Defrauding customers

ComplaintsScamszip19.com - Payday Loans

Complaint

0
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.

Comments

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  • 0
    david
    Why don`t you read your contract? I read mine. You agreed to multiple debits. This allows them to debit you twice at the same time. They do this so if you're $5 dollars short of the full loan clearing, at least they retrieve half. It makes sense if you think about it.
  • 0
    anon
    Couple of reasons why this could have occurred. If you used a savings account or a joint account, the company will have issues when debiting it and most likely cannot receive their funds. Also, if your account has a restriction on the amount of ACH's that can be processed in a month, this might cause a problem too. They can only debit a chequings account. Regarding another collections agency calling you, one way this would happen is if you applied for the loan through a fraudulent site (not zip19's website). People will sometimes copy zip19.com's HTML code onto their own website so they have their application form... and they use it to perpetrate fraud by stealing any information you type into that form. Either that, or you ignored all of Zip19's calls and they forwarded your account to a 3rd party agency.
  • 0
    dave
    You authorized them to debit your account. If you don't have the funds available and your account goes negative, that's your problem.
  • 0
    anon
    This company has been operating for 10 years. Here's what you most likely did: you found a website claiming to represent zip19. They stole the HTML code from the actual Zip19 website. You filled out the form which signed you up for a Zip19 loan, but since you did it through a fraudulent website, your information was compromised. If you applied for a loan directly through the zip19 website, you would not have had this issue. I have used their service before without issues. I have also read news reports about fraudulent sites. Do your research before putting your banking information on the Internet.
  • 0
    aaron
    I paid my loan back and that seemed to halt collections activity just as effectively as sending in a cease-and-desist letter. No more calls to my house and work. I recommend this method very highly.
  • 0
    ddd
    LOL!! You would think these scammers would have the intelligence to not use a Hotmail e-mail address when trying to commit fraud. Also, the use of fractured English really detracts from the legitimacy of the post. I truly hope that no one has sent their information to this e-mail address. If you have, then you're a dumb@$$.
  • 0
    jjjjdeag
    I found their collections department to be mostly reasonable... as reasonable as collections can be I suppose. They provided me with a two week extension, and the only fee was $29 for insufficient funds since only half my loan cleared. They said I can re-loan again if I need to. They had me pay through moneygram which cost about $9. I, too, asked about a money order and was told there's no mailing address in the US, and it would take too long before the money posted to my account. They're a purely on-line based company according to the collector I spoke with. Made sense to me. My teletrack credit rating has been updated as I was told it would be. Very pleased with the outcome, and though I have a better job and probably won't have to use them again anytime soon, I have no problem recommending them.
  • 0
    jim
    Most like your information was leaked during the application process. Other people have posted similar experiences and it seems that by using a third party site, your application information went to Zip19 as well as an experienced fraud ring. If you apply directly through zip19's site, browser checker shows that it's secure and you won't have any problems. The fraud ring, however, copies the HTML code of zip19's site, and makes their own fraudulent site which might even contain zip19's logo. When you apply through the fraudulent site, your information can be sent to whoever created the fake site. Be careful. When your information is leaked, you might have people calling you and threatening you illegally.
  • 0
    daniel
    It's a wage assignment, not a garnishment. Read the contract more carefully.
    No court order is needed, it's done directly thru the employer and no bank account is touched during the process.

    cheers
  • 0
    jesus
    Should have read your contract, bud. you agreed to multiple debits, and the nsf fee is 29 per debit. Also, you signed a contract with a specific bank account. to prevent you from frauding them, they won't debit an account other than the one they deposited the funds into. when you say they're trying to "bleed you of your last dollar," all the fees are pretty clearly outlined in the contract as "broker fees" and "interest". your problem was the fact that you had other payday loans... that's never a good idea. not zip19's problem that you took out other loans which screwed up your account. i took out a couple loans earlier in the year and had no problems, but maybe that's because i'm not an idiot and i have enough common sense not to use multiple payday loans at the same time.
  • 0
    dan
    any collections department is going to be rude. if you don't pay your credit card bill, your cell phone bill, etc etc, it's not going to be a pleasant conversation. you think the repo man is going to be very jolly to you as he's repossessing your car because you didn't pay your car note?


    "all they want is their money" .... well no sh*t.... if you lent money to someone who signed a contract with you to pay it back on saturday... and then saturday passes, and they finally call you back 5 days later saying "yeah... i didn't have the money, i'll pay you next week"... obviously you're going to be mad about that and the conversation isn't going to be pleasant. DONT TAKE THE LOAN IF YOU CAN'T PAY IT BACK, IT'S VERY SIMPLE.

    and they're not customer service. when your account is transferred to collections, you become a DEBTOR. when you owe money, the usual pleasantries are dropped and it becomes strictly business. why is that so difficult to accept? they're a high-risk lender. they're not going to call you up and say "um, hey Sara?... say, if it's not too much trouble, would be able to pay your loan back? oh, you don't have the money? that's alright, just pay it back when you can. have a great day Sara!"


    /rant.
  • 0
    tedereanalds
    If you don't even remember the name of the company you applied with, how could you possibly say they distributed your information? And it doesn't sound like you're very responsible with your finances if you're applying for a high-risk loan online, and typing your information into a site which you're unfamiliar with. Sounds like you just typed "payday loan" into Google, and clicked on a random link. This is a great way to get your personal information stolen. Lots of sites try to immitate Zip19. In most contracts, you authorize them (the lender) to perform multiple debits on your account, and it seems they choose to perform two at two at the same time, for the reason that if a client is $5 short of the full loan clearing, they at least get half of their money instead of the full balance being returned. If you have the repayment amount of $359.94 available on the due date, it doesn't matter if they put 20 debits through your account of $17.99 each. If you have the funds available, they'll clear.

    If you aren't going to have the funds available, then don't loan with the company. And certainly don't expect them to express sympathy for your situation. You sought the services of the company, and not vice-versa. Lastly, judging by your first sentence where you stated you have an on-going workers comp injury, it sounds like you took the loan fraudulently since Payday lenders require you to be actively employed to loan with them. I've loaned with a couple lenders in the past as a last resort, but I had the foresight to ensure I'd have the funds available. Who honestly wants to deal with collections?
  • 0
    dice
    This is a 2-week payday loan. This means that if you are laid off unexpectedly, you will still receive a final pay-cheque and holiday pay / severance etc... so it's not impossible to re-pay, it just sounds like your choosing not to pay them back. and if you're getting fired, that means that your employer was unsatisfied with your performance and they had a legitimate reason to terminate your employment. Being fired is avoidable, you just have to be a non-crappy employee. It seems odd that you are calling other people "morons". You spelled your name "Common cents" and I'm unsure whether this was done intentionally to be ironic since this topic is regarding finance, or if you actually can't differentiate between 'cents' and 'sense'.
  • 0
    Ricky
    this loan company is no good. i set it up where if i wanted to take out another loan....they (zip19) would have to go through ME and again wasn't granted that. now i'm in the hole again $417.94 later. why set up a password when no one asks for it. and your wife and speak on your behalf?!
  • 0
    lll
    Short answer: because the law in the US allows wives or common law spouses to speak on behalf of their partner regarding payday loans if they share finances. With that being said, why blame the company for this? You should be blaming your wife if she's taking out loans in your name without your permission! If she went on the website and signed in with your social, and applied for a loan without your authorization, you can sue her for fraud!
  • 0
    Lici
    I never applied for a loan and yet someone called me to ask for details regarding an application.  Tonya her name was - she left me a message to call back at 877-947-1947.  So, I did - so that I could tell them to cease and desist and send me the information they have in my "file" so I can proceed with an investigation and pressing charges.

    They refused - citing the need for a police report.  So, I filed a police report.  I won't have a copy until next week but I confirmed with the state of PA Dept. of Banking they're not licensed as a lender here.  The woman I spoked with at the department said they're a scam.  So, I emailed the Canadian Payday Loan Association at inquiry@cpla-acps.ca and also the government of British Columbia at enquiryBC@gov.bc.ca.

    The parent company is E-Care Contact Centers located at 400-15225 104th Avenue, Surrey, BC V3R 6Y8...phone number (604) 588-2260.  Also, there a a myriad of websites operating under that domain - all under the same IP address 216.81.11.24 return 216.81.11.24.mts.net.  Their primary server (for all of them) is dns1.ecarecenters.net - the server is located in Winnipeg, MB.

    Chances are they're not a licensed lender in your state either...
  • 0
    Beth
    I confirmed on Friday September 3rd 2010 that zip19.com is NOT a licensed lender in the state of Pennsylvania.

    They were trying to contact me regarding a loan application I never filled out and guess where I live???

    Yeah, they're a scam if I've ever seen one...also noticed from other complaint boards that they're not licensed in California, either.

    I suspect that they use people who earnestly applied and let the business go well a few loans before robbing them.  And then they also run a scam where they call people who never applied (like me) and the first question they ask you is - what's your SSN?

    They're not located in Malta.  Their physical office is:

    Their main address is:
    E-Care Contact Centers
    400-15225 104th Avenue
    Surrey, BC V3R 6Y8

    Phone:  (604) 588-2260

    They operate many payday loans companies through the same location and server.  There are at least 10 different payday loan companies with the same IP address that all links back to that address in Canada.
  • 0
    Beth
    P.S.  If they're not a licensed lender in your state you can let them take you to court...they won't because their contract is unenforceable and illegal!  Don't pay them back, they can't do anything about it - put a hard stop on your checking account.
  • 0
    Willow
    I've been using Zip19 for quite a while and never had any troubles with them, never needed customer service since i've always paid back the loans...and only borrowed when i needed it. I did not find my self being stuck in a cycle i could not get out of because well as i said i only borrowed as i need, i never borrowed extra just because and i didnt need a loan every paycheck. With the times i didn't borrow from them nothing was ever deducted from my account. So i find them very convenient for me.
  • 0
    Resident Realist
    Are you seriously saying that you'd rather go to court than pay a company back who lent you money? LOL! Regardless of whether they're licensed in your state, they've been in operation for like 10 years. If they were illegal, I think it's safe to say they would have been shut down. They lent you money, so just pay the loan back! What's the point in having it affect your teletrack credit?
    It sounds like you're the scammer in this scenario, trying to get free money and all. You should be ashamed of yourself.
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