Need urgent advice on loans in South Carolina

Okay first off First Bank of Delaware is an installment loan so the payday loan laws do not apply.

US Fast Cash is illegal.
FastMoney911 is illegal as they lent you more the allowed amount of $300.

Are you paying these loans and then re-loaning or are they rolling over the loan with a fee?

Rollovers are not allowed in SC. Also the loan can not last more than 31 days.

Provide the information that nohiogal has asked for so we can further assist you. We are here to help you.

For each of these, they are automatically renewed each time I am paid and I believe only the interest is being taken out of my checking account when they do.

And thank you for responding!

By re-newed do mean the entire loan amount is taken out or only a fee?

I think the poster is saying just interest each time and the loan rolls over. I could be wrong but fee sounds like nothing off the principal.

If that is the case then they are illegal. Rollover or interest only fees are illegal in SC.

Yes, only the fees are being taken out of some of these PDLs. I used the template C&D letter from this site and e-mailed and mailed certified letters to the ones flagged so far as illegal.

I have not received any e-mail response from either except this one from fastmoney911. Is it a typical reaction?:

"To best assist you, please call our collections department at 800-3271269.

Thank you for contacting FAST MONEY 911.

Sincerely,

Customer Service
FastMoney911
(800)-428-4581 TEL
(888) 750-5556 FAX
[email]customersupport@fastmoney911.com[/email]"

Also, I contacted my bank today. I cannot close my account because it has a negative balance, but they agreed to block future debits from these PDLs until I straighten out the situation.

What is my next step? How do I know if the balances should already be paid in full or if I still owe the original loan amount? Specifically, for my fastmoney911 loan, I have already paid more than the original loan amount, but still supposedly owe the original loan amounts plus interest.

Thanks.

Yes, only the fees are being taken out of some of these PDLs. I used the template C&D letter from this site and e-mailed and mailed certified letters to the ones flagged so far as illegal.

I have not received any e-mail response from either except this one from fastmoney911. Is it a typical reaction?:

"To best assist you, please call our collections department at 800-3271269.

Thank you for contacting FAST MONEY 911.

Sincerely,

Customer Service
FastMoney911
(800)-428-4581 TEL
(888) 750-5556 FAX
[email]customersupport@fastmoney911.com[/email]"

Also, I contacted my bank today. I cannot close my account because it has a negative balance, but they agreed to block future debits from these PDLs until I straighten out the situation.

What is my next step? How do I know if the balances should already be paid in full or if I still owe the original loan amount? Specifically, for my fastmoney911 loan, I have already paid more than the original loan amount, but still supposedly owe the original loan amounts plus interest.

Thanks.

Since they loaned you more then the legal limit in SC I am going to say they are unlicensed which means you only owe the amount they loaned you.

All of the fees you have paid go toward that amount. If you paid FastMoney911 the amount borrowed then you are done legally oweing them.

If you go to the sticky at the top of this forum there is a thread about dealing with illegal lenders. There is a template letter you can change to your own information and send to them.

I would suggest as soon as your account it zero to close it and open a new account but verify that your new account can not be touched by an ACH from your old account.

Thank you so much for your assistance in this matter. You don't know what a relief it is to have some hope of getting out from under these lenders.

Does anyone have any advice or knowledge about PaydayFlash being illegal or unlicensed in South Carolina? I've had my loan with them since December 2008 and still owe almost as much as my original loan.

The original loan was for $300. Each paycheck they claim to have taken out $30 in principal plus fees, but my balance is still $259.50. I have paid $645.97. I do nothing each paycheck; they automatically refinance if I have not paid in full.

Thanks again.

One more thing...

I failed to mention that I had a loan with Cash Transfer Centers because I found on this board that it is illegal everywhere. I issued them a letter of revocation today along with a notice to terminate authorization of ACH debits. I received no e-mail reply or phone calls, but when I went to log into their web site to check on the status of my account, it says I am no longer an authorized user. Any idea what this means? I informed them I would pay only the principal of my loan by money order if they provided me with a mailing address, so I expected some reply. Did I do the wrong thing?

If Payday Flash is rolling over the loan then they are not following SC law so I would place them in the illegal/unlicensed category.

I would not worry about what the website says. Illegal companies do that all the time. They block you out so you don't have any proof of your account with them nor any payments you have made.

Since your account is secure then I would not worry about it. You did not do anything wrong.

The only legal loan you have is with FBoD so I would contact them to make payment arrangments.

For the illegals draft up your letters and send them out if you have not already done so for the others.

I'm a little concerned because I received this e-mail today stating the following. However,m it didn't seem to come from a legitimate e-mail since the e-mail was [email]smith_brownattorneyatlaw@charter.net[/email] :

This letter serves as notice of intent to prosecute for summary judgment.

Court Filing scheduled 3/26/09. You must either settle with Plaintiff or reply an answer to complaint by that date.

Plaintiff: PaydayFlash (formally FastBucksNow)

vs.

Defendant: Angela C****


A lawsuit may be filed against you.

On or before 3/26/09 you are hereby requested to serve on the plaintiff an answer to the complaint under Rule 14 of the Federal Rules of Civil Procedure.

If you fail to do so, judgment* by default may be entered against you for the relief demanded in the complaint Id: 22****.

You may dispute this action by replying to this email or you may fax your answer to complaint to:

Smith & Brown, Attorneys at Law
805 980-5060

*Attorney fees/court costs and credit reporting fees (to be determined) may be additional as well.

Filing Date 3/26/09 : Forward to judgment dept Report default - Garnishment/DP/Teletrack agencies. Charge code: 4 Blacklist

Acct code DPP: "judgment by default"
Payday Flash
Judicial Dept.
Phone: (909) 657-9156

That is just a scare tactic. They are not operating with in the laws of your state. It specifically says no rollovers.

You can read them here

The link to the regulatory site is at the bottom.

They are required to have a license, which from everything I can read, they do not have one.

I also found this. Ignore the top half as it is about getting a payday loan. Start reading at "The requirements....".

They are allowing the loan to rollover and you have had it more than 31 days.

I would answer the email that they do not have a license in SC to lend which makes the loan illegal. Demand that they give you their license number. I am sure the answer will be "we don't have to".

The number for the "attorney" does not even show up on Google. 805 area code is in CA.

For anyone who might be following my situation to help resolve their own, this is the latest:

Fastmoney911 has called me everyday and left voicemessages congratulating me on being a good customer and eligible for more money. They also attempted to take their money from my checking account and succeeded since my bank (Bank of America) wouldn't let me close the account with a negative balance. However, BOA has since been working with me since I copied them on my C&D letters to fastmoney911

A mysterious transaction from something called Red River DES:8666689412 ID:49b98e55CVf0ee9 also debited from my account. Since I do not recognize or did not authorize it, BOA is also working with me to remove this.

PaydayFlash.com has been sending me threatening e-mails from [email]smith_brownattorneyatlaw@charter.net[/email]. I responded with a request for PaydayFlash's business license number and received this response:

"Your signed loan docs state you residence was in Utah at the time ..

Filing will continue."

Funny, since I have never lived in UT or claimed to live there. I also received a phone call at work (they also left a voice message for evidence) from PaydayFlash.com regarding this. I have since filed complaints with the FTC against them as well as the STATE OF SOUTH CAROLINA DEPARTMENT OF CONSUMER AFFAIRS.

Ok call me crazy but who sends a legal notice in an email and wants a reply by email? Any legal documents I have ever received come certified mail or by process server.

Interesting. I have seen Red River lately. They are on an Indian Reservation. I have seen The Cash Spot connected to Red River but not these other companies.

They must be a sister company and tried to debt your account under that name. Hopefully your bank will reverse these charges.

"Filing will continue" my ass.

They won't file anything as they are illegal. Again another scare tactic.

You are doing fine. Just stick to your guns.

PaydayFlash under the guise of Smith_BrownAttorneyAtLaw sent me this today when I again requested their business license number to lend in South Carolina. I also received five missed calls and an automated voice mail message regarding my "delinquint" account with them, despite the fact I told them to contact me only in writing:

"GOVERNING LAW: This Agreement is governed by the laws of the state of Utah. You must be a resident of Utah to apply for this loan and you warrant to us that you are a resident of Utah despite your actual physical location at the time of the filing of your loan application. The laws of Utah will apply to this loan regardless of where you are living at the time that the loan is processed, funded, or at the time any actions pursuant to this Agreement are undertaken by Lender, with the exception that all arbitration and your agreement to waive jury trial and elect mandatory, binding arbitration is governed by the Federal Arbitration Act (???FAA???,9 U.S.C. ??1-9.)

The name and address of our designated agent in Utah upon who service of legal process may be made, and a statement that service of process may be made to that designated agent: Business Filings Incorporated 136 East South Temple, Suite 2100 Salt Lake City, Utah 84111.

ARBITRATION AGREEMENT AND WAIVER OF JURY TRIAL: This Agreement will be arbitrated by and construed in accordance with the internal laws of the State of Utah, excluding that body of laws known as choice of law or conflict of laws. Subject to the provisions of this Section, all disputes, controversies or claims arising out of or relating to this Agreement will be resolved through mandatory binding arbitration conducted in Salt Lake City, Utah, before any of the following arbitration organizations, which will govern the arbitration under its consumer rules: American Arbitration Association (1-800-778-7879) or National Arbitration Forum (1-800-474-2371) , and we will advance all of the expenses associated with the arbitration, including the filing, administrative, hearing and arbitrator's fees. You will be responsible for your attorney's fees, if any. The parties will cooperate with the arbitration service provider and with each other in promptly selecting a single arbitrator from the available panel of neutrals. If the parties fail to so select an arbitrator within thirty (30) days following the date of either party's notice of demand to conduct arbitration, then the American Arbitration Association will have the ability to appoint an arbitrator. The award of the arbitrator will be in writing and will set forth findings of fact and conclusions of law. Judgment on the arbitrator's award will be final and binding upon the parties and may be entered in any court having jurisdiction thereof. All papers, documents, or evidence, whether written or oral, filed with or presented in connection with the arbitration proceeding will be deemed by the parties and by the arbitrator to be confidential information of both parties. The arbitrator chosen in accordance with these provisions will not have the power to alter, amend or otherwise affect the terms of these arbitration provisions or the provisions of this Agreement. The arbitrator shall not conduct class arbitration. The arbitration hearing will be conducted in the federal judicial district in which you reside, as long as it is within the state of Utah, or within 100 miles of your Utah residence, whichever location you choose.

You acknowledge and agree that by entering into this Arbitration Provision: YOU ARE GIVING UP YOUR RIGHT TO A JURY TRIAL TO RESOLVE ANY DISPUTE OF ANY NATURE REGARDING THIS AGREEMENT AND YOU ARE GIVING UP YOUR RIGHT TO ENJOY THE JURISDICTION OF THE A COURT OF LAW REGARDING THE RESOLUTION OR TRIAL OF ANY DISPUTE, INCLUDING SMALL CLAIMS COURT JURISDICTION AND YOU ARE GIVING UP YOUR RIGHT TO BE REPRESENTED IN ANY CLASS OF CLAIMANTS IN ANY LAWSUIT FILED REGARDING THIS LOAN AGREEMENT."

- Any idea what this means and why they are so determined to bring Utah into this?

They are quoting everything they possibly can to scare you into paying. Simple as that.

They can put any wording they want into a loan agreement that does not mean it is binding.

Your state laws trump all that nonesense. The state law says they have to be licensed in SC to lend and they are not so they can not legally lend to you know matter what the contract says and they know it.

They are not going to cruise on over from Utah and file a civil case in SC. They are giving you all that mumbo jumbo to try and hide the fact that they do not have a license in SC.

Red River is also known as Norstar Cash. This company has been messing up my acct since I took a loan. I borred $300. And agreed to pay the principal balance and an Extra $50 every 2 weeks. They continue to take the principal balance and double the $50. When I called them to tell them they said since my loan was not paid off I could just use the extra money they took out towards my balance. Now I find they have changed their name. Since I did not know this company I cancelled all transactions.

Good for you.

Did you close your account?