Advice on Brookwood Loans Account
Date: Thu, 09/29/2011 - 09:28
Anyway, it was a $1500 loan, 96% APR, 36 months @ $128. I've made 16 payments.
Recently I did some research and found out a couple things:
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So, I've taken the following actions:[LIST=1]
[QUOTE]
Ms. Waller,
I am writing in regard to a loan I have with MetaBank via Brookwood Loans. Under the terms of my loan agreement, Brookwood deposited $1500 into my personal checking account and I was to repay them in 36 monthly payments of $128.02 each. This amounts to a 96% APR and would have me paying $3108.72 in finance charges.
Although I understand that South Dakota technically has no usury cap, the state has established a legal interest rate of 15% and the state of Ohio, where I reside, does have a usury cap of 21%. Thus far I have made 16 payments of $128.02 totalling $2048.32 with another payment of $128.02 coming due on 10/5/11.
Further, when it comes to resolving issues pertaining to personal loan agreements that carry an interest rate beyond the 15% level, there appears to be a pattern of resolution in South Dakota. If the lender appears to be engaging in a pattern or practice of extending loans to individuals with interest rates above the 15% level, courts generally will strike down loan agreements from such individuals or companies as being illegal and there will be no enforcement of the loan agreement because of the repetitive practice of charging such interest rates.
As you can see, the interest rates I'm being charged are substantially higher than both Ohio's and South Dakota's legal interest rates. I've already paid more than $500 above the principal amount of this small loan. And, it appears that Brookwood Loans, a DBA entity of MetaBank, does in fact consistently offers loans to individuals with these exorbitant interest rates.
In light of all of this information, I am asking that my loan be marked paid in full as of the receipt of this message and that no further ACH debits are applied to my checking account. I have attached my loan agreement to assist you in resolving this matter.
Thank you in advance for your cooperation.
[/QUOTE]
What do you think my chances are? There is an arbitration provision in my loan agreement that I did not reject. I don't think I knew the ins and outs of that sort of thing back then so, I'm kicking myself now. They'll be within their rights to tell me FOAD and pay the damn loan because of it so, I don't know how effective my email will be.
Anyone ever dealt with this group? Any advice?
I haven't received a response from Brookwood but, they didn't ta
I haven't received a response from Brookwood but, they didn't take out a payment on 10/5 so, maybe they're considering it.
I did receive a response from the OH SOS who said they have no such form on file for either MetaBank or Brookwood so...
I sent a follow up email to Ms. Waller (so she won't forget I'm out here) and informed her of the OH SOS's response and again asked for the loan to be marked PIF and something sent to me relating that status. I also copied the CEO of MetaBank and their media liaison on this email since I'd not received a response.
Anyone have any insight or suggestions for me?
wow, quite the interesting situation there..... I think you are
wow, quite the interesting situation there.....
I think you are on the right track with this. You are clearly trying to handle this in a professional manner and that can only help your case. You also did not ask for your overpayment from the principle back. If this case were before a court and the court found their loan to be illegal, they would usually be required by the court to repay you the amount you paid over principal, I do believe.
At this point, you are basically stuck until you see what their response is. If it were me, I may consider revoking their right to auto withdraw from the account, but I think its best to see what they do next. You definitely laid out the facts for them in a way that shows them that you hold all the cards here....if they try to strong-arm you, that may be a good time to revoke the wage assignment. Definitely keep us updated, I am very curious to see how they respond to this.
I did tell them that I was revoking authorization for ACH debits
I did tell them that I was revoking authorization for ACH debits to my account and, I got a call yesterday from one of their customer service reps. He said he was calling to set up an alternate payment since my ACH authorization had been terminated. I guess that shows that they are paying attention and at least following instructions.
My guess is that they're consulting counsel. Still haven't heard from Ms. Waller. I'll send another follow up email today and see if I can any further.
Thanks for the vote of confidence, Sky.
Well, it shows me that they are only paying attention half-way..
Well, it shows me that they are only paying attention half-way.....if they had paid attention to everything you said they would not be asking for an alternative method of payment.
I have a feeling based on that response from them that this isnt going to go smoothly. I dont think they are going to give up what they think is a legal claim to that interest. We'll see what else they come back with, but dont be surprised if their only response is to keep calling asking for more payment info. If they keep ignoring the rest of your letters to them and only keep trying to get more money from you, it may be time to file complaints with some state agencies....
I'm not sure and here's why. I actually contacted the lending E
I'm not sure and here's why. I actually contacted the lending EVP from MetaBank, not Brookwood directly.
The guy from Brookwood said he didn't know anything about my contact with the bank, so who knows?
I sent another follow up email earlier and I also sent a cc to the CEO of the company and the media contact. I received delivery confirmation on all so, we shall see.
I'll keep you posted.
Interesting happenings here. So, I got a response from MetaB
Interesting happenings here.
So, I got a response from MetaBank.
[SIZE=3][QUOTE]
[SIZE=3][SIZE=3][COLOR=black][SIZE=3][SIZE=3]Yesterday, I was asked to research your email correspondence to see if there was anything we could do to help you. I found that though we did originate your loan, we sold your loan to Brookwood and their parent company, Select Management. Additionally, MetaBank no longer does business with either company. Therefore, we have no control or influence in the management of your loan account.[/SIZE][/SIZE]
[SIZE=3][SIZE=3]Per your email today you state that your ACH debit has been terminated due to your request with MetaBank. I thought you should know that we had no involvement in terminating the ACH debit, so we are unaware of the circumstances around that termination. Secondly, as I stated above, we can???t work with you because we no longer own your loan.
In your email you also say that Brookwood has attempted to contact you???I encourage you to discuss with Brookwood your position and situation and see if they will work with you.
Unfortunately, MetaBank cannot assist you with your Brookwood loan.
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[SIZE=3][SIZE=3]Since, they no longer own my loan, is it safe to assume this loan is illegal? I'm thinking so and I'm also thinking I should do some math and go ahead and ask for that refund of what I've already overpaid. Ohio's usury cap is 21% APR and the APR on this loan is 96%.[/SIZE][/SIZE]
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I'm also wondering how Brookwood knew to terminate ACH debits, per my authorization revocation if they have no affiliation with MetaBank. I didn't inform Brookwood of my ACH revocation. I informed MetaBank. But the guy who called (from Brookwood) said it had been terminated. And they've not withdrawn from my account. They are instead calling me daily to set up a payment arrangement. Odd...
[SIZE=3]I cannot find that Brookwood or Select Management are licensed lenders in the state of Ohio. So, the loan wasn't backed by a bank afterall. I'm sure their argument would be choice of law but I think we all know that it's Ohio law that matters here, just like with PDLs. Am I just getting my hopes up or am I right about this?
Thoughts? Arguments? Help?
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Update: I received an email from an attorney representing Selec
Update: I received an email from an attorney representing Select. He gave me the old "although I disagree with your position, my client is willing to mark your account paid in full if you sign a mutual release agreement."
I responded that I would be happy to sign the mutual release, if they would refund my $350 overpayment. I shared calculations with them using Ohio's usury cap APR of 21% (and pointed out that I used this instead of SD's 15% "legal interest rate."
I'll let you know what they say. If worse comes to worse, I'll sign the thing just to be done with it, but if I can get a refund, that would be icing on the cake :)