Purpose loans-helping a friend.

Is this the Purpose Loans that is backed by the First Bank of DE?

I think so. She is so upset because she dont want to pay anymore than she has too.

If they are backed by a bank then federal law allows them to import their interest rates. Meaning that since they are located in DE they are legally charging whatever they are, since DE has no limits.

She cant borrow a family or friends checking/banking account info. She wants to pay them off but she doesnt want to have to pay outrageous fees.

If they are backed by a bank then the fees they are charging are legal. She can try to get them to agree to something else, but they are operating legally with the backing of a bank. There really isn't much wiggle room.

so the total amount to be paid off could reach $ 1,000? if possible? :cry: so, since she cant pay anything on it until next week she's screwed? that just dont make sense to me that they cant work some kind of an arrangement with them.....

Working out an arrangement would be between her and the company. I'm just saying that since they are operating legally, they would not have to set anything up with her.

she's worried now and I dont know what to tell her.

then wouldn't this apply to all pdls in DE?

Goudah said this was an installment loan backed by a bank...that is different than a pdl.

Installment loans and pay day loans are completely different. Yes, you may still be "getting ripped off" by an installment loan; however, if they are licensed and operating legally, you're stuck. Unlike with unlicensed/illegal pdl's. Completely different, guest.

I talked to my gf last night- she's going to open a new checking account and give purpose loans the account info.....I hope this is the right thing to do?

They are pretty sneaky on how they work this to their advantage. They know that they are a pdl but are backed by a bank...what a joke they are...scum of the earth. They knew exactly what they were doing to people when they set this up as a "installment loan" under a FDIC bank.
:twisted:
ladybug

'Purpose Loans'..? I've heard of it. I know a few people that have 'looked into' this company. Is this like a Cash Call thing????

I think it is like cash call from what I have read about cash call.

ladybug

From what I understand (and I could be wrong because I don't have a Purpose Loan) is that you apply for a loan, they send it to different lenders and one of the lenders may offer to loan to you. I believe it's going to be a loan backed by some kind of bank or something. Regardless, it is apparently legal like Cash Call is. Correct me if I'm wrong. I've just read about others who have Purpose Loans.

I have a loan with them and they are MAKING me pay by my checking accoutn.......is this the ONLY option?

As far as I know that is the only option they offer. You can try to work out some other arrangements with them but I really doubt they are going to work with you.

ladybug

No, there is some kind of "law" stating a company can't force you to pay by ACH debit. It's called electronic something or other. Oh Lord. My mind is blank! It's posted here somewhere on this site! Oh geesh. Let me see if I can find it. Electronic funds something? Oh Lord. Hang on.........

Here's a post I found regarding it. However, I also pm'd frogpatch to quote me the law to post for further information. It's basically saying you can make other arrangements to pay other than just ACH debits. Here's what he posted. I'm going to still look for the quote he posted. Lord, I wish I could find it now!
Compulsory electronic withdrawls are a violation of Federal Law. You can revoke that priviledge at any time although the banks have not taught that to their people from what I hear.

Geesh! Found it! And it is compliments of one of goudah's posts! Here it is for your reading pleasure: :wink:

Do you think purpose loan will except that if they are shown this law?

Tweety, the laws don't seem to matter much to these places. Its always a fight

kash, didn't you say that ACH debit authorization can be revoked at any time? If this is done, wouldn't they have to take some other form of payment?

I believe(and someone tell me if I am wrong)that prosper insists on only ACH. They do what all these companies do, and try to enforce their own "rules" Even thouigh this co. is "legal", they dont always operate in a legal way.
Its the same as when we revoke the ach for any other lender. they don't listen.But again an ACH is completely voluntary.This particular company is almost impossible to work with. I would assume that it is better to let them send you to collections, so
an arangement can be worked out , without having to give banking info out
I revoked all my ACh debits, but they still tried to debit, even on closed accounts. Guys, once these people have your account they dont care if you revoked their ach priviledges. Im rambling I know , but it pisses me off knowing what lengths these people will go to. Most times a complete disregard for people and circumstances.

It's okay, kash. You're just stating a fact. Even though debit authorization in revoked, it seems as though no company abides by it. They continue to hit blocked/closed accounts.

Yeah !!! legal or not, they try to get blood from a stone. It really is so stupid. I mean if they get something back and it says "account closed' that should be it. I dont really understand their thinking.