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What happens if you default on payday loans?

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I currently have four payday loans and my bank account is negative $400 how can i stop this vicious cycle? one of the loans I have is with cashadvancenetwork, the ACH was returned unpaid because of NSF, but they keep sending it through Everyday! and every day its another $30 fee from my bank it never ends if I revoke ACH authorization,can they print a check on my behalf and submit it for payment? should i close my bank account? I also have payday loans with 500fastcash,unitedcashloans (all internet loans) and i have one with FASTCASH (storefront) i borrowed 500 and have paid 85 week for the past 3 months! i dont know what happens if i default with them because when i initally got the loan per their policy, i gave them 2 personal checks one for the loan amount and one for the finance fee in all they totaled about 800 can they do this? what was i thinking ?? i hope someone can answer some of my questions by the way i live in Texas what are the laws for these payday loan Co in my state?




phoenix

Posts: 1444
Credits: 27482.986302088

Sub: #1 The first thing you have to do is check the PDL laws in Texas. T
Thu, 09/04/2008 - 20:48

The first thing you have to do is check the PDL laws in Texas. The concerned laws are given below: -
Quote:
Maximum Loan Amount:
Loan Term: 7-31 days
Maximum Finance Rate and Fees: $10 per loan + 48% annual interest
Finance Charge for 14-day $100 loan: $12
apr for 14-day $100 loan: 309%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified ($500 aggregate loans outstanding to all licensees)
Rollovers Permitted: None (if renewal charge is less than maximum interest rate permitted; otherwise convert to declining balance installment note)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: Not Specified
Criminal Action: Not Specified


I don't think that the first 3 payday loan companies you have mentioned, cashadvancenetwork, 500fastcash and unitedcashloans are licensed ones.

To disallow them from debiting money from your account you can close your bank account. Quote:
You are only obligated to pay back the principal amount you borrowed from an unlicensed/illegal Internet Payday Lender.
But before closing it please go through the following: -
IMPORTANT - Read before closing your bank account due to pdl

After closing the account send the following letter to the unlicensed pdls: -

Quote:
Date:

Name Of PDL

Your Name
City, State
Account #


After doing research regarding Internet payday loan laws in the State of _______, I have found that your Internet payday loans are actually illegal. I have also found the following laws to be true applying to payday loans in the State of _____ in general:

Your State Information

I hereby revoke any and all ACH authorizations with your company from debiting any of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I have closed my account with the XXXXXX to protect my interest in this matter, per instructions from The _____ Department of Finance. I also revoke any and all wage assignments I may or may not have signed with your company, I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for your collection purposes. I have notified my employer about this matter so any attempts to do so on your part will be rejected.

I demand that any contact be made through US Postal mail or email only. I will need everything in writing to keep accurate records of all communication as per instruction from my Attorney General's Office.
I prohibit you or your affiliates to contact me via telephone at my place of employment or my home
telephone number. I also prohibit you from calling my references listed on my loan.

Due to the fact that Internet payday loans must be licensed in the state of ____ to be a legal and binding contract, your company should NOT issue loans to ____ residents at all. I am requesting that you send me your license number which enables you to offer loans to ____ residents.

The legal amount that could have been charged to my loan is the principal amount, even IF your Internet pay day loan were legal anywhere in the U.S.. I am willing to pay the principle amount of the loan only, however, this is only if you provide me with a physical address where I can send payments.

I must also inform you that I will be filing complaints with the Better Business Bureau, the Federal Trade Commission, and the ____ Attorney General's Office.

I expect a response from your company no later than 5 days from the above date regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted.

Sincerely,

Your Name
CC:
Better Business Bureau
Texas Attorney General
Federal Trade Commission


Then you can complain online to https://www.ftccomplaintas sistant.gov/ or to the following address: -
Quote:
Regulator: Texas Office of Consumer Credit Commissioner
Address: 2601 N. Lamar Blvd. Austin TX 78705
Phone: (512) 936-7600
Fax: (512) 936-7610




Unregistered

Sub: #2 payday loans
Mon, 09/22/2008 - 19:15

hello sorry to hear about your situation,, trust me they will use every scare tactic known to man to get you to pay from jail to fraud,, THEY CANNOT UNDER ANY CIRCUMSTANCES THREATEN YOU BUT THEY WILL TRY., CLOSE YOUR BANK ACCOUNT AND TELL THEM IT IS ILLEGAL TO CALL AND THREATEN YOU AND YOU WILL SUE THEM... YOU CANNOT GO TO JAIL THERE IS NO DEBTORS PRISON, IF THEY FEEL THEY CAN INTIMIATE YOU THEY WILL DO NOT LET THEM... you can ignore their calls change your phone number and if you can get your job to refuse thiery calls. you can try triple dot langhorne debt solutions (one word ) dot com
hope this helps




Unregistered

Sub: #3 I am in a similar situation.
Fri, 11/21/2008 - 15:27

I recently made the HUGE mistake of using an internet payday loan service through 500 Fast Cash for $300.00. It was the first time I had ever done that before. I had some totally unexpected emergent bills that came up that needed to be taken care of right away and I was right in between pay days. After I took out the payday loan, I had a strong feeling that I had probably made a big mistake. I wanted to be done with it as soon as possible, so I called 500 Fast Cash and told them to make sure to take the entire $300 out of my bank account when it was due so that I could pay if off and get rid of them. On the day that my payment was scheduled to be debited from my bank account, they only had taken out $90. I called them as soon as I noticed this and told them that I had called over a week ago telling them to take out the entire $300 to pay my loan off. The person I got on the phone was VERY rude and said that they had no record of me ever calling them. After arguing with this person for a few minutes and telling her over and over again that I had called just after I had taken out the loan, I finally told them to just make certain that my entire loan is paid off on my next due date and not to just take the $90 fee out again. Two weeks later, they did it again. They only took out the $90 from my bank account. At this point, I didn't even bother calling them and got right on the phone with my state's consumer credit protection department. They tried to look up 500 Fast Cash and it turns out that they are not even licensed to do payday loans in my state. In fact, there are only 10 payday loan companies that are licensed in my state and 500 Fast Cash is definitely not one of them. The guy from consumer credit protection advised me to close my bank account ASAP and open up a new one if I could, which I just did today. The guy from the consumer credit protection department even told me that they have had a lot of complaints of payday loan companies lately. He told me that I will probably receive threatening calls from them, but that there is nothing they can do since I can't be legally bound to anything since they are not licensed in my state. I now have a new bank account that they don't have access to and I will NEVER do this again no matter what!




Unregistered

Sub: #4 2 loan upfrontpayday andmycashnow
Wed, 01/07/2009 - 21:29

what kind of trouble can i get into if i cant pay either one of them back? i also closed my bank account and openedanother one some were else




dawnlango7

Posts: 1147
Credits: 4827.05

Sub: #5 Hi snoopy, What state do you live in? If they are illega
Thu, 01/08/2009 - 07:29

Hi snoopy,

What state do you live in?

If they are illegal in your state, they will harass you to get you money back, but can't do anything legally. If you owe them money, then you would need to try & make out an arrangement with them. If the companies are legal then you would need to make an arrangement with them as they can come after you for their money.




Unregistered

Sub: #6 The Laws In NY
Thu, 01/15/2009 - 12:49

Does anyone know the law in NY on payday loans? I thank anyone who can help me.




dawnlango7

Posts: 1147
Credits: 4827.05

Sub: #7 I responded your you in another post Quote: Quote: New York
Thu, 01/15/2009 - 13:26

I responded your you in another post
Quote:

Quote:
New York State Information

Legal Status: Prohibited

Citation:
Licensed lender law applies but interest rate is that agreed to by contract. N.Y. Banking Law ???? 340 et seq. A check casher licensee cannot make loans nor cash or advance any moneys on a post dated check unless it is a payroll check. N.Y. Banking Law ???? 373. Criminal law sets the usury cap at 25%. N.Y. Penal Code ???? 190.40.

Small Loan Rate Cap
25% per year

Where to Complain, Get Information:
Regulator: New York State Banking Department
Address: One State Street New York NY 10004
Phone: 1-877-BANK-NYS
Fax:
Regulatory Contact: Regina A. Stone Deputy
http://www.banking.state.ny.us/




cannr

Posts: 9317
Credits: 129842.7

Sub: #8 Here is the link to the other thread for "Again" that dawnlango7
Thu, 01/15/2009 - 16:13

Here is the link to the other thread for "Again" that dawnlango7 replied to:

http://www.debtconsolidationcare.com/paydayloan/about6178 6.html




dawnlango7

Posts: 1147
Credits: 4827.05

Sub: #9 Thank you cannr, your awesome :D
Fri, 01/16/2009 - 09:01

Thank you cannr, your awesome :D




Unregistered

Sub: #10 Took out a internet payday loan and bank closed account cause of
Fri, 01/16/2009 - 23:58

Took out a internet payday loan and bank closed account cause of the negative balance. I now have United Legal calling to threaten me because I have not paid it back, but they say it's through BMG Marketing which i do not remember getting the loan from. What are the laws regarding this in Ohio?




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