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Hello,

I got my first response back today. This one from East Side Lenders. Please advise on how to respond. I live in Florida.

Dear

East Side Lenders is responding to your correspondence regarding the above-captioned account.

East Side Lenders, which is located in Delaware, is licensed by the State of Delaware to make small loans. All such loans are approved and funded in Delaware, with repayment to be made in Delaware. The East Side Lenders loan agreement and website contain all disclosures required by Delaware and federal law and make it clear that all transactions are governed by Delaware law. On the advice of counsel, East Side Lenders maintains that the choice of Delaware law as controlling in the loan documents would be upheld, as all of the significant contacts in the loan transaction occur in Delaware. The loan agreement is legal and enforceable. In responding to your correspondence, East Side Lenders notes and reserves all available legal and equitable objections to the points you have raised.

East Side Lenders provided this service as a convenience to you. We still consider your loan to be outstanding and are prepared to go to arbitration as provided for in the Loan Agreement between us. As an alternative, if you are experiencing financial hardship, we will be happy to speak to you about payment arrangements through which you can successfully meet your payment obligations. East Side Lenders will consider doing so because of our continuing commitment to servicing our customers and not because of a legal obligation to do so.

Should you have any further questions regarding this matter, if you wish to speak about payment arrangements, please contact us at (800) 689-5603.

Sincerely,

Customer Service

East Side Lenders

Posted: Mon Jul 28, 2008 11:49 am Subject:

I'm sure frogpatch will be around to help you with this, but, was this an installment type of loan or a payday loan?

Posted: Mon Jul 28, 2008 11:49 am Subject:

This was a payday loan, illegal in florida from what I understand.

Posted: Mon Jul 28, 2008 11:52 am Subject:

Well, based on their letter, it seems as though they are trying to make it out to be an installment type loan, I read where they stated "small loans" which leads me to believe they're avoiding saying "payday loan". Without researching this, if my memory serves me correctly, seems like they need to be licensed in your state in order to lend legally to FL residents, am I correct?

Posted: Mon Jul 28, 2008 11:54 am Subject:

Yes, they need to be licensed in Florida, this is definetely not an installment loan. The only installment loan I am with is Think Cash.

Posted: Mon Jul 28, 2008 11:56 am Subject:

Ah OK, I was searching and found this post made by Cannr:

Posted: Mon Jul 28, 2008 11:59 am Subject: reply

they tried that with me too.they are not licensed period.that is
a bunch of BS.do as i did ask for there license# i bet they won't give it.want to know why,they aren't licensed at all.

Posted: Mon Jul 28, 2008 12:01 pm Subject:

Do you have the documentation that you sent them? What was your final outcome with them?

Posted: Mon Jul 28, 2008 12:05 pm Subject: reply

i just drafted a letter from the examples here,but customized it to my state.my AG got involved in the end though.this and other places just don't care about the fact that they are illegal.

Posted: Mon Jul 28, 2008 12:19 pm Subject:

Did you get a paid in full or a refund?

Posted: Mon Jul 28, 2008 12:31 pm Subject: reply

actually,my AG told me the loan was considered PIF because of
there responses to her request to work with me on getting the
150.00 i still owed paid.they insisted i owed 610.00 and wouldn't budge so my AG got serious and they went away.i don't know about how it will work in FL.

Posted: Mon Jul 28, 2008 1:23 pm Subject:

So I sent a response to her response and here is what I got.. Pretty funny i think. Please tell if you think I should respond, and if so with what, I have already filed with BBB and the FTC.

-----------------------------------------------------------

DID YOU NOT READ WHAT I SENT! WE DIDN'T LOAN IN YOUR STATE, WE LOAN FROM DELAWARE! HAVE A GREAT DAY!

---------------------------------------------------------------------- ----------
From:
Sent: Monday, July 28, 2008 2:27 PM
To: Valerie K.
Subject: Re: EAST SIDE LENDERS

Hello,

While I look forward to resolving this matter with you, as stated in my note below I will only maintain contact with you through USPS Mail or E-mail.

As you are not licensed to lend in my state, I will only pay what is left on my loan via Money order Payments (please provide a mailing address). All Money that has been paid should be applied to the $300 Principal.

I have also filed a complaint with the BBB as well as the FTC.

Please also provide your Delaware License # so that I may address your licencsing board as well.

Thanks!