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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 117358
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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I have 2 payday loans with Skylending ($950) and Sovereign

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I have 2 payday loans with Skylending ($950) and Sovereign advance ($600). They are currently taking money out of my account twice a month, but I am dying. I looked at my documents and Skylending is charging me 1825.000% APR, and Sovereign is charging(###) ###-####. I did some research and I found that the AG in NY says that non-registered companies can only charge 16% and registered companies can charge 25%. I did the math at the 25%, I have paid both of them more than what would be owed. Is there a way to get them to stop taking the money out of my account?
Thank you for your question. I look forward to working with you to provide you the information you are seeking.

Yes, you can indeed put an end to this, but it requires closing down the account they are taking money out of and it would also involve you filing a complaint against both companies with the Attorney General AND filing suit against them for any money you have overpaid in their ridiculous interest rates, which you can likely do in small claims court based on the amount of money involved and you do not need an attorney to file in small claims court.

I truly aim to please you as a customer, but please keep in mind that I do not know what you already know or don't know, or with what you need help, unless you tell me. Please consider that I am answering the question or question that is posed in your posting based upon my reading of your post and sometimes misunderstandings can occur. If I did not answer the question you thought you were asking, please respond with the specific question you wanted answered.

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Also remember, sometimes the law does not support what we want it to support, but that is not the fault of the person answering the question, so please be courteous.

Customer: replied 3 years ago.

I paid a fee at the bank to put a stop payment on Skylending, shouldn't that work?

I have a number of things (including my unemployment) that are linked to this account. Isn't there a way to work with the bank on this?

Thank you for your response.

Sky will continue to try to make future withdrawals as long as they have that account number, so you need to make sure you report this to the bank to stop them from making future withdrawals and the banks sometimes miss them which is why I suggested closing that account to stop this completely.
Customer: replied 3 years ago.

Did my previous reply go through about how much I have paid on each loan?

No, I do not see any post with exactly how much you have overpaid on each loan. Any overpayments under $5000 you can sue them for in small claims court to seek reimbursement. The Sky lending is an issue, since they are an Indian company and like to try to claim sovereignty, meaning you cannot sue them in the US courts and you have to wait for them to sue you in the US court and then you can hit them with a countersuit for violating the NY law and not being registered and collecting excess interest.
Customer: replied 3 years ago.

I received both loans in June, and I have paid $1140 on the $950 Loan, and I have paid $810 on the $600 loan. If my calculations are correct, I would owe $47.50 on the $950 loan, and I would have overpaid the $600 loan by $60. Of course this is going by the 25% rate which if they are not registered in NY the most they could legally charge is 16%. That is also an APR and I have only had the loans since June. Does that sound correct to you?

Thank you for your response.

Yes, at this point you need to notify them in writing of this and tell them they are in violation of NY law and as such this is all you owe and all you will pay and if they continue to harass you then you will sue them for violating NY law. as far as the $600 loan, demand your overpayment from them and tell them they are not licensed in NY and you are paying nothing more and if they try to sue you or do not return your overpayment you will file complaints with the NY Attorney General against them for operating unlicensed in NYS.

Yes, that is what it sounds to be based on what you are saying. Your calculations seem correct.
Customer: replied 3 years ago.

What would be your suggestion on the Skylending loan?

Thank you for your reply.

As I said above, you would send Sky a letter telling them they are not licensed in NY and as such you are enclosing a check for what you owe based on the NY law for interest on a payday loan by an unlicensed company and you consider that payment in full. Tell them if they try to pursue you over this you will file a complaint with the Attorney General and you will sue them for harassment.
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Customer: replied 3 years ago.

Hello, I sent the following letter to Sovereign advance, and I wanted to see if this sounds correct. Please let me know.

My name is***** and I am writing you to ask that you terminate my loan and consider it paid in full. According to NY state law, you are completely paid plus the interest that the state will allow you to take which is 25% max. The interest rate that you are charging me is

430.0774% which is against NY state law. According to my records, I have actually paid you back the principal ($600) plus more than enough interest ($210) to have the loan paid in full according to NY law and actually have overpaid by $60. According to the financial advice that I received I should be entitled to the $60 back from you. Please consider this a notice to stop withdraws on my account and to refund the extra $60.

Thank you,
Charlie Willis

Thank you for your response.

You need to inform them that as they are not authorized to do business in NY then by NY law they are only allowed to charge 25% maximum interest.

The rest of the letter is fine.
Customer: replied 3 years ago.

I sent the same letter to Sky Lending and got a response back to call them. I called and the representative that I spoke with seemed shocked that I knew this, and then said that all I had been paying was the service fee/finance charge and I still had a balance of $1235 ($950 plus interest). I proceeded to tell her that I had placed a stop payment on my account for Skylending/Skyloan and that I had paid back $1140. I then said if you take what I had paid plus what they said I you want me to pay the $1140 that I have already paid plus another $1235...I said that makes $2375 to borrow $950. She then said that the loan was placed before the state law went into effect in NY, to which I asked when was she stating that the law took effect. She had no answer and just said that the agreement was signed before the law took effect. I said I could not take what she was saying as factual because she did not know the date and to consider my loan paid in full and hung up.

I did tell them that the max interest rate could only be 16% and not the percentage on my loan doc. which is 782.144%. I am copying a link to my loan docs so you can see where I got the information that I gave you.

Please let me know if I did the right thing.


Customer: replied 3 years ago.

I actually have 2 documents with them and I do not know which one they are going by, but both are above the limits they can charge for interest.

I have paid back $1140 to them and according to the 16% that is allowed, I should get $38 back.

Thank you for your response.

You told them just right, they were trying to bully you and play like they were dumb. You need to just cease any more communications with them at that point you have told them everything already, so there is nothing more to do with them. I would not sue them over th $38, but just keep telling them if they call that they owe you money.
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