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mouseski58 · #1 01-07-2009, 09:43 PM

A bit over a month ago I just up and stopped paying on a PDL that I had gotten through Oasis Marketing Group by placing a stop payment on their recurring ACH. The original loan amount was for $300 and when I stopped paying, I had already paid the company $1,620 in fees alone and had not been able to pay on the principal.

Shortly after stopping the payments, I received an email stating that the account had been turned over to a CA. Yesterday my supervisor at work received a phone call from a lady at Phoenix debt management asking for verification of my employment, etc. and I immediately had a feeling that this was related to my stopping payment on the PDL. When I got home from work, I had a voicemail from the same lady asking me to call her back regarding an important matter and telling me that she had spoken to my supervisor.

I have yet to call her back and am not sure if I should or what I should say if I do. What would be the best course of action to take with this situation? I have since found out that PDLs are illegal in the CT where I live, a fact that I was not aware of before.

Also, I have a second PDL with MyCashNow where the original loan was for $800 and I have paid back 1088.16 and still have a balance owing of 640.55. The next ACH payment for them is due next week. Is there anything I can do in regards to that one or should I continue to pay it? I've had 9 other loans with them in the past and have paid them all off successfully but right now, my finances are in a horrible bind and I run the risk of losing my car because I can't make the payments on it and the PDLs also.

Can anyone give me any advice or suggestions? I would really appreciate it.

nohiogal · #2 01-08-2009, 02:38 AM

Since the PDL you currently have is illegal you only owe the principal on that loan which you have already paid.

You need to block their ACH and then send them a letter stating that they are illegal.

Here is a template you can use and tailor it to you own state, state law and your loan information.

Quote:

Date:

Name Of PDL

Your Name
City, State
Account #

After doing research regarding Internet payday loan laws in the State of _______, I have found that your Internet payday loans are actually illegal. I have also found the following laws to be true applying to payday loans in the State of _____ in general:

Your State Information

I hereby revoke any and all ACH authorizations with your company from debiting any of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I have closed my account with the XXXXXX to protect my interest in this matter, per instructions from The _____ Department of Finance. I also revoke any and all wage assignments I may or may not have signed with your company, I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for your collection purposes. I have notified my employer about this matter so any attempts to do so on your part will be rejected.

I demand that any contact be made through US Postal mail or email only. I will need everything in writing to keep accurate records of all communication as per instruction from my Attorney General's Office.
I prohibit you or your affiliates to contact me via telephone at my place of employment or my home
telephone number. I also prohibit you from calling my references listed on my loan.

Due to the fact that Internet payday loans must be licensed in the state of ____ to be a legal and binding contract, your company should NOT issue loans to ____ residents at all. I am requesting that you send me your license number which enables you to offer loans to ____ residents.

The legal amount that could have been charged to my loan is the principal amount, even IF your Internet pay day loan were legal anywhere in the U.S.. I am willing to pay the principle amount of the loan only, however, this is only if you provide me with a physical address where I can send payments.

I must also inform you that I will be filing complaints with the Better Business Bureau, the Federal Trade Commission, and the ____ Attorney General's Office.

I expect a response from your company no later than 5 days from the above date regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted.

Sincerely,

Your Name
CC:
Better Business Bureau
Ohio Attorney General
Federal Trade Commission

Here is the address of the CA.

Name: PHOENIX debt management
Phone: (816) 423-5796
Fax: (816) 413-9000
Address: 7007 NE Parvin Road Suite 3
Kansas City, MO 64117

Phoenix is in the business of collecting on Payday loan debts.

You need to send them a debt validation letter. You can find a sample here

You should also send them a Cease and Desist letter. You can find a sample here

They are collecting on an illegal loan so their collections on that loan are also illegal. Them contacting your supervisor was illegal.

Good luck and keep us posted.

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