I applied for a payday loan on May 19th. The following are the loans and payments taken by the company :May 19th loan 100.00May 14th payment 52.50, 40.60, 43.00= 136.10
May 14th loan 100.00May 19th payment 41.80, 35.70 = 77.50June 2nd payment 41.80, 41.80 = 83.60. Payment for May 14th loans was 161.10June 5th loan 100.00June 16th payment 41.80, 41.80, 42.80 = 126.70June 30th Payment 40.60, 40.60, 40.60 = 121.20 Payment for June 5th loan is 247.90.
In summary you have charged me 136.70, 161.30 and 247.90 for 3, 100.00 loans. Please go back and check your records as there is something seriously wrong.
To date this company has attempted to take over 2200.00 for 3x100.00 loans. 574.00 the company has received, the last payment they tried to take on Sept 23rd was for 1741.00.
See below the most recent email from this company and how they try and justify what they are doing. [continued below]....
..... I currently have a file open with the Ministry of Consumer Services and it has been assigned to an Investigator. I have the File # if you require it
I have copies of the Loan Agreements, PAD's, bank statements and all email correspondence.
Email reply from Payday Loan Depot.
Dear Ms. Gilmour, You need to moderate your tone. Calling a corporate entity to which you owe thousands of dollars a low life scum bag who preys on the needy and takes advantage of their situation and calls into question their intelligence is hardly the adult way to resolve dire financial circumstances. We often find it amusing that no one ever uses those terms when begging for a loan to bail them out of financial emergencies. At that time, we are always treated like knights in shining armour. It isnt until we ask to be paid in accordance with the legal document that the client signed before accepting the loan that the tone changes. As often as not, we find that this is often due to the clients poor knowledge of the way the loans are structured. For now, we will proceed on that assumption and offer an explanation of how your three loans are structured so that you can better understand how you have dug yourself a very deep hole. All three of your loans are of the consecutive type. This type is based on a typical pay cycle, usually two weeks. If, at the due date, the original loan amount has not been repaid, the client is debited for fees/interest and the loan rolls over into a new loan for the next period. The pattern is repeated until the original loan amount is repaid. We find that most misunderstandings originate in the clients belief that the loan payments go toward paying down the principle amount of the loan. This is not the case and as far as we know is not available in a payday loan. Payday loans are not amortised as a mortgage is. The simplest way of understanding this is to use the analogy of a rental agreement. In this case, you are renting money. Lets assume for our analogy that you have rented a car instead money. The rental agreement allows you to keep the car for the rental period at which time you owe the rental fee. This rental fee has not purchased a portion of the car. The rental agreement allows you to keep the car for additional rental periods on condition that you pay a rental fee for each subsequent period. If at some point, you decide that you have paid enough and now own the car, the rental company is likely to inform the authorities who will most likely use the term grand theft; auto. For the entire time that you have had the original loan amounts of the three loans, we have not been able to rent it out to other clients. We would not have loaned you the money if you had not agreed to the terms explained above. All of the loan agreements which you e-signed, are in plain English rather than arcane, legal jargon. You have had copious time and opportunity to contact us to resolve this unhappy situation. Instead, you have Stpped Payments or simply bounced our debits. We are not in the business of forcing hardship on our clients and offer a number of solutions to ease financial difficulties including payment plans that just about any one can afford. At no time have you contacted us to resolve this situation. Please advise if the above assists in your understanding of your loan structure. Thank you for choosing Payday Loan Depot as your source for short term cash.
From: Liz liz [mailto:firstname.lastname@example.org]
Sent: September-28-11 7:59 AM
Subject: How Stupid are you? RE: ~~~ Notice of Payment Return(30468)~~~
Importance: High In what reality do you justify charging me over 2200.00 for 3 x 100.00 loans? I want a complete breakdown of how you have come up with these charges. According to my records I have over paid this loan with previous payments and you now owe me $750.00 for the NSF bank charges I have received because of you trying to take payments your not entitled to. Your nothing but a low life scum bag who preys on the needy and takes advantage of their situation. I am currently taking legal actions to have you stopped and held responsible for your poor business practises. I will be awaiting the breakdown of the most recent $1741.00 you attempted to take from my account.