Okay.....do I panic now????
Date: Thu, 03/20/2008 - 16:15
This is a response I got from Little Loan Shop after sending an initial letter. What should I do now?
I am sorry that you feel this way. However, we are not a pay day loancompany, we are a short-term installment loan company. Also, thecontracts that you signed and agreed to are governed under Utah state law,not New Jersey. With the afore mentioned, we are perfectly legal underNew Jersey laws. If you wish to contact us to set up payment arrangementsfor your delinquent account please call us at 1-866-223-7549. Thank youand have a great day. DeannaResolution Department >> 3/20/2008 Little Loan Shop Resolution Department After doing research on> internet payday loan laws in the state of New Jersey, 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 New> Jersey in general: New Jersey State Information Legal Status: Prohibited> Citation: Consumer loan act applies but rates as agreed to by contract.> N.J. Stat. Ann. tit. 17,§ 1 et seq. However, criminal law sets the usury> cap at 30%. N.J. Stat. Ann. § 2C: 21-19. A check cashing licensee cannot> cash or advance money on a postdated check. N.J. Stat. Ann. § 17:15A-47.> Small Loan Rate Cap 30% per year After finding out that your internet> payday loans are illegal, your company should actually not issue loans to> New Jersey residents at all. I have contacted the New Jersey Office of> Financial Institutions and the New Jersey State Attorney General’s Office> regarding your internet payday loans and was informed they are indeed> illegal in New Jersey and was advised to pay what is due according to> principle amount only of the loan. I have currently paid $90.00 on my> $300.00 loan. The legal amount that could have been charged to my loan is> the principal amount of $300.00 even if your internet pay day loan was> legal in New Jersey. I have paid $90.00 DOLLARS on this loan by your> debits of my bank account and only owe $210.00to have this paid in full. I> am willing to pay the amount of 210.00 to pay the principle amount of the> loan only, as advised by my Department of Financial Institutions and my> state Attorney General's office. I demand a physical address to mail> payments to, as you are no longer authorized to debit my bank account. You> must provide me with a physical address to mail my payments. I will not> Money Gram or Western Union any payment. If no physical address is> provided for me to mail payment to, no payment will be made. 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 state 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. Once I inform you of this, you must stop the telephone> contact immediately or you will be once again breaking the laws of the> state of New Jersey.You are also hereby notified that I am revoking any> voluntary wage assignment I may or may not have signed. 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 am revoking> your right to debit my checking account any longer. You, your company, or> your affiliates are not authorized to debit my checking account at all.> Please be aware that I have informed my financial institution of this> situation and they will also be receiving a copy of this correspondence.> Any further attempts at debiting my account will be rejected by my> financial institution. I must also inform you that I have filed complaints> with the Better Business Bureau, the Federal Trade Commission, and my> state Attorney General's Office. I expect a response from your company no> later than 4/11/2008, regarding this matter. This response may only come> via US Postal mail or email. No telephone contact is permitted. (name removed. cannr)CC: Better Business Bureau Attorney General Federal Trade> Commission>>> From: collections-us(at)littleloanshoppe.comTo:> (email removed. cannr)Date: Wed, 19 Mar 2008 22:34:30 -0400Subject:> Urgent: We Did Not Receive Your Payment>>> URGENT: PAST DUE - PAYMENT NOT RECEIVEDPlease call us immediately at> (866)989-2274 Ext. 240 to make arrangements for payment. Dear (name removed. cannr),We are delighted that you have chosen The Little Loan Shoppe for> your financial needs. According to our records, we were not able to> collect payment on your loan that was past due on 03/17/2008. This is an> urgent matter that YOU MUST respond to immediately!It is extremely> important to keep your Unsecured Short-Term Installment Loan in good> standing with us to prevent any negative marks from appearing on your> short-term installment loan credit record. A negative mark will prohibit> you from receiving a new loan from The Little Loan Shoppe and possibly> any other short-term lender indefinitely. Please contact our Resolution> Department at (866)989-2274 Ext. 403. We will work with you to clear up> any misunderstanding and look forward to continuing to serve you in the> future. Remember you can also reach us by email at> resolution(at)littleloanshoppe.com. We are here to help you. The Little> Loan Shoppe Resolution
Sorry I copied too much, here is the response only. What should
Sorry I copied too much, here is the response only. What should I do?
Dear (name removed. cannr)
I am sorry that you feel this way. However, we are not a pay day loancompany, we are a short-term installment loan company. Also, thecontracts that you signed and agreed to are governed under Utah state law,not New Jersey. With the afore mentioned, we are perfectly legal under New Jersey laws. If you wish to contact us to set up payment arrangementsfor your delinquent account please call us at 1-866-223-7549.
Thank you and have a great day.
Deanna
Resolution Department
my, The Little Loan Shoppe is an installment loan? When you got
my, The Little Loan Shoppe is an installment loan? When you got the loan, did it say installment loan? What were the repayment terms on the contract? As far as I've known (until now) The Little Loan Shoppe was a pdl. (?)
Just so you know, even though payday loans are illegal in New Je
Just so you know, even though payday loans are illegal in New Jersey, the Department of Banking and Insurance has never lifted a finger to do anything about them. You can file complaints with them and the AG and they'll send out a form letter. Maybe the lender will back off or maybe they'll file for arbitration, win and then get a New Jersey court to turn the award into a judgment. When I went to court to fight that, the judge basically said he didn't have the power to look at whether the loan was legal once an award was entered. He could only look at whether the arbitration itself was conducted legally.
mymy, can you please tell me the repayment terms for your Little
mymy, can you please tell me the repayment terms for your Little Loan Shoppe loan?
Cannr I also have a loan with littleloanshoppe and they are a PD
Cannr I also have a loan with littleloanshoppe and they are a PDL...this is directly from their website
Loan Amount Total Paid
$500.00 $1500.00
$450.00 $1350.00
$400.00 $1200.00
$350.00 $1050.00
$300.00 $900.00
$250.00 $750.00
$200.00 $600.00
$150.00 $450.00
$100.00 $300.00
The Amount Paid is after 10
installments.
They do handle it a lil differently because when I applied they called me and did a 3 way call with my bank to verify my payroll amounts. I dont know if that makes them not a PDL but when I applied I was under the impression that they were.
Hey Guys, Cdollar went through this too with them...here is the
Hey Guys, Cdollar went through this too with them...here is the thread...
http://www.debtconsolidationcare.com/paydayloan/loan-installment.html
:shock: 1500 for a 500 dollar loan, of oh my ppl please read t
:shock:
1500 for a 500 dollar loan, of oh my ppl please read the fine print!!
Okay, I read through the thread. However, what the hell? Is it a
Okay, I read through the thread. However, what the hell? Is it an installment loan? Or is it a pdl? Whatever it is, those payback amounts are totally outrageous. I read cdollar's particular situation; however, cdollar resides in Kentucky where it doesn't matter what the hell it is. If it's internet, it's not legal. So that was kind of easy. In this particular situation, are we calling it a pdl or an installment loan? From what I understand from the other thread, they claim "short term installment loan"; however, somewhere on there goudah stated that they have to be licensed in your state? Am I understanding this correctly? Whichever, this can not possibly be legal for almost any state to charge this amount for a loan. I mean a payback of $300 for a $100 loan? WTF?!?!
mymy33 , whatever happened to this ongoing loan from them.? I h
mymy33 , whatever happened to this ongoing loan from them.?
I have done some searching and they are a reg'd lender. And since your taking the loan out from the internet , the state laws apply to where the company is reg'd from. This is what I have found out... not to sure if its correct but thats what i have been getting out of my reasearch. Let us know how it all goes.
reply
whatever, your state laws regarding pdl's internet or not applies.
a lot of ipdl's tried that with me.in illinois a pdl or any loan place must be licensed and registered with my state.some states like PA and TN have stupid loopholes that let ipdl's operate if they have license elsewhere.other states like NY,NJ,NC,CT,to name a few are totally prohibited.some states go farther as to not allow garnishment with a couple exceptions.you see the laws are not cut and dried.nor are they cookie cutter either.research your individual state laws.
Little Loan Shop
I also had a $300.00 loan from them and from how I paid mine it is an installment loan. I was supposed to pay 90.00 every 2 weeks until it was paid off. I paid 90.00 a couple of times but then paid extra a couple of times and then paid it off. Hopefully they will work with you on payment arrangements. I got lucky I was going to reapply for another loan but they told me they couldn't loan to me any more because I live in PA.
I borrowed from them also Payday loans can be a trap and I have
I borrowed from them also Payday loans can be a trap and I have had issues with other companies. but there installment plan thingy helped me out a bit because after a few payments my loan was also paid down and then i paid it off. Does anyone know if cashnet can do loans in Texas?
it is my understanding cashnet is licensed in every state they l
it is my understanding cashnet is licensed in every state they loan in.