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 Posted: Thu Apr 03, 2008 8:01 am
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Hi Everyone, It is djones06 again. I just
got this answer from the Michigan
OFIS and am not sure how to proceed.
Any thoughts/comments are greatly appreciated.
In response to your inquiry:
1) The six company names you provided are not licensed in the State of Michigan as Deferred Presentment Services Providers.
2) Being internet-based is not an exemption of Michigan statute. The location of the entity providing the payday loan (deferred presentment transaction in Michigan) does not create an exemption either. Therefore, if the companies are providing deferred presentment service transactions as defined by the Act, a license is required in Michigan.
3) Yes – when doing business in Michigan, they should follow Michigan laws
4) For complaints regarding collection practices you may go to the following website: ftc.gov
Once you are there, click on the Consumer Protection tab and then on the File a Complaint tab. Under the drop down menu for “subject of your complaint” you should choose Debt Collection.
5) See answer to #4 above
You may also file a complaint regarding the internet lenders you listed by going to www.michigan.gov/ofis
Click on Consumer Service, How to File a Complaint, FIS 1010 (complaint form) – you should provide a copy of your agreement and any other documentation you have regarding these transactions.
Sincerely,
Karen Tingley, Manager
Deferred Presentment & Money Transmission Services Unit
Office of Financial and Insurance Services
611 W. Ottawa Street, 3rd Floor
Lansing, MI 48933
Phone: (877)999-6442
Fax: (517)335-1501
E-mail: tingleyk@michigan.gov
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djones06
Joined: 14 Feb 2008
Posts: 58
Debtcc Points: 1986
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Posted: Thu Apr 03, 2008 8:06 am
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sounds to me like you've got information to proceed with complaints.full speed ahead.
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paulmergel
Debt Samaritan
Joined: 24 Jun 2007
Posts: 1741
Debtcc Points: 7390
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Posted: Thu Apr 03, 2008 8:16 am
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I whole-heartedly agree.
The only problem comes in enforcing the law. If an internet lender is breaking MI laws, what is the State of MI going to do about it? Mostly they issue C&D orders, which are about as effective as a stop sign on the expressway.
The reality is that for them to go after these internet lenders, many of which are out of this country, they would need to cross juridictions and launch massive investigations with the help of foreign governments.
The state is not going to spend that much time/money/man-power unless they have an overwhelming public outcry. Filing a complaint is good start, but won't do much unless everyone files complaints.
Rest assured, there's not much the illegal PDLs can do to you in court - if they filed a lawsuit, you could easily have it tossed.
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DebtCruncher
Moderator
Joined: 07 Nov 2006
Posts: 1332
Debtcc Points: 15942
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Posted: Thu Apr 03, 2008 9:49 am
Latest Blog Post : Groceries....How to Save $$! |
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Actually, MI is starting to really pursue the illegal internet-based lenders.
According to MI law, a lender has to display a hard copy of the interest rate they charge and their license in a prominent place - a little hard for a website to display a "hard copy" of anything. And we all know that internet lenders who are operating illegally don't provide copies of loan documents or proof of interest rates. They simply don't do it.
An illegal internet lender trying to take ANYONE to court in the state of MI would not only be laughed out of court, they would most likely find the tables being turned and being prosecuted for doing business without a license, etc.
_________________
A journey of a thousand miles begins with a single step...and becoming debt free is a journey!
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SUEBEEHONEY70
Moderator
Joined: 12 Oct 2006
Posts: 4316
Debtcc Points: 56062
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Posted: Thu Apr 03, 2008 10:30 am
Latest Blog Post : http://frogpatch.yesdebtfree.org |
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The other good news is none of these illegal IPDLs or their collectors will follow you into the state and try to pursue legal action to collect! They may call and threaten but thats about it!
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frogpatch
Moderator
Joined: 09 Apr 2007
Posts: 3439
Debtcc Points: 30193
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Posted: Thu Apr 03, 2008 11:43 am
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I agreed with frogpatch they will not go into the state since they jnow they are illegal.!
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spanisheyes
Joined: 15 Jan 2007
Posts: 283
Debtcc Points: 12506
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