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Alright so I overspent over the holidays and I needed some help on rent in January and did a Payday loan.

Here are the details required...

1. What state do you live in??
Minnesota

2. Who did you borrow from?? Full name of lender.
American Web Loan

3. How much did you borrow?
$700.00

4. How much have you paid?
$210.00

Payment arrangement is twice a month - 1st and 15th

I made the first payment on 1/15/2015 and I wanted to make sure that it was logging everything correctly on my online account with them. So I log into my account and it still shows an outstanding balance of $700. I call them to ask what's up, why it's not showing up and I'm told that the $210 was for interest only. So I'm figuring okay, a payment or two of interest, it's a payday loan, I should know better. So I ask the lady, when is this loan due at the current payment arrangement (two payments a month for $420 total per month), she tells me September.

I almost dropped my phone right there. Hung up with her as I didn't know what my options are.

So in review, I loan $700 and pay back $3490.

That can't be legal can it? I mean...what...I don't even know who to turn to for advice on this. Is that not what predatory lending is? I mean, I had to talk with these guys on the phone prior to getting the loan, if anywhere in that conversation they told me I'd be paying back $3500 on my $700 loan I would have laughed at them.




They are an illegal tribal lender, follow the link below in my signature on how to deal with.. you want to follow all steps.. you are only responsible for principal only - you borrowed $700 - paid $210 - so you owe $490 only.. when they agree to your terms then you will pay them via US mail and by money order only..
Here is guidelines for Minnesota -
Lending of payday loan is considered legal in the State of Minnesota.
Loan Specifications:
Maximun Amount of Loan - $350
Maximum Finance Charges: $15 per $100 borrowed
Licensing Requirements: Online lenders must be licensed in Minnesota.
Term of Loan - Maximum 30 days
Maximum Rate of Finance and Fees- a) $5.50 for a loan of $0-$50; b) 10% plus $5 for a loan of $51-$100; b) 7% (minimum $10) plus $5 for a loan of $101-$250; c) 6% (minimum $17.5) plus $5 for a loan of $251-350 (2.75% per month after default)
Finance Charge on $100 loan for a 14 day period - $15
APR for $100 loan for a 14 day period - 390%

Debt Limits
Maximum Number of outstanding loans permitted at a time - Not Specified
Permissible number of Rollovers - None (cannot be repaid by utilizing the proceeds of another loan by the same lender)

Limits of Collection
Collection Fees Amount - NSF fee of $30

File your Complaint and get Information
Regulator - Minnesota Department of Commerce - You can check here to see if licensed - I am sure they are not...
Address - Division of Financial Examinations, 85 7th Place East, Suite 500 St. Paul MN 55101
Phone - (651) 296-2135
Fax - (651) 296-8591
Regulatory Contact - Kevin Murphy, Deputy Commissioner

Sub: #1 posted on Tue, 01/27/2015 - 07:24

HelpinAZ HelpinAZ
Moderators
(Posts: 1873 | Credits: 288.1)

Thanks for the quick response. I did have a question, is the info you supplied still valid if American Web Loan doesn't call this a payday loan? They call it a Flex loan so I'm not sure if I can do as you advised.

Sub: #2 posted on Tue, 01/27/2015 - 09:53

ConfusedMN ConfusedMN

(Posts: 4 | Credits: 0.47)

Alright, I am going to follow the steps in your signature.

Step 1 - Closing my bank account. I am going to do this tomorrow as my paycheck is DD and is going into my account tomorrow. My paycheck goes into my account in the morning so going to call my bank at lunch. This won't be an issue at all.

Step 2 - Write the letter to the lender. I followed the template but also added some wording that I found from other sources on this forum. Please let me know how this reads and if I should add anything else to it.

Dear Lender,

It has come to my attention that licensing though the State of Minnesota is required regardless of whether the lender has a physical presense in Minnesota. Lenders are also required to comply with the limits of loan amounts, fees, charges and other requirements of state law. Lenders making loans to Minnesota residents via the internet must meet these licensing requirements.

Since your company has no license in my state and are not complying with the limits of the fees, charges and other requirements of state law, the loan contract I have with you is not valid. Although I am not legally required to do so, I am willing to repay the principle balance of this loan.

Of the $700 loan, $210 has already been paid back. I will pay $210 on 2/1/2015 and the remaining balance of $280 on 2/15/2015. These payments will be made through a Western Union Money Order and sent to the following address:

American Web Loan
522 North 14th Street
Ponca City, OK 74601

If this address is not the correct send to address, please respond via email with the correct physical address to send these money orders to. If I do not receive an alternate address I will assume this is the correct address and proceed with the payment as stated above.

I am also revoking authorization for ACH withdrawals and any wage assignment I may have signed. I have given a copy of these revocations to both my bank and my employer. Any further attempts to collect funds in this manner will be blocked. Also any calls to my personal numbers or my place of employment will be considered harassment and appropriate action will be taken.

Step 3 - I won't need to do this. I had some fraudulent activity on my account (ironically ever since I became involved with these guys) and their fraud department wants me to get a new account anyways.

Step 4 - File a Complaint. Can't wait to do this step. This company is absurd and really does need to be stopped.

Sub: #3 posted on Tue, 01/27/2015 - 21:38

ConfusedMN ConfusedMN

(Posts: 4 | Credits: 0.47)

looks good,and know that tribal lenders will lie through their false teeth.any loans they give are illegal,and nothing they send via email,or tell you on the phone makes it legal.in fact correspond by email only,and let them know that.

Sub: #4 posted on Tue, 01/27/2015 - 22:54

paulmergel paulmergel
Moderators Cum Industry Expert
(Posts: 15506 | Credits: 1356.56)

So I found a recent article regarding these guys - November 2014

http://www.businessweek.co m/articles/2014-11-26/payday-lenders-move-to-i...

I wish, wish, wish, I would have looked into these guys prior. I don't understand how they are still around when so many people have been taken for a ride by them.

In my letter above, do I mention anything about how I understand that they are using tribal lending to get the interest rates they are but since I am not a member of the tribe and am a resident of the State of Minnesota that their tribal laws do not govern me?

Sub: #5 posted on Wed, 01/28/2015 - 04:26

ConfusedMN ConfusedMN

(Posts: 4 | Credits: 0.47)

No need to mention - they know they are wrong - and will come back in agreement to your terms..

Make sure account is secure before sending - they will try to wipe out account - and make sure old account will not be allowed to re-open after closed..

Sub: #6 posted on Wed, 01/28/2015 - 04:30

HelpinAZ HelpinAZ
Moderators
(Posts: 1873 | Credits: 288.1)

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