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Illegal PDL and ACH reversal

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hey- quick question for y'all. I'm dealing with paydaymax, an outright illegal payday loan company overseas.

I'm trying to get out of a hole with this company- i've paid well over the principal on what i was lent (like 1200 dollars over) and still have 900 outstanding.

I've sent them a letter revoking ACH privileges but I doubt they'll respect this. I know they got it (at least over fax) as they've suddenly blocked access to my account.

my question is- given this company is illegal and cannot legally lend to me, any contract i've entered is null and void. With that in mind, any authorization I've provided as part of their loan contracts is also null. So I know you can reverse ACH transacations at BofA within 180 days if they're provably un-authorized. I'd like to stick it to PDM and make this happen... just reverse enough so that i haven't paid them anymore than the principal.

anyone ever had luck attempting this, or am i crazy? I feel like i could make this happen with the right choice of words and a friendly branch manager.

Good luck! I'm anxious to here other opinions....

Sub: #1 posted on Fri, 05/15/2009 - 03:26

fixingit fixingit

(Posts: 228 | Credits: 20.13)

apparently someone has done this, the PDL wasn't happy though.

I'm thinking this is how i'm gonna move forward... call bofa, make them unauthorized, F*** u

Sub: #2 posted on Fri, 05/15/2009 - 03:37


Has anybody been able to reverse the ACH transactions with any other banks? I would love to know if I can do this with mine!

Sub: #3 posted on Fri, 05/15/2009 - 03:58

giollachrist giollachrist

(Posts: 47 | Credits: 8.76)

There is a fine line when it comes to ACH reversals regarding PDLs. If you have overpaid the principal you should try and send a demand letter for a refund. IMO, I would not reverse all transactions with the bank. I know it is possible, but others here have done it and it has not turned out very questionable :?

Definately ask for a refund on the overpaid principal.

Sub: #4 posted on Fri, 05/15/2009 - 04:55

Cool_Abyss Cool_Abyss
(Posts: 2936 | Credits: 173.61)

i did fax a demand letter for a refund... two days ago. they locked out my account online so i'm fairly confident they got it. in any event, from what i've gathered from other's posts here it seems highly unlikely they'll give me a refund and I'm predicting a week from Friday they'll still attempt to collect unless i close my account and go through all the motions as advised here. I'm not keen on doing that given i have a few checks in the ether at this time (i wont have a problem covering them but it will be a massive headache to coordinate everything with a new acct).

I am considering sending another fax and/or calling to clarify why my account has been locked and will reiterate my demands at that time... I am putting together all the paperwork to complain to the BBB, NYSBD (Im in NY) etc. I was fortunate enough to consult this site prior to issuing my 1st demand letter, so i saved pdfs of my statements and all the materials to avoid losing documentation after the lock out (these include those stating the loans originate from the british west indies). I figure this does give me an edge if I did want to take this to the bank... according to Fed reserve E-cfr and NY law, this is easily an unauthorized transaction as the contract which authorized the ACH was null and void given PDM's lack of proper licensing for the state of NY.

With this in mind, I feel any communication with PDM should stress my intent to escalate complaints to the highest level of the NYSBD, which would threaten their ability to do business in this state (they've been run out of other states, as evident from the list of states posted on their site they wont lend to). Perhaps this would grease the proverbial wheels on their part? Losing a state like NY (with all of NYC included) would cost PDM much more than the 1200 they owe me.

Still, I'm growing fonder of the idea of simply reversing the transactions (at least enough to equal 1200) and letting my bank and its ACH do the dirty work... If i coordinate this with written notification of my actions and a stern warning not to contact me, my references, and my work (which i already made in my first demand letter) do you think it would be imposing enough to make them back off? I sure do...

does anyone have links other than the one i have in this forum describing what has happened when people get the bank involved?

PS i figure i wouldnt want to goto a branch and would rather call as that way i could get to a dept dedicated to reversals/chargebacks? Seems the in-person approach, while potentially more persuasive from a sympathy standpoint, would be slower, more stressful, and would ultimately lead to the same people... any thoughts?

Sub: #5 posted on Fri, 05/15/2009 - 06:16


I did ask for a refund in my letters, but I have one, High Country/Rocky Boy, that is saying that I still owe them the principal on a second loan when I paid them enough on the first one to cover both and then some! So I was wondering about reversing the transactions to get some of my money back from them because they are probably not going to play ball and give me a refund.

Sub: #6 posted on Fri, 05/15/2009 - 17:05

giollachrist giollachrist

(Posts: 47 | Credits: 8.76)

ya i really doubt they'll work with me on this... probably just a waste of time. My PDL is totally illegal/overseas so i doubt they'll be able to get my bank to doubt me...

Sub: #7 posted on Fri, 05/15/2009 - 19:57


I have started the process with my bank - just on those companies that I have not heard anything from. The ones that have given me a PIF, but not a refund, I am leaving alone. I got the PIF, that is fine. And my bank can only go back so far, so it's not going to be every transaction and definitely not close to the overpayment amounts. So we'll see how it goes!

Sub: #8 posted on Tue, 05/19/2009 - 01:56

giollachrist giollachrist

(Posts: 47 | Credits: 8.76)

By the way, the girl in my bank's fraud department that I spoke to, asked for the information to get rid of PDL's. She says that she has many people call every day that have problems with this, so I gave her the site address. Told her it was the best place to get help for PDL's.

Sub: #9 posted on Tue, 05/19/2009 - 01:57

giollachrist giollachrist

(Posts: 47 | Credits: 8.76)

really- what bank do you use? they have been receptive to the idea? let me know what happens!

Sub: #10 posted on Tue, 05/19/2009 - 09:20


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