Been helping a friend with her report and she has a bounced check on there from 8/97. Well, she wrote it to some payday place because she really needed the money for her kids school supplies. It was some tough times...anyway...long story. It went to collections. They charged her 412% interest! Anyway, we sent out a validation letter and they came back with a printout and a copy of the check. She really wants to pay, because that un-paid collection will hurt her chance at getting her mortgage later this year. We want to try to get deletion of course. What is the best way to do this? Restrictive endorsement? Settlement letter w/check enclosed? I know that payment won't reset the clock, but I can't convince her. Dilemma! What would you do? By the way, this has got to be past SOL in NM. It was 5 years ago.
A copy of the check is fine, but make them validate that interest, seems to be alot of room for error.
I am not for positive but I would think a payday loan would be a written contract as any normal loan would be. That puts your SOL at 6 years which is not up yet. At 412% I can only wonder how much interest they tacked on to it.
I've read on the board that since it was an IOU, it is considered to be different. Hmmmm~ Any other thoughts on settling something like this?
I have heard from several others that there is no SOL on returned checks. It seems odd, but I have heard this in several places. Someone correct me if I am wrong.
rblues, That's an old debt. I helped a friend and also my self get a payday loan off my report and hers. The debt was sent to a CA in 98. The laws today are tough on Payday loan companies. They are basically Illegal in some states. Let me find the the letters sent, What State are your friends located? That's Key. Also we referenced 5 major class action lawsuits against Payday Loan Companies and indicated we were joining one that included them. They caved in and removed the tradeline. The CA sent a letter stating they had ceased collections and turned back over to the OC. The same letters were sent to The OC, then we disputed again with the CRA and a few weeks later they didn't verify because the CRA deleted it. Below is the link to the ClassAction Lawsuits. http://www.classactionamerica.com/cases/case.asp?cid=605 http://www.classactionamerica.com/cases/case.asp?cid=1113 http://www.classactionamerica.com/cases/case.asp?cid=1621 http://www.classactionamerica.com/cases/case.asp?cid=1634 http://www.classactionamerica.com/cases/case.asp?cid=1769 We included these and also the standard Validation letter with the below caption at the tail end of the letter. Your state should have a Usary, small loan and predatory law. Put the below paragraph in the letter. In my research Iâ??ve found what I think this is a â??Payday Loan Coâ?, in which the Georgia State Attorney General and Legislatures are very interested in these illegal setups. Georgia has a State Usury Law, Small Loan Law, and Predatory lending laws that prohibits such, so please forward all â??Proofâ? which includes sign contracts and TILA (Truth in Lending) which we can review with our State Office. Chances are they've been operating Illegal back from 1997. I wish i could find this file that gives the break down state by state of the law and and ton of useful stuff you can include, let me check around for that one also...
You are the BEST Backspace! It's in New Mexico. Any info about NM and Payday loan setups will be appreciated. It was one of those places that hold a check, but if you don't have the $$$ for the check, they let you write a new one and charge you more interest. So, since the CA sent the bounced check as validation and the printout of the account, what should we do now? Send a second letter stating what exactly? Sorry to be so needy, but I really have no idea how to deal with this kind of "debt". Thanks, Rblues
rblues, You can make them validate with the truth in lending disclosure. They must've disclosed these terms to you. Since this is a old debt chances are the CA has no leg to stand on and want you to cave and pay. I found the federal agency that gave me plenty of info and ammo to shoot my situation down, they have a state dept for NM with excellent info. I read the section PayDay MayDay and it gives you some good info. This whole website does that. Apparantely New Mexico has a Small Loan Act. Also the last website on this page is good also. I couldn't find that other letter, but with these sites and a nice letter will work great for you. Eventhough they sent you a copy of a check that showed money was deposited, ask for an ACH authorization by their bank to deposit funds into someones account, also ask your bank for the T's and C's(Terms and Conditions) on their policy. Also have them to locate the funds Transfer credit to the account. Chances are since it's so long, they won't have records, but still make the effort. The bank it was supposedly(wink, wink) deposited in will charge a research fee, but it's not much. It'll show you were putting forth the effort to validate what didn't happen. http://www.nmpirg.org/ http://www.ftc.gov/bcp/conline/pubs/alerts/pdayalrt.htm
Thanks for this great info! The loan was in the form of a postdated check. Funds were never deposited from the loan organization. So, she wrote a check to them and didn't go in to pay the interest one day and they sent the check through, but there was Insufficient Funds because she had never intended to have them send the check through...she was just going to keep paying them interest to keep the check and not send it through. (She was going through a really bad time). But to make a long story short, she was pretty much homeless and let the bank account close. So, my question is what kind of additional validation do we need given that situation?
