Internet Lending - how to respond to this

They can tell you whatever you want...your state laws apply and the loan is illegal. You are done paying. Make sure your bank account is closed and send them a letter demanding a refund.

Thanks. I closed my acct today and put an block on all ACH/EFT debits, so there's no way they can get any more money.

I'm worried what will happen next. Will they continue to pursue me on the debt? Has anybody dealt with them like this & won?

Quote:

I managed to get a refund from them. Sent the following letter and within a week I had refund:

[FONT=Verdana][SIZE=2][COLOR=#2f2f2f][FONT=Verdana][SIZE=2][COLOR=#2f2f2f]VIA FAX & E-MAIL

[SIZE=2]July 28, 2009[/SIZE]


[SIZE=2]FAST & RELIABLE CASH[/SIZE]
[SIZE=2]110 W. 9th St., Suite 946[/SIZE]
[SIZE=2]Wilmington, DE 19801[/SIZE]

[SIZE=2]REVOCATION OF ACH AUTHORIZATION ??? SS# ; Loan # [/SIZE]
[SIZE=2]After undergoing debt-management counseling to consolidate all my debt (and after doing my own research), I learned that internet pay-day loans and pay day loans are illegal in the State of New Jersey. I found the following regarding payday loans in New Jersey in general: [/SIZE]
[SIZE=2]New Jersey State Information [/SIZE]
[SIZE=2]Legal Status: [/SIZE][/COLOR][/SIZE][/FONT][/COLOR][/SIZE][/FONT][FONT=Verdana][SIZE=2][COLOR=#ff0000][FONT=Verdana][SIZE=2][COLOR=#ff0000]Prohibited
[/COLOR][/SIZE][/FONT][/COLOR][/SIZE][/FONT][FONT=Verdana][SIZE=2][COLOR=#2f2f2f][FONT=Verdana][SIZE=2][COLOR=#2f2f2f]Citation:[/COLOR][/SIZE][/FONT][/COLOR][/SIZE][/FONT][FONT=Verdana][SIZE=2][COLOR=#2f2f2f][FONT=Verdana][SIZE=2][COLOR=#2f2f2f]
[SIZE=2]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. [/SIZE]
[SIZE=2]Small Loan Rate Cap - 30% per year[/SIZE]
[SIZE=2]Effective immediately, I revoke all ACH authorizations with your company and prohibit you from debiting any of my accounts, per Federal law, Regulation E Section 205.10 Preauthorized Transfers. I have closed my account with Commerce Bank per instructions from The NJ Department of Banking. I also revoke any and all wage assignments I may have signed with your company. I no longer authorize you, your company, or your affiliates to attach my wages or contact my employer for collection purposes. My employer was notified so any attempts to do so will be rejected.[/SIZE]
[SIZE=2]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 the New Jersey Department of Banking. 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. [/SIZE]
[SIZE=2]Because these loans are not legal in the state of NJ, your company should NOT issue loans to NJ residents at all. I have already filed a complaint with the NJ Department of Banking, and I will file complaints with the BBB, the FTC, and the NJ Attorney General's Office as well. [/SIZE]
[SIZE=2]I have repaid $975.00 on a loan of $500.00. I am demanding that you refund $475.00 as I am only responsible for paying back the $500. I shall expect a check from you within 5 days from the date of this fax/e-mail. This response may only come via US Postal mail or email. No telephone contact is permitted. [/SIZE]
[SIZE=2]Sincerely, [/SIZE]

[SIZE=2][FONT=Verdana][COLOR=#2f2f2f][/COLOR][/FONT][/SIZE]

[SIZE=2]CC: [/SIZE]
[SIZE=2]Better Business Bureau [/SIZE]
[SIZE=2]New Jersey Attorney General [/SIZE]
[SIZE=2]Federal Trade Commission[/SIZE]
[SIZE=2]NJ Department of Banking [/SIZE]
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