Responses from my payday loans

I recently closed my bank account and sent my letters out to the payday loans that I had. This is one of the responses that I have received. The loan was with National-Paydayloan.com. The loan amount was for 300.00 dollars, and I have paid them back a total of 450.00. Heck I am not even asking for a refund, but I thought maybe you could give me some advice as how to proceed.

RE: Your Complaint

Mr. Hood,

We have received and reviewed your correspondence regarding your complaint with the company.

While the information that you have collected may apply to companies that have physical locations in your state, it is our opinion that it does not apply to our internet business model. This is based on sound advice from our legal department. In addition, the Legal Disclosures provided for customer reference at our website state the following:

"Regardless of where you may be viewing or accessing this site, you as the borrower are responsible for complying with any local statutory obligations that may exist in your state or area with respect to this transaction. The Federal laws governing this consumer loan agreement may differ from the laws of the state where you reside. If you do not want to enter into a consumer loan agreement with us under our terms, then you should apply for a loan at a provider located in the state where you live."

Based on the information supplied in your complaint, it is evident that the information derived from some sort of form or template, as it does not apply to your particular loan and some of your own statements contradict the verbage of the form letter that you used. It is strongly advised that consumers do not fall prey to the contributors of this type of information, as it is not always true, nor does it apply to every circumstance. Often, the information actually incriminates the consumer for not abiding by the laws of the state that they live in. Additionally, any contradiction to a consumer’s signed loan agreement can actually put them in default. While it is appealing to a consumer to find what appears to be an "easy way out" of their debt, there is no such thing if the debt is substantiated by a legal, signed contract. Using information containing legal jargon that you have not actually researched in an attempt to threaten a company into writing off a balance that you know you owe can actually be harmful to you as a consumer.

The money was lent to you by our company in good faith with the understanding that you would abide by the terms detailed in your loan contract, just as we upheld our end of the agreement by crediting the funds to your account in a timely manner. The Loan Note and Disclosure that you e-signed and thereby agreed to is very detailed and clear so as not to cause any confusion to you, the borrower, and meets all the Truth-In-Lending and Reg Z requirements as prescribed by Federal statute.

Due to the fact that you have revoked authorization on our debits, no further debits will be made from your account from this date forward.

Due to the fact that you are clearly in a situation that led you to use any information that you could obtain in an attempt to relinquish your debt with our company, and in the interest of good customer service, we have agreed to waive all finance charges currently due on your loan and settle for complete payment of the principal balance owed. It is our hope that this will ease some of your financial burden, as well as avoid further collection efforts that would inevitably ensue should you default on your loan agreement.

We will be prepared to provide you with the information necessary for repaying the $250.00 that remains due on your principal balance, after waiving your $75.00 finance fee. Payment must be received by you in the form of a Cashier’s Check or Money Order, as you have revoked our authorization to debit your account. We expect this offer will bring us to an amicable resolution.

Please acknowledge your understanding and acceptance of our proposal if you are in agreement with the offer detailed above, and advise which payment method you will use. Once your acknowledgement/agreement is received, we will provide you with the information needed to make the payment. Once we have received this payment, we will mark your account "Paid in Full."

If your response is not received within seven (7) days of the date of our offer, the offer will become null and void and collection efforts will resume.

Thank you for your time and consideration in this matter.

Respectfully,

Compliance Department

CC/file