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This is my first time posting...i live in Louisiana, and we currently have 6 online payday loans out. The biggest one, and my main concern, is through Magnum Cash Advance. We are paying them 1300 a month on this loan, and we keep have to re-advance every month just to make ends meet. I called a few different places that claim to help with payday loans, and all of them have told me that the online pdl places cannot report to the credit bureau. We are considering closing our checking account just to stop all the debits from these places. We have tried to get our payments lowered, and they will not work with us. I am just wondering if these places can sue us for closing our account? I dont know if there is a law in my state saying they can do that or not. I don't dispute the fact that we owe these places, I just can't pay so much at one time. Any advice would be apprecitated..thanks so much




Hi there torismomk5 and welcome to the community. I am going to post your laws but we need a little more information before we can help you plan a good course of action for yourself. If you would be so kind to list the names of each pdl, how much borrowed and how much paid back there could be a chance that some of these are illegal and unlicensed, but we need to know the names of each one before we can determine such. :)

Quote:
Louisiana State Information

Legal Status: Legal

Citation:
La. Stat. Ann. ???? 9:3578.1 et seq.

Loan Terms:
Maximum Loan Amount: $350
Loan Term: 60 days
Maximum Finance Rate and Fees: $5 documentation fee + the greater of 16.75% of check or $45 (After default: months 1-12: 36% per year; months 13 and beyond: 18% per year)
Finance Charge for 14-day $100 loan: $25
apr for 14-day $100 loan: 650%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: None (cannot renew or rollover but licensee may accept partial payment of 25% of amount advanced plus fees and enter into new loan)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: One NSF fee of actual bank charge (if disclosed) + the greater of $25 or 5% of check (if disclosed); Court Costs; Reasonable Attorney's Fees
Criminal Action: Prohibited

Where to Complain, Get Information:
Regulator: Louisiana Office of Financial Institutions
Address: P.O. Box 94095 Baton Rouge LA 70804
Phone: (225) 925-4660
Fax: (225) 925-4548
Regulatory Contact: John J. Braud,, Deputy Chief Examiner
Regulator Website

Licensee Database (On Home Page, select "Non-Depository" from blue menu at left, then "Payday Lenders," then "List of Active Payday Licensees")


Sub: #1 posted on Tue, 08/12/2008 - 11:18

Shazzers Shazzers
Moderators Cum Industry Expert
(Posts: 17342 | Credits: 1592.83)

Hi Shazzers..thanks for helping....I see it says that the maximum amount is 350..then how in the crap (lol) did Magnum Cash Advance give me 1500??? Maybe it goes according to their laws?? Anyway...here is a list of our loans:

Magnum Cash Advance...borrowed 1500 pay back 2400(Ya i know...its ALOT)!!!!

my cash now...borrowed 800...payback 1200

ameriloan..bor 300 pb 390

One Click Cash...bor 300..260 left to pay

Pay Check today...not sure..still owe 325...

Pay day one..bor 650...still owe 464

We have been paying on these loans for a very long time now...we have paid about 1000 a month in just interest in the past few years...its has been ongoing, and im ready for it to end...thanks for any help

Sub: #2 posted on Tue, 08/12/2008 - 11:43

torismomk5 torismomk5

(Posts: 10 | Credits: 2.24)

Well, in order for them to be legally loaning to La residents, these lenders need to be licensed in La. I know there are a couple which aren't, ameriloan for one, and you are done with them, don't give them another red cent. Paychecktoday is another illegal lender, someone correct me if I am wrong, but I am pretty sure of that. I'm not sure about your other pdl's but you can research them on this site to see if they are licensed to lend, and where. Just type the name of the pdl in the search box located in the upper right hand corner of this forum.

What should you do?
Close your account asap, if you are unable to close your account, go into your bank and ask to speak with the Branch Manager, tell him/her you need a hard debit block placed on your account immediately! Explain that you are revoking ACH authorizations from unlicensed/illegal companies, and have learned these companies are notorious for ignoring revocation, therefore it is important to BLOCK any withdrawal attempts on your account to protect your interest. This is your privilege, do not accept no for an answer. The following link will provide you important information regarding closing accounts. CLICK HERE

What next?
AFTER your account is secure send each pdl (the unlicensed and illegal) an email similar to THIS (please scroll down to locate letter template). Tailor this letter to your needs, and try to write it with the same basic concept in your own words. You will need to research and locate email addresses/physical addresses if you don't already have them, I suggest that you type the name of the pdl (example: "oneclickcash address") in the search box in the upper right hand corner of this forum. You may also search for addresses HERE at the Better Business Bureau.

File complaints: Most of the time, you can file a complaint online with the following, I encourage you to follow through with doing so, you will need to search the Internet for your state Attorney General's website, however, here are links to file complaints for the FTC, Online complaints: Federal Trade Commission., and the BETTER BUSINESS BUREAU.

Keep in mind that you may not receive a response for days, or even weeks, or, you may receive harassing and threatening phone calls. I have found the best way to deal with this is not to respond or reply, simply hang up.

Side note: If you have paid an illegal/unlicensed payday lender above and beyond the principal amount you borrowed, it might be a good idea to demand a refund and a paid in full letter/receipt. You may or may not get one or both. It still doesn't hurt to include that tidbit in your letter. :)

Sub: #3 posted on Tue, 08/12/2008 - 12:32

Shazzers Shazzers
Moderators Cum Industry Expert
(Posts: 17342 | Credits: 1592.83)

I do happen to know that payday one is legal, at least I think so, regarding La that is. I bet they have a data base for licensees. I need to check and see where that website is.

Sub: #4 posted on Tue, 08/12/2008 - 12:34

Shazzers Shazzers
Moderators Cum Industry Expert
(Posts: 17342 | Credits: 1592.83)

Once you revoke the wage assignments, be sure to give a copy to your employer, in case they ignore your letter and try to invoke the wage assignement anyway.

Sub: #5 posted on Tue, 08/12/2008 - 13:18

alias1958 alias1958

(Posts: 1230 | Credits: 79.88)

ok...here is what i am thinking of doing...i know i owe these people money..im not debating that...i just cant pay as much at one time as they want me to...so here is the solution im thinking of going with....I will open a new checking account...and leave my existing account open strictly for the pdl's...i will not have any money in that account on the day they try to withdraw...and let the payments go back nsf..i know i will have to pay the bank fees and such, but it will save me in the long run...once they get the payments back nsf..the pdl companies will contact me to settle (this has happened to me before)..in that case..they settle for alot less than i owe...i have settled with a few of them in that case before...and the idiots are dumb enough to loan to me again!! i just hate that i got caught up in this crap...if it werent for these pdl's i would have the money to do something with my 4 girls instead of having to sit home all the time....this sucks...but that is my solution...what do you guys think??? thanks guys...i appreciate all of the help

Sub: #6 posted on Tue, 08/12/2008 - 13:26

Unregistered


sorry...that previous post was mine...just didnt sign in...

Sub: #7 posted on Tue, 08/12/2008 - 13:30

torismomk5 torismomk5

(Posts: 10 | Credits: 2.24)

I wouldn't go that way, if you've paid the principal amount, then you're done with them.

Sub: #8 posted on Tue, 08/12/2008 - 17:16

Shazzers Shazzers
Moderators Cum Industry Expert
(Posts: 17342 | Credits: 1592.83)

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