Payday loan in collections -- what to do??
Date: Thu, 09/09/2010 - 10:05
I took out a $300 payday loan with SMG. The finance charge on the loan is $90. I've paid $180 so far before I had to stop payments, due to getting behind in other bills.
The loan has been passed off the FFG & Associates in Nevada. They emailed me a debt validation letter with the total being $618 I owe (which includes attorney fees). Am I responsible to pay the whole $618 or can I pay them the remainder of the original loan + proper interest rate under Louisiana law for payday loans?
Thanks for your help!
PDL companies need to be licensed in your state to be legal. Che
PDL companies need to be licensed in your state to be legal. Chekc out if SMG is legal in your state: ofi.state.la.us
If they are not, then just pay them the actual amount borrowed. It won't matter whether the debt is with a CA or not.
Thanks so much Paul! So I should send my letter to the CA sta
Thanks so much Paul!
So I should send my letter to the CA stating that SMG wasn't licensed in my state along with a money order for the remaning balance + LA interest rate?
I would suggest you to contact the PDL company directly. As for
I would suggest you to contact the PDL company directly. As for the CA, send them a debt validation letter along with the PDL laws of your state. Best of luck and keep us posted about the proceedings.
Should i request a debt validation letter from the CA through th
Should i request a debt validation letter from the CA through the USPS mail or is the below good enough?
[QUOTE]631 N Stephanie Street #419 Henderson, NV 89014
Ph (866) 433-6985 Fax (702) 463-8752
09/09/2010
ASHLEY C.
[Street Address]
[City, State]
Re: ID # xxxxx
Dear Sir or Madame,
Per Section 809 of the Fair Collection Act and Clark v. Capital Credit & Collection Services, Inc., 430 F. 3rd 1162, 113-74 (9th Cir.2006), we have validated the above account by confirming the following information:
Original Creditor: CMG Group LLC
Debtor Name: ASHLEY C.
Debtor Address: [Street Address] [City, State]
Balance of Account: $618.00
This information satisfies our obligation to validate this account. Please contact our office to discuss resolution of this outsanding balance.
Sincerely,
Frontier Financial Group
This is a communication for a debt collector.This is an attempt to collect a debt, and any information obtained will be used for that purpose.[/QUOTE]
Okay, CMG Group is not licensed in your state. So, the CA cannot
Okay, CMG Group is not licensed in your state. So, the CA cannot collect on an illegal debt. Send them a letter stating that you know CMG is illegal in your state and as per your state laws, you are only going to pay the actual amount borrowed. Tell them that if they don't comply, you are going to file cases against them with your states' AG and the BBB.
Thanks so much Paul! I'm on it right now. I will send FFG a c
Thanks so much Paul!
I'm on it right now. I will send FFG a certified letter stating they can't collect on illegal debt and send CMG a letter stating I'll pay the remaining $120 on my illegal loan.
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