Okay.....do I panic now????

First let me say yhanks again for all your help, you guys have been great, a real resource.


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