Payday loan

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Latest post 12-02-2010 3:06 AM by clivewilliam. 12 replies.
  • 09-30-2009 11:10 AM

    • aketcham
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    Payday loan

    I have had for the last two days received calls from a Law Firm, Crime Monitoring center, stating that I had taken out a payday loan over the internet in 12/2008 in the amt of $400.00. This person stated that when they tried to repay the loan that the transaction was returned NSF.  There is a few issues with this: 1. they couldn't tell me the company that the payday loan was taken through, all they said that the person filing the suit against me was the National Payday Services. 2. I never took out this loan or received the money into my bank acct and I tried to explain that to the person calling and he stated that he didn't care. I said well before I pay for something that I didn't do, I wanted proof that I had done it and that I received the money from it. He stated that I would receive the proof when investigating officers come to my place of employment and serve me and my employers with the papers and at that time I will be taken down to the courthouse where I will have to pay a $5000 fine and possible be put in jail because I committed some federal crime. I need to know what I am supposed to do. Without knowing the company I can't send proof to them that the money was never received into the acct in for that amt or at that time. The person that called me was very rude and then when I called back the person that I talked to said that I would suffer from my choice of not paying right then over the phone. That I was going to loose my job, be put in jail and have to pay $5,500. He was screaming at me and very threating to me. I need to know what are my options, as I have no clue what to do about this matter. Can they do these things to me, and how and to who do I prove that I didn't do this?

     

    Thanks,

    Angie

  • 09-30-2009 11:23 AM In reply to

    • Kivi
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    Re: Payday loan

    I seriously doubt that anyone has ever gone to jail over a pay day loan problem. 

    If this company bought the debt from the original lender, what the collector said did violate the Fair Debt Collections Act.  If, however, the call was from the original creditor, then that law will not govern.  You would have to determine if some state law might apply here.  Unfortunately, making a compliant boils down to a he said, she said situation and likely will not get you very far.  Still you might contact your state's consumer protection agency or Attorney General's office and see if there have any another compliants against this company. 

    Personally, I would ignore them until you actually receive that court summons.  If that one actually happens, you will be appearing in civil court.  The collector will have to convince the judge that it did buy the debt or is the person entitled to the judgment against you.  There really is no law that says you are entitled to such evidence until such time as you are sued.  (I know there is stuff about debt validation in the Fair Debt Collections Act, but what consitutes acceptable validation is very nebulous since the statute does not really define it.)   At that point, you can use the discovery process to obtain such evidence. 

  • 09-30-2009 12:18 PM In reply to

    • aketcham
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    Re: Payday loan

    When I asked what company that he worked for he first told me that this is a law firm, then i said yes what is the name, then he said it is a crime monitoring center, then i said i want a name and he said you will have to talk to someone else, so he transferred me to someone else and that person told me that the company name was Lanphier. i tried to look it up on the internet and found nothing., except an ins co which i don't think that that is the company. Can they legally serve me the court summons at my place of employment and also serve one to my employer?

     

  • 09-30-2009 12:31 PM In reply to

    • Kivi
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    Re: Payday loan

    A process server can serve you where he or she can find you.  In some states, taping the summons on the door of your last known address is sufficient.

    Whether serving your employer with the promise that the employer will give you the summons is effective service is mostly a matter of state law.  In most states, it would not be. 

    There is nothing to prevent a process server from waiting outside the door of your employer and giving you the summons then.  However, the chances are good that this debt collector does not know what you really look like.. 

    You are more likely to be served at your home addess than at work for that reason. 

  • 09-30-2009 1:22 PM In reply to

    • aketcham
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    Re: Payday loan

    So are you suggesting that I just wait and see what happens? and then if I do get served witth papers go from there. On the summons, will it have the company that they loan was taken out through, or what kind of info will be on there?

    thanks

     

  • 09-30-2009 3:55 PM In reply to

    • Kivi
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    Re: Payday loan

    The info on a court summons, if it actually gets this far,  probably will be rather brief.  It should have the name of the person or company who is suing you and perhaps will state that the law suit is about an unpaid debt.  There likely will be a docket number and, probaby a court date and court room number and address of the county court that would hear the case.  There also likely will be some standard routine instructions for that court attached..

    I wouldn't think that there would be much more than that on the actual summons. 

    In most states (but, I don't know about MN), this one would not be heard in small claims court.  You would have to utilize the discovery process before the court date to obtain the info that you want about this alleged pay day loan. 

    BTW, there is nothing preventing you from searching your own bank records to see if you did receive a $400 electronic deposit from somebody back in December of 2008.  I am getting the impression that you have taken out pay day loans in the past.  You just do not seem sure that you took out one from this particular place.  I can't tell you how beneficial it is to regularly balance your checking account.  Then you would not be in this position of trying to remember what you did ten months ago. 

  • 10-01-2009 1:02 PM In reply to

    • aketcham
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    Re: Payday loan

    I have already checked my bank acct and there was never a payday loan EFT deposit into the acct that they told me there was in 12/2008. I told them this when i talked with them and they didn't really care. I do balance my checking acct and i knew that I have taken payday loans out in the past but it was not at this time and i never received the money from this payday loan.

  • 10-01-2009 1:12 PM In reply to

    Re: Payday loan

    I can't speak for your state but in several states in the south:  NC, SC and others that allow these usery payday loans the prosecutors refuse to indite on NSF charges because these places know the checks are no good when they accept them.  So you can check with your local law enforcement or google it in your state to find out if they view it the same way. 

    Basically the DA views it as an actual LOAN and not a criminal act as the business knows the check is no good at the time it is accepted in trade for the money and therefore will not prosecute it as a criminal act since the person writing the check is not intending to defraud the business.  So they treat it as a civil issue and the payday company has no recourse other than to file a civil case and seek a judgement through small claims court.  If it is the same in your state then their threats of criminal action may be illegal and attempts at extortion and you may have a case against them.  Especially if you DON'T have a loan through them. 

    "That's just my opinion, then again I might be wrong."  Dennis Miller

     

  • 10-01-2009 1:54 PM In reply to

    • aketcham
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    Re: Payday loan

    Unfortuanetely all the threats of criminal action was over the phone and I didn't record the phone conversation. So I really dont't have any evidence that they threatened me.  I just don't want them to come to my place of employment and serve me with papers as this will be very embarassing to me, especially since I took no payday loan out and am not responsible for it. That is my main concern. If I do get served with papers I can prove with my bank acct statements that I never received that money from any payday loan place into my acct. I'm also concerned that they might try to take that money out of my acct. Would you suggest that I close that acct out and open a new one?

    Thanks

     

  • 10-02-2009 10:41 AM In reply to

    • Kivi
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    Re: Payday loan

    If you never took out a payday loan, then this place does not have your account info. 

    Therefore, whoever is contacting you would have to go to court and get a judgement against you.  You would have your opportunity to dispute that you ever received the money in court.  Unfortunately, there is no absolute way to totally prevent service of the summons at an incovenient place or time.  On the other hand, I would not lie awake at night worrying about it.

    Once the collection agency has a judgment, it can go "fishing aournd" for your bank account and put a levy on it.  If your state permits wage garnishments, it can also take that route. 

    But, all of this costs money with no guarentee of success.  I would be surprised if this one got that far for $400.  What is more likely is a "black mark" on your credit reports. 

  • 10-02-2009 12:28 PM In reply to

    • aketcham
      Consumer
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    • MN
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    Re: Payday loan

    I have taken out payday loans in the past, but I didn't take one out at this time or for that amount that they are stating that I did. They do however have my bank acct info, because they told me the acct that the money supposedly went into. When I go to court, if it gets that far, all the proof that I will have is my bank acct statement for 12/2008 showing that I never recieved the money into that acct and that no payday place ever tried to take any money out of that acct either. So I don't understand how this can go against me when I can show that I never received that money. Also because they have my bank info, should I close that acct?

    Thanks,

    Angie

     

  • 10-02-2009 4:59 PM In reply to

    • Kivi
      Consumer
    • Top 25 Contributor
    • Joined on 01-01-2005
    • CA
    • Posts 6,139

    Re: Payday loan

    Should you close the account?

    I would.  You can open an account somewhere else.  You are not at the stage where you need to use money orders for everything.

    I might try an Internet bank or a local credit union.  If the creditor gets a judgment, it probably will try the bigger banks in your community to see if you have an account.  Find a bank or credit union that might be "under the radar" somewhat but that still provides most of the services that you want or need.

    Also, no more pay day loans because there is a specialized credit reporting agency that most of these places use. This creditor might be able to track your new bank account info from that agency if you take out any future payday loans..

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