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 Posted: Mon Jan 21, 2008 12:12 pm Subject: CMG Group Response - What do I do now?
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I took out a $300 loan from CMG Group on 11/1. Since then they have taken $590 from my account. I sent them this letter (via email and fax):
After doing research on internet payday loan laws in the state of Tennessee, 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 Tennessee in general:
Citation:
Tenn. Code Ann. §45-17-101 et seq. and Tenn. Comp. R. & Regs. § 0180-28-.01
Loan Terms:
Maximum Loan Amount: $500
What do I do now?
Thanks - Amanda
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: the lesser of 15% of the check or $30
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: 3 (2 per licensee)
Rollovers Permitted: None (cannot renew or otherwise consolidate)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: One $30 NSF Fee; Court Costs
Criminal Action: Prohibited
The legal amount that can be charged to me is the principal amount of $300 plus $30 in fees as prescribed by Tennessee State Law. You have withdrawn $590 from my bank account which exceeds the legally owed amount by $260. I am no longer willing to make payments for this debt as advised by my Department of Financial Institutions and my state Attorney General’s office.
I demand that you refund the $260 overpayment immediately and mark my account as paid in full.
You are no longer authorized to debit my bank account.
I demand that any contact be made through US Postal mail at the address listed below or email only. I will need everything in writing to keep accurate records of all communication as per instruction from my state 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. Once I inform you of this, you must stop the telephone contact immediately or you will be once again breaking the laws of the state of Tennessee.
You are also hereby notified that I am revoking any voluntary wage assignment I may or may not have signed. 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 am revoking your right to debit my checking account any longer. You, your company, or your affiliates are not authorized to debit my checking account at all. Please be aware that I have informed my financial institution of this situation and they will also be receiving a copy of this correspondence. Any further attempts at debiting my account will be rejected by my financial institution.
I must also inform you that I have filed complaints with the Better Business Bureau, the Federal Trade Commission, and my state Attorney General's Office.
I expect a response from your company no later than 1/25/2008, regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted.
CMG Replied with this:
I have received your faxes and emails regarding your loan with CMG Group LLC. In response to your various contacts regarding your loan with this company; I cannot understand that you would request a paydown on your account, thereby acknowledging and agreeing to the terms of loan but now claiming it is against the laws of your state?
I am sending your original loan packet, please review your Loan Note and Disclosure where it clearly states under "Governing Law", the terms under which the loan resides.
You will need to stop the debits through your bank as we are unable to stop deductions through our office.
What do I do now?
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amandanoll
Joined: 18 Jan 2008
Posts: 22
Debtcc Points: 709
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Posted: Mon Jan 21, 2008 12:17 pm Subject:
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I sure hope that you closed your account prior to sending this out. If not once they get this they will start debiting your account and take everything you have.
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kashzan
Debt Samaritan
Joined: 11 Jul 2007
Posts: 5458
Debtcc Points: 38911
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Posted: Mon Jan 21, 2008 12:18 pm Subject:
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Your state laws prevail....they will tell you that the laws of Antartica govern the contract if they thought you would believe it.
Is your bank account closed?
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volleyballmom
Debt Samaritan
Joined: 27 Aug 2007
Posts: 4177
Debtcc Points: 24901
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Posted: Mon Jan 21, 2008 12:18 pm Subject:
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Yes my account has a hard hold on it and will be closed tomorrow morning.
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amandanoll
Joined: 18 Jan 2008
Posts: 22
Debtcc Points: 709
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Posted: Mon Jan 21, 2008 12:22 pm Subject:
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I believe that CMG is also affiliated with Westbury Ventures. I am glad that your account is safe from these people.
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kashzan
Debt Samaritan
Joined: 11 Jul 2007
Posts: 5458
Debtcc Points: 38911
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Posted: Mon Jan 21, 2008 12:25 pm Subject:
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Good for you Amanda.....
_________________
~ Tweety~
When I'm good, I'm very good, but when I'm bad, I'm better.
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Tweety71
Joined: 04 May 2006
Posts: 2061
Debtcc Points: 22656
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Posted: Mon Jan 21, 2008 12:44 pm Subject:
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Just an FYI - TN doesn't license out of state companies. They allow out of state companies to lend over the internet as long as they are licensed in their state. They would need to follow the laws of the state they are licensed in.
| Quote: |
Email to and from TN Banking Dept
Hello,
I'm trying to make sense of the payday loan laws in Tennesse. How would I go about calculating the allowable interest?
Thanks!
Response
From: Steve Henley
Sent: Friday, March 02, 2007 1:08 PM
To:
Subject: Re: calculating pdl interest
Dear Ms , technically it is not an interest rate but service fee and this is how it works. The fee cannot exceed the lesser of 15% of the check amount or $30. So if you have a check amount for $100, the service fee would not exceed $15 (15% x 100). Keep in mind the fee is on the check amount, not cash amount. If the consumer requests $100 in cash, the check amount would be $117.65. The check amount of $117.65 x 15% equals $17.65, and cash is $100 ($117.65 - $17.65 = $100). If the customer asks ... "how much should I write the check for if I want $50?"
You can back into the check amount by taking $50 and dividing it by 85% or .85. In other words $50 divided by .85 = $58.82. You can verify by multiplying $58.82 x 15% = $8.82 service fee. $58.82 - $8.82 = $50.
Remember the service fee is limited to $30 on all checks exceeding $200.
I hope this helps but please let me know if you have other questions.
615-532-6993 Steve Henley
Reply:
Hello,
Can you tell me if internet based payday lenders with no physical location in TN need to be licensed by TN to lend legally? Or would they only need to be licensed by another state? And which state's laws would they need to follow?
Thanks!
Response:
From: Steve Henley
Sent: Monday, August 27, 2007 8:12 AM
To:
Subject: Re: Internet Payday loans
Dear Ms , our statute does not address internet activity, but to obtain a license from Tennessee the entity must first have a physical location in this state.
Please let me know if you have other questions.
615-532-6993 Steve Henley
What does this mean?
They can charge 15% of the face value of the check in fees.
Rollovers are not allowed.
Internet companies do not need to be licensed by TN. As long as they are licensed in another state they can lend legally. They must follow the laws of the state they are licensed in. |
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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goudah2424
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Posted: Mon Jan 21, 2008 12:56 pm Subject:
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Anyone know where/if CMG is licensed?
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volleyballmom
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Posted: Mon Jan 21, 2008 1:01 pm Subject:
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I don't know . . . . I just wanted to throw that out there in case they are.
I want to say they are located in the West Indies . . . . But I'm not for sure. It just seems like something I remember.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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goudah2424
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Posts: 8007
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Posted: Mon Jan 21, 2008 1:02 pm Subject:
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you remembered well. Here are the address I have for them. I doubt that they hold a license anywhere.
CMG Group,
10108 Summer Oak Ln, #103
Las Vegas, NV 89134
Tel 866-516-9300
Fax 866-516-9700
CMG Group
P.O. Box 636
Charleston, Nevis
West Indies
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kashzan
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Joined: 11 Jul 2007
Posts: 5458
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Posted: Mon Jan 21, 2008 1:03 pm Subject:
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What kind of response should I send to that email? Should I file a complaint with the NV AG? I already filed a BBB complaint.
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amandanoll
Joined: 18 Jan 2008
Posts: 22
Debtcc Points: 709
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Posted: Mon Jan 21, 2008 1:07 pm Subject:
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The more complaints the merrier!
I would reply that they are an unlicensed company, and that they can say that the laws of timbukto govern the loan, but that doesn't make it so!
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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goudah2424
Moderator
Joined: 31 Oct 2006
Posts: 8007
Debtcc Points: 111673
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Posted: Mon Jan 21, 2008 1:31 pm Subject:
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Here is what I replied:
| Quote: | Miss Hernandez,
I have already filed a complaint with the Better Business Bureau. My next step is to file a complaint with the Nevada Attorney General and the Tennessee Attorney General. Please mark my account as paid in full so that we can put this matter to rest without any further hassle.
You are no longer authorized to withdraw money from my bank account. If you do attempt to withdraw any additional money from my account you will be acting without my authorization and I will take any and all necessary legal steps.
Please provide me with a copy of your license to operate in the United States as I would like to have this information available when I file a complaint with the Nevada Attorney General and the Tennessee Attorney General.
Thank you,
Amanda |
I wonder what she will say to that. Do you think she will send me a copy of their license?
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amandanoll
Joined: 18 Jan 2008
Posts: 22
Debtcc Points: 709
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Posted: Mon Jan 21, 2008 1:40 pm Subject:
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Maybe a copy of the license out of a cracker jack box 
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tiffer0220
Joined: 14 Jan 2008
Posts: 91
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Posted: Mon Jan 21, 2008 1:47 pm Subject:
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She replied:
The lender is not located in Nevada. Please review your Loan Note and Disclosure.
I replied:
So are you saying that you do not have a license to operate legally in the United States?
hmmmmm.......
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amandanoll
Joined: 18 Jan 2008
Posts: 22
Debtcc Points: 709
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Posted: Mon Jan 21, 2008 1:47 pm Subject:
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this could be fun...lets see what she says to that.
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volleyballmom
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