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shellieh98

My California friends

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I have a friend in kern co. That was threatened by a payday loan company of a lawsuit. Do you know where she would go to see if a suit has been filed? She lives in Bakersfield. They are trying to claim she owes 3X the amount she borrowed, and paid. I told her to post here, but want to see if there is a pending suit.

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@calawyer what county are you in? Long complicated story, but might need your expertise- paid of coarse if you are close. 

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1 hour ago, shellieh98 said:

They are trying to claim she owes 3X the amount she borrowed, and paid.

Unfortunately with those payday loans that is entirely possible.  The interest rate is somewhere around 800% per year.  

1 hour ago, shellieh98 said:

I have a friend in kern co. That was threatened by a payday loan company of a lawsuit.

If this is a brick and mortar store front lender they are very likely to sue.  If it is an internet based lender not so much.

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the way i found out that there was a lawsuit against me was after searching the court website and my named came out in the search. 

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No she borrowed 100, paid it back (117) several times. This last time when she went to pay it back they told her she borrowed 300. She didn't, but she did not check her contract. Now they are telling her they are about to file in kern co court,  but the court has been trying to contact her.  She paid them the 117, not the 300 they say. Now they say it is up to almost 800.00. She borrowed it in Aug. 2016.  Fishy,  and they called her reference contact several times, don't know what they disclosed but the friend told her she could be arrested. (Eye roll) I told her 1st thing is to find out if a case is filed. My search didn't show anything but I could only get superior court returns.

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On 5/16/2017 at 0:57 PM, Anon Amos said:

CA laws only allow 29% max interest per year.

On a yearly contract.  On payday loans:  it is much worse.  I found this from a payday loan lender in CA:

                                                                           FEE SCHEDULE

AMOUNT                FEE                        AMOUNT OF                                       ANNUAL PERCENTAGE RATE

PROVIDED                                            YOUR CHECK                                          14‐DAY APR        30‐DAY APR

$50                            $8.80                           $58.80                                                     458.86%                   214.13%

$75                           $13.20                         $88.20                                                     458.86%                   214.13%

$100                        $17.60                         $117.60                                                 458.86%                    214.13%

$125                        $22.00                         $147.00                                                 458.86%                     214.13%

$150                        $26.40                         $176.40                                                 458.86%                     214.13%

$175                       $30.80                          $205.80                                                 458.86%                       214.13%

$200                        $35.20                         $235.20                                                  458.86%                      214.13%

$225                        $39.60                         $264.60                                                  458.86%                      214.13%

$255                        $45.00                         $300.00                                                   460.08%                     214.71%

A FEE OF $15.00 WILL BE ASSESSED IF YOUR CHECK IS NOT PAID BY YOUR BANK.

WE CANNOT USE THE CRIMINAL PROCESS AGAINST YOU TO COLLECT ANY DEFERRED DEPOSIT TRANSACTION.

PAYDAY LOAN, LLC IS LICENSED BY THE CALIFORNIA DEPARTMENT OF CORPORATIONS UNDER THE CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW.

8 hours ago, shellieh98 said:

Fishy,  and they called her reference contact several times, don't know what they disclosed but the friend told her she could be arrested. (Eye roll)

@shellieh98 this statement on a payday lender in CA site should be of interest to you:

WE CANNOT USE THE CRIMINAL PROCESS AGAINST YOU TO COLLECT ANY DEFERRED DEPOSIT TRANSACTION.

I believe CA law does not allow them to use the criminal courts or even the threat of using them in collecting on these loans.  I would be speaking to a consumer attorney ASAP about a possible counter claim against them.

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@shellieh98

The numbers provided by @Clydesmomcoincide with the numbers in the following link and provided by the CA Dept. of Business Oversight.  It has some more information which may or may not be helpful.

http://www.dbo.ca.gov/forms/CDDTL/CDDTL-001-Payday_Loan_Trifold_PDF-FINAL-(Rev.08-13).pdf

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I don't doubt they charge and collect those amounts, but we have laws that won't allow  over 29% if challenged in court if It got that far. A consumer attorney would be a good idea.

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4 minutes ago, Anon Amos said:

I don't doubt they charge and collect those amounts, but we have laws that won't allow  over 29% if challenged in court if It got that far. A consumer attorney would be a good idea.

The information was provided by the CA Dept. of Business Oversight and is based upon an "equivalent".   A payday loan company can charge a maximum fee of 15% of the amount of a check.   That's the equivalent of 460% for a two-week loan.   So, they're not actually charging 460%. 

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So I called them, pretending to be her. They had the total as 796.00 and said they were trying to get a servable address. I talked with my friend and she did not pay them, she tried, but they wanted the whole 300.00, so she didn't pay the 117.  Probably could have won if she went to  court, but I don't think she was up for it, she confuses easily so I negotiated a settlement for her (lowballed them big time) and they took it! so I think it's probably worth it to her not to have to stress out about it, and she promises to never use pay day loan companies again.  Thanks everyone for your input.

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