Advice Needed - Payday Loan Drama

[Parisangel]

Hello,

 

Early last year, I took two payday loans in the state of Florida, one with Discount Advances and the other with Best Payday Loan. Neither is licensed to operate in Florida and both have violated the state of Florida Payday loan laws. They both charged off and since early this month have been reporting on my credit report. One with Knight Adjustment Bureau and the other with National Credit adjusters. One was for $300 and the other was $600 and they are now reporting as $734 and $1366. I paid them each weekly until they totaled $300 and $600, but they claimed that I was only paying the renewal fee, so I still owe $300 & $600, but they are showing ridiculous balances. What steps should I take to remove these items and/or how should I proceed, what would you do? All of this stupid decision making before I found CB and decided to take control of my finances. Please help me!

[FahQca]

read the fine print next time...you have to pay back far more than you borrow.

[centex]

Did State law at the time of the loan require licensure and if so, did the licensure provision apply only to a company with a physical presence in the State as opposed to an internet presence?

[Parisangel]

Did State law at the time of the loan require licensure and if so, did the licensure provision apply only to a company with a physical presence in the State as opposed to an internet presence?

 

This is what I was able to find out:

Find Payday Loans in Florida

Governing law in state:

Payday lending is specifically authorized under Florida law. Cash advance businesses must comply with interest rate restrictions in place; namely, they cannot charge more than 10% interest. Florida's interest rate cap is one of the lowest in the U.S. Florida law allows consumers to borrow only one check cash advance at a time. Furthermore, if a borrower cannot repay a payday loan by the due date, the creditor must extend a 60-day grace period to the consumer before collecting. This is only, however, if the consumer attends credit counseling and enters into a payment plan with the cash advance company.

 

 

Maximum loan amount:

A borrower can borrow up to $500, excluding fees.

 

 

Loan terms:

The maximum term of the cash advance is 31 days.

 

 

Extensions:

Consumers cannot rollover or extend their loans.

 

 

Fees and charges:

A payday advance company can charge a maximum fee of 10 percent of the loan amount. It may also charge a verification fee.

 

 

Fee schedules and APR:

The APR for a two-week loan in the amount of $100 is 390%.

[centex]

Did State law at the time of the loan require licensure and if so, did the licensure provision apply only to a company with a physical presence in the State as opposed to an internet presence?

 

This is what I was able to find out:

Find Payday Loans in Florida

Governing law in state:

Payday lending is specifically authorized under Florida law. Cash advance businesses must comply with interest rate restrictions in place; namely, they cannot charge more than 10% interest. Florida's interest rate cap is one of the lowest in the U.S. Florida law allows consumers to borrow only one check cash advance at a time. Furthermore, if a borrower cannot repay a payday loan by the due date, the creditor must extend a 60-day grace period to the consumer before collecting. This is only, however, if the consumer attends credit counseling and enters into a payment plan with the cash advance company.

 

 

Maximum loan amount:

A borrower can borrow up to $500, excluding fees.

 

 

Loan terms:

The maximum term of the cash advance is 31 days.

 

 

Extensions:

Consumers cannot rollover or extend their loans.

 

 

Fees and charges:

A payday advance company can charge a maximum fee of 10 percent of the loan amount. It may also charge a verification fee.

 

 

Fee schedules and APR:

The APR for a two-week loan in the amount of $100 is 390%.

 

Did those provisions exist at the time of the original contract though?

[pryan67]

what was the law when you took out the loans?

 

a physical presence isn't usually required to be governed by the laws...unless it SPECIFICALLY excludes out of state "lenders"...they'd be covered....but it IS important whether or not the law was in effect when you took the loans...

 

 

read this thread

 

http://creditboards.com/forums/index.php?showtopic=379038

[pryan67]

Did State law at the time of the loan require licensure and if so, did the licensure provision apply only to a company with a physical presence in the State as opposed to an internet presence?

 

This is what I was able to find out:

Find Payday Loans in Florida

Governing law in state:

Payday lending is specifically authorized under Florida law. Cash advance businesses must comply with interest rate restrictions in place; namely, they cannot charge more than 10% interest. Florida's interest rate cap is one of the lowest in the U.S. Florida law allows consumers to borrow only one check cash advance at a time. Furthermore, if a borrower cannot repay a payday loan by the due date, the creditor must extend a 60-day grace period to the consumer before collecting. This is only, however, if the consumer attends credit counseling and enters into a payment plan with the cash advance company.

 

 

Maximum loan amount:

A borrower can borrow up to $500, excluding fees.

 

 

Loan terms:

The maximum term of the cash advance is 31 days.

 

 

Extensions:

Consumers cannot rollover or extend their loans.

 

 

Fees and charges:

A payday advance company can charge a maximum fee of 10 percent of the loan amount. It may also charge a verification fee.

 

 

Fee schedules and APR:

The APR for a two-week loan in the amount of $100 is 390%.

 

Did those provisions exist at the time of the original contract though?

 

 

 

if not, then it's WAY beyond SOL...since that law was passed in 2001 from what I can find

[Parisangel]

Did State law at the time of the loan require licensure and if so, did the licensure provision apply only to a company with a physical presence in the State as opposed to an internet presence?

 

This is what I was able to find out:

Find Payday Loans in Florida

Governing law in state:

Payday lending is specifically authorized under Florida law. Cash advance businesses must comply with interest rate restrictions in place; namely, they cannot charge more than 10% interest. Florida's interest rate cap is one of the lowest in the U.S. Florida law allows consumers to borrow only one check cash advance at a time. Furthermore, if a borrower cannot repay a payday loan by the due date, the creditor must extend a 60-day grace period to the consumer before collecting. This is only, however, if the consumer attends credit counseling and enters into a payment plan with the cash advance company.

 

 

Maximum loan amount:

A borrower can borrow up to $500, excluding fees.

 

 

Loan terms:

The maximum term of the cash advance is 31 days.

 

 

Extensions:

Consumers cannot rollover or extend their loans.

 

 

Fees and charges:

A payday advance company can charge a maximum fee of 10 percent of the loan amount. It may also charge a verification fee.

 

 

Fee schedules and APR:

The APR for a two-week loan in the amount of $100 is 390%.

 

Did those provisions exist at the time of the original contract though?

 

 

 

if not, then it's WAY beyond SOL...since that law was passed in 2001 from what I can find

 

 

Yes, it seems that the law was passed in 2001.

[pryan67]

so it APPEARS that they're in violation of that law on several counts...

 

let's see...

 

you borrowed 300 from one...which means it should have been 330 total...plus a max of 5 bucks for a verification fee

 

same with the other...660 max (although the max is really 500), plus possibly that 5 dollar verification fee...

 

so the MAX you could owe is 335+665 (pretending that they were even allowed to loan you the 600 in the first place)...

 

so that's 1000 TOTAL...

[Parisangel]

so it APPEARS that they're in violation of that law on several counts...

 

let's see...

 

you borrowed 300 from one...which means it should have been 330 total...plus a max of 5 bucks for a verification fee

 

same with the other...660 max (although the max is really 500), plus possibly that 5 dollar verification fee...

 

so the MAX you could owe is 335+665 (pretending that they were even allowed to loan you the 600 in the first place)...

 

so that's 1000 TOTAL...

 

Exactly and I paid that back plus more, so how do I move forward to remove these items from my reports?

[pryan67]

what have you received from the CA in writing?

[Parisangel]

what have you received from the CA in writing?

 

Only phone calls, but I did not speak to anyone. I would always hang up the phone, because I felt like I paid and they were trying to take advantage.

[Jen23514]

what have you received from the CA in writing?

 

Only phone calls, but I did not speak to anyone. I would always hang up the phone, because I felt like I paid and they were trying to take advantage.

 

they were. have you DV'd them at all?

 

are the original PDLs on your reports, or just the CAs?

[Parisangel]

what have you received from the CA in writing?

 

Only phone calls, but I did not speak to anyone. I would always hang up the phone, because I felt like I paid and they were trying to take advantage.

 

they were. have you DV'd them at all?

 

are the original PDLs on your reports, or just the CAs?

 

I have not DV'd them as of yet and only the CA's are showing on my reports.

[JunkBuyersWorstNightmare]

read the fine print next time...you have to pay back far more than you borrow.

 

Friday isn't for another two days yet.

[Jen23514]

I'll help you write up some letters and get some help from your state that should ensure these will be off your reports and you won't owe another dime.

 

other things I've found that will be useful in your fight, posting here for future reference. You might look over some of the statutes and links and see if anything jumps out at you since you know this situation the best

 

~The payday loan business is regulated by the Department of Banking and Finance pursuant to Chapter 560, Florida 3 Statutes (2000)

~Money Transmitters’ Code in 1994 560.103(10), Fla. Stat (Supp. 1994)

~Florida Check Cashiers Association (FCCA) - represents the PDLs

~Florida’s Usury Law in section 687.02

~FL Dept of Banking and Finance http://www.flofr.com/

~http://www.flofr.com/director/forms/payday%20loans%20consumer.pdf

~ TILA for Fl

 

 

FWIW: Florida’s Usury Law in section 687.02, Florida Statutes (1997), stating that “it is illegal to charge a higher rate of interest than 18 percent per annum simple interest. Any ‘rollover,’ ‘extension’ or ‘renewal’ of a deferred deposit check for an additional fee may constitute interest.â€

[pryan67]

there you go OP....you've got the best on the case Jen knows her stuff

[PinkGirl]

holy cow. Jen is fast.

 

OP-- work with Jen and you will find peace of mind!

[Jen23514]

there you go OP....you've got the best on the case Jen knows her stuff

 

i wish it wasn't because of experience

[Parisangel]

there you go OP....you've got the best on the case Jen knows her stuff

 

i wish it wasn't because of experience

 

Jen-Thank you so very much for your assistance. Experience is the BEST teacher! I have now learned that I should save my money instead of spending it and NEVER EVER take a payday loan again. I am reviewing the information now. Thank you so much for assisting me with the letters. I really want these items to be removed from my report. Thank you again!

[Parisangel]

Jen - If this helps, I just found out (through the information that you supplied above) that Knight Adjustment Bureau is not licensed to collect on a debt in FL. Doesn't that mean that it is unenforceable and they should not attempt to collect a debt? Am I correct in that regard or no? TY!

[Jen23514]

http://www.flsenate.gov/statutes/index.cfm...s&Submenu=1

http://www.law.cornell.edu/states/florida.html#codes

 

also from whychat's site:

COLLECTION AGENCY BOND & LICENSE

 

Bond: Yes - $50,000 (Commercial)

 

License: Yes

 

Fee: Yes

 

$200 - Registration

 

$50 - Investigation

 

$200 - Renewal

 

Exemption for out-of-state collectors:

 

Registration is required for out-of-state collectors if

 

[1] soliciting accounts;

 

[2] if client (creditor, its affiliate or subsidiary) has an office in Florida.

 

 

so, I'm not sure if Knight falls under the exemption, but if they do not, it appears they MAY be illegally collecting.

 

call your AG and ask

Edited January 21, 2009 by Jen23514

[boomer4d]

Here'ssome additional info on payday loan laws in the state of Florida from http://www.paydayloaninfo.org/state_detail.cfm?id=FL that you may find helpful.

 

Legal Status: Legal

 

Citation:

Fl. Stat. Ann. § 560.401 et seq.; Rule 69V-560.901-912

 

Loan Terms:

Maximum Loan Amount: $500

Loan Term: 7-31 days

Maximum Finance Rate and Fees: 10% + verification fee

Finance Charge for 14-day $100 loan: $15

APR for 14-day $100 loan: 390%

 

Debt Limits:

Maximum Number of Outstanding Loans at One Time: One

Rollovers Permitted: None (cannot rollover)

Cooling-off Period: 24 hours

Repayment Plan: Yes

 

Collection Limits:

Collection Fees: All charges imposed on the lender by any financial institution; lender not entitled to treble damages

Criminal Action: Prohibited

 

Where to Complain, Get Information:

Regulator: Florida Office of Financial Regulation

Address: Division of Securities and Finance, 200 E. Gaines Street Tallahassee FL 32399

Phone: (850) 410-9805

Fax: (850) 410-9748

Regulatory Contact: ,

Regulator Website

 

Licensee Database

 

Complaint Instructions

 

Complaint Form Link

 

Online Resources:

Deferred Presentment Providers Information Page

[Jen23514]

FYI~ I had to look this up at the beginning of the thread:

 

Treble damages, in law, is a term that indicates that a statute permits a court to triple the amount of the actual/compensatory damages to be awarded to a prevailing plaintiff, generally in order to punish the losing party for willful conduct. Treble damages are a multiple of, and not an addition to, actual damages. Thus, where a person received an award of $100 for an injury, a court applying treble damages would raise the award to $300.[1] The ability to award treble damages is a typical feature in legislation that recognizes the potentially willful nature of the prohibited acts. For example, such damages may be awarded by a court in the United States for willful violation of the antitrust laws, for willful patent infringement, for trademark counterfeiting, and under the RICO statute.[2] The idea behind the creation of such damages, also called exemplary damages, is that they will encourage citizens to sue for violations that are harmful to society in general.

 

http://en.wikipedia.org/wiki/Treble_damages

[Jen23514]

So, I quoted some things in here to help me keep it straight plus centex's post plus info you provided in your PM, that they are reporting 4 months past due on your CR and they are calling you at work.

 

so it APPEARS that they're in violation of that law on several counts...let's see...

you borrowed 300 from one...which means it should have been 330 total...plus a max of 5 bucks for a verification fee

same with the other...660 max (although the max is really 500), plus possibly that 5 dollar verification fee...

so the MAX you could owe is 335+665 (pretending that they were even allowed to loan you the 600 in the first place)...

so that's 1000 TOTAL...

Exactly and I paid that back plus more, so how do I move forward to remove these items from my reports?

what have you received from the CA in writing?

Only phone calls, but I did not speak to anyone. I would always hang up the phone, because I felt like I paid and they were trying to take advantage

I have not DV'd them as of yet and only the CA's are showing on my reports.

Jen - If this helps, I just found out (through the information that you supplied above) that Knight Adjustment Bureau is not licensed to collect on a debt in FL. Doesn't that mean that it is unenforceable and they should not attempt to collect a debt? Am I correct in that regard or no? TY!

 

 

You need to get a DV out ASAP to help stop the calls . I'll post some letters here to help you get an idea of how to stop these guys... but I AM NOT familiar with FL laws, so you need to do a little research here