Online Payday Loans
Date: Tue, 08/28/2012 - 14:04
I have been reading some of the nightmares about Online payday loans. Back in June I signed up with CashYes.com. I received a $1000 loan. When I signed up for the loan the phone representative advised me that if I agreed to bi-weekly payments of $300 - $350, that my loan would be settled by August 17th. To date, I have paid $1580. I just received an email today stating that I still owe $1235. Naturally, I called the company and they stated to me that the money I have paid was interest only. I responded that when I signed up that the rep ensured me that I would only have to pay $300. She gave me several payment options and that was one of them. The manager of that company told me that it was incorrect. Knowing that CashYes is trying to get an additional $1480 on top of the $1300 I already paid is insane. I sent them an email stating California law and that they are not on the list of approved online lenders. I copied the CA law for online lenders and asked that they cease and desist any further withdrawals or actions on my account. When I spoke with my assistant manager at my bank, he stated that I could not stop any ACH transfers because it was a contract I had with CashYes, but after researching certain local and federal laws, I feel like I have the choice to stop these transactions, without actually closing my account.
Any thoughts?
Thank you,
A.
You owe principal only if the lender is illegal. No need to pay
You owe principal only if the lender is illegal. No need to pay them any interest or fees. Ask them for a refund as you have overpaid them. I think it would be better for you to close your bank account and open a new one. Glance through this page to know how to deal with illegal lenders:
http://www.debtconsolidationcare.com/paydayloan/dealingwith-illegallenders.html
You can stop the ACH transaction without closing your account. I
You can stop the ACH transaction without closing your account. If your bank refuses to stop ACH transaction, then your last option will be to close your account. You may also request the bank to put your account into the 'deposit only' status.
They are an illegal lender. You have paid more than the principal amount. So, there is no question about making extra payments. In fact, they owe you money.
Closing the account is the way to go. It might be a pain in the
Closing the account is the way to go. It might be a pain in the neck but its best.
What the above posters have said is correct, however, I'd like t
What the above posters have said is correct, however, I'd like to add that your bank should not be refusing to stop these ACH withdrawls. It is federal law for a bank to comply with your request to stop ACH withdrawls, it is not a courtesy for them to provide. If they refuse, call your bank's corporate office.
Your bank will tell you that they can't stop ACH transactions, b
Your bank will tell you that they can't stop ACH transactions, because unlike a check, there is no check number to record and stop. Depending on the bank, there will probably also be a fee assessed,as there is for a check.
I would ask for the block again, and if they still tell you no, speak to a supervisor and tell them that fraud is involved. Good luck and let us know what happened!
There is, actually. It's quite easy for a bank to stop ACHs, tha
There is, actually. It's quite easy for a bank to stop ACHs, that check number stuff is just what they tell you because they don't want to shoulder the costs or the crap from the creditor going after the bank. The problem with ACH stops though is that the company can come back in under a different name and keep withdrawing, so you better close your account. However you need to tell your bank to reverse ALL the ACH payments to these people over the 1000 dollar principal balance. You can call your bank's claims intake center for this. Not sure who you bank with but each bank has something like that. If they charge you a 35 dollar stop payment fee, advise them that the transactions are fraudulent.
The bank is just uncooperative with regard to stopping ACHs. Advise your bank that these are fraudulent transactions and that you consulted your state banking regulator and determined the contract is invalid with CashYes. If the bank refuses then tell the assistant manager you will be reaching out to the corporate office for his failure to comply with federal law, as all consumers are legally entitled to stop ACH payments under regulation E within 3 days.