FBD Loan sent to CA

How long ago did you default? Are you sure it was sold to NCA or are they just working the account for FBD?

I took out a loan on 2/24/2010 for 500 that I paid off on May 27 with payments totaling 696.57.
I reloaned on 6/2/2010 for 700 which I paid back 517.25 worth so far. That would leave 182.75 on the second loan.

I defaulted somewhere around August when I employed a company called Destination Debt Solutions to settle my accounts for me. I have since cancelled their services in November when I learned I can handle this better on my own. Since dropping them, I setteled a few of my pdl's easily. I have a few outstanding still. I am having quite a hard time gathering funds right now and was hoping none of this would have hit until I had some money saved up.

This is the original e-mail FBD sent me:

Balance: $1045.61
Dear Kenneth Barhight:
This is to inform you that your ThinkCash by First Bank of Delaware account has been sold to a third party. All further inquiries or questions must be directed to:

National Credit Adjusters, LLC
327 W 4th
Hutchinson, KS 67501
Debtor Line: 1-800-542-1048

Thank you,
ThinkCash by First Bank of Delaware Account Services
PO Box 37727
Philadelphia, PA 19101

Please be advised that this communication is for the purpose of collecting a debt. Any information obtained may be used to collect the debt. We may report information about your account to credit bureaus. Late payments, missed payments, or other defaults on your account may be reflected in your credit report.

I haven't heard anything from NCA yet. Waiting on an email or dunning letter at this point.

Any advice?

I would wait for contact from them. Once they call or send a letter, I would request validation. If they can't produce proper validation, tell them to FOAD. If they can, start settlement negotiations.

What does FOAD mean? I am unfamiliar with that term.

And when starting settlement negotiations, what is the process? Do I offer them a payment plan or will they offer one to me? I haven't had to do this yet and I want to get out of this mess as soon as I can.

well since NCA is a bottomfeeder(do a search in the bar top right)if 182.75 is left then that's all you pay this place.in fact you can get an address with your search to send a DV letter.bottomline if FBD sold the loan then again you only owe the 182.75.make the bottomfeeder prove otherwise.

Ok, but I was under the impression that FBD is legal in PA. If they are legal, wont I be responsible for paying some of the interest as well, even if I can negotiate a settlement?

Ken

no they were not legal because as of mar of 2009 all loans were illegal in PA,and as far as i can tell there were no provisions for CSO'S either.besides even if the loan were legal.they sold it negating whoever bought it the right to collect anything but the balance owed.meaning you owe 182.75.that is it.nothing more,and NCA is a lawbreaking bottomfeeder.get the DV letter to them asap before they start the phone nonsense which they will if you don't get that letter out.

FBD is LEGAL. They are not a CSO. They are a short term loan lender and a bank.

Oh, and FOAD is "eff off and die." :)

sorry to disagree,but i checked the database and there is no license.don't care if they are a bank internet lending was totally prohibited in 2009,and at least in PA they are not legal.i shot an email on the PA AG'S website and should get a clearer answer.ask yourself this.if this lenders was so legal in PA why did they sell the 182.75 remaning so fast,and to a bottomfeeder based in canada?because again despite the fact it is a bank PA totally prohibits internet lending.also PA is a non-garnishment state.the bottomline is this.NCA is a peice of garbage that bought a 182.75 loan debt for about 20.00.now they are trying to collect over 1,000.00.i would not pay until they validated.

So,

How would I find out for certain if FBD is legal and if the debt I owe is legit? Will the CA prove this for me with debt validation or is this something I have to pursue on my own?

Ken (wasn't able to log in for some strange reason)

well your AG'S website doesn't even have a license database for these loans.i checked.how can they prove you owe over 1,000.00 when the amount was 182.75 owed to FBD.you can go to the PA AG website and see for yourself.in fact there is a sticky regarding the fact that FBD has a few C&D orders in states like PA that prohibit loans like these regarless of whether they are a bank or not.in fact you can file complaints against both FBD,and NCA online.do it as again no loan of this type is legal in PA.

I tried to navigate around the pennsylvania's AG site and couldn't find much information on the subject of internet lending. The PA Dept of Banking states that a loan issued by a federally insured bank is legal and can charge whatever kind of interest they want.

This is getting really confusing. I'm trying to find somewhere that concisely explains all this and provides information on where the laws are written. I would like to have proof of these laws and such in case I have to go to court to battle these charges. Is there anywhere I can find this?

Also, I understand that under the FDCPA a CA has to send a dunning letter within 5 days of initial contact. Does this mean they have to send it after I speak to them, or when they first call even if I don't speak to them?

Thanks for all the help.

yeah they do have to send it,but it's pretty set at 5 days after initial contact.btw the PA AG website has phone numbers if you wish to contact.but i would ask the AG as the banking division tries to tell people that about all loans.even the ones not in this country.get in touch with your AG and find out,but again why did FBD sell it with 182.75 remaining so fast.if they were legal then they should have some recourse other than to sell it to a bottomfeeder based in canada.i guarantee you they will threaten fraud charges,garnishment(that will give you the proof of their bottomfeeder status)as PA is non-garnishment.btw we are getting off the main thing which is you only owe 182.75 on this.even if FBD is legal they sold it negating any so-called terms.NCA must follow the FDCPA and prove you owe the inflated amount they claim.they can't add interest and fees and must prove their right to do so.they can't as you have to agree to that and you never did.

I need some clairification.

The 182.75 was the balance left after I made payments on the account for a few months. With interest, would FBD sell the loan off for the balance + interest or just the babance?

Ether way, I'm still awaiting contact from NCA. They haven't called yet, at least to my knowledge. I don't answer any phone calls from Unknown numbers.

And I agree about FBD selling the loan so fast. I never received any e-mails, letters, or phone calls from them stating my loan was in default and them trying to collect on their own.

I was reading through some articles about CA's on the forum. One of the articles I came upon states that CA's don't have to be licensed in Pennsylvania. There was no date on this article and I am curious if this has changed since it was posted.

I sent an e-mail to PA's AG asking about some of the items I have listed above and am awating a response. I sent it before reading about CA's being licensed.

Thanks for any response.

http://www.carreonandassociates.com/articles/collectionlaws.htm#Pennsylvania

Paul, sorry to disagree with you but, according to PA law, an FDIC insured bank is exempted from needing a license to lend in each state.

[QUOTE]
[LEFT][FONT=Times New Roman][SIZE=5]LICENSING BUSINESS OF TRANSMITTING[/SIZE][/FONT]
[SIZE=5][FONT=Times New Roman][SIZE=5]MONEY OR CREDIT[/SIZE][/FONT][/SIZE][SIZE=5][FONT=Times New Roman][/LEFT]
[/FONT][/SIZE][FONT=Times New Roman][SIZE=2]Act of 1965, P.L. 490, No. 249[/SIZE][/FONT]


Section 2. License Required.
No person shall engage in the business of transmitting money by means of a transmittal instrument for a fee or other consideration without first having obtained a license from the Department of Banking nor shall any person engage in such business as an agent except as an agent of a person licensed or exempted under this act.

Section 3. Exemptions.
No license shall be required hereunder of
(1) banks, bank and trust companies, credit unions, savings banks and private banks organized under the laws of this Commonwealth; similar banking institutions organized under the laws of the United States or of any other state which are insured by the Federal Deposit Insurance Corporation; similar credit unions organized under the laws of the United States or another state, and insured by the National Credit Union Share Insurance Fund; and savings and loan associations and building and loan associations organized under the laws of this Commonwealth or of the United States; or agents of a person licensed under this act.
((1) amended July 2, 1996, P.L. 486, No. 79)
[/QUOTE]

FBD does not need to be licensed in every state. They are a federally chartered bank and therefore are exempt from payday or cso laws.

I'm pretty sure that's what I just said.

Ok,

I sent an email to the Pennsylvania AG's office asking for clairification on the laws as they pertain to internet based payday loans. They wrote back stating I should file a consumer complaint so they can investigate the matter in more detail. I really don't have a complaint against FBD or NCA yet, although I want to ensure that I am doing everything legal on my end.

Should I file a consumer complaint against this company to see what information they can provide? Or should I file one against another pdl I have that I know is illegal?

Definitely file complaints against the payday lenders because payday loans are strictly prohibited in your state, and it's very important that you file complaints!

As far as NCA, file against them with the FTC if the need arises, and unfortunately it will.

Ok, but I'm still unclear on if FBD is legal in PA. I thought they were a fed backed bank and they could charge loan shark fees. So, what would filing an AG complaint do?

Are all internet loans illegal in PA, like someone posted earlier in this thread, even if they are offered by a fed backed bank?

Ken

Yeah, they are legal, don't know why I said that, sorry.

i have a problem with them as well i took a loan out from fbdl also. it was sold to nca who keep calling me. they said they were expecting a call back today or they would start court proceedings. i am also doing the waiting game.

You haven't mentioned the state you live in. If payday lending is illegal as per your state laws, then they won't be able to take any legal actions against you.

Just to clarify in case people aren't reading the whole thread....FBD was an FDIC backed bank. The loans were legal. They have since stopped lending. No more ThinkCash. They now are Plain Green which is NOT legal and claim Indian Tribal exemption. If your loan originated through FBD it's legal.

i was with them when it was fbd and i was with them when they no longer was fbd and started calling themselves thinkcash. do you think thats still legal in pa

Look at your loan agreement - does it state FBD? if so - it is legal. As far as plaingreen, they are also legal - court cases have held up the legality of sovergien nation rights. So don't use them if you don't want to pay them back.