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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“According to DFI Director of Consumer Services Deb Bortner, most scam targets have started an application process for a payday loan online. Many change their minds and don’t go through with the loan, opting to go with a brick and mortar payday lender instead. But all the online information is gathered by what are called lead generators- who sell the information to a variety of payday loan businesses- including, perhaps unknowingly, to bogus collection agencies.
Bortner says the growing threat of payday loan collection scams, along with the growing problem of illegal and unlicensed offshore internet lenders- make it crucial for you to be cautious about online payday lenders- and know your debt collection rights: Collectors cannot call you at work. They cannot make legal threats of any kind. And they must provide written documentation of all debt they’re trying to collect.” – KOMONews.com
Click on picture to view video.
Follow the steps below to track the progress of the court case and charges filed by the Florida Attorney General Office against Western Sky on 12/23/2013.
Go to : http://pubrec10.hillsclerk.com
Then click on the Civil Court Progress Dockets link.
On the court records search page enter Reddam in the mandatory last name field.
Click the Search button at the bottom of the page.
On the next page click on case number link 13-CA-015462 to view case details.
The defendants are listed as: Defendant CashCall Inc , Defendant Delbert Services Corporation, Defendant Reddam, John Paul, Defendant Western Sky Financial LLC, Defendant WS Funding LLC
The plaintiffs are listed as: Plaintiff Office of Financial Regulation State of Florida, Plaintiff Office of the Attorney General State of Florida
Read more about the allegations here:
Download (PDF, 12.9MB)
These loans are in heavy rotation in mailboxes across the country. Who needs a payday loan when one can get thousands from one of these companies, right? Don’t answer yes so fast.
The company even has local branches. These are apparently secured installment loans. The bottom footnote on the marketing letter states: “Rate and loan teams offered require a first lien on motor vehicle collateral. With other collateral, no collateral, or other loan amounts, different terms may apply.” I am taking a guess that this may mean, if borrowers don’t have collateral higher interest rates may be applied. Make sure they are licensed in your state. If someone was interested in the loan amount of $5,250 listed on the marketing letter the 48 monthly payments would be $177.38 and the letter states the APR is 25.91%. Let’s do the math: $177.38 x 48 months = $8,514.24.
So a borrower would have to pay the amount borrowed $5,250 + $3,264.24 in interest. Affordable?
It seems it would be more economical to seek a part-time job or borrow from a friend or family member. Hell, you run a better chance getting help by setting up donation account at a GoFundMe or GiveForward type website.
Springleaf Loans 8772376860
Effective July 1, 2014 payday loans made by unauthorized lenders are unenforceable and uncollectable in the state of Florida. Legislation like this shows the value in filing consumer complaints. Keep the complaints coming in your state.
560.125 Unlicensed activity; penalties.—
(1) A person may not engage in the business of a money services business or deferred presentment provider in this state unless the person is licensed or exempted from licensure under this chapter.
Illegal Florida Payday Loans
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