Cash Transfer Center

Date: Thu, 03/26/2009 - 01:35

Submitted by sdolan1
on Thu, 03/26/2009 - 01:35

Posts: 26 Credits: [Donate]

Total Replies: 33

I received an email from CTC in response to a letter I sent to them on February 7, 2009. Using the Cease and Desist letter template and adding the following Paragraph.

Due to the fact that Internet payday loans must be licensed in the state of California to be a legal and binding contract, your company should NOT issue loans to California residents at all. I am requesting that you send me your license number which enables you to offer loans to California residents.
Even IF your internet payday loan was legal anywhere in the US, the legal amount that could have been charged to my loan is the principal amount plus 15%
As you are NOT legal in the US, I am willing to pay the principle amount of the loan ONLY less the illegally collected fees, on my previous loans with you.
Summary of loan history below.
11/21 Received $300.00 â€“ 12/3 Paid $381.00 (If legal in CA only allowed to charge 15% or $45.00)
12/5 Received $300.00 - 12/17 Paid $381.00 (If legal in CA only allowed to charge 15% or $45.00)
12/19 Received $600.00 â€“ 12/31 Paid $762.00 (Only legal in CA to loan $300.00 max)
1/5 received $600.00 â€“ 1/14 Paid $762.00 (Only Legal in CA to loan $300.00 max)
1/16 Received $600.00 â€“ 1/28 Paid $762.00 (Only Legal in CA to loan $300.00 max)
1/28 Received $600.00 â€“ Due Date 2/11/09 Not paid as of yet.

Even if you contend that you are legal in California, you clearly have overcharged me on ALL of my loans, By California law, each loan of $300.00 would only have incurred a $45.00 finance charge.
As I have already over-paid you for the above listed loans, and assuming you are legal in California, I will accept a credit of $36 each on the 2 - $300 loans, for a total of $72, and a credit of $72 each on the 3 -$600 loans for a total of $216.00.
Total of amounts you overcharged me on previous loans = $286.00 (assuming you have the right to issue loans in California)
If you do not have the right to loan to Californianâ€™s the only amounts I am liable for paying back, is the principal balance, in which case I overpaid you by an additional $450.00, or a Grand Total of overpayments of $736.00.
If you deduct this from the principal amount of my latest loan of $600, Cash Transfer Centers Owe me 136.00 I ask that you send me by US mail your license number, allowing you to do business in California. Once I am in receipt of your license number and have verified that you are legal to do business in California I will send $314.00 to your street or mailing address ONLY. (Under NO circumstances will I release any bank account information or credit card numbers.)
If you do not have a legal license to do business in California, I demand an immediate refund of the $136.00 and a document stating that my account with you is paid in full.
I must also inform you that I will be filing complaints with the Better Business Bureau, The Federal Trade Commission, and the California Attorney Generalâ€™s Office.

They responded with the following.

Northway Financial Corporation Ltd. is licensed by the MFSA to provide lending services under the Financial Institution
Act 1994
We are in receipt of your faxes dated February 10th and February 13th, 2009. Please be advised that
we have ceased all collection activities and all communication by telephone while this account is
under investigation.
If you take a moment to review your attached loan agreement, you will see that Northway Financial is
licensed by the government of Malta as a financial institution, and the law of Malta, not the state of
California applies to its terms. We provided you with this notice so that you would understand the terms
of your loan.
We are prepared to offer a repayment arrangement in the amount of three (3) equal payments of
$200.00 as payment in full of your outstanding loan. This represents the $600.00 loan principle on your
current outstanding loan. Once payment has been received, we will consider this account paid in full
with no further obligation. Please be advised that we will be unable to offer you our services in the
future.
The three (3) equal payments of $200.00 can be made via Western Union or Money Gram, and should
be received by May 20th, 2009. We have included the payment information below for your reference.
Alternatively, you may send your payment to the Northway Financial Corporation Ltd. address listed
above.
MoneyGram Express Payment Western Union Quick Collect
Receive Code 4476 Code City ECARE
Payable to ECARE CONTACT CENTERS Code State DE
Account 31416503 Payable to ECARE CONTACT CENTERS
City (Blank) Account 31416503
State (Blank)
Should you have any further questions, please feel free to contact our office with the information
provided below.
Sincerely:
Customer Support Department
Fax: 1-866-772-4556
Email: [email]supportresponse@cashtransfercenters.com[/email]

I feel that since they are NOT legal in California, I have already paid way more than I should have. Do I respond to this letter?
and if so, what do you suggest I tell them.

Again thanks for all your help. With your information, I am slowly getting out of the PDL HELL

I love how they always bring up "the laws of Malta, not the coun

I love how they always bring up "the laws of Malta, not the country you live in". No country will allow another country's laws to supersede their own, especially when it come to their own citizens.

You did not borrow the money while you were vacationing in Malta so they can just deal with it. The State of California has already given them the smack down so they are directly violating the Desist & Refrain Order.

You may wish to send them it again, it seems that they might be a wee bit forgetful....

chrys