Help in Ohio

Hi Cheryl, I am in Ohio also. I am pretty sure that the only one of those that is licensed is CashnetUSA...they operate just like a storefront payday lender. If at all possible, I would go and close your bank account TODAY and speak with the bank and make sure that they will not allow anything to post to your account. I'm not really up on the sites for the licensing etc but as I said I am sure they are all illegal besides Cashnet USA. Someone else who is in Ohio will be along shortly to give you some more advice but it sounds like you are on the right track. These illegal ones are not going to want to negotiate reasonably, just so you know but we can help you handle them :)

I am headed to the bank this morning to close my account. What should my next move be? Should I notify the companies by email or snail mail? Do I pay only what I borrowed or that amount plus the fees, etc.

Since they're illegal, I'd send them the illegal lender letter via email. You only have to pay them what you borrowed, no interest. If you've already overpaid them, demand a refund with your paid in full letter. You also need to file complaints with the Ohio Attorney General, the BBB and the Federal Trade Commission.

When you close your account, make sure you are clear that NOTHING should cause your account to be reopened.

CashNet USA is legal, operating as a CSO. If you contact them and ask for an extended payment plan, they will stop charging you fees and allow you to pay off your balance in 3 payments.

CLICK HERE to find out how to deal with illegal lenders.

Ok...I have closed my bank account and the branch manager was a great help, for some reason that surprised me. Emails have been sent to each of the lenders. Just wait to hear from them??? I still need to contact FTC, BBB and AG. Getting there! Thanks for all of the great info I have received. If you have any other advise, I am open!

Keep us posted!

This is what I received back from VIP Loanshop; any suggestions?

[LEFT]I would like to take the time to explain to you your options now that you are contractually bound to VIP PDL Services, LLC because of your $750 loan you???ve since obtained. I respect a consumer who researches the services to which he/she uses. With that being said when you applied for and agreed to the terms of the loan it would have behooved you to read the complete contract you were agreeing to. You are a citizen of the state of Ohio. However, the contract was not made in the state of Ohio. The contract was completed via the World Wide Web. The governing law (clearly outlined in your contract) which you agreed to by your legal e-signature is based in the isle and providence of Nevis West Indies Bahamas. Your options are listed below.
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1. Payoff your $750 loan plus it???s contractually bound fee ($112.50) due this Friday 7/30/10 via ACH payment that you will have had out for 9 days.
2. Follow the terms of the loan agreement that you signed if you do not choose option 1.
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Please contact our customer service department to schedule any and all arrangements. You can reach them at 866-598-1100 and please use option 3.
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Thank you,
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Customer Service Department
customerservice@theviploanshop.com
P: 1-866-598-1100
F: 1-866-424-0877
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OFFICE HOURS:
MON - FRI 8am to 5pm CST
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ATTENTION: Please make sure that you are contacting us NO LESS than 3 full business days prior to your due date. If you are directed to the voicemail please leave your first and last name, your loan# or ssn, a call back number, and the amount you wish to paydown or pay off. We appreciate your business and cooperation. Thank you
RENEWED: This is what happens when you do NOT contact us...It means we pulled only the finance fee which extended your loan to the next pay date as we never heard from you 3 days prior to set up a paydown or payoff. The finance fee does not apply towards the principal balance at ANY time.
PAY DOWN: This means paying your finance fee (which is calculated 30.00 per hundred on your principal) plus whatever amount you would like to put towards your principal in 10.00 increments. When you do this your finance fee as well as your principal balance will drop (depending on the amount you put towards your principal balance) for the following due date. You MUST contact us no less than 3 business days prior to the due date for this option. If you do not then your loan will be automatically renewed (description above) [/LEFT]

Response from Eastside Lenders:

[COLOR=#333399]East Side Lenders is responding to your correspondence regarding the above-captioned account. [/COLOR]
[COLOR=#333399]East Side Lenders, which is located in Delaware, is licensed by the State of Delaware to make small loans. All such loans are approved and funded in Delaware, with repayment to be made in Delaware. The East Side Lenders loan agreement and website contain all disclosures required by Delaware and federal law and make it clear that all transactions are governed by Delaware law. On the advice of counsel, East Side Lenders maintains that the choice of Delaware law as controlling in the loan documents would be upheld, as all of the significant contacts in the loan transaction occur in Delaware. The loan agreement is legal and enforceable. In responding to your correspondence, East Side Lenders notes and reserves all available legal and equitable objections to the points you have raised.[/COLOR]
[COLOR=#333399]East Side Lenders provided this service as a convenience to you. We still consider your loan to be outstanding and are prepared to go to arbitration as provided for in the Loan Agreement between us. As an alternative, if you are experiencing financial hardship, we will be happy to speak to you about payment arrangements through which you can successfully meet your payment obligations. East Side Lenders will consider doing so because of our continuing commitment to servicing our customers and not because of a legal obligation to do so. [/COLOR]
[COLOR=#333399]Should you have any further questions regarding this matter, if you wish to speak about payment arrangements, please contact us at (800) 689-5603.[/COLOR]
[COLOR=#333399]Sincerely,[/COLOR]
[COLOR=#333399]Customer Service[/COLOR]

Those are their standard answers. They're wrong. They know they're wrong but, they're going to keep at you, trying to wear you down so they can get some more $ out of you. It's an annoyance but DO NOT GIVE IN! Eastside will eventually go away, after the BBB and the AG contact them. They NEVER sent me a PIF letter but they DID tell the BBB they had marked my account as paid in full (in writing). I have that letter and have used it with 2 different collection agencies when they came calling. Be persistent. Keep telling them that you know your state law prevails. You can respond to them with the same letter you sent initially with some updated language stating you're responding to their response and that they are incorrect. You'll get them out of your hair eventually. It takes some time but, when they're really gone, there's no better feeling.Keep us posted.

You need to file a complaint against them with the Delaware Office of the State Bank Commissioner, explain that Eastside Lenders is licensed to lend in their state and are issuing payday loans via the Internet to residents in states they prohibit Internet lending and/or require licensing!

I respect a consumer who researches the services to which he/she uses. With that being said when you applied for and agreed to the terms of the loan it would have behooved you to read the complete contract you were agreeing to. You are a citizen of the state of Ohio; however the contract was not made in the state of Ohio. The contract was completed via the World Wide Web; the governing law (clearly outlined in your contract) which you agreed to by your legal e-signature is based in the state of Delaware. When you spoke with our representative on 7/7/2010 at 4:42 PM CST, she clearly outlined how the loan works and what the finance charges were, yet you still accepted the loan.




If you have any questions do not hesitate to call or email.



Thank you,




Luke
Client Solutions
Fleet Marketing

Haha, the world wide web, yeah OK. Of course you know this is bull crap!

Quote:

Keep emailing them and refuting their claims. You're right. They aren't. If you DO still owe on your loans, it's up to you whether you want to mail them money orders (and hang on to those receipts for dear life)or wait until they reach an agreement with you. I would just go ahead and send them the money, if you have it. I think it looks better, on your part, showing you're serious about paying what you owe.