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Posted: Sat May 31, 2008 1:41 pm Subject: Proposal letter for settlement

Would the experts/experienced mind commenting on these letters?
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VERSION I: Lender not licensed and they owe me money.

Dear Payday Loan Lender,

This letter is a proposal for settlement of my payday loan account with “paydayloan company”. My loan number is 00000000. Please note the following:

i) I am working with a financial counselor to settle this matter.
ii) I am aware that your company is not licensed to make loans in the United States.
iii) I am aware that my legal obligation is to pay off the principal on my original loan and nothing more.

As I have paid your company $zzz.zz and the original loan amount is for $yyy.yy, your company legally owes me the difference; zzz.zz-yyy.yy = $ppp.pp.

Here is my proposal to settle this matter: Mail a check, made out in my name, to my address, in the amount $ppp.pp. Please include a statement indicating that I have paid my loan in full.

I request that you deal with me through US Mail and e-mail only. If any representative of your company calls my place of employment or contacts, I will follow up with a lawsuit as that is harassment. Bear in mind that your loan is illegal.

Sincerely,

Screwed-no-Longer

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VERSION II: Lender not licensed and I owe them money.

Dear Payday Loan Lender,

This letter is a proposal for settlement of my payday loan account with “paydayloan company”. My loan number is 00000000. Please note the following:

i) I am working with a financial counselor to settle this matter.
ii) I am aware that your company is not licensed to make loans in the United States.
iii) I am aware that my legal obligation is to pay off the principal on my original loan and nothing more.

As I have paid your company $zzz.zz and the original loan amount is for $yyy.yy. Therefore my obligation to you is the difference; yyy.yy-zzz.zz = $ppp.pp.

Here is my proposal to settle this matter: I will pay the balance in X installments, in the following amounts, and on the following dates:

PAYMENT 1
PAYMENT 2
.
.
.
PAYMENT X

I request that you deal with me through US Mail and e-mail only. If any representative of your company calls my place of employment or contacts, I will follow up with a lawsuit as that is harassment. Bear in mind that your loan is illegal.

Sincerely,

Screwed-no-Longer

Posted: Sat May 31, 2008 3:12 pm Subject:

Sounds good to me, but DO make sure you intend to follow through with suing them, never make empty threats, as they will recognize whether or not you have legal grounds to sue them, and if they aren't even in the U.S., they will also recognize you can't touch them. Just sayin'. Very Happy

Posted: Sat May 31, 2008 3:23 pm Subject:

I have to second that - DO NOT make threats that you do not intend to follow up on. Especially if you are not entirely sure the company is operating illegally. To make a threat like that to a licensed company will get you into huge trouble.