Debt Consolidation Forums Payday Loan help forums

Live in Calfornia, Internet PDL not in CA

member profile picture
Posts: 1
Credits: 90.4
[Donate]

I recently got a payday loan for $500.00 after doing the research that I should of done before I got the loan, I found out that the max amount for CA is $300. What are my choices regarding this loan? Do I have to pay it back in full since it is over the legal limit for CA?




You should pay back at least the principal amount, yes. How much have you paid them so far?

Sub: #1 posted on Tue, 07/29/2008 - 00:47

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

Also, what is the name of the pdl? I am going to post your pdl laws.

California State Information here http://www.debtconsolidationcare.com/paydayloan/explain-p dls-laws.html

Sub: #2 posted on Tue, 07/29/2008 - 00:49

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

Shazzers is right. You need to pay back what you actually borrowed and not the interest. Check the Dept of Corporations website to see if the PDL is licensed and chances are it's not.

Sub: #3 posted on Tue, 07/29/2008 - 06:48

kscornell kscornell
Moderators
(Posts: 4409 | Credits: 473.19)

The name is Cash Supply. They have already called my work several times threatening to speak to my manager, I told them that I had a cease and desist and they acted like they didn't know what that was. I haven't paid anything yet since I found out that information. What does it mean about the finance charge?
Maximum Finance Rate and Fees: 15% of check
Finance Charge for 14-day $100 loan: $17.65
apr for 14-day $100 loan: 459%
Does that mean that for every $100.00 the can charge a max of $17.65 so a total of $117.65 has to be paid back?

Sub: #4 posted on Wed, 07/30/2008 - 04:17

Unregistered


No, you always have to pay back what you borrowed--so if you borrowed $500 from them, you owe them $500. What this means is fees they can charge on top of that. But Cash Supply is a storefront, which means that you went into a building to take out the loan, yes? And in that case, the max you should've gotten from them is $255, with a $45 fee added, which makes your total $300, which is the legal limit for a storefront in California. I know this, because I took out many PDL's from storefronts in California.
So in a nutshell, they were breaking the law to you as well. So what this means is, if they threaten you with anything, if they are a licensed deferred deposit lender (PDL) in California, they can be reported for loaning to you at this amount.
If it was me, I would offer to pay them back what you borrowed, which is the right thing to do, and if they make anymore noise, go immediately to the Department of Corporations.

Sub: #5 posted on Wed, 07/30/2008 - 06:22

kscornell kscornell
Moderators
(Posts: 4409 | Credits: 473.19)

No it was an online PDL. I already emailed them saying that I will make payments of $50.00 for the next 10 months to pay back what I borrowed. I am still confused on how they get they figure out how much to charge for the fee though.

Sub: #6 posted on Wed, 07/30/2008 - 21:03

Unregistered


"You should pay back at least the principal amount, yes. How much have you paid them so far?"

"No, you always have to pay back what you borrowed."

Shazzers and kscornell, I don't understand your legal advice at all. Shazzers cut and pasted a reference to the Financial Code, but have either of you bothered to read it? Section 23060(b) provides:

"If any provision of this division is willfully violated in the
making or collection of a deferred deposit transaction, the deferred
deposit transaction contract shall be void, and no person shall have
any right to collect or receive any amount provided in the deferred
deposit transaction, any charges, or fees in connection with the
transaction."

IOW, Melissa, you may not have to pay back anything at all. The only way to know is to examine the entire transaction. Melissa, it would be well worth your while to find a lawyer in your area.

Sub: #7 posted on Sat, 08/16/2008 - 20:30

Unregistered


I'm in the same boat as melissa, do I have to pay?

Sub: #8 posted on Sat, 08/16/2008 - 22:41

Unregistered


Attorney,
Let me tell you why it's morally correct to pay back only what you borrowed. Two wrongs here do not make a right. It would be like if you loaned me $500, I took it and spent it and when it came time to repay, I said "oops, it's illegal, so sorry, I don't have to pay back what I took!"
And I say this from also being a California resident, having 10 PDL's at one time, and paying back every cent of what I borrowed.
This person got the loan and did have use of this money, so she should reimburse this company for that, and only that. And you notice that I did not advocate at any time that she pay the outrageous fees that are tacked on.
One of the criticisms of this board is that we show people how to get out of their debts that they incurred without paying a cent, which we never do. Our position is always that if you actually borrowed $500, pay back the $500 and do NOT pay $700 or $800.
The upshot is that yes, we took out the PDL's and were not forced to do it, but we should not have to pay back illegal fees that are tacked on top of them.
I don't know if you are aware of a Internet PDL called Cash Today 4 U? Being one of the worst offshore PDL's out there, this place will loan you $250 and when you default, suddenly call you and say your balance is $6000! This is the type of abuse that we educate visitors to our boards about. And in this case, this actually happened to me--and do you know what? I paid them back $250 and not a dime more--because that is what I borrowed and needed to pay back. And this is what needs to happen.

Sub: #9 posted on Sun, 08/17/2008 - 23:02

kscornell kscornell
Moderators
(Posts: 4409 | Credits: 473.19)

Let me ask a question on this same topic a
I have taken out and repaid several loans with an offshore Pdl. I have already paid them thousands in illegally assessed fees. I have one outstanding loan that is far less than I have already paid on illegally assessed fees. Is is morally wrong that I refuse to pay them another cent?

Sub: #10 posted on Sun, 08/17/2008 - 23:36

Unregistered


Attachment
More information
  • Files must be less than 1.25 GB.
  • Allowed file types: txt pdf jpg jpeg png.
Post as a guest
CAPTCHA
This question (Case Insensitive) is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Post as a member

Share post

Page loaded in 0.962 seconds.