Ask Experts Questions for FREE Help !
Ask
    Worried2death99's Avatar
    Worried2death99 Posts: 6, Reputation: 1
    New Member
     
    #1

    Apr 23, 2012, 05:59 PM
    What will happen if I don't repay an Internet cash advance
    What will happen if I close out my bank account before repaying an Internet cash advance? They will only allow me to pay down the prIncipal amount in 50 dollar increments plus the interest fee. I am not able to pay that every week like they want me to.

    I guess my question is what will they do if they have already had numerous complaints and have been reported to the BBB? I'm worried about them harassing me and continuously trying to debit my account. It is an unsecured loan and it was in the amount of $200 and I live pay check to paycheck.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #2

    Apr 23, 2012, 06:34 PM
    Read the contract. See if it says anything about prepayment penalties or not allowing a payoff. Closing the account will just open you for a law suit.
    Worried2death99's Avatar
    Worried2death99 Posts: 6, Reputation: 1
    New Member
     
    #3

    Apr 23, 2012, 06:56 PM
    I can pay it in full but I can't afford that right now. I don't need a law suit. If I have documentation stating where I have tried to make arrangements to pay down the principal what can they do?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #4

    Apr 23, 2012, 07:08 PM
    Again, you need to read the contract. I can't tell you what they can do without knowing what the contract says. But I've never heard of a loan that doesn't allow you to pay more than the scheduled payment.
    Worried2death99's Avatar
    Worried2death99 Posts: 6, Reputation: 1
    New Member
     
    #5

    Apr 23, 2012, 07:13 PM
    You're misunderstanding what I'm saying, I CAN'T afford to pay the loan in full nor can I afford the minimum 50$ to pay down the principal plus the 60$ interest fee. What can they do to me if I send in a payment that is less than they want to accept. I have informed the company not to draft my account like the contract says to do and that I will send in a payment but it will be less than what they want.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #6

    Apr 23, 2012, 07:22 PM
    You weren't clear. If you don't pay the minimum payment you will be considered in default. Then they will deduct it from your account. If you close the account, they will sue you.
    Worried2death99's Avatar
    Worried2death99 Posts: 6, Reputation: 1
    New Member
     
    #7

    Apr 23, 2012, 07:40 PM
    It doesn't say anything about being sued nor does it say I can't close the account out. It says I must contact them in writing if I do not wish for my account to be refinanced. Do you know anything about Mack development group, llc?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
     
    #8

    Apr 23, 2012, 08:22 PM
    If you close the account, and do not pay, they will sue you ( at some point and time) but first they will write and call and harrass you. Also did they have you sign an agreement to allow them to garnish your wages without court action, most payday loan places do. But they will let the debt go late and late and late, and add on fee after fee after fee. In about a year you will owe twice or three times what you started owing, then they add on legal fees and sue you.
    Worried2death99's Avatar
    Worried2death99 Posts: 6, Reputation: 1
    New Member
     
    #9

    Apr 23, 2012, 08:43 PM
    Chuck: I have been researching the laws on pay day loans in my state and I have come across a few they are breaking that I was unaware of.
    One being that they are not allowed to file criminal charges on the person receiving the loan.
    Two they are not allowed to refinance a loan and if they do then the what has been paid must apply toward the principal amount
    And three it's against the law for them to harass me in any way shape or form or I can sue them.
    I am well with in my rights to cancel any and all withdrawals from my account from them or any affiliates. In the contract it states I can make my payment by money order if I contact them in writing which I have done so I'm not sure there is much they can do...

    I do have a question for anyone with the answer: how do I find out if the company has a license to opporate in my state?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #10

    Apr 24, 2012, 03:31 AM
    Quote Originally Posted by Worried2death99 View Post
    Chuck: I have been researching the laws on pay day loans in my state and I have come across a few they are breaking that I was unaware of.
    One being that they are not allowed to file criminal charges on the person recieving the loan.
    Two they are not allowed to refinance a loan and if they do then the what has been paid must apply toward the principal amount
    And three it's against the law for them to harass me in any way shape or form or I can sue them.
    I am well with in my rights to cancel any and all withdrawals from my account from them or any affiliates. In the contract it states I can make my payment by money order if I contact them in writing which I have done so I'm not sure there is much they can do...

    I do have a question for anyone with the answer: how do I find out if the company has a lisence to opporate in my state?
    Umm you claim they are breaking laws. How? Have the filed criminal charges against you or just threatened to? Did they refinance the loan? If so, then was what you had paid towards principal not applied toward the refinanced amount? What proof do you have of this alleged harassment?

    Don't get me wrong, I'm sure they did harass you, these payday lenders are notorious for abuses. But they are also very savvy about the law and they are smart enough to skirt the law without going over the line.

    If the law says they can't file criminal charges, it doesn't say they can't threaten to. If it says they can't refinance did they actually refinance? Threaten criminal charges would violate the harassment prohibition but can you prove it?

    Yes, you can cancel the direct debit. Yes you can pay by money order. But no, you can't pay less than the minimum payment. Doing so puts you in default with several other problems.

    As for licensing, check your state's banking department.
    Worried2death99's Avatar
    Worried2death99 Posts: 6, Reputation: 1
    New Member
     
    #11

    Apr 24, 2012, 03:38 AM
    Yes they did refinance 3 times and it was just interest and didn't apply to the principal payment. I have threatening voice mails and e mails stating that they will in fact file charges. I know I made the mistake of getting one of these and I'm not saying I don't want to pay it because I should pay it I just don't want to be screwed over because Im young and they take advantage of me for a measly 200 bucks
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #12

    Apr 24, 2012, 03:46 AM
    What do you mean they refinanced and it was just interest? A refinance requires you to sign a new loan. I suspect you are misunderstanding what happened there. As for the threats. If you can get your proof admitted in court, go sue.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

How do you record merchant cash advance? [ 3 Answers ]

My business took out a Cash Advance. To pay it out my credit card processing company automatically deducts 19% of MC/Visa daily sales. Let's say that I received $22,000 and the amount I have to pay back is $40,000. I created a liability account for the cash advance amount $40,000 and a receivable...

Cash advance made by deceased [ 1 Answers ]

There was a cash advance made by my grandfather before he passed. There is no estate and no assets no probate of any kind, that was dissolved in 2000 when we qualified my grandmother for medicaide. He lived with me in my home and all money's were spent down according to law. Now the credit card...

Cash Advance [ 2 Answers ]

Hi. My name is Marina. I hope there is people who can answer to my question. Three days ago I went to the bank to transfer money from my overseas account to my Citizens bank account. Before asking them for this transaction, cash advance, I did ask the branch manager whether they have a limit...

SSI and cash advance loans [ 2 Answers ]

Can someone on SSI have a lien put on their house for an unpaid cash advance loan? It is a $400.00 loan.

Cash Advance [ 1 Answers ]

If an employerr, advance you money from future pay checks, how much can they deduct fom your paycheck every month?? can they take your whole paycheck and leave you with nothing, or do they fall under that no more then 10% rule.


View more questions Search