Internet Payday Loans/North Carolina

OK...welcome to the forum...and please calm yourself...many of us were in your shoes just a short time ago...I will post your state laws...can you please post each payday loan, how much you borrowed and how much has been paid to them...not necessaily on the principle just what you have paid...ei: Nationwide=300/200pd. Then we can see what we can do to help you..I recognize 2 of these as internet based, are all 3?? Be right back with the state laws...

OK, here you go

Legal Status:
Prohibited (N.C. Gen. Stat. ???? 53-281 authorizing payday loans allowed to sunset in 2001)

Loan Terms:
36% per year

Debt Limits:
Not applicable

Collection Limits:
Not applicable

Yes all of these are internet loans. Ameriloans is $260.00, oneclickcash, $325.00. I'm sure not sure about Ambassador/Nationwidecash.

I don't want to sound dumb, but I don't understand that. It's prohibited? What should be my next step? Should I contact them? Can I stop them from drafting my checking account?

Yes...1st we definitely need to know the exact amount you borrowed and then how much they have taken out so far. I am assuming you used your checking account. Now you will have to close your account to stop the debits. Some banks will work with you and put a hard debit block on your account but then nothing will be able to get through. Some banks will not do this...most of us closed our accounts and opened new ones at a different bank..please read the post at the top of this forum page about closing your account. There is some important things for you to know first. After you know how much you have paid on each one...come back and post. There are letters you can send to each one revoking their right to debit your account,any wage assingments and to stop calling you at work, etc. If you google in the search box each of these ipdls you can see how some others have handled the situation. The best thing you can do before you start is to learn as much as you can...you only have 3 most of us had 7-15. Just post any questions you may have.

ameriloan, I've paid them a finance charge of $60.00, oneclickcash, $75, I've paid nationwide/ambassador $315 in finance charges, I still owe them the original loan was $350.

ok so ameriloan : the loan was for $260. and you have only given them $60. Oneclickcash : the loan was for $325. and you have paid a total of $75 And Nationwide : the loan was for $350.and you have paid the, $315. Correct??

Now did you read the bank info?? You will have to write them letters telling them your account is closed and you revoke their right to debit. Now even though these types of loans are illegal in your state we all agree it the right thing to do to pay back what you borrowed. You will have to make payment arrangements with them. Please read the bank info and then spend a few minutes reading about the lenders in some of the posts we have here. You can learn alot. You can also find copies of the letters to write also...technically I thing you would only be liable for the amount you borrowed...

Thanks so much for your help. What do you mean they are illegal in my state. I'm trying to save my paycheck so that I can pay me rent and light bill and not have it ate up with these finance charges...that's all I've been able to pay, and yes you're right with the amounts that I've paid.

According to the laws I posted it shows prohibited. Now what I did was get on the phone with your State's attorney's office and explain the situation...they will tell you for sure if payday lending is illegal in your state. It's 1 phone call and you can get so much info. Most of us..closed our accounts and took control of our money again. Then made arrangements to pay off what we owed or fought to have the loan marked paid in full wehn we paid way over the amount allowed by our state law. Now if you read some heer...you will see it's not always easy...they can be very difficult to work with and against...but in the long run it is worth the effort!! There are also a couple of consolidation companies that will do this for you too...the two I have heard of here are T & C (Town and Country) and Langhorn. You can google info on them here too...that will help you decide which way to go. But if you close the bank account (and don't forget to read that info I told you about) then you will have about a week or so before they start calling...so you will then have to get the letters out or contact one of the companies...

So, what I should do is call the Attorney General now?

I would call the AG office to clarify the internet loans. This is a grey area for many states which they are trying to correct with the explosion of usage of ipdls. I don't understand the phrase "Sunset 2001...in your laws...I have never seen that on another state lending law. So call them and then ask the AG office to verify none of them are licensed in your state...I am pretty sure they will not be. The next step will be to take care of your bank...and I can't stress enough to read the info on closing your account. Every bank seems to handle this differently and you will need to know what your bank will do. After that you will need to notify the lenders (usually by mail) that you are revoking their rights, etc. and make arrangements to pay back what you legally owe...

I'm in NC as well and called the AG's office about a month ago. Payday loans are completely ILLEGAL in NC. The last storefronts were outlawed about a year ago. You do not owe them more than the principle amount (if you feel like you should pay that--I was told not to even bother contacting them and basically to forget about it). The contract is null and void. They probably will call your references looking for you and they probably will call your work looking for you. They will probably email you 10 times a day. That's the ONLY thing they can do. They can't take you to jail, they can't sue you and you are NOT committing fraud. Direct quote from the AG's office--"These Payday lenders are the crooks and the ones committing fraud. We'd love for them to try to take a consumer to court so we can arrest them and take them to jail for operating illegally."--that is what I was told on the phone. Also, NC is a non-garnishment state except taxes and child support. (I think creditors/collectors who win suits against you can garnish too, but I'm not 100% sure) and these companies cannot garnish your wages and if you did 'sign' a voluntary wage assignment, the electronic signature won't hold up to most human resources departments. I was told to close my bank account and not to apply for anymore. Hope this helps ease your mind.

Thank you so much for the clarification!! I am sure Pumpkin will be totally relieved !!!

I hope so, I know I was. Haha, I told the guy that I talked to that I loved him and that he made my day! I know he probably thought I was stupid, but oh well. I can't believe some of the other states' laws, or lack thereof, in some cases. I guess I'm lucky to be in NC.

Yes you are...and that's what threw me!! LOL...I am used to dealing with different laws..

There was one thing I did not see in these post and to send a letter that you revoke the wage assessment that you may have signed.

No, ryan, it was included in one of the first posts by morningstarr. I hope the person caught it!