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DFI letter and a question....Purpose loans

Date: Thu, 09/13/2007 - 15:43

Submitted by Tweety71
on Thu, 09/13/2007 - 15:43

Posts: 2061 Credits: [Donate]

Total Replies: 17


My girlfriend got a loan with purpose loans at the end of June- I've been helping her out because she didnt know anything about these loans being illegal- I've given her advice on what to do (with the help with this site) and told her about filing complaints and sending letters to them CMRR- This loan is not license in her state (OHIO). I told her to file a complaint with the AG of Ohio- She was told last week that they couldnt help her but they were going to forward her complaint with the DFI- Today she gets a letter from them saying that they were indeed not licensed and were in violation of their state laws for offering payday loans....

The loan was for 300.00. She has paid back $ 278.36 as of today. Her question is she's scheduled to make another payment next friday for $ 139.26 ACH on her account. She asked me if she's still obligated to make that payment?

She said she would call the DFI in the morning but I said I would get some advice....Does she still have to pay it or because they are in violation the loan is null and void....

I told her I wasnt sure because the loan was made before the new law passed in July.


Please give imput!

Thanks,


Would it make any difference that they are backed by a bank? Federal Law allows banks to import their home state's interest rate, and does not require them to be licensed in other states.

I bet that once the DFI investigates further they will tell her that federal law allows them to charge her per DE's laws, which they are within since it has no interest rate caps.


lrhall41

Submitted by goudah2424 on Thu, 09/13/2007 - 15:45

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I'm just worried about her...I'm afraid she's going to get screwed over on this....as much as it may be legal to charge fees I do think there should be a cut off- I did tell her maybe with the DFI getting involved purpose may be willing to settle it at a low rate....

thanks for the imput


lrhall41

Submitted by Tweety71 on Thu, 09/13/2007 - 16:31

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Just an FYI as I dealt with someone from that company today at my work,, she was very rude, I gave her my attorney name and phone # and actually had to tell her to SHUT UP because she was talking over everything I said,, she continued to ask me to "put her through to my HR department" I asked what that had to do with anything and she said "just do it, and if you can't then press zero and I will get to them" I told her I would transfer her to my attorney and she HUNG UP, these people are HORRIBLE. I got on their website immediately to tell them to NEVER call me at work and low and behold their website says they are "no longer offering loans" GO FIGURE. I hope they go down with the rest of em, they are pretending NOT to be a payday loan, they are WORSE! Watch out for them. Just an FYI. Good Luck!


lrhall41

Submitted by on Thu, 09/13/2007 - 21:27

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It doesn't matter what state she is in, Federal Law allows any FDIC insured bank to operte in other state's without a license. They are allowed to charge the rates and fees from their home state.

Once the DFI looks into this they are going to tell her that this isn't a pdl, it's an installement loan, and since it is backed by an FDIC insured bank it is legal.


lrhall41

Submitted by goudah2424 on Fri, 09/14/2007 - 06:55

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Sorry I havent responded since my last post, the point of the matter is this,, Purpose Loans must be in some sort of trouble since the website says they are no longer offering "loans" and the point of the matter is this,, my attorney even told me, they had no right to DEMAND I transfer them to my HR dept when I gave them my attorney's information for contact AS well as when I told them to NOT call me at work EVER again and the wench at Purpose Loans said, "then you shouldn't of given us your work phone #"--- my point is, DONT accept what these IDIOT'S have to say with the threats, they are obviously operating somewhere illegally or something is going on because they are NOT offering loans!


lrhall41

Submitted by on Fri, 09/21/2007 - 21:27

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I do not think that is the case . . . . They are operating legally. Maybe their collections dept is breaking some laws . . . . But just becuase they are not giving out loans right now doesn't mean the company is in trouble for breaking laws. That is the most absurd thing I've heard! Right now many high interest lenders are holding back because of the sub prime mortgage crisis. Their backers are pulling out. That is why they aren't doing more loans.


lrhall41

Submitted by goudah2424 on Sat, 09/22/2007 - 09:12

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