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
CHEERS TO YOU TO
How long will it take after that? I thought this was a scam until I read the
feedbacks. God bless
I even had a threatening phone call saying they would send the law to my place of work to arrest me for illegal electronic transfer of money,,, saying "anything you say can and will be used against you in a court of law" It scared me, but now makes me MAD!!! They were not the law!!! Saying this must be illegal on there part!!! If anyone can help me please advice!!!!
We encourage everyone who is still experiencing financial difficulties to get in touch with the Customer Relations Department at Zip 19 as soon as possible. We will do our best to assist you in resolving any pending issues.
Moreover, please kindly note that Northway is located in the European Union (Malta) and has a lending license there. All loan agreements are governed by Malta law and Northway is not subject to registration or licensing requirements of individual U.S. States in order for its loans to be valid and enforceable.
Kindest Regards,
Customer Relations
Your information is false. You are not licensed in the United States to provide internet payday loans. Also, even if you were able to get licensed, you are bound to the lending practices at not only a federal level but of each state.
For example: a loan made in the state of North Carolina has been illegal since 2001 and then in 2006 even bank funded payday loans became illegal. Yet you still make these "loans" here. According to the State Attorney General's office of Roy Cooper, residents of North Carolina are under no obligation to pay back these "lenders" and your predatory lending practices are subject to action from their offices.
Just because you put into an internet form that the person getting the loan has to pay by "Maltas" rules does not trump our country/state lending laws.
Secondly, your company and any party acting on your behalf (ie; ECare) are bound by the FDCPA. Your agents are continually breaking the rules set forth in the Fair Debt Collections Act, to include threats of actions that you are not able to take, such as "sending someone to your home to take care of you", harrassing references, neighbors and employers, ignoring Cease and Desists letters sent by customers, threatening to ruin someones career, name, or reputation. I think you get the point. Continuing to call a persons phone over and over again and letting the phone ring or Calling them back when they end the call with you and have asked you not to call them. These are all reportable offenses and are subject to a $1000 fine per instance.
My suggestion to victims of these companies, contact your State Attorney General and open a complaint. Contact the BBB and open a complaint. Create and send a Cease and Desist letter to the company via email, fax, and mail. If they continue to call you, your friends, neighbors and employer document and report each instance to your states Attorney General Office and they will attach it to your original complaint. AGAIN THESE INSTANCES ARE A $1000 FINE FOR EACH INSTANCE, EACH AND EVERY SINGLE CALL,EMAIL, OR CONTACT OTHER THAN MAIL THEY MAKE AFTER THE CEASE AND DESIST!!
You have the right in states where their lending practices are not legal (hint: all of the US) to send a letter requesting a refund of anything above and beyond the principle loan.
If you haven't already done so, prepare and give your employer a "Revoke Wage Assignment" letter, because though it is not a garnishment some employers do not know the difference and will honor it until you tell them not to.
Also, CLOSE YOUR BANK ACCOUNT that this loan was made out of. Your bank will help you if you explain this issue and will open a new account that is safe from their withdrawals.
In North Carolina you are told you don't even have to pay back the principle, let that be your decision as to paying the principle back. Also, since you didn't provide a check anything reported to Tele-Check/ChexSystems can be disputed and removed.
**** IF YOU OPT TO RETURN THE PRINCIPLE BALANCE:
1) If you have had prior loans, add up everything you have paid them. Subtract that from the principle amount you have borrow.
Example: Loan #1 $300 - Paid $300 plus $60 in fees back
Loan #2 $500 - Paid $500 plus $100 in fees back
Loan #3 $500 - Paid $500 plus $100 in fees back
You now have loan #4 out for $300. So, you add up the fees you've paid of $260 and would only pay them $40. Also, be sure if there are any NSF fees you request those back as well for not only the lenders NSF fees but your banks fees. If you told them NOT to do the withdrawal and they did anyway then they are responsible for the fees.
2)BE SURE WHEN YOU PAY THEM TO NOT GIVE THEM YOUR DEBIT/CREDIT CARD INFO OR NEW CHECKING CARD INFORMATION. Send either a Western Union, Moneygram, or US Postal Money Order (they are easy to trace when they claim they didn't get it).
Do not take out anymore loans with any payday/online vendors. As tempting as it is, it is not worth the harassing calls and costs associated with these loans. Also note since many of these companies are part of the same parent company they will get your new checking account information and use it to debit everything they feel you owe them for ALL loans.
I have been helping people since 2000 with payday loan issues and the traps they create. If we don't borrow from them, they can't stay in business!!
I did a post a few below here under "DEAR Customer Relations" and it tells you what to do to protect yourself.
I'll check back to see if you have any questions over the next few days!
First and foremost, close the bank account and get a new one and do not give out the information to anyone online/phone.
There are other suggestions below.
This company is NOT licensed to do business with customer in the United States in ANY state. A lender, even outside the US, is bound to the lending laws of state the customer lives in, no matter what they tell you. You are not a resident of Malta.
Hope to help!
If you already have a loan please look at a few posts down on what to do.
Wake up people show some integrety! I used to loan money with a hand shake. knowing it would be paid back just by the persons word. Oh yes TRUST and if that person failed to pay me,It reflected soley on him or her. If people would use the same thought process on how can I make my finances work! Rather then How Can I Get out of paying the money back, That I made a decision to borrow. we would have alot more responsible people in the world.
If the shoe fits dont get angry with me! That would only prove my point! of your lack of integrety and personal resposibility. So the next time you want to borrow money from any institution look in the mirror and say I am responsible and me alone on paying it back.