Indian payday loans? Not sure what to do??

[jensu82]

Long story short, I applied for one of these loans over 3 weeks ago and after seeing the amount and what they wanted back, I decline the loan.

Fast forward to 3 days ago, my savings account has $300 extra dollars in it... HUH??

Even though I declined the loan 3 weeks prior, they still deposited the funds. I have been calling them to get it reserved but I'm being told no, the loan was approved and I'll have to repay $390.

The money is still sitting in that account because I don't want any part of it. If it was a loan that I would have acknowledged, why did it take 3 weeks later to deposit it. I KNOW I DID NOT approve it.

I'm in Indiana and this is from one of the online payday Indian tribal loan sharks... Is what they did legal????

How do I fix this? We obviously don't have the extra $90 to them.

[HHM]

The situation is going to turn on more facts.

When you say you "declined the loan." How exactly did you do that.

Since this was online, I imagine there was some sort of online application and probably terms and conditions.

As for fixing it, not really sure. At a minimum, you will need to return the $300. From there, either wait for them to sue you for the difference, or go to court and request a declaratory judgement that you don't owe the debt.

[jensu82]

When I declined it, there were two options. I could either accept or decline. I opted to decline because it was so expensive. My mom ended up gifting us the money to fix our dinosaur van.

When I first entered in my info, it asked for all my information, including acct # and routing #.

After I declined, I didn't hear anything back so I figured everything was done. Then on Monday (3 weeks later), I saw that I had an extra $300 that I knew we didn't deposit it.

[jensu82]

Also, after looking at what they sent me, they are stating that I have to pay the loan in full otherwise, it renews itself every two weeks. The renewal is $90 and it does not go towards the principle either...

[HHM]

Honestly, I am not even sure who you would contact about this.

1. Maybe your state's attorney general's office since loans and whatnot are regulated by state law...but
2. Since we are dealing with an Indian Reservation, maybe the feds.

Without really researching it, I am somewhat stumped.

I would immediately return the $300...beyond that...all you can do is see what happens. Maybe it is a scam and they won't do anything.

[jensu82]

I've tried returning it through the online site and when that didn't work, I called the number listed in the contact us and they wouldn't just take the money. I was told too many days have passed and I was in the contract.

I don't understand how I'm in any contract when I decline the d*#n thing!! I tried to explain this over and over but I just kept getting the same response...

Monday morning, I'm going to have to do some digging but in the meantime, I don't know what to do? Do I keep my savings account open and just let them keep taking the $90 out of the $300 that they deposited or do I close the account and send them a cashier's check for the $300??

[LadyInTheRed]

Close the account and open a new one. That's the only way you can be sure they won't try to take money. I would send them a cashier's check for $300 with a letter stating that I clicked "decline" after reading the loan terms, did not want the loan and do not intend to pay any fees or interest. Send the letter by certified mail, return receipt requested.

[wantout]

You may need to repay the full $390 to get them off your back, the see what a lwyer says, but really above all else count this up as a lesson about those places.

[TheBajan]

I second the advice that Lady gave you. I would close the account in a heartbeat and open a new one at a completely different institution. Send them back the $300 and insist on proof that you accepted the terms of the loan before sending them anything else. Best of luck to you.

[AngelinaCat]

I THIRD the advice that Lady gave you. If after all that they try going after you, tell them to pound sand.

[jensu82]

Okay so I've been researching more and I'm finding that these online payday loans are actually illegal in my state unless the lender is licensed and complies with Indiana law.

In theory, I should just be able to return the $300 and write this in my certified letter. Right?

http://w w w.in.gov/dfi/QA_Small_Loan.pdf

Now I'm worried as to how this may play into when we file BK if they don't honor the letter and the fact that I never accepted the loan in the first place.

[Peeps]

Indiana law may not afford you as much protection as you might like since the lender is operating from an Indian reservation, which acts as an independent nation. As you've already seen, they don't have to comply with usury laws, either. It would probably be best to keep it simple and not quote state laws around which they already skirt. Lady's suggestion seems the most straightforward and probably affords you the most protection in the long run. Best of luck.

[Tater]

I agree with LIR as well but you may want to contact your state's attorney general's office regarding the matter.

[bcohen]

I fourth the advice given in post # 7. Close the bank account, and get a statement in writing from the branch manager that the account CANNOT be reopened, and NO fees will be charged if the payday lender attempts to debit the account. Then get a money order or cashier check for the $300 (do not use a personal check) and mail it to the payday lender with a letter stating that you did not accept the loan, you do not want the loan, and you will not pay any fees, interest, or other costs on a loan that you did not want and have not used.

Now, they may choose to send the alleged debt to collections, and ding your credit, but if you don't legitimately owe the debt (which you don't in this case), please don't let yourself be intimidated into paying!

[ess]

I would go to the bank and explain the situation to them. Tell them this money was deposited in error since you declined the loan. See if they can reverse the money back to the source it came from since it doesn't belong to you. That way you never actually took possession of that money. If the bank says it can't be done have them make out a bank check to said party and close the account. Send them the check with a letter stating why the return of the money and the date in which you declined the loan. Tell them any further contact from them will result in a lawsuit being filed for fraud on their part. I doubt you'll hear from them again after that.