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I took an online Payday loan for $300 from "Loanshop Online" in October 2007. I defaulted on the loan, due to a bad financial situation, and were not able to make payments. During that time I did make several payment arrangements, and unfortunately I did break them due to inability to pay. I was contacted on June 2, 2008, and told that I need to pay $300 by 4 PM that day. They said there was absolutely no way they could hold the account and that "their hands were tied" and that I needed to "check my resources" and pay it by 4 PM. I was also told me that after 4 PM that day, they would no longer be able to discuss the debt with me, it would have to be my attorney only.

On Friday, June 6, I receive another call - even after telling me that they would no longer be able to speak to me regarding the account - asking again for payment of the balance. I reminded them of the previous conversation and the fact that they had informed me they would no longer be able to speak to me, and they said this was a "last ditch attempt" to get payment, or my account would be marked as "Refusal to pay." June 10, I received another phone call at work with a voicemail being left that I need to call by 4 PM.

I believe that your company is in violation of Texas State Laws regarding payday lending, and I have contacted the Attorney General and the BBB regarding this matter. I have been contacted repeatedly at my place of employment, even after requesting that I not be contacted there. I do have a working home telephone number with voicemail, but am rarely called there - mostly at my office. I have been told my wages will be garnished. This is not legal in Texas for an unsecured debt without a court judgment, and a voluntary wage assignment will be revoked. It is also unlawful to suggest that legal action will be taken, if it is not followed through. This has happened on occasions when I was told my file was scheduled to go to court, or that the agents would no longer be able to speak to me - only an attorney - yet they continue to call me. I have requested validation of the debt in writing via email, to no avail. I have also formally requested, in writing via email, a new account manager, also to no avail. All of these calls, emails, and other communications, have been documented, and filed with the Attorney General's office.

I was not able to locate a license for your company to operate within the licensee database for the state of Texas. Per advisement, I am formally requesting verification that the company is licensed within the state of Texas, a validation of my debt and total amount owed including fees, validation of any amounts paid by me towards the principal of the loan, and a copy of my original loan contract and all forms signed by myself, either electronically or otherwise. These items may be emailed to me, or mailed to my home address on file. I am also formally requesting that I no longer be contacted at my place of employment, as I am not allowed to accept personal calls at this number.

Thank you.

pmburk · Posted: Wed Jun 11, 2008 8:30 am Subject:

Shoot, I hit 'reply' too quickly! the above is an email I was going to send to Mr. Mashburn. What do yall think?

pmburk · Posted: Fri Jun 13, 2008 11:56 am Subject:

Ok, they are still calling and harassing me at work. Help!!!

Should I send the email I posted above? Fax a wage assignment revokement letter? Or just ignore the calls and let it go?

Advice please!

Posted: Fri Jun 13, 2008 12:08 pm Subject: reply

all three sound good to me,do them all asap.

pmburk · Posted: Mon Jun 16, 2008 2:02 pm Subject:

Okay, they tried calling me at work again twice today, so I sent the email to William Mashburn. Haven't heard anything back from BBB or AG yet.

Will keep you all updated!!

Posted: Tue Jun 17, 2008 3:32 am Subject:

If the Loan Shop calls you again do not answer but send the same emails you sent. I had the same thing happen to me and anytime they called me, I would send like 10X in a row the same emails.

pmburk · Posted: Tue Jun 17, 2008 9:08 am Subject:

VICTORY!!!!!!!!!!!

After filing complaints with the BBB, AG, FTC, and sending the above email to William Masburn - this morning I have received this email:

From: Brad Weathers (bweathers@ltsmanagement.com)

My name is Brad Weathers. I am the collections manager on your Loan Shop Online payday loan. I apologize for any inconvenience you may have experienced. Loan Shop Online is willing to write-off your loan, providing you sign the attached document and fax it back to me at 1-800-383-3309.

Thank you,
Brad Weathers
Brad Weathers, J.D.
Collections Manager
Loan Shop
(800) 757-0122 ext. 3234
(800) 383-3309 fax
bweathers (@) ltsmanagement.com

Posted: Tue Jun 17, 2008 9:35 am Subject:

PM - Question - Is there a confideniality clause in the release you signed?

WI Guy · Posted: Tue Jun 17, 2008 11:25 am Subject:

Goudah, I also had to sign the "attached document" from Loan Shop when I got my refund. There's no confidentiality clause in it.

pmburk · Posted: Tue Jun 17, 2008 11:44 am Subject:

Yeah, mine didn't have a confidentiality clause either.

Posted: Tue Jun 17, 2008 11:58 am Subject:

Good - Just making sure. A lof of these companies check out this site, and if there was a confidentiality clause, we'd need to edit both your posts so that you wouldn't be breaking it.

There's nothing worse then thinking you've finally won over your illegal loan, then finding out you are being sued for real for breaking the confidentiality part of yoru settlement agreement. Those are legal and you can end up oweing big time.

pmburk · Posted: Wed Jun 18, 2008 9:50 am Subject:

Thanks, good thinking goudah!

Funny, this morning I received an email from the Delaware BBB saying they'd investigated and already had a response from Loanshop indicating that they had resolved the issue with me. So, clearly the BBB had already contacted them about my issue. Laughing

CoreyJ · Posted: Tue Jul 01, 2008 7:56 am Subject:

I am in Oklahoma and just received this email from Loan Shop Online. How do I find out if they are licensed in Ok? Oh--in regards to the $300 they loaned me on 2/22/08--they have taken nearly $700 out of my account for this.

Your loan is past due!

Loan Shop Online provided you with a $300.00 loan on 02/22/2008. I would like to discuss the options available for you to pay off your account. Your current balance including principal and fees is $351.00.

What can I do to help you meet this obligation?

Please contact me at 1-888-265-5074 about account number XXXXXX

The sooner you call to discuss your account, the sooner your account can be paid in full!

Sincerely,

Angel Pernice
Account Manager
Loan Shop Online
1-888-265-5074 x4478

PS --- You can pay your account today via MoneyGram. Call 1-800-555-3133 for a MoneyGram location near you, or search online at moneygram dot com

Receive Code: 4959
Pay To: LTS Management Services
Wilmington, Delaware

Posted: Tue Jul 01, 2008 8:10 am Subject:

Here are the laws regarding OK

CoreyJ · Posted: Tue Jul 01, 2008 12:01 pm Subject:

Thanks PinkLady. Pardon my ignorance, but the statement:

Loan Term: 12-45 days
Maximum Finance Rate and Fees: $15 per $100: $0- $300; $10 per $100: $301-$500
Finance Charge for 14-day $100 loan: $15
apr for 14-day $100 loan: 390%,

and the fact it mentions rollovers are not permitted, does that mean the fact they have charged me nearly $100 every two weeks since February would be considered "illegal"? I hate to bust them with that comment only to find out it was legal. That would be all I need to really tick them off huh?!! (as if stopping payment against them wasn't enough!!) Shocked

Posted: Tue Jul 01, 2008 12:35 pm Subject:

If you have been paying them that much since February, then according to your state laws you have well overpaid them. I would send them a letter stating the laws showing you have overpaid them and also that since they are not licesed to do buisness in your state that you demand your account be paid in full. You could also contact your states AG office, some people have been lucky enough for them to step in and help them out.

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