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Important notice

Date: Mon, 07/17/2006 - 15:01

Submitted by anonymous
on Mon, 07/17/2006 - 15:01

Posts: 202330 Credits: [Donate]

Total Replies: 222


Customers,

My name is Josh Mitchem, I am the Vice President of Platinum B Services. I am writing to tell you that some of the advice given by people on this forum, while meant from the heart, is not good advice.

I will make things clear for one and all on how to contact loan companies and how to better handle your accounts. The things I am going to tell you are not some big secret.

First, if you need to contact any payday loan company, your paperwork that is emailed to you when you hit the submit button has all the contact information you will ever need. If you do not have your paperwork, your bank can give the loan companies phone number.

Second, IF YOU CLOSE YOUR ACCOUNT, STOP PAYMENT, OR REVOKE AUTHORIZATION YOUR ACCOUNT WILL BE SENT TO A COLLECTION COMPANY(as stated in your paperwork). The best thing to do is contact the loan company and payoff your account. If you cannot pay in full most loan companies will make arrangements with you. Alot of the "helpful" people on this forum will tell you stop payment, you can do this, but keep in mind collection calls will start shortly after, making things even harder on yourself.
I understand that sometimes you have to close your account due to fraud or other reasons out of your control. If this is the case call the loan company and tell them the situation BEFORE THEY DEBIT YOUR ACCOUNT.

Third, As you have probably figured out by now the collection company and the loan company are not affiliated. The collection companies that are used are outside collection companies, hired to collect the debt. THEY ARE NOT THE LOAN COMPANY PRETENDING TO BE A COLLECTION COMPANY.

As I said before, the things I have posted are not a big secret that has been kept from you. I feel an informed consumer is a good consumer. I want our customers to know what will happen if they take these types of actions. It will relieve your stress and mine. I do not enjoy hearing how upset customers are because they followed what they thought was good advice. With that being said bear in mind, there are many customers that take these loans with the intent to defraud us. I do not believe the customers on this forum are those customers. On the contrary I believe you are all here to get out of the debt cycle and move forward in your financial growth. Payday loans CAN help if used properly. They are not a second form of income. If used as a PAYDAY loan they can help in a tight spot.

Please understand I do not respond well to being bombarded with senseless badgering about the payday loan industry. I am here to give advice that will help you and your loan company to find a closure that benefits both parties. There are topics I will not discuss on open forums, however if it pertains to keeping our customers out of the debt collection cycle I am here to help. In closing I am always happy to work with and talk to our customers. If anyone would like to respond to this I will answer your questions within a reasonable time frame.

Sincerely,

Josh Mitchem
Vice President
Platinum B Services


If I must:

Quote:

CRIMINAL USURY (EXCERPT)
Act 259 of 1968


438.41 Criminal usury; definition; penalty.

Sec. 1.

A person is guilty of criminal usury when, not being authorized or permitted by law to do so, he knowingly charges, takes or receives any money or other property as interest on the loan or forbearance of any money or other property, at a rate exceeding 25% at simple interest per annum or the equivalent rate for a longer or shorter period. Any person guilty of criminal usury may be imprisoned for a term not to exceed 5 years or fined not more than $10,000.00, or both.

438.42 Usurious loan records; possession, penalty.

Sec. 2.

A person is guilty of possession of usurious loan records when, with knowledge of the contents thereof, he possesses any writing, paper, instrument or article used to record criminally usurious transactions prohibited by this act. Any person guilty of possession of usurious loan records may be imprisoned for a term not to exceed 1 year or fined not more than $1,000.00, or both.



http://www.legislature.mi.gov/(ajosym2yxva32ebdsqbij5v5)/mileg.aspx?page=getobject&objectname=mcl-act-259-of-1968

Quote:
REGULATORY LOAN ACT (EXCERPT)
Act 21 of 1939


493.1 Short title; definitions.

Sec. 1.

(1) This act shall be known and may be cited as the ???regulatory loan act???.

(2) As used in this act:

(h) ???Licensee??? means a person licensed or required to be licensed under this act.

(j) ???Loan??? or ???regulatory loan??? means a loan made by a licensee to an individual for personal, family, or household use.

(k) ???Person??? means an individual, partnership, association, corporation, limited liability company, or other legal entity.

493.2 Business of making loans; license required; application for license; oath; form and contents; fees; proof of net worth.

Sec. 2.

(1) Except as otherwise provided under this act, a person shall not engage in the business of making loans of money, credit, goods, or things in action and charge, contract for, or receive on the loan a greater rate of interest, discount, or consideration than the lender would be permitted by law to charge if the lender were not a licensee under this act and without first obtaining a license from the commissioner, or by obtaining a license under the consumer financial services act, 1988 PA 161, MCL 487.2051 to 487.2072.

493.13 Limitation on amount of loan and interest charge; obligation under more than 1 loan contract; computation and payment of charges; loan processing fee; fees; amount other than or in excess of charges permitted by act; penalties; ???open-end credit??? defined.

Sec. 13.

(1) A licensee may lend money and may contract for, compute, and receive interest charges on the loan at a rate that does not exceed the rate permitted by the credit reform act, 1995 PA 162, MCL 445.1851 to 445.1864. A loan by a licensee may be 1 of the following:

(10) In addition to the penalties provided by this act, a violation of this act with respect to a particular regulatory loan transaction is also subject to the penalty and remedy provisions of the credit reform act, 1995 PA 162, MCL 445.1851 to 445.1864.


http://www.legislature.mi.gov/(vu1muo45msym4a55nbwzj555)/mileg.aspx?page=getobject&objectname=mcl-act-21-of-1939

Quote:
CREDIT REFORM ACT (EXCERPT)
Act 162 of 1995


445.1861 Action by attorney general, prosecuting attorney, or borrower; recovery of interest or other charges; attorney fees and court costs; class action.

Sec. 11.

(1) The attorney general, the prosecuting attorney for the county where an alleged violation occurred, or a borrower may bring an action against a regulated lender to do 1 or more of the following:

(a) Obtain a declaratory judgment that a method, act, or practice of a regulated lender is a violation of this act.

(b) Enjoin a regulated lender who is engaging or about to engage in a method, act, or practice that is a violation of this act.

(c) Recover $1,000.00 and actual damages if the alleged violation of this act was committed by a regulated lender for a non-credit card arrangement or $1,500.00 and actual damages if the alleged violation involved any other credit arrangements.

(d) Recover reasonable attorney fees and the costs in connection with bringing an action under this act if the regulated lender is found to have violated this act.

(e) In an action brought by the attorney general or a county prosecutor, recover a civil fine of not more than $10,000.00 if the regulated lender is found to have willfully and knowingly violated this act and $20,000.00 if the regulated lender is found to have persistently violated this act.

(2) Except for a violation described in section 12, a regulated lender who violates this act in the extension of credit to a borrower or buyer shall not recover any interest or other charges in connection with the extension of credit. The borrower or buyer may recover reasonable attorney fees and court costs for enforcing this subsection or in defending against a cause of action brought by a regulated lender who has violated this act.

(3) The attorney general or a borrower may bring a class action on behalf of persons injured by a violation of this act.


http://www.legislature.mi.gov/(pu3kvn555tdgii452wugbs2y)/mileg.aspx?page=getobject&objectname=mcl-act-162-of-1995

Here is an FYI:

http://www.legislature.mi.gov/(pu3kvn555tdgii452wugbs2y)/mileg.aspx?page=getobject&objectname=mcl-act-162-of-1995

Any confusion?


lrhall41

Submitted by polly on Wed, 07/26/2006 - 14:38

( Posts: 1709 | Credits: )


I wonder if Josh, or any of the nice gentlemen that you interviewed lend in New York, Georgia, or North Carolina where it is prohibited? Or are they above those laws too?

I just find it very ironic that in your mind it is completely acceptable for a business to break a law, and they should not be held to any standard of accountability. But it is completely not acceptable for a consumer to be unaware of the laws that are in existence to protect them, and it is completely acceptable to nuke the middle east. In your mind would those people be victims? Or are they asking for it, just because if the live in the Middle East?


lrhall41

Submitted by polly on Wed, 07/26/2006 - 14:44

( Posts: 1709 | Credits: )


Polly-

I in no way said it was acceptable for company to break the law and get away with it. What I said is that it is not acceptable for someone to enter a contract with a company and then backout of it, because they did not read the contract and pay attention to what they were agreeing to.

If you sign and enter a contract (I dont care what kind of contract it is right, wrong, or otherwise) you agreeing to the terms of that contract in their entirety. Once you sign your name you are saying that you agree to the terms of the contract, and you should not be able to cry foul later. In that instance I dont care if the company is lisenced in that state or not. You said (with your signature) that you understand and agree to the terms of the loan, or whatever the contract is for.

That is the point I am trying to make. If you thought the contract was unfair than you SHOULD NOT HAVE SIGNED IT. And before anyone talks about not signing it, an E-signature is a legal and binding signature by law.


lrhall41

Submitted by on Thu, 07/27/2006 - 13:44

( Posts: | Credits: )


If a company issues a contract with illegal terms and conditions, they are breaking the law.

For a consumer to 'understand' the terms is completely different than a consumer not being aware that the document they have signed was issued to them with illegal terms and conditions.

For the consumer, after they are made aware that they have been scammed, to check the company on it and notify the proper authorities of a company's illegal behavior allows justice to prevail. Hence, the company breaking the law did not 'get away with it'.

Laws are on the books to protect consumer's from company's who break the law. These laws absolve the consumer's signature from being legally binding.

If a company writes and issues a legal contract, than a consumer has every obligation to honor their contract.

Perhaps you are unaware of the State of Colorado vs. Quick Payday. Here is a preview:



http://www.ago.state.co.us/press_detail.cfm?pressID=743

[quote]Attorney General Suthers Announces $2 Million Settlement With Internet ???Payday??? Lender
12/23/2005

Payday lender to pay restitution to an estimated 15,000 Coloradans

(DENVER) ??? Attorney General John Suthers announced today that Quik Payday, Inc., of Logan, Utah, will pay $2 million in restitution to Colorado consumers for making illegal ???payday??? loans via the Internet in violation of Colorado law. The Attorney General estimates some 15,000 Colorado consumers will share in the settlement.

???Thousands of Colorado consumers have been victims of payday lenders that operate over the Internet and fail to comply with Colorado law,??? said Suthers. ???Colorado has placed very clear restrictions on payday loans in recognition of the vulnerability of these borrowers, and I will not allow Internet lenders to ignore our state's laws.???
[/quote]

There are similar lawsuits occuring all over the country. The internet payday loan industry's days are numbered.


lrhall41

Submitted by polly on Thu, 07/27/2006 - 15:42

( Posts: 1709 | Credits: )


North Carolina:

[quote]Payday lending on the way out in NC
AG Cooper says major payday lenders agree to stop loans
Raleigh: Three more payday lenders have signed agreements to stop making illegal loans in North Carolina,
Attorney General Roy Cooper announced today. The agreements mean that payday lending by all major
companies in North Carolina has come to a halt.
???We've fought payday lending at every turn and now we're putting this industry out of business here in
North Carolina,??? said Cooper. ???These payday lenders thought they'd found a way around North Carolina
law. Now we're showing them the way out of our state.???[/quote]

http://www.ncdoj.com/DocumentStreamerClient?directory=PressReleases/&file=paydaylenders3.06.pdf


lrhall41

Submitted by polly on Thu, 07/27/2006 - 15:51

( Posts: 1709 | Credits: )


Georgia:

[quote]Payday loans

A ???payday loan??? is a loan of short duration, usually two weeks, with fees of 15% to 30% of the amount advanced. Payday loans are illegal in Georgia , including those made over the internet. If you are the victim of a payday lender, you may contact your local county district attorney or solicitor, and notify the Industrial Loan Commissioner at 2 Martin Luther King, Jr. Drive, West Tower 7th Floor, Atlanta Georgia 30334.
[/quote]

http://www.state.ga.us/ago/consumer_resources.html

Do I need to keep going, or have I clearly got the point across that you are wrong yet?


lrhall41

Submitted by polly on Thu, 07/27/2006 - 15:54

( Posts: 1709 | Credits: )


Go ahead Polly, we just need to stand together here with a strong support system. You are doing the most and the best. Now, can the collectors prove with some links to legal websites what they are trying to say? We will accept it if it comes from a government source. We don't want to take the facts from your mouth. We need to have proof just like Polly is proving you with facts.


lrhall41

Submitted by andyyoung on Thu, 07/27/2006 - 15:59

( Posts: 451 | Credits: )


Actually, the laws are put very clearly in all the govt. websites and it is very easy for them to read it if they are mistaken in following it. There is nothing wrong if confessing the mistakes. The bad thing is to prove something negative that is not supported by the lawmakers.

Seriously, if you people say something that is supported by the lawmakers, trust me, no one will turn you down.


lrhall41

Submitted by andyyoung on Thu, 07/27/2006 - 16:05

( Posts: 451 | Credits: )


In the state of Ohio, you must be licensed with the Ohio Division of Financial Institutions in order to loan money with any Ohio consumer. It is in the applicable state laws and if you are not licensed then it's not a legitimate transaction. Now, I have had this confirmed by the Ohio Division of Financial Institutions as well as the Ohio Attorney General's Office. I never ran from my responsibilities when I wanted to get out of the payday loan cycle. I have personally been attacked on this forum by collectors and I have been harassed at my place of business. Some of these so called "legitimate" businesses have stalked me around the forums and some of you know who I am talking about. I have paid my debts to these dang companies and it's over and done with. Yes, I got myself into this mess but I stood up to the plate and tried to take care of it by joining a debt consolidation company. I did learn my state laws and realized I was being ripped off. This information was passed along by me to the specific loan companies that I dealt with. I was called every name in the book, I was treated like a thief, which I am not. Some people come here and accuse us of not wanting to pay our debts which is untrue. In the meantime, I have found ONE person who was actually decent to me in this process that I went through. That is a sad cry because I was really deep down in the cycle of payday loans and I almost free of it. I believe I went through it to help others who are going through the same thing. I get tired of seeing people get criticized, threatened with illegal tactics, called names, and my favorite of being thrown in jail for trying to pay back their debts in a timely matter. It is something that is hard to dig yourself out of, I think many of us can attest to this. The majority of us did not plan to take the money and run. In my case, I overpaid some companies by hundreds or even thousands of dollars per my state laws. I was not a well-informed consumer until I found this site. It was a blessing in disguise. So many people have helped me along the way and we are trying to return the favor. Unless you have been in this situation, then I suggest that you do not judge those of us that have been or are going through it now. I know loan companies come to these forums and see what people are up to. Some go to lengths of stalking people. :cry:


lrhall41

Submitted by Cow & Chicken on Thu, 07/27/2006 - 18:21

( Posts: 3571 | Credits: )


I believe Josh is gone. His time so to important to spend in here.

Back to shaking down his "clients" at their places of employment for him.


lrhall41

Submitted by Glynnie11 on Fri, 07/28/2006 - 18:54

( Posts: 216 | Credits: )


I have not left. However, I am tired of the double standards that go along with this forum. You will get all over someone for making a personal stab at guest or member here, if and only if, they are in financial crisis. Yet when stabs are made in my direction I am the bad guy for defending myself. It is not fair to criticize me for my way of life or making a living. I came here to offer good advice on avoiding collection companies and you tried to railroad me into debates about the legality of my business.

You did not want my help so I have simply resigned to reading the posts and not responding. If anyone wants advice on avoiding collection calls before they ever start I would be more than happy to talk to you over the phone, where I can give advice without being told I am doing it for myself. Because Lord knows I come on this site and offer my time and experience, for my health.


lrhall41

Submitted by on Tue, 08/01/2006 - 14:32

( Posts: | Credits: )


Josh--

We will be more than happy to welcome you here, if you can offer advice to our members/guests that is true and correct by the laws of each state. That is the point that people are trying to make, and I'm sorry if your feelings got hurt.

So why don't we start over here?


lrhall41

Submitted by Jessi on Wed, 08/02/2006 - 05:31

( Posts: 3361 | Credits: )


Josh,
Your advice on how to avoid collection companies is substantiated.
But we primarily advise how to avoid Payday Loans that will ultimately lead to collection activities.
This becomes a snowball effect, resulting in all sorts of illegalities.
We are all currently advocates of shutting down these payday loans, especially over the internet as they have proved to be the ultimate culprits of legal loopholes.
You, as a representative of internet payday lenders, should expect some hostility here.
I am a victim of my own stupidity in obtaining these loans in the past, we admit to it, and openly discuss it here.
Those "bad seeds" that happen to sign on here looking for a way out without consequences is something we try to deter. But remain somewhat unsuccesful at times.
It's easier to get angry at those who are beligerent, but we have found that the handful of pdl companies that dare to sign on here sidestep some important issues.
We're just trying to get to the bottom of this so that the snowballing doesn't rear it's ugly head.
Thank you for your time, but your presence here is not going to result in any proponents of your present business.


lrhall41

Submitted by erzeke1 on Wed, 08/02/2006 - 07:25

( Posts: 1145 | Credits: )


"VICTIMS DO NOT HAVE A CHOICE!!!!!!!!!!!!!!!!!!!!!!!!!"

No kidding West, once a collection agency steals your info the option of choice goes out the window along with your credit - and if the collector is lucky enough to snag a newbie the wallet isnt far behind. Phishing in a stocked pond in the credit bureaus backyard....


lrhall41

Submitted by on Sat, 08/05/2006 - 01:52

( Posts: | Credits: )


Sue,

Yes. I have heard of FTR Processing. Why do you ask?


Guest,

You are quite correct. True Victims do not have a choice, however alot of the "victims" on this forum are not victims at all. They applied for these loans knowing all of the terms and conditions BEFORE HAND. They had no problem accepting the $200 or $300 into their account. They just want to cry foul when it comes time to pay the loan back. THESE ARE NOT VICTIMS.


lrhall41

Submitted by on Mon, 08/07/2006 - 12:09

( Posts: | Credits: )


Josh,

Here's a quote from you from another thread:

Quote:

We only go by 2 names, to our customers we are Platinum B Services. Our corporation was filed under SJM Marketing, this is also what appears on our customers bank


What other company names do you loan under besides FTR Processing? Just curious, didn't realize that FTR was a company of Platinum B so I apologize for an earlier statement that we never used your company, I was wrong.


lrhall41

Submitted by CycloneFan on Mon, 08/07/2006 - 13:35

( Posts: 1155 | Credits: )


Josh,
Are you aware of your collection agencies' collection practices in florida? United Federal Bank? They are still listed in the BBB associated with Platinum B.
They tend to threaten arrest and federal charges when calling your customers, as well as impersonating federal agents.
Florida Bus.and Prof. Regulation has no record of them in their database as licensed to collect.
I believe I have asked you about this before.
Can you elaborate?


lrhall41

Submitted by erzeke1 on Mon, 08/07/2006 - 15:35

( Posts: 1145 | Credits: )


Sue,

FTR Processing is not affiliated with Platinum B Services. FTR is it's own corporation with seperate ownership, corporation documents, etc.

Erzeke,

I am aware of the problems with United Federal. We had no idea this was the type of practices that they implemented to collect money. We are no longer dealing with United Federal, any money they are still trying to collect on is from previous accounts. We are in the process of retrieving these accounts, however there is the hurdle of a contract to get over.

The one thing that everyone has to remember is that every collector who is trying to collect on a payday loan is going to be a bit tougher than a collector trying to collect medical bills. This does not mean that they should use illegal tactics. But, I do think it is important for everyone to understand what type of collectors you will have to deal with if you default on a payday loan. They will not show sympathy, or compassion like some collectors might. They do not care about the situation you are in, thus they will not want to make arrangements (unless it is for full payment) but they are not stupid, they understand that at some point they have to work with you. Stick to your guns. Do not be intimidated.

Remember compitence breeds confidence. Show them your strength they will believe you to be strong. Show them your weakness and they will know you are weak.


lrhall41

Submitted by on Tue, 08/08/2006 - 08:36

( Posts: | Credits: )


Sue,

The software used to start FTR from the ground up was taken from Platinum B, thus some of the paperwork may not have been changed. I would have to see what the paperwork looks like to be for sure. It could also be a glich with the application generator, as this is not a part of our software. Like I said I can not be certain without seeing what form of paperwork it is.

josh


lrhall41

Submitted by on Tue, 08/08/2006 - 10:46

( Posts: | Credits: )


Are the loan companies allowed to come to your house to collect on a loan?


lrhall41

Submitted by on Tue, 08/08/2006 - 12:18

( Posts: | Credits: )


Sue,

It would be helpful to see the paperwork that you are referring to so that I can foward the information on to have the problem resolved. You did not ask me for specifics, you simply asked if I was familiar with FTR Processing. As far as the owners, I am not at liberty to disclose this information, as I am not a member of the ownership.

Looking For Answers,

I am not familiar with the practice of store front lenders, but online lenders cannot and will not come to you house to collect from you. It is not worth the cost to them. Not to mention it is not legal.

Josh


lrhall41

Submitted by on Tue, 08/08/2006 - 12:50

( Posts: | Credits: )


Sue,

I do not understand why you upset. Would you want people giving you real name out to total strangers without your knowledge? I have told you that FTR is not affiliated with Platinum B they are 2 completely different companies. What more do you want?


lrhall41

Submitted by on Tue, 08/08/2006 - 12:55

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