In need of advice regarding payday loans, please.
Date: Tue, 05/10/2011 - 14:58
I took out a total of 5 payday loans in the past, 2 of which are completely paid off. My three outstanding loans are as follows:
1) M1Y Direct - took out a $150 loan in October 2008, and did not pay it back. (Stupid of me, I know... I accept total blame for it!) Was contacted in August 2010 by an agency named Sieger, Ross, and Aguire. I stupidly did not request debt verification from them because they had me quite scared, (as they threatened to take me to court) so I entered into a payment plan with them. They told me my loan had ballooned to almost $900.00, as of April 2011 I have paid them almost $500.00. Just yesterday I received a message from a Mr. Rockwell at this agency stating that I am not paying them enough with my monthly payments and that they may need to pursue further action if I don't come up with the remaining $400 in a timely manner. I'm questioning whether or not they are legitimate because the 800# that appears on my banking statement from their withdrawals is not a valid number, and before now they have not had a problem with the payment arrangement I made with them. I have not received anything via postal mail from this collection agency, either.
2) CashNetUSA - took out a $100 loan in March 2009, the loan was extended to $250 before it was sent to an outside collection agency. I contacted CashNetUSA to try to find out where the account was sent, they informed me it was sent to an agency called DMP and gave me an 800 number to call. The 800 number ended up being a dead end and despite my attempts to track down my account, I was unsuccessful. As of April 2011, I began receiving calls every three weeks from a collection agency called Alexander & Stefano - I'm fairly certain they have the account, but I am scared to call back as I have been getting numerous calls from agencies lately that I know to be scams. This agency is threatening me with check fraud, but did not identify exactly who they were trying to collect for (the claim of check fraud was left in a voice mail). I want to pay this account back, but I also want to make sure I am paying the right collection agency. As I have limited knowledge of payday loan laws in my state, I could really use some advice. I have not received anything via postal mail from this collection agency yet, so my thought process is to send them a debt verification letter. (Also, this agency states in their voice mails that they are a law firm, but I did some research and found job postings for this place looking for experienced collectors, so I'm not sure if they're just impersonating a law firm or not)
3) Ace Cash Services (not to be confused with Ace Cash Express) - went to a third party website in May of 2009 (can't recall what the website was) and filled in my information. After filling in my information, I closed out of the website because I did not want to be caught up in any more payday loans. 2 days later an Ace Cash Services had deposited $150 in my account without speaking to me directly or verifying my employment. At the time, before I had noticed that this company had put money into my account, I had a case of identity theft going on and was advised to close my checking account by the police, which I did. It was only the day after I had closed the account that I realized the deposit had been made. I called the 800# listed with the transaction and it just kept ringing and ringing. After doing some research, I found out this had happened to several other people (deposits put into their accounts without authorization) and that the company was not licensed and also impossible to get ahold of. I am more than happy to return the $150 they had deposited but I don't want to get hit with any fees as I did not authorize them to make the initial deposit.
I'm losing sleep over this and as much as I desperately want to resolve this, I want to make sure I am paying the right people! If anyone could offer me some advice, I would appreciate it. I've contemplated if I should try to get a free consultation with a lawyer to see if they can offer me some sound advice, but thought I'd try here on the forums first. Thanks again for any help!
(Also, none of these accounts appear on my credit report)
Payday lending is prohibited in Pennsylvania. In such a situatio
Payday lending is prohibited in Pennsylvania. In such a situation, all the payday lenders that you're dealing with are not licensed to operate in your state. Thus, you are not liable to pay any fees or charges. You will have to pay only the principal amount to the collection agency/payday lender.
If you're not sure about the collection agency, then you should ask the debt collection agency to validate the debt. Unless they validate the debt, you won't be liable for paying them.
Since payday loans are illegal in PA, you don't have to pay the
Since payday loans are illegal in PA, you don't have to pay the collection agency either. You can ask them to validate the debt (they most likely won't). You can send them an e-mail and a certified letter stating that payday loans are illegal in PA and that you are only going to repay what you borrowed. If they call you, tell them you won't speak to them until you receive debt validation. and then ignore their calls.
Sorry for not posting when I was signed in (the unregistered use
Sorry for not posting when I was signed in (the unregistered user who asked the question was me), for some reason I thought I was signed in when I typed that all out. Thank you for your responses, however I am now dealing with another dilemma and I am hoping someone can help me.
I know how to deal with Ace Cash Services now, since they are not licensed in any state and are lending illegally. I am going to send them an email stating payday loans are prohibited in Pennsylvania and that I will only be paying back the principle amount that was deposited into my account without my consent.
My dilemma is this: I spoke with Alexander & Stefano today, and they informed me that they have my loan from M1Y Direct, not CashNetUSA as I had thought. I did not admit to owing the debt and requested a dunning letter, which the man agreed to send me within 5 days. Once I receive this letter, I will be sending a debt verification letter. He told me that I owed $350 in total.
Big problem here: I've been paying this other agency (Sieger, Ross, & Aguire) for the M1Y loan since August 2010. I never requested debt verification from them (how dumb of me) and I have paid them almost $500 so far. How do I now go about getting some type of debt verification from them? They are very pushy and try to talk over you, which is why I caved and started paying them in the first place. Do I tell them that I was contacted by another collection agency and that I need proof from them that they actually have my account to show Alexander & Stefano? I'm so confused as to what to do. Thanks for any help!
Oh, and if there is any way someone could provide me with some h
Oh, and if there is any way someone could provide me with some help before tomorrow morning (when I have to call Sieger, Ross and Aguire) I would appreciate it. Thanks again.
Quote:Once I receive this letter, I will be sending a debt veri
Quote:
Once I receive this letter, I will be sending a debt verification letter. He told me that I owed $350 in total. |
As far as Sieger, Ross and Aguire is concerned, you can send them a debt validation letter now but I don't think it will be of much help. It would have been better if you could have send that letter in August, 2010.
FRAUD
I have found through my research that this "Company" is a fraud. They cannot show proof of debt. I have never had a credit card yet they are saying I owe 987.32 Plus 1500.00 attorney filing fees. They call nonstop yet nothing has happened. I have not received a court date nor have I had wages garnished. It is a scam do not let it upset you.
not entirely true
Walk In Payday loans are illegal in some states. In no state is an online payday loan illegal.