Defrauding customers
Complaint
Vernon Usher III
Country: United States
So by now most folks know that payday loans are never worth the time it takes to get one. Once you get them, you practically cannot get out of them. Zip19 issues payday loans without any sort of "pay-down" schedule. Instead, they will remove the entire loan amount plus the service fees in two equal amounts (basically they take the total, cut it in half and then remove them both at the same time).
The reason for this? The only answer is so that if the funds are not availabe in your account, then they can charge you TWO NSF fees instead of one. On my first time using this company, I experienced this because their website incorrectly displayed the dates on the calendar, thus making me choose an incorrect day for payback of the loan. Ultimately, they waived the fees, so I continued to use them. But my story actually gets better.
On the 17th of June at approximately 11am, I submitted a request to zip19 for a payday loan. I have been using this company for close to 9 months now and they have gotten a substantial amount of money from me. Per their own contract, if you cancel within 24 hours, they are supposed to cancel the contract and that should be that.
On the 18th of June, at 9:36am I submitted a request for cancellation. The date and time stamp on the fax confirms this. Even on their own website, they verified that the date and time stamp exist on the form. However their supervisor stated to me that they did not receive it until after 5pm that night. She stated that even though the fax "may" have come through at 9:30am, that they have to use the date and time that "THEY" (meaning the supervisors) got it. So it was posted to their website at 5:06pm.
Thier customer service is horrible. When waiting for a "supervisor" you are placed on hold for an inordinate amount of time. And even then, once you've spoken to them you are given no recourse of a higher entity.
Basically your only recourse with these companies, once they bare their teeth and show their true colors is to close your bank account and hope for a day in court. Otherwise you're stuck paying for something you didn't need.
The reason for this? The only answer is so that if the funds are not availabe in your account, then they can charge you TWO NSF fees instead of one. On my first time using this company, I experienced this because their website incorrectly displayed the dates on the calendar, thus making me choose an incorrect day for payback of the loan. Ultimately, they waived the fees, so I continued to use them. But my story actually gets better.
On the 17th of June at approximately 11am, I submitted a request to zip19 for a payday loan. I have been using this company for close to 9 months now and they have gotten a substantial amount of money from me. Per their own contract, if you cancel within 24 hours, they are supposed to cancel the contract and that should be that.
On the 18th of June, at 9:36am I submitted a request for cancellation. The date and time stamp on the fax confirms this. Even on their own website, they verified that the date and time stamp exist on the form. However their supervisor stated to me that they did not receive it until after 5pm that night. She stated that even though the fax "may" have come through at 9:30am, that they have to use the date and time that "THEY" (meaning the supervisors) got it. So it was posted to their website at 5:06pm.
Thier customer service is horrible. When waiting for a "supervisor" you are placed on hold for an inordinate amount of time. And even then, once you've spoken to them you are given no recourse of a higher entity.
Basically your only recourse with these companies, once they bare their teeth and show their true colors is to close your bank account and hope for a day in court. Otherwise you're stuck paying for something you didn't need.
Comments
What's ironic? many of these online high interest lenders are often affiliated with legit banking institutions who don't want their "good names" associated OPENLY with this version of money lending that would make the mafia say its "criminal"( yet another why "wall street" is screweing "main street")
Most of these payday companies don't have license to operate within your state, if the don't than you're on required to pay what you borrowed.
Check your state department of financial regulations, the agency that regulates financial institutions, ensuring their licensed.
Also they do not have to be licensed in your state, telling people not to pay this back is very ignorant. You are required to pay it back its a contract. I'm sure if you took your contract to a GOOD lawyer they would tell you that the contract is legit.
i have never had issues with zip19. i have loaned with them when i have run into emergency situations.
READ YOUR CONTRACT PEOPLE. dont just go clicking away and expecting that there are no consquences for you not to pay this back.
June 6th, 2013
This letter is concerning: ZIP19.COM (There address here)
ACCOUNT NUMBER: Your ACCOUNT Number Here
To Whom it May Concern:
I hereby revoke your right to use the wage assignment that was digitally signed on 10/22/2012. You no longer have my permission to use this wage assignment. I have filed a "Notice of Defense" with my employer which will absolutely prevents them from turning over any of my wages to you.
Your name here first and last
Your full address
If they are such an "essential" part of the U.S. financial system, how did we ever get by without them? Payday lenders are about as "essential" as liquor stores in a ghetto.
People are a bad risk for a loan in the first place, but offer one anyway, just jack up the cost in interest and fees to make it profitable, and use abuse and harassment to improve collections. Who cares if they ever pay it off, if in a few months you have collected twice the original principal?
It will be interesting to see whether the citizens of Georgia and North Carolina suffer ANY detrimental effects from the lack of opportunity to borrow from payday lenders.