Payday Loan Default- Facing Jail time

What was the name of this supposed law office? I also doubt they will have you arrested today. They just can't call the police and have you picked up.

DO NOT GIVE THEM YOUR RENT MONEY! You need to pay rent, that is important! They are lying to you to try and scare you into paying up. They cannot have you arrested for defaulting on a loan. Period.

It is not real - If you were to call your local police deptartment and tell them the situation, they would laugh and say that if they arrested everyone that defaulted on a loan, they would have to hire a whole lot more people and build a ton more jails . . . .

So unless you did commit fraud (BTW - Taking out a loan legally, and not being able to afford to pay it back is NOT fraud) you will be fine. They use this lie regularly, and not one person has actually been arrested for not paying.

Also how was this loan handled? Did you give them a post dated check?

They go by the name of "Legal Mediation practice".

I would call:

Where to Complain, Get Information:
Regulator: D.C. Department of Insurance, Securities and Banking
Address: 810 First Street, NE, Suite 701 Washington DC 20002
Phone: (202) 727- 8000
Fax: (202) 535-1197
Regulatory Contact: Howard Amer,, Director, Banking Bureau

And talk to them. If this is a storefront loan then they are regulated by the above people. They can tell you exactly what they can or can't do to you.

My account was closed do to them debiting me so much where i was accumilating too many NSF's. I Loaned back in October 2006, the loan defaulted in May of 2007. I retuned all their calls and even made payment arrangements in whcih they declined. They told me the contract i signed prohibits payment arrangements, it was either in full or legal action was to be taken.

So now this collector "Legal Mediation practice" asked me to get a lawyer and prepare for Jailtime as i commited fraud especially because my account was closed before they could get their cash. So thats where the FRAUD comes in. They claim i wrote a check to them that was a bad check....

Did you close your account? Or did the bank close it?

Okay legal mediation practice is not a law firm and they broke the FCPA by telling you that. Did you write an actual check to the store front company? If so what is post dated by chance?

The way it goes is.

Your write a check for your next paydate whcih would be 2 weeks out. They give you the cash and on your paydate, you either go in and pay the amount in full or your refi and write a new check for the next pay date. If you do not go in on your paydate, they give you a 5 day extension in which they call you to see what is happening. If the 5 days passes, they then deposit the check to get their money. if they dont get their money, they start calling all your numbers to collect the amount in full. They decline payment arrangements so if you cant pay in full, you automatically go into collections THEN legal mediation.

I received a message from them in whcih i called back. When i called this is when the gentleman informed me what it was about and what steps i needed to make.

OH My account was closed due to Secret Cash Card debiting my account multiple times and Ace Cash express debiting leaving me with too many NSF fee's. When i filed the Affidavit with my bank regarding Secret Cash Card, They informed me that i was in danger of loosing the account, so they closed it anyway and i filed the affidavit to get my money back from Secret Cash card. So i do have proof why i had to close the account despite the NSF fees.

Do as Guoudah says and call the DC numbers he listed to find out what they can legally do. Also in DC, a check casher cannot have you post date a check. That is prohibited per their check cashing statute. If they had you post date the checks they were in violation.

YES< this is what they do. Example, if i walked into a storefornt tomorrow to borrow. The lender will ask me to make the check out for my next paydate which is 7/20/2007 not tomorrow's date instead...

Plus, you have proof of unrelated fraudulant charges on your account as the reason it was closed. They cannot prosecute you for that. If you had taken out a loan, then immediatly closed your account, then maybe. But in this situation I really doubt it.

For your own peice of mind, please call the Dept of ISB - They can tell you everything you need to know - And they are the people that regulate these places, so if they are doing something wrong you will be able to start filing complaints against them.

Thanks Goudah, i received a call back already from D.C. Department of Insurance, Securities and banking, She asked me for all my information and said she would call them directly and get back to me. In the meantime she asked me to complete a complaint form and fax back to her....

I'll keep my fingers crossed.

Don't worry they are not going to have you arrested today, they love to tell people that to get you to pay. Also, I'm not sure what kind of fees they are charging but here is the statute that regulates their fees

[quote]26-317. Limitations on fees for cashing checks [Formerly ???? 26-1117]


(a) No licensee under this chapter shall directly or indirectly charge or collect in fees or charges for cashing a check a sum to exceed 5% of the face value of a government or payroll check, 7% of the face value of an insurance check, 10% of the face value of a personal check or money order, or $ 4, whichever is greater. An additional verification, handling, and documentation processing fee may be charged, pursuant to ???? 26-319, for a personal check held for deferred deposit. Each licensee shall conspicuously post, in both English and Spanish, and at all times display in every location and upon every mobile unit licensed under this chapter, a schedule of fees and charges permitted hereunder, which schedule shall be approved by the Superintendent [Commissioner] prior to posting.

(b) The fees for cashing a check shall be evidenced by a receipt. Such receipt shall be presented to the purchaser upon completion of the transaction.[/quote]

[quote]26-319. Limitations on business [Formerly ???? 26-1119]


(a) No licensee under this chapter shall engage in the business of discounting of notes, bills of exchange, checks, or other evidences of indebtedness, nor shall such a discounting business be conducted on the same premises where the licensee is conducting business pursuant to this chapter.

(b) No licensee shall at any time cash or advance any monies on a post dated check.

(c) (1) No licensee shall at any time cash or advance any monies on a personal check for a fee in excess of 10% of the face amount of the check as set out in ???? 26-317; provided, however, that where the licensee enters into an agreement with a customer to hold his or her personal check for deferred deposit, the licensee may charge an additional fee for verification, handling, and documentation processing totaling no more than $ 5 on a personal check with a face amount of up to $ 250; no more than $ 10 on a personal check with a face amount of $ 250.01 to $ 500; no more than $ 15 on a personal check with a face amount of $ 500.01 to $ 750; and no more than $ 20 on a personal check with a face amount of $ 750.01 to $ 1,000.

(2) A personal check for deferred deposit must bear an issue date of not later than the date the check is cashed and the deferred deposit agreement is originated.

(3) The deposit date of a check held for deferred deposit shall not exceed 31 days following the issue date of the check as agreed to in the Deferred Deposit Disclosure Agreement, Addendum I; provided, however, that when the deposit date occurs on a weekend or bank holiday, the check may be deposited on the next business day.

(4) The minimum face amount of a check held for deferred deposit must amount to no less than $ 50. The aggregate face amount of checks being held for deferred deposit must not exceed $ 1,000 per customer.

(5) The licensee shall retain all rights and privileges of a holder in due course on checks presented for deferred deposit.

(6) The license to offer deferred deposit services shall be limited to only those businesses whose dominant business activity is financial services. The licensee may offer deferred deposit services only when the Superintendent [Commissioner] has determined that the licensee's dominant business activity is financial services.

(7) Fees charged for deferred deposit transactions shall be evidenced by a receipt. Such receipt shall be presented to the purchaser upon completion of the transaction.[/quote]

Yep - You are actually in a pretty "good" situation. Normally it's internet based companies that do this, and it's hard for one state's officals to track them down. In your case it is a licensed storefront, so the banking dept has full authority over them. They could be fined for what they've done, or get their license yanked.

Be sure to file that complaint!

Also, just as an FYI legal mediation practice is a collection agency based out of Florida, they are not a law firm. They pull this stuff all the time with threatening someone with arrest.

I have gotten calls from Legal Mediation also but that was for a defaulted Internet loan. They are not easy to work with. If they are not a d/b/a of Bass then they should be or Bass trained these people.

DC Storefronts are in danger actually of being closed due to too many complaints filed by consumers.

I had another loan in which i paid off and i remember going in every 2 weeks and i would see a petition list from them asking people to sign in so they dont shut them down.

Altho PDL's have helped me in the passed They are not a good thing as you can easily get lost in them and loose so much.

i think after this i can say I HAVE LEARNED my lesson. I hope they shut them all down!

Here is latest contact info pulled from State of Florida corporation records and collection agency licensing.

Principal Place of Business
1919 BLANDING BLVD.
#19
JACKSONVILLE, FL 32210

10, OFFICERS AND DIRECTORS -
11. ADDITIONSICI-IANGES TO OFFICERS AND DIRECTORS IN 11
TITLE
NMW
STREETADDRESS
CITY-ST-ZIP
P B????????&Iete
CONNELLY, RONDA S
3950 MOSS OAK DR.
JACKSONVILLE, FL 32277
VP a&IeIe
PAIR, SUSANR
9323 BEARSFORD CT.
JACKSONVILLE, FL 32244

2006 FOR PROFIT CORPORATION
ANNUAL REPORT
DOCUMENT # P03000055824
1. Entity Name
LEGAL MEDIATION PRACTICE, INC.
FILED

Mailing Address
1919 BLANDING BLVD.
#19
JACKSONVILLE, FL 32210

REGISTERED AGENT
DUANE C. ROMANELLO, PA, 1919-8 BLANDING BOULEVARD JACKSONVILLE, FL 32210


Collection Licensing Record

LEGAL MEDIATION PRACTICES
Business
Address:
1919-4 BLANDING BLVD
JACKSONVILLE
32210
Phone
Number:
(800) 201-0565
E-Mail
Address:
None
Mailing
Address:
1919-4 BLANDING BLVD
JACKSONVILLE FL
32210

Just another FYI, in DC the law states that the payday lender cannot debit your account electronically. They have to submit the check that you wrote them. So if Ace tried to do an ACH they broke the law.

To: ramj70
They first deposited the check, a total of 4 times, then thereafter they started doing ACH payments multiple times, the bank even verified this when i went in to close the account.

forgrace, it appears they are breaking the law then. In 2005 the District's attorney general sent a letter to all the check cashing loan businesses reminding them that they cannot do a debit and they can only cash the check that you give them at the agreed upon date.

It appears you may have a good case to sue them and with DC's consumer protection laws you can not only get either $1,500 for each violation or treble damages for each violation whichever is greater you can also sue for punitive damages.

You might want to see about contacting an consumer protection attorney if your so inclined. It might be worth it, it might not. This is why they are trying to shut them down in DC.

Here is an article from the DC attorney generals office regarding automatic debits. Its from 2005, but it is still valid. I would file a complaint with the AG office in DC.

http://oag.dc.gov/occ/cwp/view,A,11,Q,631571.asp

Forgrace, please, please don't give them anymore money. I am so sorry they called you and acted that way. You must have been terrified! I would have been. File all of the complaints you can and help get these places closed down. It's the way they treated you and their illegal tactics that are allowing them to hang themselves.

Also Internet payday loan companies cannot do automtic debits from your checking account in DC. They are bound by the same rules that the store front operators are bound by. Internet PDL's must also be licensed in DC.

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they did the same to me but im in texas what should i do :cry:

i got got up in to internet loans and i cant pay them right now and now i have them calling me telling me there going to get me for fruad i dont no what to do i live in wash state

melody 1) You cannot be arrested, 2) if they are not licensed in Washington State you have no legal obligation to repay the loan. That said, if you havent already close the checking account they have access to and open a new one.

Stating the following:
To Whom It May Concern

It has come to my attention that you a payday loan I have with you was made in violation of Washington State Administrative codes governing Check Cashers/Sellers and Payday Lenders (Chapter 208-630 WAC Check cashers and sellers - regulation of), wherein it states that payday lenders are required to be licensed by the State of Washington. This law applies to any payday loans made to Washington State Residents regardless of the state of origin or contractual jurisdiction agreements.

Because you were conducting payday lending business in violation of this administrative code and the governing law directing its creation. This violation renders our contract illegal in the State of Washington, rendering ay terms agreed to therein null and void. Under the above noted law, loans made illegally are not collectable.

Effective immediately, I hereby permanently revoke any and all authorizations, assignments or rights granted to __insert name here__, their successors and/or assigns to electronically access any account owned by me. This revocation includes any presumed, implied or express POS authorizations, or wage assignments.

On advice of counsel, prior to either initiating civil action and/or requesting that Washington State authorities investigate your business practices (including those of any potentially related businesses) I am requesting that my account be closed kith a zero balance. Understanding that this request is an attempt to avoid pursuit of other remedies, I am willing to agree in writing not to pursue additional civil action to seek redress.

I may be willing to explore other options to resolving this situation and I look forward to your written reply

CAN THE PEOPLE FROM THE PLACE WHERE I GOT THE
PAYDAY LOAN COME TO YOUR HOUSE WHERE I LIVE TO GET
THE MONEY?

Generally speaking, face-to-face collection is legal (putting aside any issues of whether a particular loan is legal) and while rare, some storefront lenders will send someone to knock on your door. The idea is that psychologically it's a lot easier for most people to hang up a phone than slam a door in someone's face. But it's also a lot quicker and cheaper to have a collector make 10-12 calls in an hour than to pay one visit, so even local lenders generally don't use this tactic, although they might threaten to do so.

Though I do not agree with their tactics, I believe others have had the experience of store front lenders coming to their homes. From other posts I have read, this is not breaking the law and they can do this.

Goldenbast is going thru this now. I think she has had 3 different people given criminal tresspass warnings. I'd feel sorry for anyone knocking on my door trying to collect anything....it would be a fatal experience for them.

Just like kfstaff24 stated, there is nothing worng with knocking on a door until you are told to leave. Once you are instructed to leave or they have a no tresspassing sign posted, you are violating the law on any future visit.

We do knock on doors, but it is not for the purpose of collecting money in the field. It is mearly a means of gather information and establishing contact with a delinquent customer. I discourage my staff from accepting money at ones home or work due to liability and tracking reasons. I want all transactions with cash on video in my store to protect both the customer and employee.

Do you know of any company that can help with payday loans ASAP!!!!!! The companies I have loans with are:
JHS Marketing: $300/pd so far:$1080
Oasis 1 Marketing:$300/pd so far:$1080
Sandpoint Capitol:$200/pd so far:$900

you can go to the sticky titled DEALING WITH ILLEGAL LENDERS.they are all illegal,and you have overpaid.why have somebody else do what you can do yourself.

i think that poster started their own thread, but good advice paul :)

I had some one call and threaten to have the FDBI come pick me up which is suppose to be the Federal Debt section of the FBI only the man who was claiming the was going to have them come to my house couldn't tell me any information and the loans he was talking about were from a time when I never even had any type of loans, this man even went back to saying I had I PDL when I was 15 so its probably just a scam or they are trying to scare.

MGL87OK, seriously i would report them to the FBI. I did that when a company was using the FBI as a threat and besides being illegal, the FBI really does not like that ;)

I did contact the local police department and they said that if the guy called me again to file a report and they track my phone records so that they could track him down. Not to mention they told me that this man would be a idiot if he tried to come to my house since I live on a military base or to even try and scam me outside the court house since the court house is right behind the police station.

i doubt he would go anywhere, i doubt he is in this country.. but it still does make it right for you to be harrassed.

:confused:I have really got myself in a jam i got multiply payday loans now and i cant get out of the cycle i keep trying and it is the worst thing i have ever done its been a year or more now and it to the point i cant pay any of my regular bills i have to have place to live and auto to get to work so i am thinking only way to get this under control is to shut it down now before it gets to where i am homeless dont know what else to do help!

I defaulted on a payday loan in texas back in sept. of 2001. Isn't their time up? What is the statute of limitations on a payday loan? Please help me!

So I also had a loan in ca with a internet pdl. They said oh you defaulted on it 3 yrs ago and the bank closed my account due to them debiting my account. Now they are calling from a smith cane and asso. and I had spoke with a gentlemen there and said oh were going to take you to court. what can happen?

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I have many pay day loans out that I apply for online. The bank is going to close my account to many NSF fund due to other sources charging me for items I did not order. I have been good my loan up until now it got way to much for me to the point I cant pay my bills and rent. My question is 1- will go to jail 2- will they contact my employer.I am willing to pay them off one by one monthly I have 7 loans out at one time what is my rights need help !

Ok first off you CANNOT go to jail for not paying a payday loan so if anyone tries to tell you that laugh at them and do not let them scare you. They very well may contact your employer. The key is communicating with the payday lenders before it gets to that point...if you communicate with them instead of avoiding them they are less likely to contact your employer and your references. Do you have store front loans or internet ones? What state are you in and who are the loans with? If you can get us that information we can help you :) In the meantime, don't panic, you are NOT going to jail...there is no debtor's prison!

I have serveral payday loans from on-line sites, I have on in particular that is threatning to take me to court for check fraud, I live in Washington, DC what can I do about this problem.

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