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Platinum B V.P. · Posted: Mon Jul 17, 2006 3:01 pm Subject: Important notice

Customers,

My name is Josh Mitchem, I am the Vice President of Platinum B Services. I am writing to tell you that some of the advice given by people on this forum, while meant from the heart, is not good advice.

I will make things clear for one and all on how to contact loan companies and how to better handle your accounts. The things I am going to tell you are not some big secret.

First, if you need to contact any payday loan company, your paperwork that is emailed to you when you hit the submit button has all the contact information you will ever need. If you do not have your paperwork, your bank can give the loan companies phone number.

Second, IF YOU CLOSE YOUR ACCOUNT, STOP PAYMENT, OR REVOKE AUTHORIZATION YOUR ACCOUNT WILL BE SENT TO A COLLECTION COMPANY(as stated in your paperwork). The best thing to do is contact the loan company and payoff your account. If you cannot pay in full most loan companies will make arrangements with you. Alot of the "helpful" people on this forum will tell you stop payment, you can do this, but keep in mind collection calls will start shortly after, making things even harder on yourself.
I understand that sometimes you have to close your account due to fraud or other reasons out of your control. If this is the case call the loan company and tell them the situation BEFORE THEY DEBIT YOUR ACCOUNT.

Third, As you have probably figured out by now the collection company and the loan company are not affiliated. The collection companies that are used are outside collection companies, hired to collect the debt. THEY ARE NOT THE LOAN COMPANY PRETENDING TO BE A COLLECTION COMPANY.

As I said before, the things I have posted are not a big secret that has been kept from you. I feel an informed consumer is a good consumer. I want our customers to know what will happen if they take these types of actions. It will relieve your stress and mine. I do not enjoy hearing how upset customers are because they followed what they thought was good advice. With that being said bear in mind, there are many customers that take these loans with the intent to defraud us. I do not believe the customers on this forum are those customers. On the contrary I believe you are all here to get out of the debt cycle and move forward in your financial growth. Payday loans CAN help if used properly. They are not a second form of income. If used as a PAYDAY loan they can help in a tight spot.

Please understand I do not respond well to being bombarded with senseless badgering about the payday loan industry. I am here to give advice that will help you and your loan company to find a closure that benefits both parties. There are topics I will not discuss on open forums, however if it pertains to keeping our customers out of the debt collection cycle I am here to help. In closing I am always happy to work with and talk to our customers. If anyone would like to respond to this I will answer your questions within a reasonable time frame.

Sincerely,

Josh Mitchem
Vice President
Platinum B Services[/u]

Posted: Mon Jul 17, 2006 3:19 pm Subject:

Hi Josh,

You have always had a decent approach in dealing with your customers. There is no second thought on it, especially with me. But you must have read the suggestions posted here as well as in other public forums online. You might have heard about the continuous problems faced by the consumers with their lenders. The question is not about closing the checking account when you are not able to reach them. The fact is that this step is taken only when people are going through unauthorized debits in their checking accounts. These problems are very common with companies like Northway Debit, ICS and many others. The customers of SJM Marketing have not had such problems though. Even if it happened, they can reach you and clarify the matter.

You said to review the first email sent by the company where all their contact information is given. This does not work with all because their given information is different when a call is actually done. Moreover, they continue with the debits in the checking account. I am sure you will also not let this happen if it had been in your case. Under such circumstances, people are advised to close the account so that the company contacts them later and then payment arrangements can be done. Payday loan is taken when people go through serious financial problems. At such times, if the company increases their problems by making unauthorized debits and not giving the latest standing of the account, people are forced to take such steps. I still believe that you and your company are completely out of these complaints but you need to give us a better approach in such cases. Your suggestions can actually help us a lot

Posted: Mon Jul 17, 2006 3:46 pm Subject:

Hi Josh.

What states are you licensed to lend in and which states?

Do you follow the laws of your customer's state in regards to fees or do you use a governing law clause?

Posted: Mon Jul 17, 2006 7:22 pm Subject:

Hello Mr. Mitchem. It is good to see you around again. In the past you have made sincere efforts to help consumer understand what they have committed to, and how to handle the situation if they find they cannot fulfill that commitment on time.

I do have a question, what does your company do to ensure the collection agencies they hire are complying with the fdcpa? It seems that the vast majority of of complaints steem from PDL's that refuse to work out an agreement, and collections tactics that are substantially less than legal (or ethical) including threats of violence, arrest, humiliation (contacting employers, family friends, etc) solely for the purpose of defaming a persons character and possibly causing them to loose gainful employment ( I am not saying that Platinum B in particular does this). There are still numerous complaints that Platinum B (prior to send accounts to collections) refuses to make arrangements. This is contrary to what you have posted here in the past. What is being done to correct this miscommunication?

I understand that when you end up turning an account over to collections your (understandably) are not interested in continuing a business relationship, however that is no excuse for people to be treated badly.

Also how do you answer polly's question regarding licensing? I know for a fact that your company is not licensed in Illinois, do you then refuse to issue loans in Illinois or other states in which you are not licenses? or do you try and hide behind the Internet as so many lenders do? If the latter this is a weak stand to take, and one which more and more Attorney's General are looking into. The industry is definitely entering a time of change and increased regulation on the State and Federal levels.

WE always welcome your honest input and efforts to help educate our community members in dealing with their PDL's, and I personally appreciate your efforts. Many in your industry come to the forum and lurk in the background, choosing instead to threaten people for even posting in th community. At least you have the integrity to post who you are and what you do.

Posted: Tue Jul 18, 2006 10:00 am Subject:

Mr. Mitchem,

It was good to see your side of the story. However, I am one of the people on this forum who has been threatened with legal action on the first contact I received from the Collection Agency (in my case United Federal Bank). I will pay off my debt, but I want to make sure that I'm dealing with the collector for the original debt and also that I'm not paying some ridiculous amount above what is owed. I was in a bind so I took a payday loan. I can't get out of this bind by paying more than what is owed. That's puts me in a bigger bind. These collectors from United Federal are very rude and can barely be understood. I have been accused of committing bank fraud, check fraud and internet fraud just because I couldn't make a payment when scheduled. I am more than willing to work with someone that I can understand and who can provide me with the documentation that I requested.

Any advice you can give would be greatly appreciated. I have tried contacting the original lender and then I contacted thier third party collection agency with no return call. If I can't get a response what am I to do. I don't want to deal with the rude collectors from United Federal Bank.

Posted: Tue Jul 18, 2006 10:49 am Subject:

Mr. Mitchem,
I have to agree here with the above post. I too, have been a victim of the unscrupulous collection activity from United Federal Bank claiming to be collecting for your company, Platinum B. Services.
They informed me that they were Federal Agents and I would be arrested that day.
I reported this activity to the proper Federal Authorities as well as my State's Bus. and Professional Regulation Department's Financial Crimes Division. They informed me that there is no license issued under this collection agency's name in my state. Therefore, they are breaking numerous laws.

That said, I do agree with you that there are some unsavory clients who intend to fraud the pay day loan companies by intentionally defaulting and then complaining that they've been deceived by companies such as yours. We do not condone that behavior on this forum. Believe me, some of us are very close here and speak often of these characters. In no way do we encourage these types to continue this activity, and offer no help to them whatsoever. We can not stop them from making unwise decisions, or frauding their credit companies.

You must realize, however, that this forum is designed to assist those of us who have been victimized and are in dire straits because of these loans and/or legitimate credit issues. ie...unable to feed themselves or their families, loss of employment, and even foreclosures.

Your presence here is a valuable resource and your input is taken to conscience. Our recommendations here are just that, and the consumers will make the final decision.
Once again, I thank you for your input and availability to approach you with our comments.

Posted: Tue Jul 18, 2006 3:57 pm Subject:

Hi Josh,

I have nothing new to add because all the major issues have been put above while dealing with the collection agencies. The comments that you posted above is general information and known to most of the people. But the feedbacks posted individually are the issues of major concern. If you can clarify the points individually, it will be highly appreciated. This will really distinguish you nicely from other collectors giving a bad name to this industry. We are waiting for you to break this dead silence.

Posted: Tue Jul 18, 2006 5:25 pm Subject: Important??????

I think it was a ruse actually. If not,why did he not
send his henchmen to write the message?

Maybe an effort on his part to save his company?

I really don't expect him back.

Posted: Tue Jul 18, 2006 5:34 pm Subject:

I just find it odd that a VP would take the time to
explain his companies position if there was no other motive to do so!

Posted: Tue Jul 18, 2006 6:41 pm Subject:

Mr. Mitchem has posted numerous time over the last year. I do think hes the real deal, and that he is trying to help people. But I also think there is a disconnect between him and the people working their accounts that needs to be corrected.

Posted: Tue Jul 18, 2006 7:11 pm Subject:

Just an opinion!

Platinum B V.P. · Posted: Wed Jul 19, 2006 9:51 am Subject:

My apologies for taking so long to respond to all of your issues. I will answer all of your questions the best I can, but first I would like to address michaeljm39.

Michael,
It saddens me to hear that you only think a V.P. would respond to customer issues if there is some kind of hidden agenda. It must be tough going through life thinking that there is always a hidden meaning or that someone is out to get you. The reason I respond to this forum personally and dont have someone do it is simple. The secret game. Remember the game you played in school where you start a secret at one end of the class and by the time it reaches the other is totally different than how it started? Well if I have someone check this forum than the information I receive will not be accurate. I respond because I care. No matter how corny it sounds I care what my customers think. There is only one thing that keeps companies in business...customers. If you dont take care of the ones that take care of you, you might as well close your doors. If my customers become more educated they will be better customers and I can be a better loan provider to them.

Guest · Posted: Wed Jul 19, 2006 10:01 am Subject:

Andy,
"You said to review the first email sent by the company where all their contact information is given. This does not work with all because their given information is different when a call is actually done."

When a situation like this occurs, your bank can give you the number to the company making the debit. All companies that enter accounts via ACH are required to keep this information readily available. If your bank cannot find it they can give you the ODFI bank. This is the bank the draft originated from. The ODFI can give you the number to the loan company. If they cannot, than you have exhausted all efforts to contact the loan company and now is the time to stop payment.

I know I will get a reply about how much trouble it can be to get a telephone number, but it is not a perfect world, if it was no one would need a payday loan.

Also if you have a company that will contact you and collect as a 1st party collectors that is good, however fewer and fewer loan companies use in house collections anymore.

Posted: Wed Jul 19, 2006 11:40 am Subject:

Mr. Mitchem..how about my post on United Federal Bank? Are you aware of their collection practices?

Platinum B V.P. · Posted: Wed Jul 19, 2006 11:43 am Subject:

Clay,

When a customer states that Platinum B will not make arrangements if is because we have already sent their account to 3rd party collections. Once an account has been sent we can no longer collect any money from the customer. Sometimes it can take up to 3 weeks for a collection company to call you after your account has been sent.

You are right, consumers of any business should not be treated the way that the people on this forum have been treated. That is why I am giving this information, to ensure that they do not have to deal with collection phone calls. All loans companies are alike in the aspect that you can get almost anything done if you give them enough notice. We all know the cold hard fact that loan companies want to recover their money by any means possible. Loan companies protect themselves from the harsh collection practices by signing over the legal right to that account.

These collection companies are not right in their approach, however I cannot speak for collection companies. I am here to help our customers avoid collection companies through better education.

As far as licensing issues go I will be more than happy to speak with you on the phone one on one.

Posted: Wed Jul 19, 2006 11:50 am Subject:

Clay...
How about a recorded interview with Mr. Mitchem? That is, if he agrees to it, of course.

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