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Posted: Tue Dec 02, 2008 2:39 pm Subject: Defaulted on Payday Loans

Hi, I came across this forum because i defaulted on some payday loans. I intended to pay them but i am going though a very bitter divorce and custody (reason why i got the loans in the first place) and am unable to keep up with the expenses.
I have loans with VIP Cash, Mesa Financial, Loan Shop Hampton and SGQ Ltd. Can someone let me know how to handle their collection calls? I would like to pay them off eventually when I get extra cash. Some are threatening to take legal actions against me.

Posted: Tue Dec 02, 2008 3:21 pm Subject:

Where do you live? Are these internet pdls or storefront?

Posted: Tue Dec 02, 2008 3:36 pm Subject:

And while you're at it...how much are the loans for and how much have you already paid?

Intricate-EM · Posted: Tue Dec 02, 2008 4:41 pm Subject:

I live in California. These are internet pdls.
VIP Cash - $450 paid $500 in interest
Mesa Financial $300 paid $90 in interest (recent loan)
SGQ Ltd - $300 paid $360 in interest
Loan Shop - $300 paid @ $90 in interest (recent loan)

I thought i could afford to pay the interest when i took out the other 2 recent loans.

Posted: Wed Dec 03, 2008 7:18 am Subject:

Here are California's laws...
California State Information

Legal Status: Legal

Citation:
Cal. Fin. Code Â§Â§ 23000 to 23106

Loan Terms:
Maximum Loan Amount: $300
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: 15% of check
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: One
Rollovers Permitted: None (cannot charge fee for extension)
Cooling-off Period: None
Repayment Plan: Voluntary (no fees may be charged in conjunction with payment plan)

Collection Limits:
Collection Fees: $15 NSF fee
Criminal Action: Prohibited

Where to Complain, Get Information:
Regulator: California Department of Corporations
Address: Financial Services Division, 1515 K Street, Suite 200 Sacramento CA 95814
Phone: (866) 275-2677

IntricateEM · Posted: Wed Dec 03, 2008 10:25 am Subject:

Thank you.
So they are not allowed to threaten to sue me, correct? Cristine from Loan Shop/Hampton just left a nasty message on my work phone. I already faxed them a letter asking to settle the account. Hopefully they will work with me.
How do I find out if they are even licensed to lend in California? So I can use that info as a leverage to get them to agree to my proposed settlement. Thank you!

Posted: Wed Dec 03, 2008 10:51 am Subject:

I just looked them up on the California Dept. of Corporations website and none of them appear (I say that b/c a lot of these companies use multiple names) to be licensed. Chances are, however, if they didn't come up they aren't licensed. If you need something more concrete than that you can always call the CA Dept. of Corp. Consumer Services Office at 866-275-2677 and they should be able to tell you for sure.

Posted: Wed Dec 03, 2008 10:58 am Subject:

Oh...and sorry...threaten to sue? That's so minor league for these guys. They didn't say they were going to come arrest you in ten minutes and take all the Christmas presents out from under your tree? (I'm just trying to make light of what I know is a stressful situation). If they're not licensed they'll threaten all kinds of things because they know they have no legal recourse. Politely inform them that you'll be recording their next call and you'll see how quickly they won't want to talk to you anymore. They should be pleased you've offered a settlement--most folks that default don't make the effort.

Posted: Wed Dec 03, 2008 11:30 am Subject:

good luck, you'll be fine. just remain calm when speaking with them and don't let them get you Smile

intricateEM · Posted: Wed Dec 03, 2008 12:45 pm Subject:

I offered them a settlement of $50 a month until the loan is paid off and this is what they came back to me with. Can't they stop the fees since I am trying to settle?

"Unfortunately we are not able to settle your loan with $50 a month your extension fees alone are $180 a month

Christina Seelbinder
The Loan Shop (LSO)
(888) 265-5074 ext. 4242
(800) 383-3309 fax
cjseelbinder@loanshoponline.com

MONEY GRAM INFORMATION!
Reference #4959
Pay to: LTS
City: Wilmington, DE
Account #, or SSN required to identify payment"

Posted: Wed Dec 03, 2008 1:18 pm Subject:

Of course they can--the question is whether or not they will. Once they realize that's all they're getting out of you, they'll change their tune. Stick to your guns. They're operating illegally.

intricateEM · Posted: Wed Dec 03, 2008 1:32 pm Subject:

Thank you. I have asked them to suspend the fees. I also asked for the California Business License. I said I wanted to call the CA Dept of Corporations to ask for advise on how to handle the defaulted loan. Hopefully this will knock some sense onto them.

intricateEM · Posted: Wed Dec 03, 2008 2:09 pm Subject:

The email exchanges is below. As soon as I sent my email I have received 2 calls from them on my work phone even if I specifically told them to communicate with me via email from now on. I did not pick up because I recognized their number.

I really hope they just accept the settlement.

"Angie,

Since there will be a settlement, I believe your company can suspend the monthly fees. Or is this not correct?

Can you provide me your California Business License. I would like to call the California Dept. of Corporations to ask them other recourse I have to settling this loan given my financial situation. I am told I need your business license so I can be directed to the proper people. Thank you."

Their reply is:

"We are an internet company based out of Willington DE, and if you want a settlement in this matter this will need to be paid immediately via money gram, if you would like to discuss this matter with my supervisor you can reach Princeton Harris at 1-888-265-5074 ext 4242

Christina Seelbinder
The Loan Shop (LSO)
(888) 265-5074 ext. 4242
(800) 383-3309 fax
cjseelbinder@loanshoponline.com

MONEY GRAM INFORMATION!
Reference #4959
Pay to: LTS
City: Wilmington, DE
Account #, or SSN required to identify payment

Posted: Wed Dec 03, 2008 2:32 pm Subject:

Hey! I just found something I think you'll find really interesting...I'm going to send you a pm with the info.

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