Payday Loan Guidance

The internet lenders are all unlicensed in your state, making them illegal lenders, so, CLICK HERE to find out how to deal with illegal lenders.

Here is the repsonse from Paragon. I am assuming this is a form letter as if I did comply with "any local statutory obligations that may exist in your state or area with respect to this transaction," I wouldn't pay more than the principle borrowed. Correct?

[COLOR=#444444]RE: Your Complaint [/COLOR][FONT=Segoe UI][/FONT]
[COLOR=#444444]Gregory Lee:[/COLOR][FONT=Segoe UI][/FONT]
[COLOR=#444444]We have received and reviewed your correspondence regarding your complaint with our 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 state the following:[/COLOR]
[COLOR=#444444]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 and laws of the jurisdiction in which the Lender is located 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. [/COLOR]
[COLOR=#444444]The money was lent to you in good faith with the understanding that you would abide by the terms detailed in your loan contract. 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 the borrower, and meets all the Truth-In-Lending and [/COLOR][SIZE=3]Reg. Z requirements as prescribed by Federal statute. [/SIZE][FONT=Segoe UI][/FONT]
[COLOR=#444444]Upon review of your account history, you clearly knew all terms and conditions of your loan. We have all legal contracts you e-signed, which you agreed to terms and conditions of the loan. [/COLOR][FONT=Segoe UI][/FONT]
[COLOR=#444444]Please acknowledge your understanding and acceptance of our proposal if you are in agreement with the offer detailed above. [/COLOR][FONT=Segoe UI][/FONT]

[COLOR=#444444]Respectfully, [/COLOR]
[COLOR=#444444]Compliance Department [/COLOR]
[COLOR=#444444]CC/file[/COLOR]
[COLOR=#444444]We are an electronic/internet company and all correspondence is handled via email and facsimile. Communication must be forwarded to the contact information provided above. Thank you for your cooperation in using ONLY these methods of communication.[/COLOR][FONT=Segoe UI][/FONT]

I haven't heard anything from the other four payday loans until today. I get a call at work from FFG And Associates, 1-866-443-6985. I was unavailabe at the time of call so one of my office staff too kthe message from a Mr White with a case number. I called back and don't know who I talk with about the loans with Paragon and SGQ Processing. Funny how the principle went from $250 on both to $430.00. I spoke with four different people. All wanted me t ogive up my bank account information and settle for $322.50 each. I asked for proof and that is when things became worse. LAst I heard is that phone call was being recorded and they have it on rtape that I refused to pay and will use that against me.

I am becoming educated on how the process works with debt collectors. I am currently reserching to see if they are licensed to collect in Texas but can't find anything. I also searched for FFG and Associates on here and read the other posts. Anytihng else I need to do about this?

Blah blah blah, it is THEIR opinion that the law doesn't apply to their business model. lol Yeah OK, I think I will change a few laws to suit my needs too. lol
It's a form letter for sure, governing law is something that a lot of the Internet lenders are using as an excuse for not obtaining the proper licensing, but it simply doesn't work that way. The law is the law, and where YOU as the customer has presence is the law that applies, period.

By the way, a collection agency would not be contacting you with a "case number", they are trying to imply there is already a case against you, and that is against the law unless it's the truth. File a complaint with the FYC against them.

Here is an update on my situation. I have not heard from Ameriloan at all becasue it is paid out. Unitied Cash Loans have since sent two emails from their recovery department letting me know I can pay the remaining balance online. I have replied with the original letter I sent as well as asking for thier license number to verify they can lend witihn the state. No response on that. Paragon and SGQ Processing has jsut bee nthe contact from FFG and Associates the other day. Nothing else. And there has been no contact whatsoever from Star Cash Processing. Is that normal?

I have since reported all to my state's AG as well as the FTC for the FFG phone call. Researching about payday loans in Texas, the OCCC is the one that regulates them. Should I also send complaints to them as well?

Latest update.

Received a call today from FFG about the loans with Paragon and SGQ Processing. Going to file charges since I "refused to pay by not giving my banking information." Never refused to pay but refused to give banking infomation. They still insist that I owe $300 principle per loan. My loan documents say $250. Anyway, I told them to send this in writing to me as they have the wrong information. They also said my loans were with BMG. Who is BMG?

Still nothing on Star Cash Processing.

No refund either on Ameriloan or United Cash Loans.

Did receive a reply from the AG about my complaints. I wasn't expecting a form letter but hopefully tyhe AG will be looking into this.

Quote:

I recevied two lettters today, one from Frontier Financial Group and one from RoVo and Associates. Both are demanding payment for SGQ Processing. Funny how when I was first contacted it was for Paragon. Anyway, the balacne owed is now $538.00. Aonther interesting tidbit is the address used for Frontier is 1291 Galleria Drive Suite 170, Henderson, NV. But the payment is to be sent to 631 N. Stephanie St #419 Henderson, NV. But the letter is addressed with a return address of Linden, MI. Well, I am going to send a debt validation letter to them and see what happens. Intersting how the principle amount was $250.00 then the balance grew to $430.00 and now $538.00.

THe two letters that I received above appear to be from the same place. Both referecne the same disclaimer about "notifying the office within 30 days." Again one letter is from Frontier Financial Group acting as a debt collector. The other is from RoVo & Associates acting as an attorney for Frontier Financial Group. Of course, the RoVo letter also has the disclaimer that "At this time, no attorney with this firm has personally reviewed the particular circumstances of your account," signed by Rory Vohwinkel. Wouldn't that violate the FDCP Act in the sense that an attorney is being used to intimidate me that I need to pay the amount that is demanded?