CMG Group Response - What do I do now?

I sure hope that you closed your account prior to sending this out. If not once they get this they will start debiting your account and take everything you have.

Your state laws prevail....they will tell you that the laws of Antartica govern the contract if they thought you would believe it.

Is your bank account closed?

Yes my account has a hard hold on it and will be closed tomorrow morning.

I believe that CMG is also affiliated with Westbury Ventures. I am glad that your account is safe from these people.

Good for you Amanda.....

Just an FYI - TN doesn't license out of state companies. They allow out of state companies to lend over the internet as long as they are licensed in their state. They would need to follow the laws of the state they are licensed in.


[quote]Email to and from TN Banking Dept

Hello,

I'm trying to make sense of the payday loan laws in Tennesse. How would I go about calculating the allowable interest?

Thanks!

Response

From: Steve Henley
Sent: Friday, March 02, 2007 1:08 PM
To:
Subject: Re: calculating pdl interest

Dear Ms , technically it is not an interest rate but service fee and this is how it works. The fee cannot exceed the lesser of 15% of the check amount or $30. So if you have a check amount for $100, the service fee would not exceed $15 (15% x 100). Keep in mind the fee is on the check amount, not cash amount. If the consumer requests $100 in cash, the check amount would be $117.65. The check amount of $117.65 x 15% equals $17.65, and cash is $100 ($117.65 - $17.65 = $100). If the customer asks ... "how much should I write the check for if I want $50?"

You can back into the check amount by taking $50 and dividing it by 85% or .85. In other words $50 divided by .85 = $58.82. You can verify by multiplying $58.82 x 15% = $8.82 service fee. $58.82 - $8.82 = $50.

Remember the service fee is limited to $30 on all checks exceeding $200.

I hope this helps but please let me know if you have other questions.

615-532-6993 Steve Henley

Reply:

Hello,

Can you tell me if internet based payday lenders with no physical location in TN need to be licensed by TN to lend legally? Or would they only need to be licensed by another state? And which state's laws would they need to follow?

Thanks!

Response:

From: Steve Henley
Sent: Monday, August 27, 2007 8:12 AM
To:
Subject: Re: Internet Payday loans

Dear Ms , our statute does not address internet activity, but to obtain a license from Tennessee the entity must first have a physical location in this state.

Please let me know if you have other questions.

615-532-6993 Steve Henley

What does this mean?

They can charge 15% of the face value of the check in fees.

Rollovers are not allowed.

Internet companies do not need to be licensed by TN. As long as they are licensed in another state they can lend legally. They must follow the laws of the state they are licensed in. [/quote]

Anyone know where/if CMG is licensed?

I don't know . . . . I just wanted to throw that out there in case they are.

I want to say they are located in the West Indies . . . . But I'm not for sure. It just seems like something I remember.

you remembered well. Here are the address I have for them. I doubt that they hold a license anywhere.

CMG Group,
10108 Summer Oak Ln, #103
Las Vegas, NV 89134
Tel 866-516-9300
Fax 866-516-9700

CMG Group
P.O. Box 636
Charleston, Nevis
West Indies

What kind of response should I send to that email? Should I file a complaint with the NV AG? I already filed a BBB complaint.

The more complaints the merrier!

I would reply that they are an unlicensed company, and that they can say that the laws of timbukto govern the loan, but that doesn't make it so!

Here is what I replied:

Quote:

Maybe a copy of the license out of a cracker jack box ;)

She replied:

The lender is not located in Nevada. Please review your Loan Note and Disclosure.

I replied:

So are you saying that you do not have a license to operate legally in the United States?


hmmmmm.......

this could be fun...lets see what she says to that.

I think I scared her.....

"We are not the lender, we are Customer Service. I have made no reference to anything that you are implying. At this point, I will be turning your account over to the lender. Which means I won't be responding to your emails until I receive more information from the lender."

In other words....."I will tell you a bunch of crap to scare you, but when I am cornered and have to give you a real answer I will claim to not know anything"

Keep these emails..

Ask her when you can expect an answer from the "lender"

Don't worry I am saving everything. I am keeping track of dates, times, amounts, and everything else in an Excel spreadsheet.

:D

Good for you Amanda! Love to see these slimeballs squirm a little for a change.

I dont remember ever signing an pdl agreement but I do remember looking at different lender that is how they got my info they deposited 200.00 into my account I have may 5 payment of 60.00. I dont know when this will be paid . Does anyone know what there terms usually are do they say the whole 60.00 is finance charge and never touch the principle. How do pay in full. There is alot of info on this company on this site but I do not hear any good outcomes. I am not sure what to do first.

I just want everyone that is affected by this company to know that I found the e-mail they sent me (amongst the 800+ other e-mails I received about payday loans) after I called their number. It states that the loan is refinanced every two weeks (or every time you are supposed to pay) automatically unless you contact them to pay it off or paydown. They also told me on the phone when I said I did not authorize this loan that "once you hit submit online they use that as your electronic signature." So knowing that you have to hit submit in order to see how much, or if you are authorized for a loan, they take advantage of that. I was then told that they called me and left a "detailed" message and an e-mail. I responded that I had received millions of phone calls from many different companies and 800+ e-mails and she replied "I'm sure you did" sounding like they know that we will be getting all these e-mails and phone calls and ignoring most of them. So yeah, they are EXTREMELY sneaky in how they work! So I've talked to them and to my bank and if you catch it in time you can have the bank reverse the loan within 24 hours (this is the legal time they are allowed to do it) or within 24 hours OSL (CMG Groups other name and who answers when you call customer service) will take it back out of your account. However, if you find out too late, OSL will take it back out of your account IF you send them a bank statement that shows you didn't use the funds. Otherwise your option is to pay the loan amount and the finance charge (mine was $60) in full and they won't keep charging you. However, they can't give you a confirmation number saying that you have paid the balance in full. So yeah, I don't know if this will help anyone or not and I haven't gotten to the point of when they would start taking money out of my account and I'm still writing to the Attorney General about this because I don't know how a loan can be legal by them using your submit as an electronic signature when no terms or conditions were given BEFORE you hit submit! So we'll see. The number that I used to call them is 866-516-9300 and their fax is 866-516-9700. There is no address on the e-mail I received either, which seems even more sneaky to me! Good luck everyone I hope something brings this company down!

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