Payday Loans
Date: Thu, 03/14/2013 - 09:09
Not a question, just reporting back on my recent experience with using the advise posted on this site.
I had a payday loan with Cash Yes. I sent the following email and got the following response.
Dear Cash Yes,
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. 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 $1000 on 11/26/2012, and have had 6 bi-weekly withdrawals totalling $1800 debited from my account. This results in an overpayment of $800.
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 $800 overpayment. A refund check of $800 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.
And the Response:
Dear Customer:
I am writing on behalf of Cash Yes in response to your recent email. Cash Yes strives to assist consumers with their short term cash needs and is concerned that you were disappointed with your most recent experience.
Please be advised, however, that your loan was made pursuant to Cash Yes’s license in its home country of Belize under the International Financial Services Commission Act of Belize, Chapter 272. Cash Yes’s contracts, including the loan agreement you signed, clearly designate Belize law as governing its transactions and provide all disclosures required by Belize and U.S. federal law. Cash Yes has no physical presence in the State of California, and does not solicit California consumers via mail, telephone, or email; therefore, we are not subject to its regulatory jurisdiction. In order to obtain a loan from Cash Yes, a California consumer must log on to the internet and access Cash Yes’s website, just as you did. You received documents in conjunction with your loan fully describing how the finance fees are applied and your repayment options, and you agreed to these terms, including the applicability of Belize (not California) law to the transaction, with electronic signatures in multiple places. Should you require another copy of your documents, or if you need clarification on points referenced in the documents, please contact us. A careful review of those documents should resolve your concerns regarding the terms applicable to your loan.
Notwithstanding the foregoing, we have agreed to settle the balance owed and have marked your account “closed and paid in full” as of March 14, 2013. Cash Yes is taking this action without legal obligation to do so because of our ongoing commitment to customer satisfaction and for no other reason. We hope that this action on our part will resolve your concerns.
Thank you for the opportunity to clarify this matter and address your concerns.
Sincerely,
Cash Yes
So apparently they claim they are not obligated to abide by my state of residency's laws. But they still closed the account without fully collecting? Seems strange that this was so easy.
I still went ahead and had ALL ACH transactions stopped on my account from the advise of my bank. Bank states these types of companies will try to submitting the ACH just slightly different over and over.
I had a payday loan with Cash Yes. I sent the following email and got the following response.
Dear Cash Yes,
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. 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 $1000 on 11/26/2012, and have had 6 bi-weekly withdrawals totalling $1800 debited from my account. This results in an overpayment of $800.
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 $800 overpayment. A refund check of $800 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.
And the Response:
Dear Customer:
I am writing on behalf of Cash Yes in response to your recent email. Cash Yes strives to assist consumers with their short term cash needs and is concerned that you were disappointed with your most recent experience.
Please be advised, however, that your loan was made pursuant to Cash Yes’s license in its home country of Belize under the International Financial Services Commission Act of Belize, Chapter 272. Cash Yes’s contracts, including the loan agreement you signed, clearly designate Belize law as governing its transactions and provide all disclosures required by Belize and U.S. federal law. Cash Yes has no physical presence in the State of California, and does not solicit California consumers via mail, telephone, or email; therefore, we are not subject to its regulatory jurisdiction. In order to obtain a loan from Cash Yes, a California consumer must log on to the internet and access Cash Yes’s website, just as you did. You received documents in conjunction with your loan fully describing how the finance fees are applied and your repayment options, and you agreed to these terms, including the applicability of Belize (not California) law to the transaction, with electronic signatures in multiple places. Should you require another copy of your documents, or if you need clarification on points referenced in the documents, please contact us. A careful review of those documents should resolve your concerns regarding the terms applicable to your loan.
Notwithstanding the foregoing, we have agreed to settle the balance owed and have marked your account “closed and paid in full” as of March 14, 2013. Cash Yes is taking this action without legal obligation to do so because of our ongoing commitment to customer satisfaction and for no other reason. We hope that this action on our part will resolve your concerns.
Thank you for the opportunity to clarify this matter and address your concerns.
Sincerely,
Cash Yes
So apparently they claim they are not obligated to abide by my state of residency's laws. But they still closed the account without fully collecting? Seems strange that this was so easy.
I still went ahead and had ALL ACH transactions stopped on my account from the advise of my bank. Bank states these types of companies will try to submitting the ACH just slightly different over and over.
Pretty common
Congrats! Seems to be a common thing for most of these outfits to act like their doing you a big favor (customer satisfaction) when in fact they know it's not enforceable.
The other 'fluff" that they spout is just them blowing smoke.
If you're so so inclined keep after them after the refund and make sure you keep that Paid in Full letter/email in a safe place.
