PDL Help with figuring out finance charges
Date: Wed, 08/15/2007 - 21:33
Submitted by gruntingtinyspots
on
Wed, 08/15/2007 - 21:33
Total Replies: 10
PDL Help with figuring out finance charges
(I have posted before on this same subject, sorry, but the matter is sort of pressing at the moment)
I took out a $200 PDL (apparently with SJM) May 2006. I have been paying $60.00 every 2 weeks since. Yes thats a solid 14 months. Now I found a website that shows the TN state laws regarding PDL's in TN, but I am confused and want to know if I am understanding them. The law is as follows from what I understand...
Tennessee passed statutes specifically authorizing payday lending. The fees and interest rates that payday lenders are permitted to charge amount to very large annual percentage rates. The effective apr for a 14-day $100 loan is 459%.
Fee's and Finance Charges: 15% of the face amount of the check
Minimum/Maximum Loan Amount: $500.00
Minimum/Maximum Term of Loan: 31 Days
So the way I am understanding this is on a two hundred dollar loan, for 1 year the maximum finance charge I can incur is $459 per $100. Therefore on a $200.00 loan the max would be $918 for 1 year (12 months)plus $153.00 for two more months of the time I have been paying on the loan which comes to $1071. I have paid minimum (haven't figured it up yet)easily $1600.00 to date, actually I am fairly sure its more. So does that mean that I have over paid this loan by $529+ and in fact they owe ME? My principle hasn't been paid down a bit, I'm sure. Atleast I don't think it has. I didn't have a working number for SJM till today. I found this site because my bank was trying to track a number or any info for these people and THEY found you, and sent print off's from this forum along with an affidavit, telling me that SJM is a fraud! (Now thats service). I am not trying to 'screw' anyone, and I believe in paying my bills. And yes I feel as though I have paid them enough, but want to know if the LAW is on my side or if I should just suck it up, wait for them to call me back and PIF the 200.00+60.00?
BTW, I never wrote them a check, never recieved anything in writing. However I do remember speaking with someone on the phone with a very thick accent and I couldn't really understand them. I'm really trying to figure out if I should just send in the affidavit since they gave me an incorrect phone number and they aren't really listed on the net except for here and thats only because of all of the horror stories and court stuff. Someone please help. I stress out very easily, and I don't want my conscience playing with me. I need to know what I can do if anything. If not, I guess I will suck it up and pay them more. They are taking out the amount that I use to buy my mothers medications monthly (and that bill keeps going up week by week these days). That money is more than needed between my mother, and 3 kids. Thank you to anyone who can shed light and help me understand where I stand with TN state law.
This is how you would do it: You will find the Payday loan laws
This is how you would do it:
You will find the Payday loan laws for Tennessee here (just select your state),
http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html
Quote:
Email to and from TN Banking Dept Hello, I'm trying to make sense of the payday loan laws in Tennesse. How would I go about calculating the allowable interest? Thanks! Response Technically it is not an interest rate but service fee and this is how it works. The fee cannot exceed the lesser of 15% of the check amount or $30. So if you have a check amount for $100, the service fee would not exceed $15 (15% x 100). Keep in mind the fee is on the check amount, not cash amount. If the consumer requests $100 in cash, the check amount would be $117.65. The check amount of $117.65 x 15% equals $17.65, and cash is $100 ($117.65 - $17.65 = $100). If the customer asks ... "how much should I write the check for if I want $50?" You can back into the check amount by taking $50 and dividing it by 85% or .85. In other words $50 divided by .85 = $58.82. You can verify by multiplying $58.82 x 15% = $8.82 service fee. $58.82 - $8.82 = $50. Remember the service fee is limited to $30 on all checks exceeding $200. |
The thing is rollovers are not allowed. So you would legally only be able to be charged $230 for the loan.
You have more then overpaid them! I wouldn't give them another dime. You need to stop them from taking any more money. Please read this thread about some info you need to know when closing your bank account:
http://www.debtconsolidationcare.com/paydayloan/close-account.html
Ok, I really do want to close that account. My mother opened tha
Ok, I really do want to close that account. My mother opened that account almost 30 years ago with the Credit Union. Secondly, my name is no longer on the account and hasn't been for months. I would have called and told them that but like I said previously, I didn't have a working number for them. The credit union has been great with us. Even with this issue, they are the ones who looked them up (since no info came with the debits other than Ellis Crosby's name and SJM Marketing...no address or phone). When they looked them up they immediately told us it was a scam. When the credit union sent the affidavits in the mail they also included copies of the posts ON THIS SITE (this is how I found you guys). So I did a little digging and came up with the email address for these folks at info(at)platinumbservices.com (is that correct?) and I emailed them. Here is what I said...
I took out a loan from SJM Marketing in May of 2006. Since then I have been paying $60.00 every two weeks. Yes thats over 14 months worth of payments. The original loan amount was 200.00 with a $60 finance charge. To date I have paid more than 1700.00 to your company. In the state of TN it is illegal to 'refinance' a loan. The phone number I originally got from your company was bogus, so there was no calling to have it paid off. I just found your number and email address (thanks to my BANK), although nothing was listed under the transactions except Ellis Crosby's name. They found out information on the internet about this company and informed me you were a scam. I tend to agree since I was given a bogus 800# to call when I wanted the loan paid off. That was a year ago. I figured you guys kept taking money out so the loan was being paid off. There is NO WAY that I still owe 200 or 260 on that loan. Considering that since the Tennessee laws state that you can charge no more than $15 per $100. I'm just requesting that this loan be marked paid in full and a refund of the last payments you took from me. I am also requesting that I recieve a print out with all payments made and the status. Furthermore I am to recieve no calls at work. You may call me at home if there are any questions.
Cheryl (I included my last name, city and state, and phone number (a real number, lol, unlike them).
So question, what this correct? I am also wondering since my name is no longer on the account if its still legal that they keep debiting it? I know I didn't inform them but the reason why has already been stated. Sorry, I am terrified of them calling me at work, since I work in a really small office.
Oh and I had to create a new username since it wouldn't let me l
Oh and I had to create a new username since it wouldn't let me log in under the other. I asked that a new password be sent to me but it never did (even 14 hours later). I could not find a contact us button so I couldn't do that and it wouldn't let me post as 'guest'. Sorry if this is wrong.
If you click on the Live Help thingy on the side of the page the
If you click on the Live Help thingy on the side of the page they can help you with the log in issues.
I think the letter sounds good.
I hate to say this, but the account may have to be closed. This company is terrible. They will keep trying to hit your account. They will use other names. They will send through a paper check. Unless your bank is very good about things, and they are prepared to send back a ton of transactions, then closing the account is really the best option. If this is the only pdl, and the bank is super cooperative, you may be able to get away with keeping it open. But I will tell you it will be a royal pain. This company will not give up easy. They will debit and debit and debit. You will be spending a lot of time at the bank filling out those affidavits. Just be prepared . . . . . Can the credit union just change the account number? Normally it's best to go to another bank, but since your bank is so helpful and it's only 1 pdl, changing the account number may work.
We could possibly change the account number. Do you know if anyo
We could possibly change the account number. Do you know if anyone has ever gotten a PIF from this company on a PDL by way of the BBB? I was reading earlier and I saw that some people on here were getting a PIF on their PDL's (from other companies) because of the BBB sending out letters? From what I read on here, this company is horrible to deal with. I am almost tempted to just pay the darn thing off just to not have to deal with them. Although the email I sent has so far gone without a response. I am pretty sure that I will find the same with calling them. Thing is, I am a big wuss. I am terrified to call them for fear of what they might do or say. I know that typically that blow a lot of hot air your way, but I stress very easily (forgot to place a dog food order today at work and its totally stressing me out, lol).My next withdrawl is supposed to go through next Friday.
Oh, and since my name is no longer on the account can they still legally take money from it?
account
Whatever bank account information you gave them, they will debit. They go by the routing number and account number. They don't give a flying crap who's name is on it. That's the routing number and account number given to get the loan. So they will debit it.... forever.....
So I think I am going to just pay them off. Its gonna hurt but I
So I think I am going to just pay them off. Its gonna hurt but I am stressing over this too much. I know my mom and my husband think its ridiculous for me to give them another dime, but I just don't want to deal with the headache. I have 3 kids and a hard to please boss to worry about on a daily basis, I don't want to deal with them too. I did put in a complaint to the BBB though on them. Their reputation isn't so good on there although on the BBB its listed as Platinum B Services. There isn't even one SJM Marketing on there except for the one I just submitted.
complaints
File with the FTC www.ftc.gov and also your state AG. Just google your state attorney general and the site will come up. You can file a complaint under consumer protection. I'm sorry to say that about the bank account, but these pdl's don't care. As long as they have an account number, they will debit. Forever.
thanks
Thank you! Every complaint helps. The FTC and the state AG offices need as many complaints as possible. They need to know what's going on. Plus the fact that they will more than likely contact the companies for you. Maybe a letter from the state AG will at least draw their attention!