How to Get Out of Payday Loans

18 Ways to Kiss Your Payday Loan Lender Goodbye
Payday Loan Help

Tactics to get out of your payday loans by Royal Paine

FTC Ends Payday Loan Abuse. Do you owe these guys money? Read on to discover how to get out of your payday loans.

The FTC settled with Timothy A. Coppinger, Frampton T. Rowland III, and their companies who “targeted online payday loan applicants and, using information from lead generators and data brokers, deposited money into those applicants’ bank accounts without their permission. The defendants then withdrew reoccurring ‘finance’ charges without any of the payments going to pay down the principal owed.”

The Court subsequently halted the operation and froze the defendants’ assets pending litigation.

The FTC’s complaint against these alleged rogues stated “The defendants told consumers they had agreed to, and were obligated to pay for, the unauthorized “loans.” To support their claims, the defendants provided consumers with fake loan applications or other loan documents purportedly showing that consumers had authorized the loans. If consumers closed their bank accounts to stop the unauthorized debits, the defendants often sold the “loans” to debt buyers who then harassed consumers for payment.”

The FTC complaint went on to say, “The defendants also allegedly misrepresented the loans’ costs, even to consumers who wanted the loans. The loan documents misstated the loan’s finance charge, annual percentage rate, payment schedule, and total number of payments, while burying the loans’ true costs in fine print. The defendants allegedly violated the FTC Act, the Truth in Lending Act, and the Electronic Funds Transfer Act.”

The FTC proposed settlement “orders extinguish any consumer debt the defendants are owed, and bar them from reporting such debts to any credit reporting agency, and from selling or otherwise benefiting from customers’ personal information.”

The defendants in this particular FTC case are Timothy Coppinger, CWB Services LLC, Orion Services LLC, Sandpoint Capital LLC, Sandpoint LLC, Basseterre Capital LLC, Basseterre Capital LLC, Namakan Capital LLC, and Namakan Capital LLC, and Frampton Rowland and his companies, Anasazi ervices LLC, Anasazi Group LLC, Vandelier Group LLC, St. Armands Group LLC,; Longboat Group LLC, doing business as Cutter Group, and Oread Group LLC, d/b/a Mass Street Group.

The FTC settlement orders impose “consumer redress judgments of approximately $32 million and $22 million against Coppinger and his companies and Rowland and his companies, respectively.”

To get out of your payday loans, read my new book, “How to Kiss Your Payday Loan lender Goodbye” by Royal Paine.

For FTC contact information visit the original FTC Press Release.

18 Ways to Kiss Your Payday Loan Lender Goodbye

Payday Loan Help: How to Get Out

This from the FTC regarding bogus payday loan company making threats against payday loan borrowers. Payday loan help.

A California man who worked with bogus debt collectors in India has agreed to settle Federal Trade Commission charges that he and his companies deceived and threatened consumers into paying debts that were not owed or that the defendants were not authorized to collect. As part of the settlement, the defendants will turn over nearly all of their assets, amounting to an estimated $170,000, which will be used for consumer refunds.

The case against Villa Park, California-based Varang K. Thaker, American Credit Crunchers, LLC, and Ebeeze, LLC, is part of the FTC’s continuing crackdown on scams that target consumers in financial distress. The settlement order bans the defendants from debt collection, and prohibits them from misrepresenting:

  • that they are affiliated with the government or a non-profit group,
  • any terms or conditions for buying any good or service,
  • any aspects of the good or service, and
  • their refund policy.

The order includes a $5.4 million judgment, which is equivalent to the full amount of injury. The monetary judgment will be partially suspended due to the defendants’ inability to pay, but if it is determined that the financial information they gave the FTC was untruthful, the remaining amount of the judgment will become due.

The FTC’s February 2012 complaint alleged that the callers who worked with the defendants would contact consumers who previously had received or inquired about online payday loans. Often pretending to be law enforcement or other government authorities, the callers would falsely threaten to immediately arrest and jail consumers if they did not agree to make a payment on a supposedly delinquent payday loan. The FTC alleged that information submitted by consumers who had applied online for these loans found its way into the hands of the defendants, who used it to convince consumers that they owed them money.

Saying they represented the local police department, the “Federal Department of Crime and Prevention,” or simply a “federal investigator,” the callers allegedly typically demanded more than $300, and sometimes as much as $2,000. At other times, the callers claimed to be filing a large lawsuit against the consumer, or threatened to have the consumer fired from his or her job, according to the FTC. But the consumers did not owe money to defendants – either the payday loan debts did not exist or the defendants had no authority to collect them because they were owed to someone else, the FTC alleged.

Consumers received millions of collection calls from India, and in a two-year period the operation took in more than $5 million from victims, according to the FTC. During that time, consumers filed more than 4,000 complaints with the FTC and state attorneys general about fraudulent debt collection calls.

The FTC charged the defendants with violating the FTC Act and the Fair Debt Collection Practices Act. According to the complaint, they:

  • falsely told consumers they were delinquent on a loan, they must pay it, and the defendants had the authority to collect it.
  • falsely claimed to be law enforcement authorities or attorneys.
  • made false threats against consumers who refused to pay the alleged debts, including threats of arrest or imprisonment.
  • harassed and threatened consumers so they often paid the alleged debts out of fear of being arrested or sued.

Advance America Payday Loans – Hell

How to Get Out of Your Payday Loan
How to Get Out of Your payday Loan

As told to CRL by the borrowers regarding Advance America payday loans:

Arthur Jackson, 79, a 69-year-old warehouse worker and grandfather of seven, went to the same Advance America payday shop for over five years. His total interest paid is estimated at about $5,000 for a loan that started at $200 and eventually increased to a principal of $300. Advance America flipped the loan over a hundred times, collecting interest of up to $52.50 each time. Every payday, rather than defaulting or coming up short on bill money, Jackson went into the Advance America store, renewed his loan, and paid the fee. The clerks knew him by name, and often had his paperwork ready for him when he came in.

Anita Monti, 80 an older American, went to an Advance America payday loan store in hopes of finding a solution to a common problem—how to afford Christmas gifts for her grandchildren. Unable to repay both the principal and interest on the initial loan, Monti had no choice but to renew her loan with Advance America every payday, paying $45 many times to keep the same $300 loan outstanding. She went to a second payday lender, Check ‘n Go, to help repay Advance America. Monti could not afford the $820 it would take to pay off the two loans in full and get out of the trap. After just four months, she had paid almost $1,000 in fees and still owed the $820 in principal borrowed. “I got a promotion and a raise, but I never saw any of that money,” said Monti. She finally went to her church for help making her rent payment and to a consumer credit counseling agency for help in negotiating a repayment plan for the payday loans. It took Monti nine more months to complete these payments.

Payday Loan Help

How to get out of your payday loans
Payday Loan Help

By: Royal Paine. Help Getting Out of Payday Loan

As reported in the Texas Observer: Roger Tillman, a 64-year-old living in Houston, took out a $500 payday loan from The Money Center in 2008 after the security company he worked for scaled back his overtime shifts.

The Money Center currently offers $500 two-week loans for $150 in interest and fees, or about 650% APR. Like many borrowers, Tillman was unable to pay off the loan and thus renewed it, resulting in deepening debt until October 2009, when he was laid off.

He reports that he requested an extended repayment plan but was not given one. In November 2009, the lender filed a criminal complaint against him, demanding that he pay $1,020 within ten days or potentially face felony charges that carry two to 20 years in jail and fines up to $10,000. “In all, the district attorney demanded $1,250, including ‘district attorney fees’ of $140 and merchant fees of $90”—even though Texas law prohibits payday loan companies from threatening to pursue criminal charges against their customers, except in unusual circumstances.

Do YOU need help getting out of YOUR payday loan? If you’re like 35 million other borrowers, you do. Get my newest book over at Amazon. For less than the price of a coffee ($2.99) I guarantee you’ll learn how to blow-off your payday loan lender.

Royal Paine

Payday Loan Horror Stories-Help

18 Ways to Kiss Your Payday Loan Lender Goodbye
Payday Loan Help

Help Paying Off Payday Loans

As recorded by the National Consumer Law Center:

Mr. B, a Social Security recipient using Wells Fargo’s payday loan program, found himself paying exorbitant interest rates and locked in a cycle of debt that aggravated rather than alleviated financial distress. Mr. B needed help paying off his loans. A review of 39 consecutive monthly statements showed that Mr. B had taken out 24 payday loans of $500, averaging approximately eight days each, with the shortest running just two days and the longest 21 days. The finance charges for these short-term loans totaled $1,200, and their effective APRs ranged from 182 percent to 1,825 percent. Ironically, even though bank payday loans are marketed as a way of avoiding overdraft fees, Mr. B still ended up paying $676 in overdraft penalties on top of the $1,200 in loan fees.