Are you in payday loan trouble?
This site provides information and first hand account of dealing with illegal online payday loans. Do you know if your cash advance or payday loan is legal in your state? This is not a debt consolidation website. The target audience is individuals who have made a personal decision not to pay beyond the principal amount of a loan or who have paid over the principal amount in loan payments and have made the personal choice to discontinue payments. Some of the reasons may include:
- You’re nearly homeless trying to maintain high interest rate and fee payments
- The loans are illegal in your state
- A phony bill collector is trying to practice payday loan extortion
- You have multiple illegal loans and you’re drowning in payday loans
- You don’t know how to get out of payday loan cycles
- You have to make the decision between payday loan payment or eat
- Collection agencies are harassing you with continuous calling and contacting you at work or speaking with employees at your job
- You’re banking account is overdrawn through the roof and payments will go towards paying overdraft fees and getting your account out of a negative balance
- The choice to take out payday loans has worsened your financial situation and you are worse off
- You feel depressed as a result of the choice to get online payday loans
- You question: What was I thinking when I took out all of these loans? I must have been temporarily insane.
- Your life has been turned upside down as a result of these online payday loans, and you want to regain your life and take control of the situation
Provided for informational purposes only to help readers generate letter writing ideas.
I. Sample cease and desist letter for fake or illegal collection agency
Sample letter: Cease & Desist
[Insert collection agency name]
City, State Zip Code
Re: Acct# [Insert account number]
Dear [Insert collection agency name] Mgr/Owner:
I am contacting you in reference to a [insert original lender’s name] account with the above reference number. I am demanding that [insert collection agency name] and its representatives cease and desist all contact with me, and anyone associated with me, including friends, family, and employer-coworkers regarding a [insert original lender’s name] acount.
I do not owe this debt, because [insert reason for not owing, ex. online pay day and installment loans are prohibited in my state by unlicensed lenders]. As a result, you are trying to enforce collection on an invalid debt and all past payments made to [insert original lender’s name] will be considered as account paid in full.
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Stop by our forums and leave a message, ask a question, or offer help. On the main page top menu bar, click through the Payday Loan Help Forums link indicated where the yellow arrow is pointing. We would love to hear from you. Let us know you were here!
You are here!
There are groups and organizations formed to help those who have been negatively affected by payday loans. More organizations are offering borrowers counseling, education, support, advocacy services, and are actively involved in trying to change state laws. Here is a preliminary list of those organizations. As new websites are discovered this list will be updated.
National Association of Consumer Advocates – Offers predatory lender information and links to consumer attorneys in your area.
Stop Predatory Payday Loans in Pennsylvania – Coalition listing, legislative watch, and news.
Empire Justice Centeer – Advocacy for New York residents, news, and legislative update.
Center for Responsible Lending – Borrowing education, research, analysis, and tools.
Virginians Against Payday Loans – An organization of businesses, consumer advocates and faith based groups working to stop payday loans in Virginia.
Smith Hill Community Development Corporation – Rhode Island advocacy organization.
The Pew Charitable Trusts – State and Consumer Initiatives.
The state of NC is suing Western Sky, CashCall, LLC, WS Funding, Delbert Services Corporation, and CashCall’s owner for what the state says is violation of Carolina’s Consumer Finance Act, usury laws, its Unfair and Deceptive Practices Act. The state is seeking to obtain restitution and other relief. There are five affidavits listed from citizen complaints (you see, complaining, and in volume works).
The first sworn affidavit submitted by one borrower stated she applied for a loan with Western Sky for $2600 and was approved ($2,525.00 plus a $75.00 prepaid finance charge/origination fee). The funds were electronically debited into her checking account. The document goes on to further account:
My loan was originated and funded by Western Sky on July 5, 2011, with an annual percentage rate (APR) of 139.12 percent. My payment schedule was one payment of $263.25 on August 1, 2011, with 47 monthly payments of $294.46 beginning on September 1, 2011.
Soon after she stated she was notified that her loan was sold to WS Funding, LLC, and that CashCall would be handling her loan. CallCash then started withdrawing her payments from her bank accounts. She started having difficulty keeping up with the monthly $294.46 payments and indicated CashCall would contact her on a daily basis. Read More →
Are you in the payday loan revolving door trap partly because you took out loans at various times when you didn’t even need a loan? If the answer is yes, then you could possibly be addicted to payday loans.
There are different reasons why people take out consecutive or ongoing payday loans. Some reasons could be due to drug or gambling addictions, unemployment, divorce or recent separation, unexpected major expensese, etc. Primary addictions may leave to secondary payday loan addictions, and the payday loan addiction can also consume one’s life.
The American Psychological Association describes addiction as:
Addiction is a condition in which the body must have a drug to avoid physical and psychological withdrawal symptoms. Addiction’s first stage is dependence, during which the search for a drug dominates an individual’s life. An addict eventually develops tolerance, which forces the person to consume larger and larger doses of the drug to get the same effect.
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In both cases, consumers are duped because the scammers use official sounding company names and they know a lot of personal information about the victims, like their social security numbers, driver’s license numbers and old bank account numbers. They sometimes refer to the victim’s employer and even mention the names of personal friends and professional colleagues.
Above are high percentage return call scare tactics used by collection agencies or phoney collection agencies reported by Cleveland, OH Action News 19. Many of these collection companies use names which sound similar to famous brand name companies or they use names in their titles which could easily make them sound like legal entities. Words you may hear in the title which would immediately have an attorney feel creates a sense of urgency: firms, firm, office of, recovery, associates, advisors, and PC. PC means Professional Corporation and is not only reserved for attorneys. An accountant with a collections or financial service business may also use the title.
If you question a company try a Google search before you call them. Then try another search with the same name and add the word “scam” to see if there is any suspicious activity reported online.