Ok Where to go from here

So I have received 2 emails from the 3 illegal payday loan places. The first was this response from MyPaydayloan.com. Please advise me how to proceed with this.

In acknowledgment of the letter we received by email, we would like to clarify the issues pertaining to the transaction you originated with Mypaydayloan.com.



First, we wish to remind you that all correspondence from Mypaydayloan.com is copyrighted, and you consented to such before applying for an advance.



Specifically, the website states:



Except where expressly provided otherwise herein, all emails, comments, feedback, information or materials submitted to Mypaydayloan.com through or in association with this web site ("Submissions") shall be considered Mypaydayloan.com's copyrighted property. By providing such Submissions to Mypaydayloan.com, you agree to assign to Mypaydayloan.com all worldwide rights, title and interest in the copyrights and other intellectual property rights to the Submissions.



Any publication, posting, or dissemination of such information is in direct violation of this agreement and you will then be liable for copyright infringement, disclosure of confidential information, and breach of contract. Additionally, because it would be difficult, if not impossible, to determine the amount of damages to Mypaydayloan.com, you will be liable for liquidated damages in the amount of $25,000, per violation, for your publication, posting, or dissemination of information from or relating to Mypaydayloan.com. You agreed to this provision immediately after your email was validated, and before you proceeded with the application. Failure to remove any postings within two business days of receipt of this letter may result in a civil suit for liquidated damages.



Mypaydayloan.com is a Costa Rican corporation with servers, offices, employees, and all other important elements of the transaction located in Costa Rica. You engaged in an unsolicited transaction with Mypaydayloan.com, a Costa Rican company. Furthermore, in the contract you agreed that the transaction would be deemed to occur in our country, Costa Rica, and you agreed to be bound by Costa Rican Law.



Specifically, the contract you signed in order to receive an advance clearly states:



GOVERNING LAW: Both this agreement and the application is considered to be executed at our offices in San Jose, Costa Rica, and this transaction and agreement with us shall be governed by, construed, and enforced solely in accordance with the internal laws of Costa Rica.



Forum selection clauses, like the one above, are supported by U.S. case law. For example, see the opinion of the United States Supreme Court in M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1, (1972). Likewise, U.S. courts have upheld the sovereignty of foreign entities engaging in unsolicited business in the United States. Crown Beverage Co., Inc. v. Cerveceria Moctezuma, S.A., 663 F.2d 886, 888 (9th Cir. 1981).

Furthermore, the controlling forum for a contract is determined by the “lex loci contractus,” which is the law of the place where a contract is made. A contract is deemed to be executed where the final act necessary to make it binding has been completed. In this instance, the transaction was not binding until reviewed and approved by Mypaydayloan.com, after they received all information from you to make a decision to enter into the agreement. Hence, the final act to make the transaction binding was in the jurisdiction of Costa Rica, and that country’s laws are binding. See e.g., Mitsubishi Int'l Corp. v. Clark Pipe & Supply Co., Inc., 735 F.2d 160, 164 (5th Cir. 1984).

Lastly, any comment about specific interest rate caps based on the laws of your state simply do not apply, as the money transferred to you was an advance on a check, and not a loan. There are important differences that are a benefit to you and should be clarified.

First, in order for a transaction to be a loan, it must accrue interest. You were charged a flat fee per $100 dollars advanced. Because a fee is not interest, there is no accrual element to this transaction. When you defaulted you were not charged a percentage of the unpaid balance. You were charged a fee for defaulting, and you may have also been charged an NSF fee, if applicable, both of which you agreed to in the contract.



Secondly, if a transaction is a loan, it has a compounding element whereby any unpaid charges would be included in the interest calculation and added to the total amount owed. Instead, in your transaction with us, you agreed to be charged flat fees for overdue balances and other breaches of your contract. Those fees do not compound or increase as the unpaid balance goes up.



As such, the standard usury laws—or maximum allowed interest rates—do not apply to this transaction. This principle is no different than when your bank charges you an overdraft fee to cover a check where there are not enough funds in the account to cover the check. You were advanced funds based on your next check from your employer. So whether that was five days away or twenty, the fee is the same.



You are hereby advised to abide by the agreements in your contract with Mypaydayloan.com, and contact the collections department to make a payment arrangement. Failure to do so within two business days of receipt of this letter will result in your account being reported to appropriate credit agencies as in default of your obligations, and sent to an outside collection agency, which will subject you to additional fees and may prevent future credit transactions with other companies. Your balance is $520, and you are due today, 6/28/13. As a courtesy we can accept your principle balance of $400 in one payment on or before 7/1/13, to pay your account in full. Your other option is to pay your balance of $520 in 2 biweekly payments of $260, beginning 7/1/13. You can use MoneyGram, ACH debit, or credit card to submit your payments. If you default on your due date of today, which we are actually extending to 7/1 for you, your account will be in jeopardy of assessing the late charges as outlined in your contract.




I received this one from Advance To Me. They say they received a payment but they did not, so I am not sure what they are saying here.

Thank you for your loan payment in the amount of $195.00 on Friday June 28, 2013 on loan number 321553. Your confirmation number is: 2250124

Your remaining principal balance after the payment is: $0.00 and the due date for your next payment is Friday July 12, 2013.

Depending on your bank, it may take three to five days for this transaction to appear on your bank statement. You can check your loan status at any time by visiting www.AdvanceMeToday.com and clicking on 'My Account'.

We thank for coming to AdvanceMeToday.com, and appreciate your business.

The Advance Me Today Team
customersupport@advancemetoday.com
888-408-4394
888-660-2984 FAX
http://www.AdvanceMeToday.com