after - and only after - your bank is secured, i would demand a physical address to mail money orders to for the remaining balance. i do not know what you borrowed so i do not know what you owe. i always told them, no address? no payments. and i meant that, and they caved in and gave me addresses


Submitted by bea2ls on Mon, 07/20/2009 - 13:33

bea2ls

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I'm in Jersey and have gone through the same thing. Please make sure and get that hard block ASAP. I guess I got lucky through the Fraud Dept. at BofA. They only allowed deposits to the account and only the checks I authorized.....even helped me open a new account.
As far as Eastside, if you have overpaid them,keep at it. I had an account with them and it took some back and forth but they eventually gave me a PIF. One Click Cash still harasses me once a week but don't give up. You can do this!


Submitted by on Mon, 07/20/2009 - 16:56

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I plan on calling them shortly. They charged me $25 each for 4 blocks (I requested 6) and restored a $90 fee from USA Cash. Who incidentally just called me wanting their $390.00. They wouldn't give me an address. I explained payday loans are illegal in NJ and I would just be paying back the $300, as they already got one fee of $90. It didn't quite sink in to the rep. And I requested that they not call me at work again.

I should drop deal if I ever do a payday loan again. Plus I'm dealing with IRS right now who wants to levy my assets.

I guess I will have to open a new account and see if they can transfer my direct deposit because it takes State 6-8 weeks to change banks. HOW DID I GET MYSELF INTO THIS MESS??


Submitted by on Tue, 07/21/2009 - 07:18

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Can't you put your account on a "deposit only" status for now until you get the direct deposit situation straightened out? I'd talk to the manager at your bank and explain what's going on; odds are they've heard similar stories in the past. As for hard blocks, as bea2ls says, that's rather risky because so many of these PDL's go by so many different names, they might try to withdraw funds under another name.


Submitted by on Tue, 07/21/2009 - 07:25

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Be careful with the ach blocks. Like Bea2ls said if they can't get thru they will change thier name and/or change the amount and if that does'nt work they will send it thru as a paper check.

I have never had to deal with the IRS and payments but surely you could call them and tell them you have had to close your checking account and open another due to fraud and can make payments with a prepaid card until they get your debits set back up again. With the amount of people who are on payment plans with the IRS its bound to happen a lot. At my bank they said all of the time they are having to close accounts due to purses being stole, people loosing checkbooks etc.


Submitted by resqume1 on Tue, 07/21/2009 - 07:39

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Well, I was just told that because I did these transactions over the internet they can't block the ACH transactions! I would have to close the account. I have 2 paychecks being direct-deposited on Friday that I can't stop. and the PDL charges are supposed to hit on Friday, early (they seem to do it at 12:01 a.m.

They won't put the account in deposit only status because the transactions were done over the WEB. I'm ready to throw up!


Submitted by on Tue, 07/21/2009 - 07:52

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just spoke to branch manager; they won't do anything. I guess I'll be losing my money Friday because I can't stop the direct deposits. and if my account goes into the negative, they can't close it.

I must have been insane to do this......


Submitted by on Tue, 07/21/2009 - 07:58

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call 1-800-YES-2000, and press zero to get an operator. this is TD Bank's Customer service line.
this is crazy they can put a deposit only block on it. tell them this is fraud and ask for the fraud department.
you can revoke ACH anytime seriously. it is nonsense that they cannot do a block. these banks are impossible! i would really call corporate and ask to speak to the fraud unit. that is what i had to do.. tell them these loans are not legal and the attorney general office as well as your lawyer told you to put it on deposit only than close the account asap so ach will not reopen it. they can do this, they did it for me.


Submitted by bea2ls on Tue, 07/21/2009 - 09:14

bea2ls

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I will try. The branch manager was not helpful at all. At lunch I withdrew $$ and was able to get my one paycheck for this week stopped. My state H.R. is working on the other, but there might not be enough time. The manager stated they absolutely could not stop ACH authorized over the internet. I will be closing that account on Friday and not dealing with that bank again, but I fear I will lose some of my paycheck. I will call that number now (before my boss gets back).


Submitted by on Tue, 07/21/2009 - 09:30

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Quote:

I will try. The branch manager was not helpful at all. At lunch I withdrew $$ and was able to get my one paycheck for this week stopped. My state H.R. is working on the other, but there might not be enough time. The manager stated they absolutely could not stop ACH authorized over the internet. I will be closing that account on Friday and not dealing with that bank again, but I fear I will lose some of my paycheck. I will call that number now (before my boss gets back).


All BS. If your financial institution does not want to be responsible for a HUGE hefty fine and a possible lawsuit they will abide by the Federal law (regulation E). I would tell them there will be charges filed against them asap if they do not follow the Federal law. It sounds to me as though this branch manager is not familiar with regulation E. You REALLY need to google it, print it out, and take it directly to the branch manager. If you have revoked these lenders rights to debit your account (in writing OR verbally) your financial institution will be in BIG trouble by not abiding by the law. I do hope you have taken a printed out copy of your revocation to the branch manager, and as I said a printed out copy of regulation E. I find it suspicious that your branch manager is not familiar with regulation E.


Submitted by Shazzers on Tue, 07/21/2009 - 09:40

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Quote:

Well, I was just told that because I did these transactions over the internet they can't block the ACH transactions! I would have to close the account. I have 2 paychecks being direct-deposited on Friday that I can't stop. and the PDL charges are supposed to hit on Friday, early (they seem to do it at 12:01 a.m.

They won't put the account in deposit only status because the transactions were done over the WEB. I'm ready to throw up!

Who told you this? Have you revoked these lenders rights to debit your account? Do you have a copy of the correspondence you sent revoking their right to debit your account? What steps have you taken to revoke ANY and ALL rights to your personal account?


Submitted by Shazzers on Tue, 07/21/2009 - 09:43

Shazzers

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As far as the IRS, they are VERY willing to work with people as long as you contact them BEFORE the payment is due to be withdrawed. In fact, what you could and SHOULD do is purchase a pre-paid VISA card with the amount of the payment due, contact them by telephone, explain that you MUST make your payment this month via the telephone with the VISA prepaid card, explain there has been some fraudulant activity on your personal account and you had to close it out immediately but you have your payment ready right now. Also explain you will contact them with your new account # as soon as you open it but in the meantime you will make payments with a prepaid card until you have everything in order. Just a suggestion!


Submitted by Shazzers on Tue, 07/21/2009 - 09:48

Shazzers

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I called the YES number and spoke to someone who said that the branch I deal with is not very helpful. They are going to put a limited status on my account until my paychecks hit on Friday. Tomorrow I'm opening a new account and then Saturday I can transfer the money to the new account. Then they will close the other one. She said she was going to call the manager at a different branch and explain everything and I could go there to open the new account. It's near home.

I haven't done a bit of work today with all this. I will most certainly write a letter of complaint to corporate. I hope this works.

Thanks to everyone for their support and help. You people are wonderful.


Submitted by on Tue, 07/21/2009 - 10:08

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Well, so far so good. (I'm waiting for the shoe to drop). Went to see manager at another branch of TD Bank. He opened new account and there's a hold on any debits until my paycheck hits Saturday. Then I will go to the bank, transfer to the new account and close the old one. Was able to stop my part time job check from being deposited. And State will send me a paper check (after this deposit).
I guess I will get phone calls/e-mails tomorrow, as that's when the ACHs were due.

Should I send out the letters to the PDLs tomorrow or wait until Monday?


Submitted by aubrey on Thu, 07/23/2009 - 07:59

aubrey

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I just read your post and saw the part about the iRS wanting to levy. I owed them a large sum and finally got to the right department , and they were extremely kind and within a few short minutes they listened to my story, listed my expenses and as of now I am on an uncollectable status. They will work with you. No reason to levy


Submitted by on Thu, 07/23/2009 - 08:10

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I had been paying on installment for 2007 taxes, but when 2008 became due they cancelled my agreement. Seems like you cannot owe additional taxes. I was paying them $200 a month for over a year!! Anyway I am going to see someone in person in 2 weeks to work something out. I have to pay the taxes because I work for the Judiciary and I would lose my job. I fully intend on paying them, just not $7,000 at once! and I was told it was better to go in person than try to deal over the phone (that is, if you can get a real person).

I will get my e-mails ready for the pdls and send on Monday, although I'm sure I'll receive e-mails once their ACH doesn't go through. That will make it easier to cut and paste my response because I'll have their e-mail address.

Wish me luck. I need to stop this nightmare.


Submitted by aubrey on Thu, 07/23/2009 - 08:17

aubrey

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I owe for about 5 years. I also had an agreement ( btw, I owe a lot more than 7000 ) I called and told them I could not pay more than the 100.00 I was paying. They did add it, and a few subsequent years. Any way, it all got too overwhelming and I called the tax advocate ( every state has them ) They are free, and work for and with the irs to help resolve issues. The best they could do was get me an agreement for 442.00 a month which was to me out of the question. I called and explained my situation and got it put in uncollectable.
Google up the allowable expenses for the IRS, use those numbers for your expenses. ( the allowable were in some cases more than I spent ) and let them know you can not afford it.


Submitted by on Thu, 07/23/2009 - 08:24

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Well hopefully they WILL be able to stop the PDL's, I would hate to see you lose your paycheck. Too bad it's so close to direct deposit time for you, possibly your company could've cut you a paper check just this once? Keep us posted!


Submitted by on Thu, 07/23/2009 - 08:35

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No, it was too close. We're talking about the State of NJ here (ha ha). Anyway I stopped my part time check, and I will get paper check after this one. I am going to stay up tonight and tomorrow, and as soon as my paycheck hits, transfer the money to the other account! I have on-line banking. I am nervous about waiting until Saturday. I have to wait until Saturday to close the account because the manager said the paycheck might not credit until Saturday because of the holds.

I'm at the point where I don't trust the banks!


Submitted by aubrey on Thu, 07/23/2009 - 08:45

aubrey

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Thanks for the encouragement bea2ls. It's hard to relax when everyone's after you. But I tell myself it will take time to dig out of a situation I myself created.....Got into trouble with IRS because hubby disabled and we waited 2 years for social security to be approved after appealing. So I changed my withholding because we needed the extra $$$, and when he got the S.S. I forgot to change it back. Too much family drama going on at the time, with 2 bipolar daughters, elderly Mother who has alzheimers and husband with leukemia.

Just lost track of things. Stupid, stupid, stupid me.


Submitted by aubrey on Thu, 07/23/2009 - 08:52

aubrey

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One good thing I did, when IRS didn't draft the $200 I immediately withdrew it so PDLs couldn't access it (in case bank screwed up). It's now in my new account awaiting my paycheck. I've drafted my e-mails and I am keeping my fingers crossed.


Submitted by on Thu, 07/23/2009 - 10:55

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Don't give up and make sure you follow the wonderful advice here. I'm from Jersey also and I originallly started with 10 loans and am now down to 2. You can do this. Oh, be careful with Biggest Cash. I am trying to repair my credit and a new collection agency posted on my credit report that I owe $580.00. Coincidentally, this is the same amount Biggest-Cash claims that I owe.


Submitted by on Thu, 07/23/2009 - 16:57

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Well, I checked my account today and nothing was debited. YAY! The bank is holding my direct deposit pay as "pending" and it will hit my account tomorrow, so I can transfer it to the new account and then close the old one.

I am expecting an onslaught of phone calls/e-mails shortly. I will send my e-mails revoking ACH from home this weekend.

Thank God for this website.


Submitted by aubrey on Fri, 07/24/2009 - 07:06

aubrey

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So, I finally heard from Eastside via e-mail after they called me again at work and I told them I couldn't take their call. Told I was liable for the full amount because I was subject to Delaware laws, blah, blah blah. They want me to pay the full amount back in 3 installments. Can't do it. I DID get an address to send the payments to.

Did some further research - www.paydayloaninfo.org
Went to the consumer help section and I'm going to paste it into my e-mail to them, especially the part:

File a complaint: File complaints against Internet payday lenders with your state regulator, your state Attorney General, and the Federal Trade Commission. Regardless of where the Internet lender says it is located, it is subject to your state's credit regulations.


Submitted by aubrey on Wed, 08/12/2009 - 07:49

aubrey

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i would also file with their state's attorney general.. believe the NJ one will not do anything at all. maybe the department of banking and finance will do something but i never had any luck with any of the the state's officials (which is sad because i have a government job, lol)


Submitted by bea2ls on Wed, 08/12/2009 - 07:56

bea2ls

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OMG i am in jersey and i only have 2 payday loans which has been brought down from 5. what do i do to get rid of them? they have been debiting money from my chkng acc for about 3 months so i have more than over payed them. what do i do?


Submitted by on Wed, 08/19/2009 - 17:35

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I am in big trouble with pay day loans Is it really true they are illegal in New Jersey? Can I legally stop them and not be in trrouble I will probably be decalring banruptcy not because of these but for other reasons but that may not be for a couple of months what can I do in the mean time


Submitted by on Sun, 03/27/2011 - 19:59

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Payday loans are illegal in New Jersey. You are responsible for paying back the amount you borrowed. Your first step would be to close your checking account. Then go to the sticky under payday loans, read the information and send your letters.

You can also read about other posters experience with payday loans in NJ by doing a search on New Jersey payday loans.

Good luck and welcome to the forum.


Submitted by aubrey on Mon, 03/28/2011 - 06:42

aubrey

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