letter from tribal lender: please help!
Date: Mon, 07/02/2012 - 13:20
Hi guys!
Here's the lender's answer:
"I am writing on behalf of FACR ONE, LLC (FACR I), in response to your email dated June 26, 2012 regarding the above referenced complaint. A hard copy of our response was also sent via USPS. By way of background, FACR I is a limited liability company organized under the laws of the Chippewa-Cree Tribe of the Rocky Boy’s Indian Reservation of Montana (“Chippewa-Creeâ€), a recognized Indian Tribe and sovereign nation. FACR I is owned and operated by the Chippewa-Cree, and operates exclusively on land owned by the Chippewa-Cree. As such, FACR I is an “arm of the tribe,†and entitled to the same immunity from state laws as is the Chippewa-Cree. See Cash Advance and Preferred Cash Loans v. Colorado ex rel. Suthers, 242 P.3d 1099 (Colo. 2010).Therefore, the activities of FACR I are not subject to licensing by any state and are immune from any state investigation or enforcement actions. The Colorado Supreme Court made clear in the Cash Advance case by holding that “tribal sovereign immunity applies to state investigatory enforcement actions[,]â€[1] with the Court further “[r]ecognizing that Congress has not imposed any limitation on the application of tribal sovereign immunity to entities acting as arms of a tribe, all the federal courts of appeals that have addressed this issue have held that such entities are entitled to immunity.â€[2] Thus, any attempt by a State to exercise its supervisory powers over FACR I as an arm of an Indian tribe impinges upon the tribal sovereignty of the Chippewa-Cree.FACR I is not subject to the licensing of the State of California and thus does not possess a license in the state. The contract entered into between FACR I and you is a fully enforceable contract under Federal Law. To date the loan taken out by you has an outstanding principal balance of $500. Please contact us immediately to reach an amicable solution and payment arrangements. If you fail to contact us to resolve this issue FACR I will exercise any and all available remedies to protect and enforce its contract rights."
After I sent this:
"It has come to my attention that payday lenders must be licensed by the state of California in order to offer loans to its residents. Since your company has no license in my state, the loan contract I have with you is not valid. Also, under California law:
- The maximum loan amount a consumer can borrow in a payday loan is $300. The principal amount you lent me is $500.
- The maximum fee you can charge is $45. Your fee is $150.
I hereby revoke any and all ACH debit authorizations with your company from debiting any of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I have closed my account with JP Morgan Chase to protect my interest in this matter, per instructions from the California Department of Finance. I also revoke any and all wage assignments I may or may not have signed with your company, I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for your collection purposes. I have notified my employer about this matter so any attempt to do so on your part will be rejected.
I demand that any contact be made through US Postal mail or email only. I will need everything in writing to keep accurate records of all communication as per instruction from my Attorney General Office. I also prohibit you or your affiliates to contact me via telephone at my place of employment or my home telephone number. I also prohibit you from calling my references listed on my loan.
The legal amount that could have been charged to my loan is the principal amount, even if your Internet payday loan were legal anywhere in the U.S. I am willing to pay the principle amount of the loan only; however, this is only if you provide me with a physical address where I can send payments. To date, I received a deposit of $500, and have made 2 payments of $150 leaving a balance due of $200.
I must also inform you that I will be filing complaints with the Better Business Bureau, the Federal Trade Commission, and the California Attorney General Office.
I expect a response from your company regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted.
907. Preauthorized transfers
(a) A preauthorized electronic fund transfer from a consumer's account may be authorized by the consumer only in writing, and a copy of such authorization shall be provided to the consumer when made. A consumer may stop payment of a preauthorized electronic fund transfer by notifying the financial institution orally or in writing at any time up to three business days preceding the scheduled date of such transfer. The financial institution may require written confirmation to be provided to it within fourteen days of an oral notification if, when the oral notification is made, the consumer is advised of such requirement and the address to which such confirmation should be sent.
(b) In the case of preauthorized transfers from a consumer's account to the same person which may vary in amount, the financial institution or designated payee shall, prior to each transfer, provide reasonable advance notice to the consumer, in accordance with regulations of the Board, of the amount to be transferred and the scheduled date of the transfer.
Codified to 15 U.S.C. 1693e"
could you please help me answer back?
Thanks!!
Here's the lender's answer:
"I am writing on behalf of FACR ONE, LLC (FACR I), in response to your email dated June 26, 2012 regarding the above referenced complaint. A hard copy of our response was also sent via USPS. By way of background, FACR I is a limited liability company organized under the laws of the Chippewa-Cree Tribe of the Rocky Boy’s Indian Reservation of Montana (“Chippewa-Creeâ€), a recognized Indian Tribe and sovereign nation. FACR I is owned and operated by the Chippewa-Cree, and operates exclusively on land owned by the Chippewa-Cree. As such, FACR I is an “arm of the tribe,†and entitled to the same immunity from state laws as is the Chippewa-Cree. See Cash Advance and Preferred Cash Loans v. Colorado ex rel. Suthers, 242 P.3d 1099 (Colo. 2010).Therefore, the activities of FACR I are not subject to licensing by any state and are immune from any state investigation or enforcement actions. The Colorado Supreme Court made clear in the Cash Advance case by holding that “tribal sovereign immunity applies to state investigatory enforcement actions[,]â€[1] with the Court further “[r]ecognizing that Congress has not imposed any limitation on the application of tribal sovereign immunity to entities acting as arms of a tribe, all the federal courts of appeals that have addressed this issue have held that such entities are entitled to immunity.â€[2] Thus, any attempt by a State to exercise its supervisory powers over FACR I as an arm of an Indian tribe impinges upon the tribal sovereignty of the Chippewa-Cree.FACR I is not subject to the licensing of the State of California and thus does not possess a license in the state. The contract entered into between FACR I and you is a fully enforceable contract under Federal Law. To date the loan taken out by you has an outstanding principal balance of $500. Please contact us immediately to reach an amicable solution and payment arrangements. If you fail to contact us to resolve this issue FACR I will exercise any and all available remedies to protect and enforce its contract rights."
After I sent this:
"It has come to my attention that payday lenders must be licensed by the state of California in order to offer loans to its residents. Since your company has no license in my state, the loan contract I have with you is not valid. Also, under California law:
- The maximum loan amount a consumer can borrow in a payday loan is $300. The principal amount you lent me is $500.
- The maximum fee you can charge is $45. Your fee is $150.
I hereby revoke any and all ACH debit authorizations with your company from debiting any of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I have closed my account with JP Morgan Chase to protect my interest in this matter, per instructions from the California Department of Finance. I also revoke any and all wage assignments I may or may not have signed with your company, I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for your collection purposes. I have notified my employer about this matter so any attempt to do so on your part will be rejected.
I demand that any contact be made through US Postal mail or email only. I will need everything in writing to keep accurate records of all communication as per instruction from my Attorney General Office. I also prohibit you or your affiliates to contact me via telephone at my place of employment or my home telephone number. I also prohibit you from calling my references listed on my loan.
The legal amount that could have been charged to my loan is the principal amount, even if your Internet payday loan were legal anywhere in the U.S. I am willing to pay the principle amount of the loan only; however, this is only if you provide me with a physical address where I can send payments. To date, I received a deposit of $500, and have made 2 payments of $150 leaving a balance due of $200.
I must also inform you that I will be filing complaints with the Better Business Bureau, the Federal Trade Commission, and the California Attorney General Office.
I expect a response from your company regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted.
907. Preauthorized transfers
(a) A preauthorized electronic fund transfer from a consumer's account may be authorized by the consumer only in writing, and a copy of such authorization shall be provided to the consumer when made. A consumer may stop payment of a preauthorized electronic fund transfer by notifying the financial institution orally or in writing at any time up to three business days preceding the scheduled date of such transfer. The financial institution may require written confirmation to be provided to it within fourteen days of an oral notification if, when the oral notification is made, the consumer is advised of such requirement and the address to which such confirmation should be sent.
(b) In the case of preauthorized transfers from a consumer's account to the same person which may vary in amount, the financial institution or designated payee shall, prior to each transfer, provide reasonable advance notice to the consumer, in accordance with regulations of the Board, of the amount to be transferred and the scheduled date of the transfer.
Codified to 15 U.S.C. 1693e"
could you please help me answer back?
Thanks!!
Pretty simple response. You do not live on the reservation and
Pretty simple response. You do not live on the reservation and you are not a member of the tribe and thus you are not subject to their laws. The only laws that pertain to you are the laws of the state you reside in.
They damn well know this is the case and they are just trying to confuse you.
I know, right?!
"The contract entered into between FACR I and you is a fully enforceable contract under Federal Law" the nerve!
thanks a lot for all your great work!