Important notice

Hi Josh,

You have always had a decent approach in dealing with your customers. There is no second thought on it, especially with me. But you must have read the suggestions posted here as well as in other public forums online. You might have heard about the continuous problems faced by the consumers with their lenders. The question is not about closing the checking account when you are not able to reach them. The fact is that this step is taken only when people are going through unauthorized debits in their checking accounts. These problems are very common with companies like Northway Debit, ICS and many others. The customers of SJM Marketing have not had such problems though. Even if it happened, they can reach you and clarify the matter.

You said to review the first email sent by the company where all their contact information is given. This does not work with all because their given information is different when a call is actually done. Moreover, they continue with the debits in the checking account. I am sure you will also not let this happen if it had been in your case. Under such circumstances, people are advised to close the account so that the company contacts them later and then payment arrangements can be done. Payday loan is taken when people go through serious financial problems. At such times, if the company increases their problems by making unauthorized debits and not giving the latest standing of the account, people are forced to take such steps. I still believe that you and your company are completely out of these complaints but you need to give us a better approach in such cases. Your suggestions can actually help us a lot

Hi Josh.

What states are you licensed to lend in and which states?

Do you follow the laws of your customer's state in regards to fees or do you use a governing law clause?

Hello Mr. Mitchem. It is good to see you around again. In the past you have made sincere efforts to help consumer understand what they have committed to, and how to handle the situation if they find they cannot fulfill that commitment on time.

I do have a question, what does your company do to ensure the collection agencies they hire are complying with the fdcpa? It seems that the vast majority of of complaints steem from PDL's that refuse to work out an agreement, and collections tactics that are substantially less than legal (or ethical) including threats of violence, arrest, humiliation (contacting employers, family friends, etc) solely for the purpose of defaming a persons character and possibly causing them to loose gainful employment ( I am not saying that Platinum B in particular does this). There are still numerous complaints that Platinum B (prior to send accounts to collections) refuses to make arrangements. This is contrary to what you have posted here in the past. What is being done to correct this miscommunication?

I understand that when you end up turning an account over to collections your (understandably) are not interested in continuing a business relationship, however that is no excuse for people to be treated badly.

Also how do you answer polly's question regarding licensing? I know for a fact that your company is not licensed in Illinois, do you then refuse to issue loans in Illinois or other states in which you are not licenses? or do you try and hide behind the Internet as so many lenders do? If the latter this is a weak stand to take, and one which more and more Attorney's General are looking into. The industry is definitely entering a time of change and increased regulation on the State and Federal levels.

WE always welcome your honest input and efforts to help educate our community members in dealing with their PDL's, and I personally appreciate your efforts. Many in your industry come to the forum and lurk in the background, choosing instead to threaten people for even posting in th community. At least you have the integrity to post who you are and what you do.

Mr. Mitchem,

It was good to see your side of the story. However, I am one of the people on this forum who has been threatened with legal action on the first contact I received from the Collection Agency (in my case United Federal Bank). I will pay off my debt, but I want to make sure that I'm dealing with the collector for the original debt and also that I'm not paying some ridiculous amount above what is owed. I was in a bind so I took a payday loan. I can't get out of this bind by paying more than what is owed. That's puts me in a bigger bind. These collectors from United Federal are very rude and can barely be understood. I have been accused of committing bank fraud, check fraud and internet fraud just because I couldn't make a payment when scheduled. I am more than willing to work with someone that I can understand and who can provide me with the documentation that I requested.

Any advice you can give would be greatly appreciated. I have tried contacting the original lender and then I contacted thier third party collection agency with no return call. If I can't get a response what am I to do. I don't want to deal with the rude collectors from United Federal Bank.

Mr. Mitchem,
I have to agree here with the above post. I too, have been a victim of the unscrupulous collection activity from United Federal Bank claiming to be collecting for your company, Platinum B. Services.
They informed me that they were Federal Agents and I would be arrested that day.
I reported this activity to the proper Federal Authorities as well as my State's Bus. and Professional Regulation Department's Financial Crimes Division. They informed me that there is no license issued under this collection agency's name in my state. Therefore, they are breaking numerous laws.

That said, I do agree with you that there are some unsavory clients who intend to fraud the pay day loan companies by intentionally defaulting and then complaining that they've been deceived by companies such as yours. We do not condone that behavior on this forum. Believe me, some of us are very close here and speak often of these characters. In no way do we encourage these types to continue this activity, and offer no help to them whatsoever. We can not stop them from making unwise decisions, or frauding their credit companies.

You must realize, however, that this forum is designed to assist those of us who have been victimized and are in dire straits because of these loans and/or legitimate credit issues. ie...unable to feed themselves or their families, loss of employment, and even foreclosures.

Your presence here is a valuable resource and your input is taken to conscience. Our recommendations here are just that, and the consumers will make the final decision.
Once again, I thank you for your input and availability to approach you with our comments.

Hi Josh,

I have nothing new to add because all the major issues have been put above while dealing with the collection agencies. The comments that you posted above is general information and known to most of the people. But the feedbacks posted individually are the issues of major concern. If you can clarify the points individually, it will be highly appreciated. This will really distinguish you nicely from other collectors giving a bad name to this industry. We are waiting for you to break this dead silence.

I think it was a ruse actually. If not,why did he not
send his henchmen to write the message?

Maybe an effort on his part to save his company?

I really don't expect him back.

I just find it odd that a VP would take the time to
explain his companies position if there was no other motive to do so!

Mr. Mitchem has posted numerous time over the last year. I do think hes the real deal, and that he is trying to help people. But I also think there is a disconnect between him and the people working their accounts that needs to be corrected.

Just an opinion!

My apologies for taking so long to respond to all of your issues. I will answer all of your questions the best I can, but first I would like to address michaeljm39.

Michael,
It saddens me to hear that you only think a V.P. would respond to customer issues if there is some kind of hidden agenda. It must be tough going through life thinking that there is always a hidden meaning or that someone is out to get you. The reason I respond to this forum personally and dont have someone do it is simple. The secret game. Remember the game you played in school where you start a secret at one end of the class and by the time it reaches the other is totally different than how it started? Well if I have someone check this forum than the information I receive will not be accurate. I respond because I care. No matter how corny it sounds I care what my customers think. There is only one thing that keeps companies in business...customers. If you dont take care of the ones that take care of you, you might as well close your doors. If my customers become more educated they will be better customers and I can be a better loan provider to them.

Andy,
"You said to review the first email sent by the company where all their contact information is given. This does not work with all because their given information is different when a call is actually done."

When a situation like this occurs, your bank can give you the number to the company making the debit. All companies that enter accounts via ACH are required to keep this information readily available. If your bank cannot find it they can give you the ODFI bank. This is the bank the draft originated from. The ODFI can give you the number to the loan company. If they cannot, than you have exhausted all efforts to contact the loan company and now is the time to stop payment.

I know I will get a reply about how much trouble it can be to get a telephone number, but it is not a perfect world, if it was no one would need a payday loan.

Also if you have a company that will contact you and collect as a 1st party collectors that is good, however fewer and fewer loan companies use in house collections anymore.

Mr. Mitchem..how about my post on United Federal Bank? Are you aware of their collection practices?

Clay,

When a customer states that Platinum B will not make arrangements if is because we have already sent their account to 3rd party collections. Once an account has been sent we can no longer collect any money from the customer. Sometimes it can take up to 3 weeks for a collection company to call you after your account has been sent.

You are right, consumers of any business should not be treated the way that the people on this forum have been treated. That is why I am giving this information, to ensure that they do not have to deal with collection phone calls. All loans companies are alike in the aspect that you can get almost anything done if you give them enough notice. We all know the cold hard fact that loan companies want to recover their money by any means possible. Loan companies protect themselves from the harsh collection practices by signing over the legal right to that account.

These collection companies are not right in their approach, however I cannot speak for collection companies. I am here to help our customers avoid collection companies through better education.

As far as licensing issues go I will be more than happy to speak with you on the phone one on one.

Clay...
How about a recorded interview with Mr. Mitchem? That is, if he agrees to it, of course.

Sorry, I do not do interviews. I catch enough heat from other loan companies for posting on this site.

Why won't you discuss licensing in the forums? Are you licensed to lend in the states that you are incorporated in?

Oh and you did not answer my other question regarding whether or not you use a governing law clause or if you lend to your customers per their state laws.

Thanks!

Polly,

You are also welcome to call me anytime and discuss this one on one.

Josh

Bootchee,

I am sorry to hear that you were so wrongly treated. However most of the time, after an account has been sent to 3rd party collections the 1st party company cannot and will not pull the account back. The contract that discloses the terms of your loan will explain what happens if you void your contract. If you have closed your account or stopped payment it is very hard (darn near impossible) to make amends with the 1st party creditor. Most contracts between the loan company and the collection company prohibit ANY form of conversation between the loan company and the customer after the account has been turned over.

The best avenue to take is to ask for validation of debt and instruct the collection company that you will contact them once you receive the validation. More often than not this can stop the calls for at least a short time. If they refuse to give validation than you might want to go to the 1st party and ask if they can give it to you.

As far as the larger amount is concerned keep in mind that if your loan was for 200 and the finance charge is 60, your amount owed can be 350 and above by the time you count the number of finance charges returned, NSF fees owed to the loan company, etc. Some collection companies will also add a fee of their own.

Mr Mitchem..as helpful as your information is, it is becoming repetitive.
Please see Polly's posts above, we would all like to read your thoughts, as opposed to a one on one phone conversation that one would have to post on here anyway.
We would prefer it from the "horses mouth", so to speak.
Thank you

As I stated in my opening paragraph I am willing to discuss almost any topic on this forum. Lisencing is not one of them. I am sorry if you do not understand this. I came on this forum to help my customers not get into a debate about lisencing, state usery laws, statute of limitations or anything else. If you do not want my help I will leave this forum and let you all fend for yourselves. I just thought that if might be useful to get some tips from the inside.

And for the record any one on one phone conversation would be off the record.

Mr Mitchem, I never used your company but I have a question about a statement you made above. You stated Quote:

I read this statement from a guest in another forum. They took his account back.
http://www.debtconsolidationcare.com/forums/prelitigation-2.html




Quote:

So what he said was not true then ??

Quote:

What is their to debate Josh? You either are following the law, or you are not. The law is not a topic for debate unless you are a law maker. Normal folks are REQUIRED to follow the law, whether we like it or not. If we choose not to follow the law there are consequences to our actions.

So what places your company or any another PDL above the rest of us common folk, or the law?

You say you are here to 'help' people. How are you helping anybody when you offer a customer a loan, and you do not follow the laws that protect them right down to the last letter? How is offering a desperate person a loan with a 600% +/- interest rate helping anybody? Who is at the top of the food chain over there Josh? Who is the won living off the proceeds of what is ruining people's lives and how do they sleep at night while their customer's are up all night with knots in their stomach?

States require licensing for a reason. They need to keep track of who is out there lending money to aid in ensuring that companies are not laundering money, or funding the next 9-11. If you wanted to help people you would get a license and become a legitimate company.

If you want to help people you should either change your business practices or quit and go public with the outlandish business practices of your employer.

Your company and all of the other one's out there take desperate people who are in a dire financial situation, and make it far worse. Lives and families fall apart. Shame on you for trying to justify your actions. Shame on all of these vulchers.

That was wonderfully said Polly!

He obviously became defensive when asked about laws and licensing. If that's shady, then I don't know what is.

In actuality payday loan customers/clients is an OXY MORON. TRY PAYDAY LOAN VICTIMS!!!

How do you sleep at night Josh?

Probably in his cozy over-priced bed in his big expensive house bought with the money he and his company illegally take from us!

Sue,

Let me start by saying that I do not appreciate the tone of your last entry "let's see if he answers my questions." What is that? I HAVE COME ON THIS SITE SACRIFICING MY TIME AND ENERGY TO HELP HOWEVER I CAN, AND THIS IS HOW I AM REPAID. I UNDERSTAND THE PEOPLE ON THIS SITE ARE IN MESSY SITUATIONS. I AM HERE TO GIVE ADVICE ON HOW TO STAY OUT OF THOSE SITUATIONS. I DO NOT LIKE TO TONE OF ACCUSATION IN YOUR REPLY.

As far as the cusomter that said we took his account back. I would have to know all the details of this account before I can intelligently reply on the circumstances surrounding the account. If the account had not been closed, authorization revoked, or stop payment than it may have been sent in error. If that was the case than by my contract with the collection company we could have pulled the account back.

You must understand that we are binded by our contracts, not only the contracts between us and our customers, but the contracts between us and our vendors. We cannot simply pull back an account whenever we feel like it.

As far as people catching breaks, I am a firm believer that people make their own breaks. I cannot help you with the credit cards, bounced checks, etc., but if you had called the loan company before closing your account or stopping payment, you would have never gotten a collection call.

Josh

Who held the gun to your head and made you take this loan? Who whited out the contract before you had time to read it? Who hid your bank statement so you couldn't check it for months.

Before you get on your soapbox and start spouting about how payday loans destroy lives keeps these facts in mind:

FACT #1- NO ONE FORCES THESE LOANS ONTO CUSTOMERS.(THEY ALL MADE A CONSCIENCE DECISION)

FACT #2- IF THEY DIDN'T KNOW THE TERMS THEY SHOULD HAVE READ THE LOAN CONTRACT BEFORE AGREEING TO TAKE THE MONEY.

DO YOU HONESTLY BELIEVE THAT REGULATING PAYDAY LOANS WILL HELP? Let me explain to you what will happen if the government in all of it's wisdom regulates payday loans. First, loan companies will go offshore and continue business as usual.(before all of you people with your law degrees tell me that it is not a 100% safeguard, let me tell you I know, but what AG wants to hire an offshore lawyer to come after us?) Do you know how much that would cost. Second, if loans are regulated and loan companies close down, where are these people going to go for money? If they do not have the money to pay their regular utility bills, what happens to them.

THE PROBLEM IS NOT THE LOAN COMPANY. THE PROBLEM IS THE LACK OF INVESTIGATION BY THE CONSUMER.-----THIS IS THE WHOLE REASON I AM HERE-----If consumers would learn to read before they sign, none of this would be an issue. EVERY loan comes with paperwork, READ IT. The paperwork tells you everything. We hide nothing, but now I decide I cant pay or dont want to and OH MY GOD YOU STOLE FROM ME. When you take the loan it is "thank you so much for you help in my time of need." But when it comes time to pay, my how your attitudes change.

IF YOU TAKE A LOAN FOR 300 AND PAY IT BACK ON THE FIRST DUE DATE IT WILL COST YOU $90. $90 IS NOT A LOT TO ASK TO GIVE A $300 LOAN TO A COMPLETE STRANGER.

Dear Pollyandsay....Get off your high horse. One post your are so sweet and sincere next post your are pshyco.

Quote:

Guest,
Please don't bash Polly just because she's standing up for what she, and many others here, believe in and know to be facts.

If you are so eager to judge and criticize, then you can reveal who you really are.

That's a horrible way to talk about someone who has done nothing but help all of us get out of debt!

I am so glad this is one loan company we didn't loan with. I love to see companies beat around the bush and avoid important questions.

As for Guest, You have absolutely no right to talk about a member of this forum in that tone. Polly has helped alot of us. We are a family here and we protect our own!

I am just a typical woman you guys??? If I am passionate about something, and speak my mind, I am either a ???b' or a wacko. He/she is not stressing me. I've dealt with people like that my whole life.

Polly,

Do you get on the people in this site for not reading their paperwork? Why dont people complain about us being "illegal" before they take our money?

Doesn't it strike you odd that people only care about laws when it comes time to payback the money they have borrowed.

Polly, I really appreciate all the help and support you've given me. Personally, I'm glad you're on your high horse!

Mr. Mitchum,
I can read loan documents pretty well, but I was a very uninformed consumer. I was completely unaware of my rights according to the state I reside in regarding payday loans. I just assumed that every payday loan company was operating legally. When I found out differently, I was shocked and amazed. I also took steps to make sure the companies couldn't keep taking advantage of me. I've paid each payday loan company I've dealt with back, plus the interest allowed by my state. Anything above that seems unfair at best and illegal and immoral at worst.

I tried to work out plans and payment arrangements with the companies I used. None of them were willing to work with me. Not a single one. I never loaned with your company, though--I'm sure I would have been treated differently.

I appreciate your attempts to help us. Really, though, if you wanted to help us you'd make sure your company was licensed in every state you did business in, and you'd abide by the laws in those states.

In my opinion, the loan companies need to accept responsibility for their contribution to the problem. Most of the people that take out these kind of loans are unable to get help anywhere else (I personally would have never taken them out if I could have gotten help anywhere else). If you take the loan out to pay something such as a utility bill, and then you are able to pay the loan back on your next payday, then I can see where these kind of loans may serve a purpose. However, one thing that I just can't understand is how people are allowed to take out so many loans at one time. If you are only allowed one or two at the most at a time, that is one thing. But when these companies extend loans to someone who already has 8 loans out, they have to be well aware of the fact that this is going to turn into a problem for the borrower. How can a lender, in good conscience, give a new loan to someone who already has 8 other loans out? And then act like the borrower is something lower than pond scum when they can't pay all of the loans back? The consumer is not the only party to be blamed in this matter.

Tammy,

We happen to have great customer service skills at all of my companies, but I have a hard time when people agree to terms and than want to cry foul when they close their account or stop payment.

We loan you money in good faith and you throw it in our face. You cry about collection companies practices, when it was within your power to stop the phone calls before they started. I do not blame people for their mistakes, but I do ask that they pay for them.

polly - I'm right there with you, if we stand up for a cause then we're *itches - it truly is a man's world.

Josh - boy you are defensive, my comment was meant more for pinklady than you because I knew you'd answer that. I really don't appreciate your comments about if I would have communicated then I wouldn't have gotten collection calls. You don't know me or my situation - in fact, here's a little info for you -I have a pdl that was being paid on monthly and guess what they took me to court and got a judgment even though they signed an agreement!! Yeah collections is a wonderful business.

If you are so busy and you feel that you are wasting your time on here because you feel that people are attacking you then don't bother coming back and trying to make yourself look good. If you read other comments we are all here to help each other and obviously you are not on of those people if you are going to read into things and assume (you know what they say about that word). I am sorry if you are offended by this but I was not attacking you or what you were saying, as I said my comment was to pinklady. Also, I truly believe that if you wanted to take back an account you would but I doubt if your company ever will now.

I'm glad I will NEVER EVER get another payday loan but obviously according to your comments I'm not smart enough to know what they're for.

KS,

I agree with you, however loan companies cannot control how many loans a customer takes out. There are literally hundreds of diff. loan companies on the internet. If a customer applies at 10 diff. companies, than it is up to the customer to stop the cycle not the loan company. We try to help by asking for bank statements from customers for this very reason, but we meet opposition from the customer.

This is the point I have been trying to make, before pointing the finger at someone else, consumers need to take a look in the mirror.

Kswesterman - yeah and they run a telecheck so they know how many loans we have/had and look at all the companies that are all really just the same company or have the same parent company. We're all just too stupid to know what we're doing or who we're dealing with (according to them).

Sue,

Lets not turn this into a sex war. It has nothing to do with male or female. I apologies if I did not read into your reply what you were intending. I am trying to help customer avoid collection calls by handling their account before it is sent to 3rd party.

Sue - that was my understanding, that they all run checks through Teletrack. I'm sorry, but I just don't believe that one company has NO IDEA that someone has a loan with 6 other lenders (or however many it may be). So someone just sends a bank statement in and that is the only parameter for being approved for a loan (I personally know for a fact that only 1 lender that I used called and confirmed my employement)? I don't think so. It would be pretty irresponsible to extend loans without any way to check and see if a person has other loans out. But then, it's pretty irresponsible to give that 7th loan out to someone who already has 6 others out.

Oh I wasn't but you attacked me, I was just agreeing with polly that she would get called a *itch for standing up for something she believes in.

Sue,

I never called you stupid. Not all companies run telecheck. Not to mention Telecheck is only as good as the loan companies that report to it.

If it was up to me I would deny any customer that has 2 loans out let alone 6. But like I said if companies do not report the loans to telecheck or another service like telecheck than there is no way of telling how many loans a customer has, without seeing a bank statement.