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PaydayLoanYes, WebPayDay, and CTC (Northway)

Date: Tue, 04/29/2008 - 07:08

Submitted by anonymous
on Tue, 04/29/2008 - 07:08

Posts: 202330 Credits: [Donate]

Total Replies: 11


My fiance has three PDL out with this online companies. We bounced the payments on 4/18/08 because there was no way we were getting out of this rut.


Since then, I have been informed that online PDL are ILLEGAL in Kentucky, therefore I feel we should only have to pay them the principal amount.

I originally had a payment setup with PaydayLoanYes to have them charge my debit card for $305 as a settlement for $500. Then I found this out. I cancelled the authorization by reporting my card lost, then I had a new number reissued. I knew not to give them our new bank account info.

My account the payments bounced out of is still open but Bank of America put a hold on all three ACH debits free of charge.

What should I send these three Online PDL companies to inform them that I am only paying the principal amount. I have printed off my bank statements showing all transactions with these three companies and added all the deposits together, then subtracted all the debits to see what is owed, after voiding out the finance charges.

Here's my list:

Cash Transfer Centers (Northway) - They owe us $310. We first took out $300.00 on 12/20/07. Since then we have been in the vicious cycle of taking out, paying back, taking out more, paying back, etc. They have deposited a total of $3500 into our account and we've paid a total of $3810, thus showing that we have overpaid $310.

Payday Loan Yes - We owe them $15. They have deposited into our account a total of $650, we've paid back $635, underpaying $15.

WebPayDay - We have only used them once, they deposited $300. We owe $300.



Any suggestions as to what I should send them?


Hi Jessicalynn. I am trying to work with webpayday. They have not been easy to work with. In fact, they want me to pay $520 tomorrow. My original loan was for $400. I have paid $140. They are not licensed to lend in my state, however, I have intentions of paying them $260 as they did deposit $400 into my account. I will not be sending this money via moneygram or letting them have my checking acct info. They are refusing to give me a mailing address, so I plan to wait them out. They have told me that if I do not send them $520 by tomorrow that they will turn me over to third party collections and the the third party collections agency will have me reported to chexsystems. From what I understand this is a false threat as only banks or credit unions can report to chexsystems. I plan to wait them out so hopefully everything will work out. I'll keep you posted, and you keep us posted too. It is good to pay back what they lent you, but not a penny more because they are illegal in your state.


lrhall41

Submitted by freak.me.out on Tue, 04/29/2008 - 08:14

( Posts: 98 | Credits: )


I received a call back from Kentucky's Office of Financial Instituations. The woman on the phone (Andie) told me that honestly, if I just ignore them they will go away, that in now way are they allowed to report to credit bureaus.

I do not feel right doing that, as I feel karma is going to nip me in the butt. I am however, sending a letter to each company, especially the co. that owes ME money!


lrhall41

Submitted by on Tue, 04/29/2008 - 08:57

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I have webpayday calling me too and want the $975 plus fees borrowed. I paid them $243 of the $975 and told the woman I would give them the difference in 4 installments. She isnt budging so I am not answering her calls. I sent them a letter telling them to contact me only via email.


lrhall41

Submitted by on Tue, 04/29/2008 - 11:44

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jessicalynn in Kentucky - do NOT ignore these people and they will "go away". No! First of all, Cash Transfer Centers will send a wage assignment to your employer in a heartbeat to get the money from them. Second, yes, they can and will report you to the credit bureaus. Yes, you can dispute this; however, yes, it does happen. WebPayDay will agree to the principle amount. You need, need, need to pay these people at least the principle amount of the loan. I'm saying this only because you will be harrassed to death if you don't take the proper steps. If you don't ever pay them, contact them, etc., you will have wage assignments thrown at your employer, pdls turned over to collection agencies, and negative marks on your credit report. Trust me. I reside in KY. I have had it all.


lrhall41

Submitted by cannr on Tue, 04/29/2008 - 12:33

( Posts: 9317 | Credits: )


Jon1972, do you have a Kay Watson calling you? She is a royal pain. You are right, she isn't going to budge. Have they threatened you with chexsystems? I'm just going to do my very best to repay the principal amount. I do feel obligated to do that. Unfortunately, it won't be the whole amount tomorrow. Plus, they refuse to give me a payment address.
Cannr, do you think it might be best to just try to work with the CA if the account is turned over? I understand that they are sometimes easier to work with.


lrhall41

Submitted by freak.me.out on Tue, 04/29/2008 - 12:40

( Posts: 98 | Credits: )


Well, if it's turned over to a CA, the advantage there is that you can send them a debt validation letter. They will NOT be able to properly validate the debt seeing as how it's not a legal debt. So, in that case, it works on your side. However, CA's will sometimes turn you over to the credit bureaus without you even knowing and put a negative mark. Of course, you can dispute the hell out of it and get it removed. So, the plus of working with WebPayDay themselves is that you might get them to agree to paying only the principle amount back and they will send you a paid in full letter. Then you're done. The plus of having it turned over to a CA is that you can slap a DV letter on them, which they can't validate. The downside is that they will want all the illegal fees & there's the chance of getting turned over to the credit bureaus. So... there's something to think about! I know it's a mess!


lrhall41

Submitted by cannr on Wed, 04/30/2008 - 04:18

( Posts: 9317 | Credits: )


Hey Cannr. Thanks! I think that working with the ca will be my only option at this point as webpayday are being butts about the whole thing. They want this money today and I just don't have it. I have utilities to pay today as well as car insurance. If I pay them then I won't be able to eat for the next two weeks, and trust me, I like to eat!!! :-) I'll just see what happens and keep you posted. Thanks for all of your help! You're great!


lrhall41

Submitted by freak.me.out on Wed, 04/30/2008 - 05:57

( Posts: 98 | Credits: )


freak, no problem! When they slide you on to a collection agency, send them a debt validation letter. But, freak, watch your credit reports. WebPayDay may turn you over to collections, they may never contact you, then just immediately turn you over to the credit bureaus. Surprise! So, just keep your eye on it for any kind of collection agency.


lrhall41

Submitted by cannr on Wed, 04/30/2008 - 09:07

( Posts: 9317 | Credits: )