HELP PLEASE - Drowing in Payday loans
Date: Wed, 12/10/2008 - 10:55
Submitted by billsbillsbills
on
Wed, 12/10/2008 - 10:55
Total Replies: 17
I need some serious help and fast. After swearing I would never get involved with pdl's again, I did. I have 4 or 5 of them right now and they are eating me alive. In October I fell on some real hard times and had to pull every penny I had from my account. The bank honored by PDL ACH's, but in November they were returned. Now they are calling me, my references and my employer. They are also threatening legal action. At first I was trying to work with them, but they are being unreasonable on the repayment terms. After looking over what I have paid back I feel I should be done and am coming here for advice on how to proceed.
I live in the state of Virginia and these are the loans that I have:
Quick911Cash.Com for $390 ($300 + $90 fee) paid $777.50
Paydayyes.com for $650 ($500 + $150 fee) paid $1,155
Premier Payments for $274 ($200 + $74 fee) paid $431 (still paying, I was going to close my account on this one)
247advances.com for $274 ($200 +$74 fee) never paid. I want to pay them back what I borrowed, just don't want them coming for more.
InstantCash.com (Payday USA) for $520 ($400 + $120 fee) paid $240 same with them, will pay back what I borrowed. Not trying to get free money.
What are my rights. Any advice would be greatly appreciated.
Hi Bills, Here are the payday law's for VA: [quote] Quote:
Hi Bills,
Here are the payday law's for VA:
[quote]
Quote:
Virginia State Information
Legal Status: Legal
Citation:
Va. Code Ann. ???? 6.1-444 et seq.
Loan Terms:
Maximum Loan Amount: $500
Loan Term: Min: 7 days
Maximum Finance Rate and Fees: 15%
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: Not Specified
Rollovers Permitted: None (cannot refinance, renew, or extend)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: $25 NSF fee; Court Costs; Reasonable Attorney's Fees (not to exceed $250)
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Virginia Bureau of Financial Institutions
Address: State Corporation Commission, 1300 East Main Street, Suite 800 Post Office Box 640 Richmond VA 23218
Phone: (804) 371-9657
Fax: (804) 371-9416
Regulatory Contact: Susan E. Hancock,, Deputy Commissioner, Consumer Finance
My Inquiry:
Hello,
I'm trying to find out if an internet based payday loan company with no physical presence in Virginia needs to be licensed to lend by Virginia. If they don't need to be licensed by Virginia, would they still need to follow Virginia's payday loan laws, or would they need to follow the laws of the state in which they are licensed? Also I have found out several payday lenders I have investigated are completely unlicensed and out of country lenders how shall I proceed?
Thanks!
Their Reply:
Virginia code specifically states the following regarding licensure and Virginia's laws governing payday lenders apply to any entity making a payday loan to a Virginia resident.
???? 6.1-445. License requirement.
A. No person shall engage in the business of making payday loans to any consumer residing in the Commonwealth, whether or not the person has a location in the Commonwealth, except in accordance with the provisions of this chapter and without having first obtained a license under this chapter from the Commission.
B. No person shall engage in the business of arranging or brokering payday loans for any consumer residing in the Commonwealth, whether or not the person has a location in the Commonwealth.
Knowledge of or complaints about such can be filed with the Bureau. A complaint form can be found on the SCC web site at:
http://www.scc.virginia.gov/bfi/complain.aspx
Kenneth J. Schrad
Director, Division of Information Resources
State Corporation Commission
PO Box 1197
Richmond, VA 23218
(804) 371-9211 (fax)
What does this mean?
Internet based companies must be licensed in VA.
No rollovers are allowed.
Specific rates can be charged.
Thanks to Anyaroberts for this info!
[/quote]
I will check to see if any of the companies are licensed.
I will check to see if any of the companies are licensed.
I checked the list of companies in VA, I found a listing for Ins
I checked the list of companies in VA, I found a listing for Instant Cash, but not paydayUSA:
Quick911cash - not licensed - they owe you $477.50
Paydayyes - not licensed - they owe you $505
Premier Payments - not licensed - they owe you $231
247advances - not licensed - you owe them $200
Instant Cash(oaydayusa) - not licensed - you owe them $160
[quote]What should you do?
Close your account asap, if you are unable to close your account, go into your bank and ask to speak with the Branch Manager, tell him/her you need a hard debit block placed on your account immediately! Explain that you are revoking ACH authorizations from unlicensed/illegal companies, and have learned these companies are notorious for ignoring revocation, therefore it is important to BLOCK any withdrawal attempts on your account to protect your interest. This is your privilege, do not accept no for an answer. The following link will provide you important information regarding closing accounts. CLICK HERE
What next?
AFTER your account is secure send each pdl (the unlicensed and illegal) an email similar to THIS (please scroll down to locate letter template). Tailor this letter to your needs, and try to write it with the same basic concept in your own words. You will need to research and locate email addresses/physical addresses if you don't already have them, I suggest that you type the name of the pdl (example: "oneclickcash address") in the search box in the upper right hand corner of this forum. You may also search for addresses HERE at the Better Business Bureau.
File complaints: Most of the time, you can file a complaint online with the following, I encourage you to follow through with doing so, you will need to search the Internet for your state Attorney General's website, however, here are links to file complaints for the FTC, Online complaints: Federal Trade Commission., and the BETTER BUSINESS BUREAU.
Keep in mind that you may not receive a response for days, or even weeks, or, you may receive harassing and threatening phone calls. I have found the best way to deal with this is not to respond or reply, simply hang up.
Side note: If you have paid an illegal/unlicensed payday lender above and beyond the principal amount you borrowed, it might be a good idea to demand a refund and a paid in full letter/receipt. You may or may not get one or both. It still doesn't hurt to include that tidbit in your letter. :)[/quote]
Here is a letter you can use, you would need to change it for yo
Here is a letter you can use, you would need to change it for your situation:
Quote:
To Whom It May Concern: After doing research on internet payday loan laws in the state of Connecticut, I have found that your internet payday loans are actually illegal. I have also found the following laws to be true applying to payday loans in the state of Connecticut in general: Legal Status: Prohibited Citation: Usury act applies or small loan act applies. Conn. Gen. Stat.???? 36a-563 Small Loan Rate Cap 30.03% apr or $17 per $100 up to $600; $11 per $100 up to $1,800; add-on interest. I have contacted the Connecticut Office of Financial Institutions and the Connecticut State Attorney General's Office regarding your internet payday loans and was informed they are indeed illegal in Connecticut and was advised to pay what is due according to principle amount only of the loan. To date, I have paid $525.00 DOLLARS on my $250.00 DOLLAR loan. The legal amount that could have been charged to my loan is the principal amount of $250.00 DOLLARS even if your internet pay day loan was legal in Connecticut. I have paid $525.00 DOLLARS on this loan by your debits of my bank account. Please mark this account as PAID IN FULL. I demand that any contact be made through US Postal mail or email only. I will need everything in writing to keep accurate records of all communication as per instruction from my state Attorney General's Office. I prohibit you or your affiliates to contact me via telephone at my place of employment or my home telephone number. I also prohibit you from calling my references listed on my loan. Once I inform you of this, you must stop the telephone contact immediately or you will be once again breaking the laws of the state of Connecticut. You are also hereby notified that I am revoking any voluntary wage assignment I may or may not have signed. I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for your collection purposes. I am revoking your right to debit my checking account any longer. You, your company, or your affiliates are not authorized to debit my checking account at all. Please be aware that I have informed my financial institution of this situation and they will also be receiving a copy of this correspondence. Any further attempts at debiting my account will be rejected by my financial institution. I must also inform you that I have filed complaints with the Better Business Bureau, the Federal Trade Commission, and my state Attorney General's Office. I expect a response from your company no later than 5/2/2008, regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted. Thank you, |
Bills your in great hands with Dawnlango!!!! Follow the advice
Bills your in great hands with Dawnlango!!!! Follow the advice given and you will get this situation under control. Good luck.
Bills you will get through this just fine. I came here for help
Bills you will get through this just fine. I came here for help and got just that. Yoe have definately come to best place.
I used to work for a debt collection law firm and here is a tad bit of information that you might or might not be aware of. Once you write your letter make sure that you request a cease and desist of all verbal communication with you, the references given on your app and anyone else that they maybe contacting. It is a federal crime for any business or company that you may owe to harass you. You can owe millions of dollars but they have to follow the laws of the fdcpa(fair debt collection practice act) and for every violation of your request is punishable of up to $1000. So the next time they call, get the company that is calling, note the time and date of the call and try to get the persons name and then report every single time to the FTC. Trust me it works, the law firm i worked at used to get hit hard because of this
Thanks everyone
Thanks everyone for your assistance with this. I will get right on the letters this weekend.
Hi bills, Your quite welcome, please let us know if you need
Hi bills,
Your quite welcome, please let us know if you need any more help...and keep us up to date on your situation :D
I checked the list of companies in VA, I found a listing for Ins
I checked the list of companies in VA, I found a listing for Instant Cash, but not paydayUSA:
Quick911cash - not licensed - they owe you $477.50
Paydayyes - not licensed - they owe you $505
Premier Payments - not licensed - they owe you $231
247advances - not licensed - you owe them $200
Instant Cash(oaydayusa) - not licensed - you owe them $160
Wow this is so wrong. Please stop giving advice if you dont know what you're talking about. These companies obviously have to make money somehow. They aren't in the business to give money to charity cases, which most of you here seem to be.
My letter
Here is the letter I am sending to the majority of them tweeked to fit each situation. Please advise ASAP, I would like to get them out immediately.
Due to the fact that Internet payday loans must be licensed in the state of Virginia to be a legal and binding contract, your company should NOT issue loans to Virginia residents at all. I am requesting that you send me your license number which enables you to offer loans to Virginia residents.
Okay, I managed to cut my letter off. Here it goes. January
Okay, I managed to cut my letter off. Here it goes.
January 12, 2009
My Info here
Quick911Cash.com
After doing research regarding Internet payday loan laws in the State of Virginia, I have found that your Internet payday loans are actually illegal. I have also found the following laws to be true applying to payday loans in the State of Virginia in general:
Quote:
Virginia State Information
Legal Status: Legal
Citation:
Va. Code Ann. ???? 6.1-444 et seq.
Loan Terms:
Maximum Loan Amount: $500
Loan Term: Min: 7 days
Maximum Finance Rate and Fees: 15%
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: Not Specified
Rollovers Permitted: None (cannot refinance, renew, or extend)
Cooling-off Period:
Repayment Plan:
Virginia code specifically states the following regarding licensure and Virginia's laws governing payday lenders apply to any entity making a payday loan to a Virginia resident.
???? 6.1-445. License requirement.
A. No person shall engage in the business of making payday loans to any consumer residing in the Commonwealth, whether or not the person has a location in the Commonwealth, except in accordance with the provisions of this chapter and without having first obtained a license under this chapter from the Commission.
B. No person shall engage in the business of arranging or brokering payday loans for any consumer residing in the Commonwealth, whether or not the person has a location in the Commonwealth.
I hereby revoke any and all ACH authorizations with your company from debiting any of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I have closed my account with Suntrust to protect my interest in this matter, per instructions from The Virginia Bureau of Financial Institutions. I also revoke any and all wage assignments I may or may not have signed with your company, I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for your collection purposes. I have notified my employer about this matter so any attempts to do so on your part will be rejected.
The legal amount that could have been charged to my loan is the principal amount of $300 + $45 Finance Fee for a total of $345. Through debit entries to my account, I have repaid $777.50, which is an overpayment of $432.50. Please mark my account as PAID IN FULL and mail me a letter stating that fact, so that I may add it to my records. Along with the letter please send my refund $432.50 to the address above.
I prohibit you or your affiliates to contact me via telephone at my place of employment or my home telephone number. I also prohibit you from calling my references listed on my loan. Once I inform you of this, you must stop the telephone contact immediately or you will be once again breaking the laws of the state of Virginia. I demand that any contact be made through US Postal mail or email only. I will need everything in writing to keep accurate records of all communication as per instruction from my Attorney General's Office.
Due to the fact that Internet payday loans must be licensed in the state of Virginia to be a legal and binding contract, your company should NOT issue loans to Virginia residents at all. I am requesting that you send me your license number which enables you to offer loans to Virginia residents.
I must also inform you that I will be filing complaints with the Better Business Bureau, the Federal Trade Commission, and the Virginia Attorney General's Office.
I expect a response from your company no later than 5 days from the above date regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted.
Sincerely,
CC:
Better Business Bureau
Virginia Attorney General
Federal Trade Commission
Get Off my Back
Thanks Dawnlango, I will get them out this weekend by e-mail and mail. This site is truly a God send.
I will keep you posted.
Have a great weekend
Please be aware that if they are a 1st party collector (collecti
Please be aware that if they are a 1st party collector (collecting thier own debt), they are entitled to make contact with you once a day, every day but Sunday's and bank holiday's at your home number. Also, the fdcpa does not apply to 1st party collectors. Hold your ground with the illegal lenders and you should be fine.
1st party collectors, such as a credit card, aren't supposed to
1st party collectors, such as a credit card, aren't supposed to call on a Sunday? I get calls all the time for other people in the HH...starting @ 8:00 am eastern time and going through to 9:00pm...
With the new policy making regarding on the payday lenders that
With the new policy making regarding on the payday lenders that the new lawmaking bodies has subject to the 14% decreasing of the average of 100 in gross return of the payday lenders policy. Payday loans are now being run out of Virginia. Which are effectively bans, on payday lenders, capping interest at an inoperable 36%. They are now friendly users to those who want to accommodate of the loans which are in the very most of the average weighted rate of 36% it is already a good news. They did leave a little space, but not much ??? lenders can charge interest for the first 25 days, but if the loan is paid back in 25 days, no interest or fees can be applied and afterwards only 36% - effectively free or cheap payday loans. It seems that nearby states that had adverse affects from similar bans weren't enough to save payday loans in Virginia. Read more about More Restrictions on Virginia Payday Advance Loans in the Old Dominion at the Money Blog.