Needed to share my success - maybe this can help you too!
Date: Sat, 02/07/2009 - 08:22
I was recently juggling two large payday loans through Internet lenders. One was through Americash Advance (located in the U.S.) and Cash Transfer Centers (based in Canada). I was digging myself a deeper and deeper hole trying to keep up, so in desperation I visited debtconsolidationcare.com.
Following advice from other posters here, I immediately closed my old checking account. My bank (Wachovia) was only too happy to work with me. They opened a new account for me and ensured that deposits would be "forced" over from the old account. They even approved certain ACH debits (like my car payment) to make sure they wouldn't get missed.
After that I took a sample letter someone had posted here, tweaked it a bit, and emailed AND mailed it to both payday loan companies. In both letters, I revoked my voluntary wage assignment, revoked my ACH authorization, referenced the illegality of high interest loans in my state (Ohio), and demanded that all phone calls cease and that I only be contacted in writing via email or postal mail. I also offered my own repayment plan, and asked that they confirm their acceptance of my plan IN WRITING.
The next day I got a very polite email from Americash Advance advising me that they were immediately marking my account PAID IN FULL and thanked me for my business. I didn't have to pay them one more cent.
As for Cash Transfer Centers, I NEVER heard from them again. No phone calls, no emails, no postal mail, nothing. To date they have not tried to contact my employer or anyone else. And, as they never confirmed their willingness to accept my payment offer, I haven't paid them one more cent.
I am just so mad at myself for not having done this months earlier! The money and heartache I could have saved myself!
Following is the letter I sent each of them. I am not a lawyer and cannot advise you if this will work in your situation; but I wanted to share it with you in case it could help you too.
Finally, THANK GOD for this web site! Without getting it all started here, I'd still be nursing an ulcer and cringing whenever the phone rang.
***
Here is my letter...
(Date)
(Name of Payday Lender)
(street address)
(city, state, zip, country if applicable)
(Their phone # if you have it)
(Their Fax # if you have it)
Re: (account number) - (your name)
It is my desire to pay off this loan as quickly as possible; however, at this time my current financial situation deems it necessary that payment arrangements be made.
Upon researching your company, I am concerned that the rate of interest you have attached to my loan far exceeds Ohio’s maximum 28% APR allowed. I do not wish to conduct business illegally in any way, and my payment history with you would indicate that I have paid hundreds of dollars above and beyond what the law currently allows in Ohio.
Therefore, I am offering a payment arrangement on the principle ($amount you owe) owed. I will pay (name of lender) (amount you can afford each month) to be mailed to you by no later than (name your date) each month. If you prefer that I transmit the funds to you by Moneygram, I am willing to do that – please email or mail me the instructions I would need.
If this arrangement is agreeable to you, please reply by return email (your email address) or by regular mail (your postal address). As I have been advised that all communication with you needs to be in writing, all phone calls made to me at my home or business as well as any and all phone calls to references, family or friends will not be acceptable.
I am hereby revoking any voluntary wage assignment I have signed with your company. I am also revoking my authorization to debit any of my checking accounts, either by electronic or paper means, effective immediately.
I am forwarding a copy of this letter to my employer and my financial institution. It is my hope that you will accept the terms I have offered, thereby making it unnecessary for me to forward this correspondence to the Ohio Attorney General’s office and the Better Business Bureau; but if I am harassed in any way, I will not hesitate to notify them. I am sincere in my desire to satisfy this debt on the principle owed in a manner that is fair and reasonable to both parties.
I thank you in advance for your consideration.
Best regards,
(your name)
Following advice from other posters here, I immediately closed my old checking account. My bank (Wachovia) was only too happy to work with me. They opened a new account for me and ensured that deposits would be "forced" over from the old account. They even approved certain ACH debits (like my car payment) to make sure they wouldn't get missed.
After that I took a sample letter someone had posted here, tweaked it a bit, and emailed AND mailed it to both payday loan companies. In both letters, I revoked my voluntary wage assignment, revoked my ACH authorization, referenced the illegality of high interest loans in my state (Ohio), and demanded that all phone calls cease and that I only be contacted in writing via email or postal mail. I also offered my own repayment plan, and asked that they confirm their acceptance of my plan IN WRITING.
The next day I got a very polite email from Americash Advance advising me that they were immediately marking my account PAID IN FULL and thanked me for my business. I didn't have to pay them one more cent.
As for Cash Transfer Centers, I NEVER heard from them again. No phone calls, no emails, no postal mail, nothing. To date they have not tried to contact my employer or anyone else. And, as they never confirmed their willingness to accept my payment offer, I haven't paid them one more cent.
I am just so mad at myself for not having done this months earlier! The money and heartache I could have saved myself!
Following is the letter I sent each of them. I am not a lawyer and cannot advise you if this will work in your situation; but I wanted to share it with you in case it could help you too.
Finally, THANK GOD for this web site! Without getting it all started here, I'd still be nursing an ulcer and cringing whenever the phone rang.
***
Here is my letter...
(Date)
(Name of Payday Lender)
(street address)
(city, state, zip, country if applicable)
(Their phone # if you have it)
(Their Fax # if you have it)
Re: (account number) - (your name)
It is my desire to pay off this loan as quickly as possible; however, at this time my current financial situation deems it necessary that payment arrangements be made.
Upon researching your company, I am concerned that the rate of interest you have attached to my loan far exceeds Ohio’s maximum 28% APR allowed. I do not wish to conduct business illegally in any way, and my payment history with you would indicate that I have paid hundreds of dollars above and beyond what the law currently allows in Ohio.
Therefore, I am offering a payment arrangement on the principle ($amount you owe) owed. I will pay (name of lender) (amount you can afford each month) to be mailed to you by no later than (name your date) each month. If you prefer that I transmit the funds to you by Moneygram, I am willing to do that – please email or mail me the instructions I would need.
If this arrangement is agreeable to you, please reply by return email (your email address) or by regular mail (your postal address). As I have been advised that all communication with you needs to be in writing, all phone calls made to me at my home or business as well as any and all phone calls to references, family or friends will not be acceptable.
I am hereby revoking any voluntary wage assignment I have signed with your company. I am also revoking my authorization to debit any of my checking accounts, either by electronic or paper means, effective immediately.
I am forwarding a copy of this letter to my employer and my financial institution. It is my hope that you will accept the terms I have offered, thereby making it unnecessary for me to forward this correspondence to the Ohio Attorney General’s office and the Better Business Bureau; but if I am harassed in any way, I will not hesitate to notify them. I am sincere in my desire to satisfy this debt on the principle owed in a manner that is fair and reasonable to both parties.
I thank you in advance for your consideration.
Best regards,
(your name)
Congrats! I'm glad it worked out so well for you. I am just begi
Congrats! I'm glad it worked out so well for you. I am just beginning this process. I've sent letters to all the companies and closed my bank account (which I had a little bit of difficulty with) So let's hope I get the same results as you have!!
What a great story. I hope you are an inspiration to many more
What a great story. I hope you are an inspiration to many more people sturggling with payday loans.
