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Help - Westbury Loanshop - update and questions?!

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I posted the other day about Westbury loan shop (see previous thread titled “Westbury LoanShop?”. Ok, I finally got a hold of this Westbury Loanshop place and they confirmed that they took money out of my account because I defaulted on an old IPDL from April of last year, and that since I filled out an application for a new loan last week, I signed a contract indicating that they can take the money out even if the original loan was linked to an old bank account at an old bank. I asked them who the original lender was and they kept saying LoanShop – I KNOW it’s not and both of the payday loans I have currently insist they have nothing to do with this Westbury Loanshop place, so I’m reading through my contracts trying to see if there’s fine print saying they are linked, and I can’t find anything. So now I’m worried that my bank is going to come back and say it’s a valid debt and then I’ll be $125 overdrawn in my bank account.

So here’s my questions:

1. If I filled out any IPDL application and received loans, how to I verify that the two loans I have now ARE linked to the one that Westbury is supposedly taking money to pay off? They both tell me they are not. They told me I still have $180 outstanding for this old loan, but that would mean that I’m paying $570 for a $300 loan and that doesn’t seem right either.
2. I have another account with my bank (Wells Fargo) that I have not activated yet, so if I close the current one and start using the new one, these are my concerns:
a. Let’s say I close the account that I’m overdrawn in – if I open the new account, can Wells Fargo take money from that account to pay the overdraft on the old account?
b. If I close the account, is there any way Wells Fargo could release the new account # to these people or that Westbury could continue to debit a closed account?
c. If I close the account and contact my two current IPDL lenders (World Wide Cash Now and CashNetUSA) to tell them, are they going to demand payment in full immediately? And if so, what if I don’t have it?
d. Can I pay off the two current IPDL lenders with a money order in January/February when I have the money or will they already consider me in default and somehow track down any account I have if it’s at the same bank as the old account?

I don’t know what to do and I’m going to have to pay rent in less than 3 weeks and I only get one paycheck between now and then – I don’t want it to all be gone!

Can anyone answer the above questions or give any advice?

Thanks!




Wells Fargo does allow ACH transactions to open a closed account. So if you close the account and they try to debit, the account will reopen and you will go further into the red. But they probably won't take the money from the good account to satisfy the old account, as long as they aren't linked. They will close the good account though, and you will be stuck with no access to your money. I would open another account at a different bank.

Do what you have to do to pay rent. These places will want payment in full, but they won't do anything but harrass the hell out of you.

Sub: #1 posted on Wed, 12/12/2007 - 01:30

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.91)

I can't have them calling my work constantly...and they obviously have my work # if they got the new application.

How can the bank re-open an account/let money be taken from a closed account if it's CLOSED? I gotta say, things sound pretty bleak right now. :(

Sub: #2 posted on Wed, 12/12/2007 - 01:34

Unregistered


I believe that they consider ach debits pending transactions and some banks(Luckily not mine)will open a closed account to let these pending transactions go thru.

Sub: #3 posted on Wed, 12/12/2007 - 01:36

kashzan kashzan

(Posts: 5401 | Credits: 408.31)

They don't even have to be pending at the time you close the account. WF will allow them to go through for within 30 days of the account being closed.

Sub: #4 posted on Wed, 12/12/2007 - 01:50

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.91)

So basically I don't actually have control over any of my money or my accounts? :shock:

I applied for a new account with a new bank (US Bank) and will not be giving any of that information to anyone. But it will be two pay cycles before it's active because it has to be activated by direct deposit. In the meantime, I have to request paper checks from my employer so they don't go to cover my overdraft.

Would it be better to contact the two IPDL lenders I have and authorize them to take the full amount of the loans on my next payday (since my bank will apparently open and pay any ACH transactions) and just overdraft more and pay the bank so I don't accrue interest?

Sub: #5 posted on Wed, 12/12/2007 - 02:33

Unregistered


Well, that's one way to do it. But then you owe the bank. The bank can and will sue you, report you to chexsystems, and make it really hard to open another account for 5 years. I would not recommend going that route. You will owe a legal bank a ton of money, instead of 1 illegal and 1 legal lender a bit of money.

Read this sticky about closing your bank account. There are holds and such the bank can do to stop any transactions from going through.

Besides, interest will stop on the Cash Net USA loan once you default. You will not be resonsible for more fees.

Sub: #6 posted on Wed, 12/12/2007 - 03:29

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.91)

God, what a nightmare :( I guess I figured I'd rather owe the bank and pay off the money within two months, than leave myself open to more and more and more fraudulent ach debits.

If I call WWCashNow and CAshNetUSA and tell them I've closed my Wells Fargo account and will pay them off in January, will they let me pay by money order or will they continue to charge my bank?

Sub: #7 posted on Wed, 12/12/2007 - 03:37

Unregistered


Are you opening another account at a completely different bank?
If so they they can nit charge your account if they dont have your bank info. Just do not ever give this new info out. Yes this is all a nightmare. If we only knew then what we know now.

Sub: #8 posted on Wed, 12/12/2007 - 03:41

kashzan kashzan

(Posts: 5401 | Credits: 408.31)

kashzan,

Yes, the new account will be through US Bank, not Wells Fargo. I won't give that to anyone.

I've stopped my paycheck from being direct deposited into the Well's Fargo account, so my next check will be paper.

The problem is that CashNetUSA and WWCashNow (which it appears is governed by the laws of the UK???) are both expecting to be able to take the $90 fee out of my Wells account on the 21st. So if I close that account and contact these people, will they let me pay the whole thing off in January? Or will they just keep charging my WF account and will WF let them do that?

Sub: #9 posted on Wed, 12/12/2007 - 03:45

Unregistered


They will let you pay with Money Orders, but they won't stop trying to debit the account. Please read that link I posted above, it has some info to take with you to the bank.

Sub: #10 posted on Wed, 12/12/2007 - 03:51

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.91)

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