Phone call from Cash Direct Express

Tuesday, June 5, 2007


Cashdirectexpress/GECC
300 Greenview Rd. Suite 204
Newark, DE 19711Phone: 866-432-2562
To Whom It May Concern:

RE: Loan ID: xxx-xx-xxxx

I am contacting you concerning my past due loan (SSN # xxx-xx-xxx). It is my understanding that in my state, the state of Wisconsin , you are not licensed to do transactions with me, and you have not been following the state of Wisconsin's payday loan laws, and regulations, which is required by law that you follow when dealing with customers in my state. You are and have been charging a higher interest rate than which is allowable. I will be reporting this to the BBB and my Attorney General.

Now, to explain this situation to you—

It has come to my attention that my original loan -- the first loan I took out with your company on 7/20/06 for $300 was overpaid and not made in accordance to Wisconsin consumer lender laws and regulations. Since you are not licensed by the Department of Financial Institutions (DFI)'s Division of Banking, the state agency that licenses and regulates companies that make consumer loans in Wisconsin, you cannot charge more than 18% interest per annum. Thereby, according to Wisconsin's loan regulations, the maximum chargeable fees for a loan in the amount of $300 is $54 in the state of Wisconsin. I therefore only owed your company $354. I paid $675 for this loan in excess and unlawful interest fees, an excess totaling $321; therefore, Cash Direct Express/GECC owes me a refund for $321. But I am not expecting a refund in this amount because I took out a second loan on 11/2/06 for $200. This loan now currently is in default. According to my state’s laws, the maximum fees on this account are $36, and so I owe your company $236 on this fourth loan. In addition, as per Wisconsin law, I lawfully owe you a NSF fee for the returned check in the amount of $15; therefore, for this second loan, I owe your company a total of $251. On this loan, I have already paid $176, and I had sent a payment by check for $40 with one of your debt collection agencies (you may verify this at 866-433-1008); therefore the lawful amount I owe you is now $35.

This is what I expect you to do – apply the $321 overpayment from the previous loan to this one bringing down my balance of -$286. Therefore, I expect a refund in the amount of $286 AND my account marked PAID IN FULL and closed with all collection activity to cease.

As a reminder, your company must comply with the laws of the state in which your customers are residing. Here is a copy of Wisconsin’s deferred presentment transactions laws for review:
Section138.09(1m)(a), Wisconsin Statues:

(a) Before any person may do business under this section or charge the interest authorized by sub. (7) and before any creditor other than a bank, savings bank, savings and loan association or credit union may assess a finance charge on a consumer loan in excess of 18% per year, that person shall first obtain a license from the division (DFI). Applications for a license shall be in writing and upon forms provided for this purpose by the division.
This statue is applicable to payday loan companies as well.


What if the check returns?
Lender can charge $15 as NSF charge; no criminal prosecution can be taken against the customers based on return check (per Wisconsin worthless check law, a check given to secure a loan isn't "worthless"). Check presentment limit: two times.

So, as you can see, your company provided unlawful interest payments with the first loan that I have paid off in excess and offered me terms that were unlawful for the second loan. I appreciate your prompt attention to this matter, and I look forward to settling this account with you.