I received an email from CTC in response to a letter I sent to them on February 7, 2009. Using the Cease and Desist letter template and adding the following Paragraph.

Due to the fact that Internet payday loans must be licensed in the state of California to be a legal and binding contract, your company should NOT issue loans to California residents at all. I am requesting that you send me your license number which enables you to offer loans to California residents.
Even IF your internet payday loan was legal anywhere in the US, the legal amount that could have been charged to my loan is the principal amount plus 15%
As you are NOT legal in the US, I am willing to pay the principle amount of the loan ONLY less the illegally collected fees, on my previous loans with you.
Summary of loan history below.
11/21 Received $300.00 – 12/3 Paid $381.00 (If legal in CA only allowed to charge 15% or $45.00)
12/5 Received $300.00 - 12/17 Paid $381.00 (If legal in CA only allowed to charge 15% or $45.00)
12/19 Received $600.00 – 12/31 Paid $762.00 (Only legal in CA to loan $300.00 max)
1/5 received $600.00 – 1/14 Paid $762.00 (Only Legal in CA to loan $300.00 max)
1/16 Received $600.00 – 1/28 Paid $762.00 (Only Legal in CA to loan $300.00 max)
1/28 Received $600.00 – Due Date 2/11/09 Not paid as of yet.

Even if you contend that you are legal in California, you clearly have overcharged me on ALL of my loans, By California law, each loan of $300.00 would only have incurred a $45.00 finance charge.
As I have already over-paid you for the above listed loans, and assuming you are legal in California, I will accept a credit of $36 each on the 2 - $300 loans, for a total of $72, and a credit of $72 each on the 3 -$600 loans for a total of $216.00.
Total of amounts you overcharged me on previous loans = $286.00 (assuming you have the right to issue loans in California)
If you do not have the right to loan to Californian’s the only amounts I am liable for paying back, is the principal balance, in which case I overpaid you by an additional $450.00, or a Grand Total of overpayments of $736.00.
If you deduct this from the principal amount of my latest loan of $600, Cash Transfer Centers Owe me 136.00 I ask that you send me by US mail your license number, allowing you to do business in California. Once I am in receipt of your license number and have verified that you are legal to do business in California I will send $314.00 to your street or mailing address ONLY. (Under NO circumstances will I release any bank account information or credit card numbers.)
If you do not have a legal license to do business in California, I demand an immediate refund of the $136.00 and a document stating that my account with you is paid in full.
I must also inform you that I will be filing complaints with the Better Business Bureau, The Federal Trade Commission, and the California Attorney General’s Office.

They responded with the following.

Northway Financial Corporation Ltd. is licensed by the MFSA to provide lending services under the Financial Institution
Act 1994
We are in receipt of your faxes dated February 10th and February 13th, 2009. Please be advised that
we have ceased all collection activities and all communication by telephone while this account is
under investigation.
If you take a moment to review your attached loan agreement, you will see that Northway Financial is
licensed by the government of Malta as a financial institution, and the law of Malta, not the state of
California applies to its terms. We provided you with this notice so that you would understand the terms
of your loan.
We are prepared to offer a repayment arrangement in the amount of three (3) equal payments of
$200.00 as payment in full of your outstanding loan. This represents the $600.00 loan principle on your
current outstanding loan. Once payment has been received, we will consider this account paid in full
with no further obligation. Please be advised that we will be unable to offer you our services in the
future.
The three (3) equal payments of $200.00 can be made via Western Union or Money Gram, and should
be received by May 20th, 2009. We have included the payment information below for your reference.
Alternatively, you may send your payment to the Northway Financial Corporation Ltd. address listed
above.
MoneyGram Express Payment Western Union Quick Collect
Receive Code 4476 Code City ECARE
Payable to ECARE CONTACT CENTERS Code State DE
Account 31416503 Payable to ECARE CONTACT CENTERS
City (Blank) Account 31416503
State (Blank)
Should you have any further questions, please feel free to contact our office with the information
provided below.
Sincerely:
Customer Support Department
Fax: 1-866-772-4556
Email: supportresponse@cashtransfercenters.com

I feel that since they are NOT legal in California, I have already paid way more than I should have. Do I respond to this letter?
and if so, what do you suggest I tell them.

Again thanks for all your help. With your information, I am slowly getting out of the PDL HELL

I love how they always bring up "the laws of Malta, not the country you live in". No country will allow another country's laws to supersede their own, especially when it come to their own citizens.

You did not borrow the money while you were vacationing in Malta so they can just deal with it. The State of California has already given them the smack down so they are directly violating the Desist & Refrain Order.

You may wish to send them it again, it seems that they might be a wee bit forgetful....

chrys

Good advice Chrys.

Another member posted a letter from them yesterday and all that Malta BS was in their letter as well.

I suggested they respond with....

I am not a resident of Malta, nor do I wish to be a resident of Malta nor have I ever been to Malta. l live in the US so my presence in the US, as such, does not make me a subject to the laws of Malta.

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To infinity, and beyond

This company is very difficult to deal with, I dont forsee any kind of refund from them but I am unsure of their collection tactics. When I loaned from them I already paid them back before I knew they were illegal. "MALTA" what a joke.

sdolan1 you can read HERE to get more information on CTC. Best of luck to you

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"We are what we repeatedly do. Excellence, then, is not an act, but a habit."

-Aristotle-

I sent CTC a letter back in December. My loan was for 1,000 and they wanted over 1300 back. I had taken out 15 loans with them in the course of a year... all worth 1,000. I said that I am not going to pay the 1,000 because I have paid you guys 3,900 in fees on illegal loans and all I would be willing to pay was the 2 returned item fees. Also, I said that the US trumps Malta. I then got this email in January:

"Dear Ms. ******,
We respect your decision on not paying what you borrowed and that since you have been such a great customer in the past, as a 1 time courtesy, we will consider your account paid in full.
Sincerely:
Cash Transfer Centers
Fax: 1-866-772-4556
Email: supportresponse@cashtransfercenters.com"

So, the saga continues... just yesterday, I got a phone call from 866-958-3278. I googled it and it was CTC! I just about died... Well, they left a message and I listened and they wanted to let me know that I still have cash available! Wow- they are getting hard up, or they need to update their records.

What address did you all send your letters to? I have emailed them similar letters... but I want to make sure they get them so I also want to sent a copy of the letters by snail mail. I have seen a few different addresses, does anyone know what the correct one is?

Guest that is Awesome you got a PIF!

__________________
"We are what we repeatedly do. Excellence, then, is not an act, but a habit."

-Aristotle-

I just emailed customercare@cashtransfercenters.com. Never snail mailed. I think it all depends on the rep you get and if they are in the mood to agrue. The MOST important thing is to address the wage assignment in your letter to them. My job confirmed that they will not honor them and my HR rep even wrote an email to them advising them.

Then again, it could just be that I was a 'great' customer that they thought I would get sucked back into them.

Thanks.... I have sent them 4 emails so far, and just faxed them a letter too. From what I read on tis thread it seems like it takes a month or so for them to get back to you. I guess I'll just wait.

I took out my last loan with CTC on 1/15/09. I have been borrowing from them the last 3 years or so. Anyways, I emailed them 1/26/09 that I was laid off. I then informed that I had closed my bank account, revoked ACH withdrawals and any wage assignments. I then get a letter from them in Feb stating that I had to follow Malta's laws and then they set up 4 payment arrangements. I emailed them back stating that I would not be making any payments to them, that they were illegal in my home state and that I did not have to follow Maltese law. Told them I had borrowed over 25000 in the last 3 years and that I had paid more than my state allows on all those loans. I still have not heard back from them. I keep waiting for the "sheriff is around the corner" or you will be downloaded and Processed call if you don't pay us right now. At least you got a PIF letter.

"You will be downloaded" cracks me up everytime I see that.

I mean are they going to suck people through their computer screens and "energize" them to Malta? LOL

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To infinity, and beyond

LMAO

Turn you into an MP3 by midnight..LOL!

__________________
"We are what we repeatedly do. Excellence, then, is not an act, but a habit."

-Aristotle-

LOL

I mean really. They can not simply appear in your livingroom from Malta and haul you away and they can not snatch you from your corner grocery and wisk you off to Malta.

Last I looked there is not a working StarGate to Malta or any other country.

Kewl concept though but ticket prices would be "out of this world"

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To infinity, and beyond

Careful, they might download you and re-format you!

Can I request that I am reformated back into a 24 year old woman with a nice butt?

LOL

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To infinity, and beyond