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Posted: Tue Aug 12, 2008 3:48 pm Subject: Loophole in the PDL snowball effect?

I've started two other threads on this site: "Online PDLs" and "Need PDL advice in WI" but the responses seemed to have hit a lull. That is OK with me, I know everyone has their hands full with all the PDL chaos going on. I've only been dealing with this for ~2 weeks after my wife and I decided to give our marriage another try. I fully understand what everyone here is going through. All the researching I've done trying to formulate a plan has kept me up way too late at night for me to function 100% at work. (See the other two threads for her PDL specifics).

I am not trying to get out of paying back the principle amount that she owes. I believe she has actually paid more than the amount borrowed on all of her PDLs.

She signed up for two PDLs which transpired automatically into thirteen PDLs. Apparently there is something in the contract which states that other PDLs will automatically transpire from the original. These new PDLs aren't just rollovers, they are from an entirely different lender.

I've noticed quite a few PDL lenders are considered illegal no matter in which state the money received.

If the originating PDL is considered illegal, wouldn't that in turn make all of the automatically generated PDLs illegal also?

Posted: Tue Aug 12, 2008 9:15 pm Subject:

Well, this is a new one on me! Are you saying that your wife had 2 PDLs and they became 13? Did she get money from the other 11 or are they just charging her for them?

Posted: Tue Aug 12, 2008 9:29 pm Subject:

Hi, Lorri. Thanks for the response. That is correct - she electronically signed two separate PDLs and ended up with thirteen. Yes, she received the money from all of them and, of course, was having money debited from her bank account to all lenders. She was in over her head with the first two and I think she just kind of withdrew from all of it when the other eleven hit her. She didn't want to go to her family with this kind of burden. I just finally learned all of this a couple of weeks ago. Her account has been closed and the bank notified of the situation. Do you think it is possible to claim that all are illegal if the first two are considered illegal?

Posted: Tue Aug 12, 2008 9:39 pm Subject:

Okay---I think I understand, but it sure sounds suspicious. Now this is just my opinion, but I would definitely think that if the first 2 were illegal the following ones would have to be. But, I of course, know none of this for sure. Who were the original 2 with if I may ask?

Posted: Tue Aug 12, 2008 9:48 pm Subject:

My wife does not know for sure but, if I assume that the first two deposits made to her account were the two she signed for, I would say the original loans were from CMG Group and Ameriloan. Numerous threads on this site have claimed that both are illegal.

Posted: Tue Aug 12, 2008 9:54 pm Subject:

Gee---I feel for you guys. What a mess! I wish I could say something reassuring. Not that there is nothing reassuring---I just don't know enough to advise you. But, you have probably realized that you have come to the right place for information.

Posted: Tue Aug 12, 2008 10:11 pm Subject:

You are right - I have come to the right place. I've done tons of searching and this place is a goldmine of information. I'm missing just a few key pieces.

Sending a C & D letter to National Credit Adjusters (they purchased five of her accounts) tomorrow. I believe three of those five accounts are affiliated with OSL Marketing, all said to be illegal.

Do you have any info regarding Eagle Finance or Vince Enterprise?

Posted: Tue Aug 12, 2008 10:13 pm Subject:

Lorri, can you move this thread to the Payday Loan Help section? I just realized I posted it in the wrong section.

Posted: Tue Aug 12, 2008 10:17 pm Subject:

Sorlry, I have never heard of them (which doesn't mean much). I am dealing with National Credit Adjusters for one of my PDLs, so far no probs.

Posted: Tue Aug 12, 2008 10:27 pm Subject:

I was supposed to call NCA Monday to further discuss our payment options. After seeing that CMG, SSM, DJR, and TJF are considered illegal I have decided that we've paid them enough. Jason G. from NCA was very pleasant on Friday. He had no problems telling me the name of the creditors and how much they say they are owed. Vince Enterprise is the fifth account. I'm just going to gamble that they, too, are illegal. Each of these lenders has been paid more than the principal amount. I'm guessing that Jason won't be as nice the next time I talk to him.

Posted: Tue Aug 12, 2008 11:51 pm Subject:

Good luck---the dorks are just people like you and I who are in a crummy profession.

Posted: Wed Aug 13, 2008 7:38 am Subject:

I just can't believe that she only signed 2 contracts and got 13 loans.

I'm sorry, but that just isn't very believable. Is it possible that she is trying to mitigate her "involvement" in it to make herself look better to you? You said that you just decided to give the marriage another try. It sounds to me like she is not telling the whole truth. It's just not really possible for that to happen the way it was explained. Not 13 times. Maybe she filled out a bunch of applications and didn't think she had submitted them, or something, but it's very difficult to believe her story as is. I really mean no offense to you, and dont' want you to get mad at me for saying that, but I've been on this board for years and have never heard of such a thing. PDL's want money, and loaning without a contract is a risk most aren't going to take. Yeah, sometimes people will get an extra loan, but not 13.

Also, I disagree with others - Just because the first 2 loans were illegal doesn't mean the rest automatically are. It would all depend on the companies licensing status and what state you are in.

Posted: Wed Aug 13, 2008 7:56 am Subject:

Firstwizard...IMHO...I would focus more on how to resolve this than spending energy on whether the other 11 are illegal or not because she did not sign anything other than the original 2 contracts. I understand what you are saying about there is no signed contract for the other 11, however, she DID receive the money and if she paid it back already through fees, then, technically, you are done.

Let's get started on getting you out of this PDL trap...Can you list EACH PDL, original loan amount, total amount paid to date, AND WHAT STATE YOU RESIDE IN!

This will help us help you to determine whether 1) they are legal to lend in your state and 2) what amount you owe (if any). If the PDL lenders are illegal, then technically you may not have to pay them back. Morally, (we advocate that) you should. The decision is yours.

Please list the necessary information.

Posted: Wed Aug 13, 2008 10:15 am Subject:

well, i agree that sometimes they credit money to your account (happened to me once) but 11 does seem over the top. i agree that she probably sumbitted a bunch online and ended up agreeing to something she didn't mean to. i'm not saying it's right but it might be legal, i really don't know.
is the account closed? we do need to know what state you're in, how much was borrowed, how much was paid and the companies for all of them.

Posted: Wed Aug 13, 2008 10:29 am Subject:

I would question her pretty extensively about what she signed. You need to be 100% sure that she only signed 2 contracts and those contracts were for only one loan each. If she only signed the two then in my opinion the rest of them are out of luck. I agree with Goudah that it is unlikely that she only signed up for 2 loans and received 13 though. It would also help if you listed each company, the amount borrowed and the amount paid back so you can get help in determining what you morally owe.

Posted: Wed Aug 13, 2008 11:59 am Subject:

from a conflict resolution standpoint... deal with it this way, regardless of who signed what... first step is done.. account protected. next step establish the legality of each and every one.. illegal ones vs legal ones (legal in your state) for each of the illegal ones notify them and any involved CA;s of their ilegality, demand the account be considered paind in full. For all where you have paid more than principal amount ask for refund (don't expect to get it) For legal ones not paid, make arrangements to take care of them.

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