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Help out of the PDL nightmare

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I am coming to this forum in hopes of getting some advice/assistance with getting out of this PDL nightmare. I currently live in Columbus, Ohio. I have no store front loans, they are all on-line establishments. I am not sure what the Ohio laws are governing PDL and on-line lenders but here is what I currently have:

Payday One - loaned $500.00 - due $575

ameriloan - loaned $300.00 - due $390.00 (have been paying $90.00 biweekly for 2 months)

Cash Transfer Center (Northway Financial Corporation Ltd) - borrowed $500.00 due $635 (they also have a declaration of wage assessment)

GRC Funding - don't even know where this came from but they have been deducting $90.00 every week from my account and contact to the company has been impossible!

NetCash USA - loaned $300.00 - due $390.00 (they have been taking $90.00 interest from my account for the past two months and the principal has not gone down)

Magnum - borrowed $500.00 on top of the $280.00 that was due - currently due $1059.84

I have contacted my bank and they told me that there is no way for them to stop ACH debits from my account which means that my account will be overdrawn on July 31st and I'll be hit with fees from the bank that I will be unable to pay.

I just want to get out of this cycle and I don't know how. I currently have another bank account that they know nothing about and have no access to.

Are on-line lenders legal in Ohio and what laws must they follow? Are there letters that I can send to these lenders to revoke the authorization to my account and to stop them from harassing me at work?

Any assistance/advice is greatly appreciated.




Quote:
Ohio State Information

Legal Status: Legal (Applies to check cashers only)

Citation:
Ohio Rev. Code Ann. ???????? 1315.35 et seq.

Loan Terms:
Maximum Loan Amount: $800
Loan Term: Max: 6 months
Maximum Finance Rate and Fees: $10/$100 + 5% per month
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: One
Rollovers Permitted: None (cannot refinance)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: Bank charges (if disclosed); $20 collection charge; Court Costs; damages
Criminal Action: Not Specified

Where to Complain, Get Information:
Regulator: Ohio Division of Financial Institutions
Address: 77 South High Street, 21st Floor Columbus OH 43215
Phone: (614) 728-8400

Sub: #1 posted on Tue, 07/29/2008 - 20:33

Shazzers Shazzers
Moderators Cum Industry Expert
(Posts: 17342 | Credits: 1592.85)

ameriloan is unlicensed and illegal.

Sub: #2 posted on Tue, 07/29/2008 - 20:37

mjwalton mjwalton

(Posts: 56 | Credits: 6.65)

The only loan you have which is licensed and legal to lend in Ohio is Paydayone. I suggest you make payment arrangements with them. Your bank has given you incorrect information, your ACH transaction CAN be revoked, that is YOUR right. However, blocking these pdl's will not stop them from debiting your account. What you need to do to put a stop to the debits which are due to hit on the 31st, is go into your bank, speak to the Branch Manager, and tell them you demand a hard debit block be placed on your account immediately. Tell them there is possible illegal activity about to take place on your account and you need a stop put to it.

Sub: #3 posted on Tue, 07/29/2008 - 20:39

Shazzers Shazzers
Moderators Cum Industry Expert
(Posts: 17342 | Credits: 1592.85)

Regarding Electronic transfers, here is the law that says you may revoke it, and the bank must comply with your request.

[quote] 907. Preauthorized transfers

(a) A preauthorized electronic fund transfer from a consumer's account may be authorized by the consumer only in writing, and a copy of such authorization shall be provided to the consumer when made. A consumer may stop payment of a preauthorized electronic fund transfer by notifying the financial institution orally or in writing at any time up to three business days preceding the scheduled date of such transfer. The financial institution may require written confirmation to be provided to it within fourteen days of an oral notification if, when the oral notification is made, the consumer is advised of such requirement and the address to which such confirmation should be sent.
(b) In the case of preauthorized transfers from a consumer's account to the same person which may vary in amount, the financial institution or designated payee shall, prior to each transfer, provide reasonable advance notice to the consumer, in accordance with regulations of the Board, of the amount to be transferred and the scheduled date of the transfer.

[Codified to 15 U.S.C. 1693e] [/quote]

Sub: #4 posted on Tue, 07/29/2008 - 20:41

Shazzers Shazzers
Moderators Cum Industry Expert
(Posts: 17342 | Credits: 1592.85)

Thank you so much for this information. I noticed on the ohio laws it stated "check cashing only". Does this mean that this law does or does not apply to on-line lenders? How do you recommend I deal with the other lenders that are not legal in Ohio?

I am going to the bank at lunch to place the hard debit block on the account. I'll let you know how that goes.

Does anyone have physical street addresses for these other lenders so that I can send a letter to them.

Thanks!

Sub: #5 posted on Tue, 07/29/2008 - 20:48

Unregistered


By the way, you can also revoke the wage assignment, that is strictly voluntary. All you need to do is send all of them an email telling them you are revoking their right to any and all wage assignments you may or may not have signed, then take a copy of this to your payroll person. In fact, if I were you, I would close that account, open a new one, and send these pdl's (the illegal ones) a Cease and desist letter, in that letter include the following:
-A copy of your state laws ( a pdl lender must have a license in the state of Ohio, to legally lend to Ohio residents )
-Revoke wage assignments
-Revoke ACH transactions
-Cease and desist contact with you, your employer, and your references, only contact with you should be done through emails or USPS.

Then you can make payment arrangements with them, all you are obligated to pay back the illgal pdl's is the principal amount borrowed, I suspect you have paid most of them back, if that's true, then you are done with the ones which have been paid what you borrowed. My advice is, get a physical address of the pdl's you owe, send them payments in the form of money orders only, certified, return receipt. :)

Sub: #6 posted on Tue, 07/29/2008 - 20:48

Shazzers Shazzers
Moderators Cum Industry Expert
(Posts: 17342 | Credits: 1592.85)

Quote:
Thank you so much for this information. I noticed on the ohio laws it stated "check cashing only". Does this mean that this law does or does not apply to on-line lenders? How do you recommend I deal with the other lenders that are not legal in Ohio?

I am going to the bank at lunch to place the hard debit block on the account. I'll let you know how that goes.

Does anyone have physical street addresses for these other lenders so that I can send a letter to them.

Thanks!


You're welcome! First I would tell them [the pdl's] that you will need a physical address to send payments to via email, they will probably threaten and harrass the heck of you, even try to scare you with threats of fraud, suing you, arresting you, blah blah blah, but stand your ground, tell them you have discovered they are not licensed to lend in Ohio, they will then toss at you the part in your contract which says "You agree to abide by the laws in which they reside, governed by whatever state or country they are located" that's hogwash, your state law prevails. I would also encourage you to file complaints with your Attorney General, The Federal Trade Commission, and DFI, you might want to throw that information (complaints filed) in your letters also.

Sub: #7 posted on Tue, 07/29/2008 - 20:54

Shazzers Shazzers
Moderators Cum Industry Expert
(Posts: 17342 | Credits: 1592.85)

Do you think they will contact me at work even after I send them the letter? I don't want to be harassed at work.

Sub: #8 posted on Tue, 07/29/2008 - 20:59

Unregistered


I'm afraid they will, the best way to handle that is not to respond to anything they say, simply hang up. They will eventually tire and stop calling you. They can't argue with thin air, so don't say a word to them, just hang up.

Sub: #9 posted on Tue, 07/29/2008 - 21:01

Shazzers Shazzers
Moderators Cum Industry Expert
(Posts: 17342 | Credits: 1592.85)

Quote:
I noticed on the ohio laws it stated "check cashing only". Does this mean that this law does or does not apply to on-line lenders?


No, it just means that online lenders must also get a license to be a check casher. All legal online lenders for Ohio will have both the check cashers license and the lending license.

Sub: #10 posted on Tue, 07/29/2008 - 21:43

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.91)

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