Need some advice on a payday loan mess

[tuckerpuppy08]

I hope this is the right place to post on this topic. If not, I'm really sorry. I am new here.

Here is my situation:

I recently made the huge mistake of taking out a payday loan with an internet company by the name of 500 Fast Cash. The amount of my loan was for $300. I had NEVER done a payday loan ever before in my entire life, but I was in a very tight spot as I had some emergent, unexpected expenses come up and I was right in between paydays. I had just paid my mortgage as well as some other bills and was very short on cash until my next payday. When I received the funds from 500 Fast Cash in my bank account, I called them and told them to be sure to take out the entire $300 plus the $90 fee on my next payday so that I could be done with it.

By the time my payday came around, I checked my bank account online and 500 Fast Cash had only taken out $90. I got right on the phone with them and told them that I had specifically told them to take the entire $390 out and not just the $90 finance charge. I don't want to have to keep paying these insane finance fees and end up paying way more than my $300 loan. The person on the phone was VERY rude and argumentative. She insisted that they had no record of me ever contacting them and telling them to do that, even though I both called AND sent them an e-mail! She was very unprofessional and her exact words to me were, "Like, for real, I have like no record of you ever calling us." She sounded like she was no older than 16 or 17!. I finally got sick of arguing with her and told her to just make certain that they take the entire $390 out of my account on my next payday in 2 more weeks, which she said that they would.

Two weeks later, on my next payday, they did it again. They only took the $90 out of my checking account. This time, I didn't even bother calling them back or e-mailing them, but I got right on the phone with the Consumer Credit Protection Department for my state. I explained the situation to them and they informed me that 500 Fast Cash isn't even licensed in my state, therefore, should not even be conducting any business whatsoever with anyone who lives in my state. In fact, they told me that there are only 12 payday loan companies who ARE licensed in my state, and none of them are internet companies. They even gave me the state government web site that lists all of the licensed payday loan companies where I live. Sure enough, there are only 12 and they are all local. The guy with Consumer Credit Protection even said that my only real option to get out of the whole mess would be to close out my bank account and open up a new one, which I just did yesterday and changed my direct deposit to go to my new bank. The guy from Consumer Credit Protection said that if I didn't do that, he was pretty certain that they would just continue to debit my account and cost me an absolute fortune. Plus, I went to the 500 Fast Cash web site today and checked my account and it says that I have only made one payment of $90, when I have made 2 and the third one is scheduled to come out in a week. They didn't even credit my last payment that they took out for $90 last week and only show the first payment!

Here is my question: Should I contact 500 Fast Cash via e-mail (no physical address is listed on their site) and tell them that I have found out directly from my state's consumer credit protection department that they are not even licensed to do business here and tell them that I will be filing a complaint with the BBB, my state, etc.? If I do contact them (most likely in writing through e-mail), should I tell them who I am and give them my so-called "account number" that they assigned me so that they know who they are dealing with? I have already opened a new bank account and changed my direct deposit to it. I shouldn't have even had to have gone through that. I have had my bank account for about 4 years. I'm so mad about this, but even angrier at myself for getting into this mess. I have more than learned my lesson and will never do this again!

[disneysteve]

I would not handle this by e-mail. I would call and be sure to get the name of the person you speak to. Ask for their mailing address. Then write to them and send the letter by certified mail, return receipt, so that you'll have proof that they received it.

Tell them that you want to settle your account and to tell you how to go about doing it. I'm sure, when they realize you closed your account, you'd be hearing from them anyway.

[minnie1928]

DisneySteve has great advice as always. Another thought to add to it would be to add a check for payment of the entire principal balance (either $300 or $210 (using the 2nd $90 as a pymt on principal)). If you send them a check, send them a cashiers check, not a check from your new checking account. They might just use the new account information in order to continue drafting from your new account.

[tuckerpuppy08]

Thanks everyone. I did call them and they told me that they do not accept payments via mail and would not even give me an address. What do I do now?????

[disneysteve]

I would speak to your bank. Ask if there is a way to wire them the payment without them getting any of your account info in the process. As minnie suggested, I wouldn't do anything that might give them access to your new account.

[cooliemae]

It sounds kinda fishy to me. I would suggest that if they take credit card payments over the phone, that you purchase a prepaid credit card and settle with them that way. However, any company that won't provide a physical address doesn't seem much like a legit company.

I looked up the site and read their disclosure agreement and it lists this address:
500 Fast Cash, 515 G SE, Miami, OK 74354

[minnie1928]

I would speak to your bank. Ask if there is a way to wire them the payment without them getting any of your account info in the process. As minnie suggested, I wouldn't do anything that might give them access to your new account.

To do a wire, he would need their banking information (bank routing number & account number) at minimum. Theoretically, the bank would have the routing number from the ACH/transfer records pertaining to the $90 debits...but I don't think the account number for the company is included in that side of the ACH transaction. And if it was, I'm not sure they would give him that information.

He could try and send a wire (assuming his bank would allow it) simply using the company's name only, but in all likely hood the receiving bank would send it back to his bank. A wire is supposed to have a valid name and corresponding account number, anything less can be denied by the receiving bank.

I worked in the wire room for a bank for about 10 years until this year...I know what I'm talking about when it comes to wires (other things....hard to say ).

[disneysteve]

Why not tell them that you've closed your checking account, which is true, and that the only way you now have to send them money is by mailing a cashier's check or money order. If they won't accept your payment, that's just too darn bad for them.

[disneysteve]

It sounds kinda fishy to me.

any company that won't provide a physical address doesn't seem much like a legit company.

Absolutely no doubt that this is a scam. I would report it to the state banking commission and the state attorney general's office.

[tuckerpuppy08]

Thanks so much for all the help! I actually just got off the phone with my bank (Bank of America) and they are going to put a stop payment on this company and, to be safe, are going to open a new account for me and close out my old one that they have had access to. They were so nice about it. The guy I talked to from my bank actually said the he has been through this before himself with a payday loan company and was more than happy to help me put a stop to this mess. (I still have my new account at my local credit union as well that I just opened). I am going to write to 500 Fast Cash and tell them I will be mailing payments as well as reporting them to the state banking commission and AG's office.

[KGeary]

Thanks everyone. I did call them and they told me that they do not accept payments via mail and would not even give me an address. What do I do now?????

I don't think this is legal. They can't refuse to accept payment on a debt via a valid form of payment.

Send them an email telling them that you're willing to pay them via check but will not give them access to your checking as they have been dishonest in the past. Note that they refused to give you a physical address. Note that they failed to do what they said they would do multiple times as well.

Print this out and keep it in your records. Then you're done. If they don't want to accept your money and they try to report it on your credit report, you have physical evidence that you attempted to pay and they would not accept. If they don't remove it from your credit you can sue them and you'll win.

These people are frauds and don't deserve an ounce of your time or energy past what you've already done. If they don't want your money, don't give it to them.

[scfr]

It sounds like you got really good advice from Consumer Credit Protection Department for your state the first time you contacted them. I'd call them again and ask them how you can settle with that sleazy company without jeopardizing your new account information. If they give you information about specific laws, write it down. Then, when you contact 500 Fast Cash, you can say something like "According to Agent xyz at xyz state's Consumer Credit Protection Department, the xyz Act of 1986 (or whatever year) states that ....." That should put those jerks on notice that you have done your homework, are in contact with the authorities, and they should take you seriously. Good luck.

[tuckerpuppy08]

These people are frauds and don't deserve an ounce of your time or energy past what you've already done. If they don't want your money, don't give it to them.

Thanks for your encouraging words! I totally agree! I have tried contacting them so that I can pay them the $120 that I owe them, but they refused to provide me with an address to send payments in the form of money orders. I have done everything I can, but these people are obviously just frauds and I am so upset that I have been taken by them. I will never do another payday loan again! If I ever need help, I will have to suck up my pride and ask friends or family, who have all just told me that I should have come to them in the first place, but I didn't since I hate asking for help.

[maat55]

Thanks for your encouraging words! I totally agree! I have tried contacting them so that I can pay them the $120 that I owe them, but they refused to provide me with an address to send payments in the form of money orders. I have done everything I can, but these people are obviously just frauds and I am so upset that I have been taken by them. I will never do another payday loan again! If I ever need help, I will have to suck up my pride and ask friends or family, who have all just told me that I should have come to them in the first place, but I didn't since I hate asking for help.

As trajic as your situation is, it is a valuable lesson to you and anyone else who may read this thread. I drive by those places everyday and thank God I don't have a rocket launcher.

[disneysteve]

maat55, the payday lenders you pass are sleazy and predatory but at least they are legitimate, licensed businesses. The one the OP got hooked up with online is not. Not that it makes the bricks and mortar ones any better, but at least you know exactly what you're getting when you decide to deal with them.