Internet's first get-out-of-debt community - 144,000 members

Posted: Mon Aug 18, 2008 7:46 pm Subject: Legal or illegal?

I have about 7 payday loans, 3 of them are just fine, but 4 of them are horrible. I have been paying the fees on them over and over, which Arizona law says that legally they are only allowed to roll over the loan a total of 3 times. I have paid these loans back. I closed my account, but I am worried about the phone calls and legal actions. I want to pay them back but I feel I already have with all the fees I have paid.

Here are the loans

Big--loan amount $200. I have paid fees since March 2008, started at $80 ever pay check but lowered every month until it was $40. So I have more then paid it back

LoanShop--loan amount $300--i have been paying a $90 fee every payday since March 7th 2008

FTR--Loan was $200, I have been paying a $60 fee every payday since Dec 2007. no pay down option

247advances.com--loan amount $200-- i have been paying $74 every payday since March 2008--doesnt offer pay down

Does have one know which of these companies are illegal?? if so please let me know.
Do I sit back and wait for the calls to start since I already have closed my account and spoke to my bank. Who do I file complaints with my state or the state the loan company is in? There are a few that I dont even know where they are located. Can someone please give me any information they have on any of these companies.

Thank you!

Posted: Mon Aug 18, 2008 7:53 pm Subject:

omg, you have paid ftr right around 1200 dollars??? (assuming that you get paid every 2 weeks)

I don't know the arizona laws well enough, but you need to get out of this mess.

I'll do some digging and get back to you.

Posted: Mon Aug 18, 2008 8:00 pm Subject:

You're awesome..thank you soo much for you help. I have closed my accounts and I am going to send out letters to them this week. I know FTR is illegal and BIG is too, but I am not so sure about 247advances or LoanShop. but I have given them enough of my money...

Posted: Tue Aug 19, 2008 6:57 am Subject:

I just looked at Arizona's Department of Financial Institutions website, and I didn't see any of those companies that you just listed, it says that the list is updated daily!

One thing that I can say is that more than likely BIG will never stop trying to take your money, they are one of the worst, Loan Shop are not that bad (in my personal experience) to deal with, just send them the letter and you may get a PIF

The other two I don't know about, never had the pleasure of doing business with them, sorry.

Posted: Tue Aug 19, 2008 7:06 am Subject:

I've not dealt with BIG (Thankfully!) but I have dealt with Loan Shop and they are pretty easy to work with. Here is the contact information I have on LoanShop if you need it:

dfarnen (@) ltsmanagement.com
dkimball (@) dmsmktg.com
mfraklin (@) dmsmktg.com
pharris (@) dmsmktg.com
pbrunson (@) dmsmktg.com
bweathers (@) dmsmktg.com
info (@) dmsmktg.com
customerservice (@) loanshoponline.com
customerservice (@) ltsmanagement.com

Fax:1-800-488-3481 and 1-800-853-7221

Address:
Loan Shop Online
2207 Concord Pike #505
Wilmington, DE 19803

Guest · Posted: Tue Aug 19, 2008 10:23 am Subject:

Thank you for the info! Should I mail the letters or could I use email. The only one I have a valid address for is Loanshop.

Posted: Tue Aug 19, 2008 11:14 am Subject:

Personally I think you've more than overpaid Loan Shop

mymaddie · Posted: Tue Aug 19, 2008 11:27 am Subject:

me too!!! but I just dont know what to do at this point.

Posted: Tue Aug 19, 2008 1:22 pm Subject:

I took care of all of mine through email and fax. I sent a letter each day until I got a response. They didn't pay me back anything that I had overpaid but they did give me a release document.

mymaddie · Posted: Tue Aug 19, 2008 2:36 pm Subject:

I just got a reply from 247advances...this is what they said.

The Loan Agreement, to which we have adhered to by funding the loan, detailed that your loan was subject to the Arbitration Laws of Malta, a fact by which you confirmed your understanding and acceptance of via the online signature you made. Please note, we are not a US company, have never prescribed to be a US company and have no US presence, as such are not subject to the US laws you detail. Please refer to your copy of the Loan Agreement. Under the terms of the Agreement you consented to make payments via ACH until the loan was satisfied in full. We will continue to make collection of all funds due and payable to enable the loan agreement to be satisfied, as per the original provisions. Regards, Customer Services

What do I do now?

Posted: Tue Aug 19, 2008 2:57 pm Subject:

o lord, not another malta company!

Mynaddie · Posted: Tue Aug 19, 2008 2:59 pm Subject:

Malta company..what does that mean?? How bad is it?

Posted: Wed Aug 20, 2008 5:32 am Subject:

I'm dealing with a company in Malta currently and it's just not as easy as some but there are some success stories. It just takes consistency.

Have you sent a letter containing all of the following items to 247advances?

ACH Revocation
Wage Garnishment/Wage Assignment Revocation
Cease and Desist Notice
Paid In Full Letter

mymaddie · Posted: Wed Aug 20, 2008 11:50 am Subject:

I sent this letter:

After doing research regarding Internet payday loan laws in the State of Arizona, I have found that your Internet payday loans are actually illegal. I have also found the following laws to be true applying to payday loans in the State of Arizona in general:

Legal Status: Legal

Citation:
Ariz. Rev. Stat. Â§ 6-1251 et seq.

Loan Terms:
Maximum Loan Amount: $500
Loan Term: Min: 5 days
Maximum Finance Rate and Fees: 15% of check
Finance Charge for 14-day $100 loan: $17.65
apr for 14-day $100 loan: 459%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: One
Rollovers Permitted: Three (extensions)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: $25 NSF fee + actual charges assessed by the financial institution
Criminal Action: Prohibited

Where to Complain, Get Information:
Regulator: Arizona Department of Financial Institutions
Address: Financial Enterprises Division, 2910 N. 44th Street, Suite 310 Phoenix AZ 85018
Phone: (800) 544-0708
Fax: (602) 381-1225
Regulatory Contact: Robert Charlton,, Assistant Superintendent of Banks

I hereby revoke any and all ACH authorizations with your company from debiting any of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I have closed my account with Washington Mutual to protect my interest in this matter, per instructions from The Arizona Department of Finance. I also revoke any and all wage assignments I may or may not have signed with your company, I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for your collection purposes. I have notified my employer about this matter so any attempts to do so on your part will be rejected.

I demand that any contact be made through US Postal mail or email only. I will need everything in writing to keep accurate records of all communication as per instruction from my Attorney General's Office. I prohibit you or your affiliates to contact me via telephone at my place of employment or my home telephone number. I also prohibit you from calling my references listed on my loan.

Due to the fact that Internet payday loans must be licensed in the state of Arizona to be a legal and binding contract, your company should NOT issue loans to Arizona residents at all. I am requesting that you send me your license number which enables you to offer loans to Arizona residents.

The legal amount that could have been charged to my loan is the principal amount, even IF your Internet pay day loan were legal anywhere in the U.S. I am willing to pay the principle amount of the loan only; however, this is only if you provide me with a physical address where I can send payments.

I must also inform you that I will be filing complaints with the Better Business Bureau, the Federal Trade Commission, and the Arizona Attorney General's Office.

I expect a response from your company no later than 5 days from the above date regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted.

Do you have any other letters that would be good for me to send? The problem with this company is there is no address to send letters to and no phone number to call. They will only communicate via their website by me creating " help ticket". What should I do?

mymaddie · Posted: Wed Aug 20, 2008 11:54 am Subject:

what is a wage Garnishment/Wage Assignment Recovation letter? They cant garnish my wages without legal documentaion, i know that for a fact.

*Name:
*Email:
*Phone:
*Zip:
*Debt

	* denotes required field

Internet's first get-out-of-debt community - 144,000 members

Legal or illegal?

Members Area

Free Debt Counseling

Ask the community

Also See

Featured Discussions

Featured Articles

Recent Forum Discussions

Recent Blog Post