Internet PayDay Loans And Payday Companies

Video About Internet Loans

Payday loans

 We have all been there at some point in our life.  The point where we might need to borrow money.  First and foremost I recommend that if you need to borrow money, swallow your pride and ask friends and family first.  Money is a touchy subject, but if you are in a bind, the best thing to do is borrow from friends and family that you know and trust, and you know you will pay them back.

 

 

Now for the rest of us that do not have friends and family with money to lend, there are tons of storefront payday loan locales in your city.  Always, Always, Always, read the fine print on everything that you sign.  Especially when it comes to a store front payday center.   Whatever the maxium that you can borrow, DON'T borrow the max.  Take out a small payday loan if you really need it to see how it works and know that you can pay it off.

 

There are Internet payday loan companies out there in the web world. I have personally used a few of them.  From my personal experience and what I have learned is what I am going to share with you today.  First of all, most of the Internet payday loan lenders are illegal.   Doesn't mean they can't operate because many are operating and loaning money and reaping the rewards from customers that did not read the fine print.   The first thing that anybody should do when deciding on a Internet payday loan company is to see if they are legitimate.  Verify that the company you are about to take a payday loan from is Authorized to do business in your state.   Very few states have payday loan laws where the loan company is licensed in the state where they reside, then there license transfers over and allows them to do business in your state.  Again very few states have this law/rule.   Most states like mine require that any Internet payday loan company must first register and become license to operate such a business.  The fees/interest charged on those loans also very from state to state.   Internet payday loan companies will charge there own fees/interest which can add up big time.  If you don't pay the loan back within 7 or 14 days, they may charge you another fee of any amount usually $50 or more dollars for each payday period you don't pay off the loan.  With that example if you take 5 pay periods to pay off your original loan of $200, you have not only paid the $200 back in principal, but also   5 pay periods times $50, per payday fee which is $250.  So that original $200 loan has now cost you $450.  Again borrow from a friend or family member.

 

Also allot of people still fall behind on paying back a lender but know this:

Unless you really did intentionally defraud a company by fraudulently taking out a payday loan (using false info, etc) you cannot go to jail, be arrested, etc for a payday loan.

These places will try to scare you into paying up. They do this because they know there's no other way to collect legally on the debt, so they resort to illegal scare tactics to collect.

There are no debtors prisons. Can you imagine how crowded the corrections systems would be if everyone that owed money and had defaulted went to jail?

Know this - You cannot go to jail for not paying a payday loan debt. No police will be showing up at your work to arrest you. Your kids can't be taken away. These places are going to tell you the most awful things they can think of to scare the hell out of you and get you to pay.

Please do not be intimidated by these lies. They cannot do anything to you. The worst has already happened (the phone call being the worst). All they have are words, empty threats.

If you want, you can call your local police department. Ask them if you can be arrested for defaulting on a payday loan. They will tell you no.

Now - In some states they do allow for bad check charges relating to payday loans. But - This is a check. They must have a physical check that bounced. This would mean it would have to be a storefront. And usually, as long as you keep up communication and stick to a payment plan, the storefront isn't going to do anything. __________________

 

Before you close your bank account due to payday loans eating away at your paycheck, please read this.

Some banks have a policy regarding ach transactions that allows them to force open closed accounts if any ach transactions go through within a certain time frame after the account is closed. This can leave you owing a legal bank $1,000's and reported to chexsystems, instead of owing barely legal (or not at all legal) payday loan companies. Not a good thing. Ask your bank what their policy is on ach transactions on closed accounts before you close the account. It's best to go in person and talk to a branch manager.

If your bank does have this policy, tell them your situation. Don't be embarrassed. Take letters with you showing that you have revoked authorization for each of your payday loan companies to debit your account. Tell the bank to put your account on deposit only, an ach block, or a hard hold before they close the account. Your bank can do one of those, don't take no for an answer. This will prevent any payday loan ach's from reopening the bank account.

It's always best to close your bank account. Leaving it open gives ways for the payday loan companies to continue to take money out. These companies have many different dba's(Doing Business As), so blocking them won't work. They will also produce paper checks and run them through your account. Closing the account is the best way to prevent these companies from taking money out of your account.

Some state laws do allow for prosecution if you close your bank account, but that is usually in cases of fraud. But it's always best to check with your state's attorney general or department of financial institution before you close your account. You want to make sure you are not causing more heartache

 

In my state the Dept. of Finance regulates pay day loans and there is a website for my state where I can look up the name of the company to see if they are authorized to do business also there is a toll free number for residents to call to speak to a person who will look up the company.   I am not going to name the names of the companies that are illegal, but again check with your states website and dept of finance or call them and look up your payday loan laws.  There are some legit companies licensed in every state.

 

I have a friend who took out two loans from two separate companies, and they started to take out extra money from his bank account, then started to threaten him with jail etc...etc.  I did some research and found they were not legally authorized to do business.  My friend did pay the original principal amount back, but he had to close his bank account to prevent this company from taking out any other funds. I also found out for him that the two companies he took internet payday loans out were actually the same company with two different websites. 

File a Better Business Bureau complaint, contact the FTC, and contact your local state Attorney General if you use them and they are illegal and they are threatening you.  I cannot stress that if you did take out a loan, you should pay back the original loan you borrowed.  You do not legally have to pay it back if you did business with a company you were not aware was illegal.  Moral reason, pay what you owe and in the future use friends and family, and of course budget and manage your finances better.    At some point and time we all need help.  Not everybody is born with a silver spoon in there mouth, and some have managed their finances to the point where they never need help.

So again, be aware of those companies that are illegal.  Some companies are based outside the United States and allot are based on a Indian Reservation.   The ones on Indian Reservations can be the worse ones.  My friend dealt with those.  They have there own laws and rules, but again they can't legally do anything to you.

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Comments 20 comments

jim smith 7 years ago

would not the best option to be just to pay the bill?


JustSimple info profile image

JustSimple info 7 years ago from Puget Sound Author

Yes, morally they should as I stated, its the fact that there are laws to how much they can charge and most of them are charging more than what is legally allowed for the individual state. Most companies will charge the customer $50 per pay period. If that was legal, I would understand but its not.


jane anders 6 years ago

i am being harrased by sounds like indian guys that talk fast and I cant get a word in. They said if i didn't pay them immediately an officer will come to my home or workplace and arrest me. I am willing to pay every 2 weeks but he wants it all $750.00 now or i will be arrested. He said he is not a collection agency so who is he? He wont even tell me the name of the company i took the loan out and I basically know nothing. What should I do?


JustSimple info profile image

JustSimple info 6 years ago from Puget Sound Author

Jane, first check with your local state government website that regulates loan pay day places....and see if they are registered with the state.... if they are not....you dont have to pay them anything... YOU should, but you are not required to.....i would pay them what you borrowed over time plus a fair interest.... but you cannot go to jail......dont worry


Tonya 5 years ago

I have been paying on a $200 payday loan for over a year now,I know crazy me, and am ready to pay them off but can't contact them. What would be the best thing for me to do,they have taken their money and more back?


JustSimple info profile image

JustSimple info 5 years ago from Puget Sound Author

Have you resolved this issue?


dsnead 4 years ago

I took out a payday loan years ago, but now I have some man name John Russo calling me,

He call my job threatening me. Can he really have me locked up?


JustSimple info profile image

JustSimple info 4 years ago from Puget Sound Author

No, he cannot. Do you remember the name of the loan company? Did you pay them off?


JB 4 years ago

I have a payday loan company showing me that I took a loan with them two years ago and never paid it off. I have taken payday loans before but this company does not ring a bell and they don't call, they have my email so they email me about 5:30 every day. They are threatening me to take me to court - legal proceedings. They are not licensed in the state I live in; I don't recall taking out a loan with them; the phone number they gave me does not work but they claim it does; and I can't find them on the internet at the website they claim they are at. I don't know if this is a scam or what. It worries me but I know they are not licensed in Minnesota, so am wondering if they have a legal right to take me to court?


SarahD 4 years ago

I live in WA state and have found that the companies I am dealing with do not comply with WA PDL laws. I also don't believe any of them are licenced but can you please confirm?

I've already contacted my bank to stop any future ACH debits and have opened a new account that I will start using ASAP. Finally, I've e-mailed letters to the lenders, will fax letters on Monday and will send hard copies on Monday as well BUT am unable to find an address for one.

EZ Payday Cash - e-mailed and have address

Green Trust - e-mailed and have address

PlainGreen - They set up as an installment but there is a note on their site that they operate under Texas PDL laws....any ideas if this is legit?

Integrity Pay day - e-mailed but can't locate an address

Under WA law if the PDL company is not licenced they are unable to collect on the debt. Am I reading that right?

Any payday loan obtained from a lender not licensed with the DFI, and not repaid to the lender may not be collected by lender and the lender may not pursue action in Washington State to collect the debt. See RCW 31.45.105

Thanks!!!


JustSimple info profile image

JustSimple info 4 years ago from Puget Sound Author

@JB This is part of Minnesota Law you will need to verify, but it basically says....If they are not licensed, they can't enforce, or make you pay, You should pay what you borrowed. but don't pay a company you do not have any paperwork from, or email from them. You need to do some research on your part and see how much you paid back to the original Payday loan company. If you cannot verify who this company is that is contacting you, put their email on spam list. Do not answer any more emails from a company you have not done business with. They can't take you to court if you haven't done business with them, and they can threaten all they want to. File a complaint with the Better Business Bureau for your state, and keep all emails that were provided sent to you and file an official complaint with your state attorney general office, and explain to them that you did not have any business with this company emailing you. Once you get a response back from the Attorney General, they will just tell you they have it on file, but its proof that you covered your bases. If you can't find the company, they are probably not licensed in your state.

Unlicensed lenders. If a person has violated this chapter by not obtaining a

license when required to make loans subject to this chapter, the loan is void and the debtor is not

obligated to pay any amounts owing. The debtor may recover from such persons all amounts

paid. No action may be brought under this subdivision more than one year after the date of the

last scheduled payment on the loan.

Subd. 4. Remedies exclusive. The remedies set forth in this section and section 48.196 are

exclusive.

Here is the most recent list for your state, as it says on top, use your search feature in your browser to look for that payday loan company name to see if they are legit, if not, YOU DON'T HAVE TO PAY

www.

commerce.state.mn.us/FSLicensees/il.html


JustSimple info profile image

JustSimple info 4 years ago from Puget Sound Author

@Sarah

I am sorry to hear you are going through this, but luckily, I have great news for you.

First, pay what you owe to them, if you haven't already plus interest if you can. Send them a Money order, Cashiers check, or pay with a prepaid debit card that is not connected to your new bank account.

DFI urges consumers to:

Verify the license of a payday lender in Washington State by calling 1-877-RING-DFI (746-4334) or verifying a license online at

www.

fortress.wa.gov/dfi/licenselu/dfi/licenseLU/.

If you have a complaint against a payday lender operating in Washington, file a complaint with DFI online at

www.

dfi.wa.gov/cs/complaint.htm

Call or visit the WA state website to verify if they have a license, the good news I told you about is I checked the names you listed and I could not find them in the database. But I encourage you to check yourself also, as I am only here for suggestions for you.

Also the next communication that you have with any payday lender is to ASK FOR THEIR WA STATE LICENSE TO DO BUSINESS IN WA STATE, AND THIS GOES FOR ANYBODY ELSE LOOKING AT THIS POSTING, ALWAYS ASK FOR THEIR WA STATE BUSINESS LICENSE, IF THEY CAN'T GIVE IT TO YOU, SINCE YOU HAVE THE RIGHT TO ASK FOR IT. If they are hesitant to give it to you so you can look it up right away, they are probably not legal.

So, to answer your other question, Texas laws do not apply to WA state residents if they did not obtain a license when they offered you the loan. It becomes null and void, it was an illegal transaction in WA state.

If you have paid back more than what you have borrowed, STOP paying them. Officially let them know you have paid all principal back plus more,and that you request they no longer contact you, and if they have further questions they can contact the Department of Finance for further questions. file a complaint with DFI. I have provided the website link.

I did not find any of those companies business license in WA state. You don't have to pay them anymore,

I hope this helps. Please pass on this website to friends and family that you know who maybe in the same situation, its not something to be ashamed of, we have all been there at some point or another. There is a share link button, and the more educated we all are, the better our friends and family can avoid what we have been through with these companies.


Am 4 years ago

I have pay day loans in Delaware and can't find any help lines, please help me!!


JustSimple info profile image

JustSimple info 4 years ago from Puget Sound Author

@Am, I will do my best to look for information for you later on today, check back when you can.


JustSimple info profile image

JustSimple info 4 years ago from Puget Sound Author

@AM

Here is information below concerning Delaware payday loans, unfortunately Delaware doesn't give a specific amount of finance charge that is allowed.

Are these payday from a place of business in Delaware, or via the internet,?

Delaware Payday Loan Laws

Lending of payday loans are permitted in the State of Delaware under small loan act or licensing law.

Loan Specifications

Maximum Amount of Loan - $500

Term of Loan - Maximum 60 days

Maximum Rate of Finance and Fees - Not Specified

Finance Charge on $100 loan for a 14 day period - No Limit

APR for $100 loan for a 14 day period - No Limit

Debt Limits

Maximum Number of outstanding loans permitted at a time - Not Specified ( Aggregate loans of $1000 outstanding to all licensees)

Permissible number of Rollovers - 4 (rollovers)

File your Complaint and get Information

Regulator - Delaware Office of the State Bank Commissioner

Address - 555 E. Loockerman Street Suite 210 Dover DE 19901

Phone - (302) 739-4235

Fax - (302) 739-3609

Regulatory Contact - Administrator, Non-Depository Institutions and Compliance

As always call your local regulatory department to see if the company you have done business with is licensed to operate in your state/city.

Hope this helps.


JustSimple info profile image

JustSimple info 4 years ago from Puget Sound Author

WA State Complaint/Info Line for PayDay Loan lenders

Payday Loan Oversight

Agency: Washington State Department of Financial Institutions

150 Israel Rd SW

Olympia, WA, 98501 Map

Phone: (877) 746 - 4334

Hours: Office Hours: M-F, 8am-5pm. RING DFI Complaint Line: 24 hours daily.

Email: lyn.peters@dfi.wa.gov


me 2 years ago

If u get the loan....pay it....as a company we lose money from people stealing money from us then closing their account or stop payment on the check....pay your debts....


JustSimple info profile image

JustSimple info 2 years ago from Puget Sound Author

You are absolutely correct! In my Hub here I state that you should pay it back. I am talking about the sharks out there. I am sure you know that not all companies operate legally. When someone is in need of money, it is a shame that people who loan the money want to take advantage of person who is down on their luck. This Hub is just to help those that have bee wronged by loan pay day companies that are taking advantage of them.

Payday Loan companies are stealing money from peoples accounts when they take out more than what they agreed to, or auto loan out amounts again and again, when people did not need the money.

Be clear with what you are offering make sure your company is only offering loans where you are legally able to offer them. If you offer a loan where you are not suppose to, then its your company that shouldn't of offered the loan.


dee 2 years ago

Have a few pdls from online lenders in az.. have paid 2-3 times what is owed already . I am going to revoke all electronic debits...stop direct deposit..and close bank account...is there a loophole where they can reopen account


JustSimple info profile image

JustSimple info 2 years ago from Puget Sound Author

Hello Dee,

The good news is:

41.

Q: What happened to the payday lender that AZDFI used to license?

A: The law allowing payday loans in Arizona expired on June 30, 2010. AZDFI no longer licenses payday lenders. Consumer Loans with annual interest rates over 36% (plus authorized fees) became illegal on July 1, 2010. If you see a sign advertising payday loans, please contact the Arizona Attorney General’s Office at (866)-879-5219 or operationssunset@azag.gov. Please visit the Arizona Attorney General’s website for Payday Loans Frequently Asked Questions for more information about payday loans in Arizona.

If they offered you a loan recently it was illegal, as all payday loans for AZ residents became illegal July, 2010. If you have one after that time, even online they are required to have a license. You are not legally obligated to pay it, morally you should, if you have paid what they loaned to you, then yes, open up another account sub account new bank account number, heck even get a American Express prepaid card nowadays that works like a checking account. Then close that account they have access to. They can't take you to court, for something they illegally offered to you that you did not know was illegal to do. I am sure they new. What were the names of the places online?

This is from the AZ Attorney Generals office website:

Operation Sunset

Payday loans are illegal in the state of Arizona since June 30, 2010. If a consumer took out a payday loan prior to this time, they are still obligated to pay back that loan. If an Arizona consumer is receiving solicitations for payday loans, in-person or from a Web site, they should consider reporting the information to the Arizona Attorney General’s Office. OperationSunset was established to create awareness and answer payday loan concerns.

For more information, please review the Frequently Asked Questions and Additional Resources (below). You may also e-mail our office at operationsunset@azag.gov or you may call (602) 542-5763 and a representative will return your call promptly.

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