Help

I live in Texas and have three payday loans out one from

MassStreet Group - I borrowed $300 and have been paying the $90 interest every pay day since Aug or Sept of 2010.

Huskhawk Group - I borrowed $300 and have been paying the $90 interest every pay day since June of 2010.

Powerfinancial Group - $500 to be paid back in 10 increments. I got this loan back in October 2010.

Are these companies legal in Texas. They are consuming my paychecks. I am going to go close my bank account, but wanted to know could they come after me legally.

Please help! Thanks,

first welcome to the forum.second if your numbers are correct you waaaaaaaaaaay overpaid and are so due a refund.btw none of the three are legal in TX so close that account asap,and go to oihiogal's sticky at the top of this forum on illegal lenders.follow every step and know we can advise further when they threaten illegaly as they will do that,but again the threats will be illegal.

Thank you for the response and your help.

I send out the letters today to all three pdls. I got the following response back from MassStreet Group within an hour:


“Dear Mrs Broussard,

We respect a consumer who researches the services to which he/she uses. With that being said when you applied for and agreed to the terms of the loan, it would have behooved you to read the complete contract you agreed to with Mass Street. You are a citizen of Texas, however the contract was not made in Texas. The contract was completed via the world wide web, the governing law (clearly outlined in your contract) which you agreed to by your legal e-signature is based in Charlestown, Nevis in the West Indies. You should have emails we sent out which are account summary and goes over the terms and what the finance charges were, yet you still accepted the loan.



We are forgiving the loan for the amount that has been paid. You will no longer see any transactions from Mass Street and due to the account not getting paid via the loan terms, I am denying this application for further lending.



CWB Services, LLC

p. 877-781-4330

f. 800-708-4351

Woo hoo! I can't wait to see what kind a response I will get from the other lenders. I am beginning to feel like I am finally getting the monkey off of my back!! I will let you know what I hear from the other lenders, as soon as I get a response.

Thank you for your response to my post. I sent all three PDL lenders letters today and within the hour I received the following response from MassStreet Group:


“Dear Mrs Broussard,



We respect a consumer who researches the services to which he/she uses. With that being said when you applied for and agreed to the terms of the loan, it would have behooved you to read the complete contract you agreed to with Mass Street. You are a citizen of Texas, however the contract was not made in Texas. The contract was completed via the world wide web, the governing law (clearly outlined in your contract) which you agreed to by your legal e-signature is based in Charlestown, Nevis in the West Indies. You should have emails we sent out which are account summary and goes over the terms and what the finance charges were, yet you still accepted the loan.



We are forgiving the loan for the amount that has been paid. You will no longer see any transactions from Mass Street and due to the account not getting paid via the loan terms, I am denying this application for further lending.



CWB Services, LLC

p. 877-781-4330

f. 800-708-4351

Woo hoo! I am so excited and am finally beginning to feel like I am getting this monkey off my back. Thanks again for your advise it really works!

that is the typical BS response.respond this way.

since i am not a resident of nevis.have never been a resident of nevis,and never will be a resident of nevis texas law prevails.i find it ironic that you will say you respect me then try to buffalo me at the same time.you are illegal in texas.nuff said.last thing you owe me a refund,and since you are not giving one i hope nevis gets destroyed by either a psunami or a hurricane.BITE ME!

respond like that.they are illegal and know it and they owe you big time,but being as they are not in this country they go to hell.

I will definitely send that response!

Also, I sent letters to the other two lenders, Huskhawk and Power Financial. They never replied to the email. Huskhawk tried to call me yesterday after I sent the letter, but I just ignored the call, and they never called again. When I closed my checking account yesterday I was advised by Bank of America that if anything hit the account within 30 days it would cause the account to reopen. This made me nervous because I just knew they would be trying to debit my account on today. I checked with Bank of America this morning and they didn't even try to debit my account. That was a huge sigh of relief. Looks like I am out of the woods with these jerks.

Additionally,

I used the same format as you advised, but I also added the Texas Usury clause in it as well, which may have made a difference. This is the format letter I used:

Date: 01/30/12

Huskhawk Group, LTD
customerservice@huskhawkmarketing.com

Monique Broussard
Address:

Account #

This letter is to inform you that I am aware of the FACT that the loan you issued to me, is NOT legal or binding in my state (Texas) or my country (USA). For your convenience, I have included my state payday loan laws below and I am also including my states laws regarding Usury.

7 Tex. Admin. Code 1.605; Tex. Fin. Code. Ann. 342.251 et seq. and 342.601 et seq.

Usury refers to the charging of an exorbitant interest rate on a loan. Texas state laws specify maximum legal interest rates for certain loans like commercial loans

Commercial loans are made primarily for the operation of a business or for investment, agriculture or similar ventures. Commercial loans are authorized by Chapter 306 of the Texas Finance Code and cannot bear more than 18 percent of interest annually although the loan may float with inflation to 24 percent. Commercial loans exceeding $250,000 can bear up to 28 percent.

Usury rates for other types of loans can vary drastically. The law that governs financing of motor vehicle sales caps the effective annual interest at 27 percent. Pawn shop loans can be 240% annually.

Consumer loans are made primarily for personal, family or household use. Consumer loans are authorized by Chapter 342 of the Texas Finance Code. Interest rates vary depending upon the type of loan and the amount borrowed.

The office of the Consumer Credit Commissioner (OCCC) sets the maximum interest rate according to the guidelines set by state laws for many types of loans including rates for credit cards, pawn shop transactions and rent-to-own purchases.

I took this loan out in August of 2011 in the amount of $300. You have deducted $90 from my account 11 times totaling $990.00. According to the Texas Usury law I have satisfied this debt and over paid it at the same time. I am requesting that you refund me the amount of $690, which has been overpaid to your company.

The state of Texas requires Internet payday lenders to be licensed in MY state. I have already researched this information, your company does NOT have a license to lend in the state of Texas nor in this country, if I am mistaken I will need proof in the form of a license number so that I may verify it with my Attorney General. I am bound by the state laws where I reside. As I have no presence in your state or country, therefore I have no legal obligation to the 'governing laws' you may have detailed.

Be advised that as of today January 30, 2012 I am revoking ANY and ALL ACH authorizations with your company from debiting any AND all of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I also revoke ANY and ALL wage assignments I may have signed, by you, including but not limited to; any of your affiliates, dba's, and collection agencies assigned to this account. None of the above no longer have my permission to access my accounts or impose a wage assignment.

I will only communicate to resolve this matter via email. If you ignore this notice and attempt to contact me or any of my references via telephone, you will be ignored and any payments owed will be delayed. I am willing to pay the principle amount of the loan only, however, no address means NO payments, this is not negotiable.

If you do NOT reply to this notice within 48 hours I will be forced to file complaints with my Attorney General Greg Abbott, the BBB and the Federal Trade Commission. If you reply to this notice with any misleading legal implications or menacing course of actions you are unable to follow through with, I will be forced to take actions against you which could cause you to lose your license in the state of (insert the state they are licensed in) (only use this statement if the illegal lender is licensed to lend in a state other than yours) and cause damage to your reputation, which could potentially decrease your clientele!



Sincerely,

Just wanted to share what I sent and hopefully someone else can use same and get out of this horrible mess with Payday Loans.

I can't thank you enough for all of your help! I was at the point where I was going to go through a payday debt consolidation program, and I am glad I did not go through them, because they would have taken just as much of my money has the payday lenders did.