mypaydayloan.com

Date: Thu, 07/08/2010 - 04:11

Submitted by Lizzie1014
on Thu, 07/08/2010 - 04:11

Posts: 382 Credits: [Donate]

Total Replies: 18

I wrote a C&D letter to my paydayloan.com. This is their response:

MyPaydayLoan.com
Centro Colon, 8 avo piso, Oficina 8-4
San Jose, Costa Rica
Phone: 888-269-2303

July 7, 2010

Dear Danise Spencer,

In acknowledgment to the letter we received by email, on Wednesday, July 7, 2010, we would like to clarify the issue pertaining to the transaction you originated with our organization.

All correspondence from Mypaydayloan.com is copyrighted property and you had to consent to this in order to even apply.

Specifically, the website states:

"Except where expressly provided otherwise herein, all emails, comments, feedback, information or materials submitted to Mypaydayloan.com through or in association with this web site ("Submissions") shall be considered Mypaydayloan.com's copyrighted property. By providing such Submissions to Mypaydayloan.com, you agree to assign to Mypaydayloan.com all worldwide rights, title and interest in the copyrights and other intellectual propertyrights to the Submissions."

Any publication of such info is in direct violation and you will be pursued vigorously by our legal counsel including severe financial penalties for publishing copyrighted confidential information. You can see such disclosure at the beginning of our site after your email has been validated and before you proceed with the application.

In regards to contract venue, you were required to consent to â€œavail yourself to Costa Rican lawâ€which you did willingly and unsolicited. Had you not agreed to that you would not have received the advance.

Specifically, the contract states:

"GOVERNING LAW: Both this agreement and the application is considered to be executed at our offices in San Jose, Costa Rica, and this transaction and agreement with us shall be governed by, construed, and enforced solely in accordance with the internal laws of Costa Rica."

In addition, not only did you avail yourself to Costa Rican law and agreed to be governed by it, independent US case law also supports contract venue, even had you not agreed in advance to such venue, which you did. Jurisdiction over commercial activities had been proven to be based on a "sliding scale" determined by where the preponderance of activity has occurred. You are dealing with an unsolicited transaction to a Costa Rican company with servers, offices, employees, and all other important elements of the transaction taking place there, including contract venue rather than your state of Ohio, where nothing has taken place. Please refer to the case of Zippo Manufacturing Company vs. Zippo dot com, Inc. 952F Supp 1119,1124 (W.D. Pa. 1997).

Furthermore, specific contract venue law even provides more clear-cut evidence pertaining to the controlling venue for a contract. The formal validity of a contract is to be determined by the "lex loci celebrationis" which is the law of the place where a contract is made. The Hogue-Kellog principle applies that a contract is deemed to be executed where the final act is done which is necessary to make it binding. See Hogue-Kellog Co. Inc., v G.L. Webster Canning Co., Inc. 22 F3rd 384, 385 (4th Cir.1927). This transaction was not binding until reviewed and approved by MyPaydayLoan.com, once we received all information from you to make a decision to enter into the agreement. Hence, the final act to make the transaction binding was in our jurisdiction, Costa Rica, not yours.

Lastly, any comment about specific interest rate caps based on your state would not apply anyway since this was not a loan in the first place. You engaged in a check advance agreement with us, not a loan. There are important differences which are a benefit to you and should be clarified. You were charged a fee per $100 dollars advanced. Based on the fact that it is a fee and not interest there is no "accrue" element to this transaction. When you defaulted you were not charged more money based on the time the advance is still outstanding (beyond your initial late fee and NSF fee, if applicable). In addition, the second important function differentiating this transaction as a fee instead of interest is there is no compounding. Any unpaid fees under an interest scenario would have a compounding component where any unpaid charges would be included in the "interest" calculation and added to the unpaid balance for purposes of determining the total amount owed. This is an important difference since there is no compounding of "interest" on any unpaid balances with our transaction. As such, usury would not govern this transaction since it is a fee. This principle is no different than when your bank charges you an overdraft fee to cover a check where there are not enough funds in the account to cover the check. You were advanced funds based on your next check from your employer, so whether that was 5 days away or 20, the fee is the same. There was no interest charged and laws governing interest are not applicable.

Hopefully, instead of trying to change the rules that governed the transaction after you received your advance from us because it suits you, you will honor what you already agreed to pay whether you paid attention or not. You need to satisfy your obligation in full, in order to avoid further collection activities and penalties. I can offer a payment plan for you to satisfy the balance of $560.05. We will need to receive 2 payments of $225, one on 7/9/10 and the last on 7/23/10, this is a $110.05 decrease from your amount due. You will need to submit your payments via ACH Debit, Paypal, Credit Card, or MoneyGram (all options except ACH have fees associated with them, the cheapest method being PayPal): these are the ONLY payment options that we have available.

Please govern yourself accordingly.

Sincerely,

Ashleigh Jones
MyPaydayLoan.com

I live in Ohio. My original loan with them was $300 and I have already paid them $1,301.25. If anything, they owe me a refund. Now they want to set up payment arrangements and are saying I owe $560.05???? How should I respond to them? :confused: