sagamore payday & collection agency
Date: Wed, 08/11/2010 - 13:03
them a letter that they were illegal in minnesota. i had borrowed $250. now its been turned over to acollection agency..they just called me at work(i didn't get the name of the
collection agency.).but now they say i owe $450.00 what should be my next step?
Since the original loan was illegal, it doesn't matter whether i
Since the original loan was illegal, it doesn't matter whether it has gone to a CA or not. Try to get all the communication with the CA in writing. Tell the CA that they are collection on an illegal loan and as per the Federal law, they have to send you a collection letter within 5 days after the initial contact via mail.
they can't tack on any more fees than the $250 i originaly borro
they can't tack on any more fees than the $250 i originaly borrowed, can they?
You are still responsible for the original amount that you borro
You are still responsible for the original amount that you borrowed, but they cannot collect interest on an illegal loan. So, I would go back through your records, calculate how much of that amount you paid them, and compare it to the original $250. Keep this in mind too--I dont know how it happened in your situation, but if this was a rolling-over loan, where they kept giving you a new loan every so often, and you were paying on it for some time, you most likely would have paid them interest. If that is the case, you can make a case to get them to pay that interest back to you, or if you still owe them the original amount, they would credit the interest you paid towards that amount. It may be best for you to seek an attorney in your area. www.naca.net is a place where you can look for a consumer advocate lawyer and many of them do not charge for initial consultation.
