PaydayLoanYes, WebPayDay, and CTC (Northway)

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.

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!

I don't blame you. I kind of feel the same. I have every intention of paying them but I just have to do it on my terms. I refuse to get caught back up in this cycle. It is way too hard to get out of.

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.

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.

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.

If WebPayDay turns you over to a CA, you mean?

Yes.

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!

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!

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.