Just Say NO to Internet Loans
In Virginia, it’s not just a scam, it’s a crime!
What to Do If You Are Stuck in an Internet Loan
1. Withdraw ACH Authorization from the Lender.
- Write a letter to the lender clearly stating that you are withdrawing ACH Authorization and that they no longer have permission to take money out of your account.
- Sign, date, and make two photocopies of the letter.
- Send the signed original copy to the lender via Certified Mail.
- If certified mail isn’t an option (if the lender is overseas, for example) Send the letter by fax or email. Save your sent message, or get a print out that the fax was received.
2. Open a New Bank Account at a DIFFERENT INSTITUTION!!!!
- Pick a new bank or credit union. Community banks and credit unions usually offer lower rates and less fees.
- Move your direct deposit to the new account.
- Remember to change any automatic debits to your new account.
3. Close the account that the lender(s) have access to.
- Bring one of the copy of your ACH Withdrawal letter
- Inform a representative that you wish to put on file that you have already withdrawn ACH Authorization from the particular lender
- Have them put a “Hard” close on your account, so that the bank will not re-open your closed account to let the lender “take” money that isn’t there, which causes excess fees.
4.Check your credit.
- Be sure the lenders are not negatively reporting on your credit. Go to www.annualcreditreport.com for your free reports
- If they have negatively reported, Dispute right ! Go to www.myfaircredit.com to get advice and sample dispute letters.
5. File a Complaint on the lender to the Federal Trade Commission (www.ftc.gov), the Consumer Financial Protection Bureau (www.consumerfinance.gov), and the Virginia Bureau of Financial Institutions (www.scc.virginia.gov/bfi)
- File complaints especially if the lender or debt collectors are harassing you.
- Get as much information as you can about who is calling you, and request for any and all contact to be in writing. This is helpful for you and for filing complaints.
- Filing complaints is crucial to stopping predatory practices and helping ensure others are not ensnared in the same debt trap.
