help with sending letters to plain green and progressive finance
Date: Mon, 10/01/2012 - 07:35
me:
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Dear Progressive Finance,
It has come to my attention that payday lenders must be licensed by the state of Virginia 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. Online payday or installment loans of any kind are also illegal, so there is no legal backing for this loan in my state. 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 $425 on 4/5/2012, and have paid you back a total of $573.22. This results in an overpayment of $118.22.
At this time I am requesting a return email acknowledging that my loan has been paid in full. I am not requesting a refund for overpayment at this time.
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. Thank you.
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their response:
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We appreciate your concern, however we do not issue PayDay Loans. We are a private lender for cash.
If you review a payday loans Terms and Conditions, you will notice that we do not charge only finance on each payment due. The contracts should show you all the legalities to the term in which you agreed to paying back.
If you should have any more questions or concerns, we would be glad to help.
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me again:
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Melinda,
Thank you for your quick response. Here is a link to the law on payday loans in Virginia: http://law.onecle.com/virginia/banking-and-finance/ch18.html
If you look in 6.1-444 Definitions, you will notice that my loan is considered a payday loan in the state of Virginia. Section two discusses the need for a license from the state of Virginia to issue that loan. This is the reason that the loan is illegal and invalid.
The loan also violates section A on this page: http://law.onecle.com/virginia/banking-and-finance/6.1-460.html
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their response:
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[COLOR=#1f497d]You signed a contract for a loan. If this were a payday loan, it would state that in the contracts. [/COLOR]
[COLOR=#1f497d]If you do not want to pay back your loan, then you will need to speak to the collections department at 1-877-898-1970. [/COLOR]
[COLOR=#1f497d]Thanks for your time today.
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sent them another email: ---------------------------------------
sent them another email:
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Melinda,
As I'm sure you know, the contract for the loan becomes null and void if the terms of the loan were illegal. Please respond to my statements about how the loan is illegal. I will post the key points of Virginia state law below:
Definition of a payday loan by state law: "Payday loan" means a small, short-maturity loan on the security of (i) a check, (ii) any form of assignment of an interest in the account of an individual or individuals at a depository institution, or (iii) any form of assignment of income payable to an individual or individuals, other than loans based on income tax refunds.
Law requiring a payday loan license in the state of Virginia: No person shall engage in the business of making payday loans to any consumer residing in the Commonwealth, whether or not the person has a location in the Commonwealth, except in accordance with the provisions of this chapter and without having first obtained a license under this chapter from the Commission.
Law that outlaws electronic payments: A licensee shall not obtain authorization to electronically debit a borrower's deposit account in connection with any payday loan.
Maximium annual rate on loan: A licensee may charge and receive on each loan interest at a simple annual rate not to exceed 36 percent. A licensee may also charge (i) a loan fee as provided in subsection B and (ii) a verification fee as provided in subsection C.
Now they are just responding and saying that they are not a payd
Now they are just responding and saying that they are not a payday loan and that I need to contact collections if I am not going to pay. Not sure what to do from here.