Letters to online lenders
Date: Thu, 09/27/2012 - 05:51
Here is the 1st one I will post the 2nd one in a separate post.
Dear Lender,
It has come to my attention that payday lenders must be licensed by the state of Arizona 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. Although I am not legally required to do so, I am willing to repay the principal balance of this loan. To date, I received a deposit of $500 on (insert date), and have had 6 bi-weekly withdrawals of $120 debited from my account. This results in an overpayment of $220.
At this time I am requesting a return email acknowledging that my loan has been paid in full. Also, I would like a refund of the $220 overpayment. A refund check of $220 should be mailed to me at the address you have on file.
I am also revoking authorization for ACH withdrawals and any wage assignment I may have signed. I have given a copy of these revocations to both my bank and my employer. Any future attempts to collect funds in this manner will be blocked.
Please respond to this email with acknowledgment that my account has been satisfied in full. Details of when I can expect the refund check, as discussed above, should also be included in the email.
Or this letter
DATE
Name of PDL
Address
After doing research on internet payday loan laws in the state of Arizona, I have found that your internet payday loans are actually illegal. I have also found the following laws to be true applying to payday loans in the state of Arizona in general:
Legal Status: Effective June 30, 2010 no longer legal
Citation:
Ariz. Rev. Stat. ?? 6-1251 et seq.
Loan Terms:
Maximum Loan Amount: $500
Loan Term: Min: 5 days
Maximum Finance Rate and Fees: 15% of check
Finance Charge for 14-day $100 loan: $17.65
APR for 14-day $100 loan: 459%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: One
Rollovers Permitted: Three (extensions)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: $25 NSF fee + actual charges assessed by the financial institution
Criminal Action: Prohibited
Your company should actually not issue loans to Arizona residents at all as you are not licensed in Arizona
I have contacted the Arizona Office of Financial Institutions and the Arizona State Attorney Generals Office regarding your internet payday loans and was informed they are indeed illegal in Arizona and was advised to pay what is due according to principle amount only of the loan.
The legal amount that could have been charged to my loan is the principal amount of $XX even if your internet pay day loan was legal in Arizona. I only owe $XXX to have this paid in full as your company has exceeded the maximum loan amount and has exceeded the maximum finance rate and fees. I am willing to pay the amount of $XXX to pay the principle amount of the loan only, as advised by my Department of Financial Institutions and my state Attorney General's office.
I demand a physical address to mail payments to, as you are no longer authorized to debit my bank account. You must provide me with a physical address to mail my payments. I will not Money Gram or Western Union any payment. If no physical address is provided for me to mail payment to, no payment will be made.
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 state Attorney General's Office.
I 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. Once I inform you of this, you must stop the telephone contact immediately or you will be once again breaking the laws of the state of Arizona.
You are also hereby notified that I am revoking any voluntary wage assignment I may or may not have signed. 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 am revoking your right to debit my checking account any longer. You, your company, or your affiliates are not authorized to debit my checking account at all. Please be aware that I have informed my financial institution of this situation and they will also be receiving a copy of this correspondence. Any further attempts at debiting my account will be rejected by my financial institution.
I must also inform you that I have filed complaints with the Better Business Bureau, the Federal Trade Commission, and my state Attorney General's Office.
I expect a response from your company no later than DATE, regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted.
Your Name
SSN
Cc:
Better Business Bureau
Federal Trade Commission
Arizona State Attorney General
Use the first one. They already know they're breaking the law.
Use the first one. They already know they're breaking the law. :)
You're asking them to respond via email. If they call, tell the
You're asking them to respond via email. If they call, tell them you've sent an email and they should refer to that and respond accordingly. Then tell them you won't accept any further calls.