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Payday lenders are really a trip!

Date: Mon, 03/27/2006 - 12:16

Submitted by polly
on Mon, 03/27/2006 - 12:16

Posts: 1709 Credits: [Donate]

Total Replies: 47


Wow. 2 weeks ago one lender put a letter in my mailbox without a stamp, and last week, another one put something on my door. I didn't know that they would make house calls!


Just called the postal inspector. Apparently my complaint got lost in the shuffle. The man said that they are going to call them and inform them that they must cease and desist the practice, or be fined. One can only assume that if they have done it once, that it isn't the first time!


lrhall41

Submitted by polly on Mon, 03/27/2006 - 12:42

( Posts: 1709 | Credits: )


I can't imagine that they have only done that to you - doesn't make sense. Sucks that they won't prosecute them for it.

I would say yes to the FTC - although personally, I would send them an intent to sue letter for violations of the fdcpa...just my personal style though *grin*

~Mary


lrhall41

Submitted by Mary on Mon, 03/27/2006 - 12:51

( Posts: 1344 | Credits: )


Mary, is there a sample letter like that in the do it yourself section? I wrote the checks for the loan in early February and as of last week they have never attempted to cash them. The account was closed last week by the bank for nsf fees. They threat stated that I would be criminally prosecuted for writing a check on a closed account, but the account wasn't closed when they left the letter in my mailbox.


lrhall41

Submitted by polly on Mon, 03/27/2006 - 13:05

( Posts: 1709 | Credits: )


Here's something...you will, of course, have to change all the info and pretty it up with all the details of your situation....

Quote:

To whom it may concern,

I am writing once last time to have this matter fixed before being forced to resolve it through litigation. I have written to you several times demanding validation of an alleged debt placed on my credit report, but your company has refused to do so. PITA_CA has committed many violations of the Fair Credit Reporting Act (FCRA), the Fair Debt Collections Practices Act (fdcpa), and state statutes. I plan to sue for each violation if PITA_CA does not remove the alleged debt from my credit report within five days of receiving this letter. I also expect a letter from PITA_CA stating they have done so and that they will not pursue further collection activities concerning this alleged debt in the future. I will also file complaints with the Federal Trade Commission, The Better Business Bureau, the CA STATE Office of Attorney General and the MY STATE Office of Attorney General.

As you can see by the attached letter marked ???Exhibit 1,??? I wrote my initial dispute letter on September 23, 2004. As shown in ???Exhibit 1.A,??? your office received this letter on September 27, 2004. In this letter I disputed the alleged account and demanded validation. I also informed PITA_CA it was a violation of the FCRA and the FDCPA to continue debt collection practices without first mailing validation to the consumer when the information has been disputed.

As you can see by the attached letter marked ???Exhibit 2,??? I again wrote to PITA_CA on January 20, 2005. PITA_CA received this letter on January 24, 2005, as shown in ???Exhibit 2.A.??? In this letter, I reminded PITA_CA it had received my first letter, but had failed to provide validation. I also pointed out it had unlawfully continued to pursue collection activities.

Finally, on March 11, 2005, I wrote a letter again pointing out PITA_CA's unlawful practices. This letter is attached and marked as ???Exhibit 3.??? ???Exhibit 3.A??? shows PITA_CA received this letter on March 15, 2005. In this letter I gave PITA_CA another chance to delete the disputed information.

To date, your office has refused or been unable to provide validation, as required by law, yet has continued to pursue debt collection activities unlawfully. In fact, I have received no direct correspondence from PITA_CA. This is willful noncompliance of the law. Despite this, PITA_CA has continued to pursue unlawful collections activities by providing information to the credit reporting agency, Experian, without first providing validation to me, the consumer. PITA_CA has also somehow ???verified??? inaccurate information with Experian without first mailing the requested validation to me as required by law. In total, this has happened at least seven times between PITA_CA's receipt of my initial dispute and today. Each time PITA_CA has done so is one violation of FDCPA 809 (cool.gif and one violation of the FCRA, equaling 14 federal violations. They are also violations of the MY STATE state statues.

PITA_CA has further pursued unlawful collection activities by attempting to have another collection agency collect the alleged debt. I have attached ???Exhibit 4,??? a dunning letter from ???ANOTHER CA??? and ???Exhibit 5,??? a dunning letter from ???CA 3.??? Each activity is one violation of the FCRA and one violation of the FDCPA, equaling four additional federal violations.

Therefore, all together PITA_CA has committed 18 violations of federal law. Thankfully, the FCRA and FDCPA provide that I can collect $1,000 for each violation. Please be advised I intend to sue for the full $18,000, plus money allowed under state statue, plus attorney fees, if PITA_CA fails to remove this alleged debt from my credit report within five days of receiving this letter. I also expect a letter from PITA_CA stating they have done so and that they will not pursue further collection activities concerning this alleged debt in the future. I will also file complaints with the Federal Trade Commission, The Better Business Bureau, the CA STATE Office of Attorney General and the MY STATE Office of Attorney General.


See how that works for ya. I can probably find more examples if needed.

~Mary


lrhall41

Submitted by Mary on Mon, 03/27/2006 - 13:22

( Posts: 1344 | Credits: )


Polly,

Store front lenders are way different than online lenders, they could take you to court if your state allows such action. This would be a civil suit, not a criminal one. I don't understand why they would waste the time to put unposted mail in your box. It just shows they will stoop to any length to get their money back. I agree that it is a federal offense. I hope that it plays out in your favor, keep us updated.


lrhall41

Submitted by Cow & Chicken on Tue, 03/28/2006 - 15:55

( Posts: 3571 | Credits: )


Mishele,

My state allows people to sue for 3 and a half times the amount of the check, right now. On June 1 the new laws go into effect, and they will not be able to do a lot of the stuff that they do. However, if someone sues, such as what has happened in New Mexico, the laws will be postponed until litigation is resolved.


lrhall41

Submitted by polly on Wed, 03/29/2006 - 06:24

( Posts: 1709 | Credits: )


Has anyone heard of this company? I received a phone call last week a Mr. Steinhart and Mr. Conch. At first he made it seem like he was from my bank (where I closed the account because of alot of unknown charges causing me to go in the hole). After I didn't seem to get where he was coming from. He told me he was from Pre-litigation Services of America and I was being brought up on 4 counts of Bank Fraud and asked if I had a attorney. He stated that if I didn't take care of this debt someone would be @ my work to process me by 4:00 that day. I said in that case I quess I need to get off the phone an obtain a lawyer and he hung up saying Good Luck to you. Fortunately I ran across this sight previously that week when researching debt consolidation, so I used some of the advice found here and called our Delaware Attorney Generals Office who placed a call to them with me on the phone - man you should have heard that phone call. The man that called me (Mr. Steinhart) put her on hold and this Mr. Conch got on the phone - Mr. Steinhart never did get back on the phone in spit of the DAG's request to speak with him - he kept saying he took a break (after he was the one who answered the phone). I am also a state employee and this man accused her of being a friend of mine, I am not sure he really did take her seriously - after a screaming match for some time she ended the call saying that she expected a call from Mr. Steinhart by 4:30 that day - This Mr. Conch said that Mr. Steinhart had gone home and wouldn't be back that day because he was upset from receiving a phone call from the Attorney Generals office (I think he was actually mocking her). She never received a call back and it has been reported to the FTC. They would not give an address to send a request for debt verification or cease communication letter. Reading these Forum's they sound alot like the company you talk about called Ellis & Crosby that were suspended or something.

Please let me know if any of you have had run in with these people and what happened. Thanks!


lrhall41

Submitted by on Wed, 03/29/2006 - 08:47

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Quote:

I would say yes to the FTC - although personally, I would send them an intent to sue letter for violations of the fdcpa...just my personal style though *grin*


You cannot sue the Original Creditor for violation of the FDCPA, as it does not apply to Original Creditors. The FDCPA only applies to "Collectors" and "Collection Attorneys".

The FTC's website for the FDCPA cab be found at https://www.ftc.gov/enforcement/rules/rulemaking-regulatory-reform-proceedings/fair-debt-collection-practices-act-text


lrhall41

Submitted by LCW on Wed, 03/29/2006 - 11:16

( Posts: 1151 | Credits: )


If it were me I would show up at your job to get my money. IT'S MY GOD DAMN MONEY AFTER ALL. YOU STOLE IT FROM ME I AM COMING TO GET IT BACK. You laugh at our collection attempts, you call it "stooping to any level" if we dont do these things we lose our money. If it was your money you were lending what would you do?


lrhall41

Submitted by on Wed, 03/29/2006 - 11:16

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Quote:

If it were me I would show up at your job to get my money. IT'S MY GOD DAMN MONEY AFTER ALL. YOU STOLE IT FROM ME I AM COMING TO GET IT BACK.


You are involved in a high risk industry. You (or your company) was well aware there was a higher probability of default when you made the loan. You Chose to take that chance with the expectation of extortionist interest rates.

Just because you are trying to collect on money you knew may not be paid back in a timely manner when you made the loan, DOES NOT ENTITLE you to violate one or more state or Federal laws, and does not offer you immunity from prosecution for violation of those laws.

If you work within the confines of the law your attempts to collect would be much more successful.

Enjoy the profit while you can. The day is rapidly approaching in which your industry will at least be seriously limited and regulated, and at best will be forced out of business all together. Many states have taken action to regulate or ban pay day lending, and many more are considering similar legislation or considering strengthening their existing regulations.


lrhall41

Submitted by LCW on Wed, 03/29/2006 - 11:22

( Posts: 1151 | Credits: )


quote:

Enjoy the profit while you can. The day is rapidly approaching in which your industry will at least be seriously limited and regulated, and at best will be forced out of business all together. Many states have taken action to regulate or ban pay day lending, and many more are considering similar legislation or considering strengthening their existing regulations.



This is the amusing thing about people wanting to regulate us and shut us down. Do you honestly believe that if we are shut down, the demand from our customers will just magically go away? There is a reason we have been here as long as we have, PEOPLE NEED US. And dont think for one minute that if we are regulated to the point of non-profit that any of us will stick around.

The only time our loan equals 700-1000% apr is when consumers pay on the same loan for a year. If you pay these loans back on your first due date it will cost you $30. $30 to borrow $100 is not that outlandish. However cusumers these days dont read contracts, and BAM they pay 5 or 6 finance charges and the next thing you know here we are. You dont pay your loan and we are the bad guy. NO ONE HOLDS A GUN TO OUR CUSTOMERS HEADS AND FORCES THEM TO TAKE THESE LOANS. THEY COME TO US BECAUSE THEY HAVE NO WHERE ELSE TO GO. If you do get rid of us what will you do for money? The bank? Credit is probably to bad. Family? Either they can't afford to loan to you or that avenue has been exhausted. So I ask where do payday loan customers go? Like us or not, we serve a valuable service. Payday loans help drive economy. Where do you think the money is spent? Continue to rant and rave about regulating us and shutting us down. But, try to imagine what happens when the customers that use us to buy their groceries or unexpected expenses can no longer do that.

I know no matter what I say in this forum will not change any of the bleeding heart liberals that frequent this site. However, we are much better alternative to taking hard earned money out of honest tax payers pockets to pay for more welfare programs that weaken and disgrace this great country.


lrhall41

Submitted by on Thu, 03/30/2006 - 12:19

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Payday loans are an aLternative to leading people into bankruptcy, losing their homes, unable to put food on the table, taking more out of checking accounts than suppose to. Believe me and most of the people in this forum will agree that there is alternatives to payday loans. Alot of states are starting to ban these places and hopefully someday you all will be shut down and out of business.


lrhall41

Submitted by Not so Lucky on Thu, 03/30/2006 - 12:31

( Posts: 3041 | Credits: )


And just how do you figure that the Payday Loan industry is going to help prevent people from being on welfare? That has to be the most ludricous assertion that I have ever seen!

Without regulation payday lenders are loaning more in principal and finance charges than a person can afford to pay back. Charging any interest rate above and beyond 25% apr is immoral.

Did you ever stop to think that the payday loan industry could drive people to the welfare line, food pantries, or other charitable organizations when they cannot afford to pay the loan and continue to survive?

If the payday loan industry went away, ALL Americans would be far better off!

You and your kind are nothing more than a loan shark. You are equivalent to the Mob!


lrhall41

Submitted by polly on Thu, 03/30/2006 - 12:43

( Posts: 1709 | Credits: )


Quote:

NO ONE HOLDS A GUN TO OUR CUSTOMERS HEADS AND FORCES THEM TO TAKE THESE LOANS. THEY COME TO US BECAUSE THEY HAVE NO WHERE ELSE TO GO.

But you send e-mails offering payday loans that sounds too good to be true. People in need often believe this.

What you should do, force customers to read the fine print first. That could help them.


lrhall41

Submitted by curlycarl on Thu, 03/30/2006 - 12:53

( Posts: 616 | Credits: )


I have gotten sucked into the horrible payday loan cycle and am fight my way out. At first I thought these stupid things were a godsent and were wonderful. Now I know better and as soon as I can get myself out of the mess that I have gotten into, I will never go there again. PDL company suck you in with the "easy" payments and the "low" finance charges, but before you know it you are in way too deep. I wish that I had never heard of these loans.


lrhall41

Submitted by whitetigerwy on Thu, 03/30/2006 - 13:02

( Posts: 23 | Credits: )


Quote:

If it were me I would show up at your job to get my money. IT'S MY GOD DAMN MONEY AFTER ALL. YOU STOLE IT FROM ME I AM COMING TO GET IT BACK. You laugh at our collection attempts, you call it "stooping to any level" if we dont do these things we lose our money. If it was your money you were lending what would you do?


If it were you, "you" had better be the constable coming to serve legal documents, or you would be in for a surprise if you were on MY doorstep, buddy!

By the way, nice ghostnym, chickens**t.


lrhall41

Submitted by beatlemyn02 on Thu, 03/30/2006 - 22:19

( Posts: 79 | Credits: )


You should check your laws regarding check cashing....I think they can't hold you for a check on a closed account if they cashed it long after the date on it, heck, I think that a check is no longer good after a certain amount of time! Plus, I have seen that many of these places roll over the loans, but do not make a new check..the first time you roll over a loan that old check does not apply.


lrhall41

Submitted by goldenbast on Fri, 10/10/2008 - 22:08

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