Consumer complaint received 2017-10-31
Product: Payday loan, title loan, or personal loan — Payday loan
Issue: Can't stop withdrawals from your bank account — 
Company: Payday America Inc. (MN)

I took a payday loan from PAYDAY America located at XXXX XXXX XXXX XXXX XXXX, MN XXXX. The amount was {$350.00}. The agreement was to pay back the loan on my next payday on XX/XX/XXXX. I had a unexpected expense, I was wage levied for child support without my knowledge ( very unexpected ). I notified the location the day of the due dateXX/XX/XXXX via my cell phone and talked to the rep at the location. I notified her that I had thought was an error in my paycheck amount and the money will not be available for them to withdraw. The rep at the location was very nice about it and stated that she will me to figure out what happened to my paycheck. The following Monday I called the location, and let the rep know that I was garnished from child support. The representative again was very nice and courteous, She stated that I will need to talk to there Collections department and they will be able to help set up a payment plan. 

The Collection Department. 

I was transferred to a agent to whom which asked for my name to look up my account. She was having troubles locating my account and stated it was because I was not in " default. '' She eventually found my account, I let her know situation and let her know I am revoking authority to process my ach payment for the fund are unavailable to withdraw from my Banking account. The representative states I was unable to do that. and she wont be canceling my payment because there not allowed to. and I have to have a NSF on there system for my payday loan to go into default. I asked her about this process and let her know again. she keep stating that the only way to default is to cause me to have NS funds transaction to take place. I kindly let her know that there will not be funds in my account to take the funds again and let her know it will make my bank go very negative and cost me overdrafts. I tried to work with her and et her know that my intetions were very clear in why I was calling to set up a payment arrangement on the loan amount. She said that she can set up a payment plan for {$50.00} and paycheck til the balance now of {$420.00} for interest and a fee that has n't taken place yet because there has not been a NSF. She stated if the payment comes back then the payment plan will be set up. I asked why does it have to be that way? Why me being the consumer has to take a finance hit of overdrafts and NSF charges when I clearly was making an attempt as resolving the issue prior to the loan defaulting and getting to the point of that? She was saying there contract states I do n't have a right to cancel a payment and if I do there will be repercussions of that choice. I let the representative know again that there practices for payday loans are unorthodox and would n't be surprised if there was something not right about the situation. I let her know even on the contract it states to call and notify them if repayment will be an issue and they are willing help you. 

TuesdayXX/XX/XXXXI check my bank account and notice me account is - {$380.00}. I went to the bank location and let me know that I will have to dispute the charge. I asked the bank to send the payment back to them because I revoked there permission to take the payment. The banker stated they will need to wait until it posts to the account. 

I checked with the Minnesota Attorney General 's office and representative let me know to contact the CFPB in regards to this matter and the Minnesota State of Commerce. 

I feel that process of the operation is set in place to cause honest consumers financial harm. There were not willing to cancel a payment via ACH processing. I did everything a consumer can do to make sure I was doing the right thing in communicating with them to correct the situation and pay back the payday loan.