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How does this letter sound?

Submitted by wswofford on Mon, 04/24/2006 - 13:36
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Here's the letter I drafted to Cashnet500 today, based on pollyandsay's letter and modified to add Texas law and my info:
-------------------------
Quote:
To Whom It May Concern:

As of April 21, 2006, I do not authorize Cashnet500, nor any representative, parent company, affiliate, or subsidiary of Cashnet500, to withdraw any funds electronically from my checking account ending in 7088 at Bank of America. The account has been closed to all further activity, so any attempts to debit this account will be denied.

After researching Texas lending law recently, I have discovered that Cashnet500 is not legally authorized to lend to residents in Texas. Your company is in violation of Texas usury, interest rate cap, and licensing requirements.

Your company�s claim that the contract I signed is solely governed by the law of the state in which your company is physically located is unsubstantiated. There is specific federal case law which trumps this claim. Your company consciously solicited, accepted, and transacted business with a citizen of the State of Texas. Therefore, you are subject to the laws of Texas � including usury, interest rate caps, and licensing requirements.

Your company repeatedly and purposefully chose to process Texas residents� applications and assign them passwords. You cannot maintain that these contacts were �coincidental� within the meaning of the Supreme Court case World-Wide Volkswagen Corp. v Woodson, 444 US 297. When a company makes a conscious choice to conduct business with the resident of a particular state, it has clear notice that it is held to comply with the laws of forum state (Texas in this case). Therefore, if your company does not want to comply with the laws of Texas, you could have simply chosen not to do business with Texas residents.

Your company is in blatant violation of several regulations in the Texas Finance Code. Texas law clearly states that all lenders must be licensed in Texas in order to conduct business with Texas residents (Texas Finance Code 342.051). I have searched such records in Texas and have discovered that your company is not licensed to lend in Texas. Further, the Texas Office of the Attorney General has determined that such usurious contracts are not enforceable under TX law.

Your company is also in violation of Texas� interest rate caps on short-term loans. The interest permitted on cash advances under $2500 is $18 for each $100 loaned per year (Texas Finance Code 342.200). As an alternate interest charge provision, the Texas Office of Consumer Credit Commissioner has instituted a $10 upfront fee, plus $4 per $100 loaned per month on short-term loans (equal to 48% apr) (Texas Finance Code 342.252 (3)). Additionally, all such loans that rollover more than two times must be converted to a declining balance loan with a set repayment schedule.


In lieu of your company�s disregard for the laws of the State of Texas, I am immediately offering your company the opportunity to settle this matter with me amicably. Your company is not licensed to loan in Texas; therefore, any contract that I entered into with your company is unenforceable and automatically void as a matter of law.

Additionally, I have paid your company $300 in renewal fees, plus $150 toward the original $250 principal amount of my loan. The amount of interest you have charged me is well in excess of two times Texas� mandated interest rate cap for short-term loans. The remedy for such usurious conduct is refund of the principal amount on which such interest is charged, as well as all interest charged (Texas Finance Code 305.002). Therefore, it appears that your company may actually owe me a refund in regards to this matter.

In light of the information that I have laid out above, I am willing to settle this matter with you and not seek such refund as I am entitled to by law. I expect Cashnet500 to immediately mark my account PAID IN FULL. Further, at no time will Cashnet500, its representative, parent company, subsidiary, or affiliate, place any derogatory mark on my credit report with any credit bureau, nor with any check writing database such as Teletrack or equivalent database.

If Cashnet500 does not abide to the settlement conditions outlined above, I will have no choice but to file a complaint with the Texas Office of the Attorney General, the Attorney General of the state where you are physically located, and the Better Business Bureau.

Finally, all correspondence with me regarding this matter as of April 24, 2006 shall be in written form through e-mail or via United States Postal Service. Please acknowledge receipt of this letter and your acceptance of and willingness to adhere to the settlement described above � in writing � within 24 hours of receipt. If I do not hear from your company within this timeframe, I will take the action outlined above.

Sincerely,


Think it might work? I know some have had luck w/GW and Quick Payday. I also have loans with them and plan to FAX the letters out after I get some feedback...Thanks!


The letter is very well written and is very specific. I would go so far as to actually request a refund of the finance charges, or a difference between what you paid and what you would have paid in Texas. If they balk, you can always settle for marked paid in full, but why not try for some actual redress,

Either, way it is a great letter


Submitted by jj on Mon, 04/24/2006 - 15:25

jj

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wswofford

That is a very well written letter. When stating why you took such action, you went into great detail, and even explained a few laws. Perhaps there might be someone else from Texas, that might run into your letter, and could use it to their advantage as well.

Regards-
Mike


Submitted by Teleport on Mon, 04/24/2006 - 15:42

Teleport

( Posts: 1388 | Credits: )


Yeah...well...I'm a licensed attorney in Texas, so I'm pretty good at writing legal research-type stuff :)!! I got into the PDL bind when I graduated and couldn't find a permanent, full-time job right away. I make good money now, but half my paycheck was going toward paying fees etc. on the PDLs.

I am fortunate that I can still afford to pay the bills and the refi charges, but it was getting to be a drag and seemed like it would never end. Never even thought of getting them to mark me PAID IN FULL.

Sent three letters today via FAX/e-mail to Cashnet500, GW Financial, and Payday Two (affiliated w/Cashnet). We'll see how they respond. I did ask for a fair refund of the excess interest I have paid, but won't count on it. I'm hoping that their compromise will be to mark me PAID IN FULL and be put on a NO LOAN status.

Wish me luck!


Submitted by wswofford on Tue, 04/25/2006 - 10:07

wswofford

( Posts: 18 | Credits: )


is a subsidiary of County bank of Rehobeth, DE, i am pretty sure. check your loan docs. it is on there.


Submitted by jmid1969 on Tue, 04/25/2006 - 10:57

jmid1969

( Posts: 102 | Credits: )


Well...it's working :)!

Just heard from Quick Payday and they have zeroed out my remaining $266 balance owed!!! Of course, they protested that they only are under the jurisdiction of Utah law...but whatever. They still marked me PAID IN FULL and put it IN WRITING!!

Let's see how GW and Cashnet repspond. Didn't ever hear back from GW yesterday, but resent the letter via e-mail to their Accounts Receivable address about a half hour ago! So excited!!!


Submitted by wswofford on Wed, 04/26/2006 - 09:32

wswofford

( Posts: 18 | Credits: )


Check this out!!! YAYYYYY!!!!!!

Quote:

Dear Traci,

GW Financial Services, LLC is located in Washington DC. Therefore, when you received a cash advance from our company, you subjected to the laws of Washington DC, not the State of Texas. However, as a courtesy, we have written off your remaining balance of $396.00. Your account is hereby considered paid in full.

Thank you,

GW Financial Services, LLC.


I'm so excited! Let's see how many more we can get!!??!!


Submitted by Seeing_the_Light on Wed, 04/26/2006 - 09:59

Seeing_the_Light

( Posts: 529 | Credits: )


...and the good news just keeps rolling in:

From GW Financial:

Dear Wendy,
Quote:


GW Financial Services, LLC is not located in Texas. Therefore, when you received a cash advance from our company, you subjected to the laws in our jurisdiction, not the State of Texas. However, as a courtesy, we will write off your remaining balance of $348.00. Your account is hereby considered paid in full.

Thank you,

GW Financial Services, LLC.


Submitted by wswofford on Wed, 04/26/2006 - 10:54

wswofford

( Posts: 18 | Credits: )


I sent the letter to Quick Payday via FAX late yesterday afternoon...heard back before lunch today. I FAXed the letter to Cashnet500 to 800-666-8107...I had a guy from their parent company -- Global Financial -- call and leave a message at my work.

Called the number he left, asked for their FAX, and sent it attention to him. I think they have a lot of people, but my person's name is John Camaro.

I also FAXed it to Cashnet's FAX number at their website and e-mailed to a guy named Tim (ID'ed himself as Branch Manager). Never heard anything back...but suspect Mr. Camaro will at least reply once he reads the letters.


Submitted by on Wed, 04/26/2006 - 13:06

( Posts: 202330 | Credits: )


They also go by "Global Financial."

You are correct,they were affiliated with County Bank of Rehobeth Beach,DE until 31 December 2005 after
the "urging" of the FDIC to do so.
I sent County Bank a letter as well!


Submitted by Roadwarrior on Wed, 04/26/2006 - 13:52

Roadwarrior

( Posts: 637 | Credits: )


I sent it to the 800 number I posted above -- this is wwofford, but can't seem to get logged in at work :)! I rec'd a call from a guy in Collections for Global Financial...called and confirmed they were Cashnet, then asked for their FAX.

FAXed the letter to Mr. John Camaro, the guy who called me at work. Haven't heard anything...maybe tomorrow -- although he said he'd be at work until 600 EST.


Submitted by on Wed, 04/26/2006 - 14:13

( Posts: 202330 | Credits: )


Called the 800 number for Cashnet collections...told them that I did not wish to be called at work regarding this matter, but that I did send Mr. Camaro two letters. Indicated that once he read them, he or an associate were more than welcome to e-mail their response.

Haven't heard a thing back, but the guy on the phone I DID speak with said that the calls would continue until I made an arrangement to pay off the amount due.

I immediately came back to my desk and fired off a nifty memo stating that FDRCA he could no longer contact me at my place of employment and that all correspondence should be via e-mail or US Mail.

Told them that if this harrassment continues, I will report them to Texas AG, their state's AG, and FTC, and the BBB. So far, no other calls :lol:!! We'll se what Mr. Camaro has to say when he responds to "the letter."

I am hoping that I will prove to be too much hassle to bother with for $100 owed on one loan and $200 on the other and they will just write me off and put me on no-loan status. Fine by me. If not, will put them on my T&C plan today and see if they can make some headway.

Anyone had luck with using "the letter" on Cashnet or any affiliates?!!?


Submitted by on Thu, 04/27/2006 - 06:15

( Posts: 202330 | Credits: )


This is wswofford...can't get logged in for some reason!

Anyways...am tired of fighting to get Cashnet500 to zero out my loan, so made a settlement with them via phone over lunch. Balance they showed me owing was $175, but they settled for a one-time payment of $100 on 5/19. The gal's name is Keisha and she was actually very nice and easy to work with.

All in all, can't complain too much:
They won't be calling me anymore...and I'll have them paid off by mid-May for good! Now I need to call Mr. Camaro w/the other one I have w/Global and see if he'll be so easy to work with.


Submitted by on Thu, 04/27/2006 - 11:04

( Posts: 202330 | Credits: )


this letter seems to entail the state laws of texas and probably will be useful to me. i have payday loans out with ameriloan and magnum finace which i know the second company is located in deleware. i am glad i found this site, because i cant tell you how many sleepless nites i have suffered as a result of worrying over my stupidity from dealing with these scam artist. i have contacted my bank and had them to stop all future ach's on my account with these companies,, if anyone else has some advice for me please post.

thanks


Submitted by on Sun, 05/07/2006 - 11:10

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Hi bambintx

You have done the right thing by putting a stop payment on the debits that will be made in future. I will suggest you to block the id of the payday loan company so that they cannot debit using different figures. Talk to your bank and block the ID. This will be more effective than the stop payment.

Sometime later, the payday loan company will contact you for the payment. Arrange a payment plan with them so that you can clear off the debts.


Submitted by john on Mon, 05/08/2006 - 13:48

john

( Posts: 1231 | Credits: )


Just got a call from someone there that was very nasty. I think this letter will help me a lot. If anyone knows the laws of Indiana please help me. I went to the site with the laws for my state, but it sounds confusing to me. I just need someone to help me word it correctly.

Thanks in advance


Submitted by on Thu, 06/22/2006 - 12:57

( Posts: 202330 | Credits: )


Im keeping this letter to use myself since I reside int Texas, I have not paid back what I borrowed and I wouldnt have a problem if the balance went down with each payment but it doesnt actually the one that I took out through GFI does do just that first payment was 80 second was 75 nd it goes down from there but they will have to deal with T & C after tommorrow after I sign up with them,


Submitted by txtreasure on Thu, 06/22/2006 - 13:17

txtreasure

( Posts: 155 | Credits: )


So if I go by my state law here can I contact them and let them know that I will not pay more than the law here allows?
And see what happens, Example one loan is 200 original and I have paid on it fees of 155 and the other one was 300 and I have paid 180 I would pay the remaining to them but the fees are what kills me


Submitted by txtreasure on Thu, 06/22/2006 - 13:42

txtreasure

( Posts: 155 | Credits: )


I am in the process of sending all my PDLs a letter asking for my account statements. I closed my account last week, but I haven't received a past due notification from Geneva Roth or SJM Marketing so that I could get an address or fax number on them. Does anyone have any information on them?


Submitted by kenthia on Fri, 06/23/2006 - 06:42

kenthia

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I will try writing letters to mine.


Submitted by kevntn on Tue, 06/27/2006 - 14:56

kevntn

( Posts: 60 | Credits: )


Guest, a cease and desist letter will stop all collection calls coming at your end. Here is a template of the letter

http://forums.debtcc.com/template-cdletter.html

Sending this letter does not erase the debt at all. You will still owe this debt if it is a legitimate one. Call the companies and try to figure out your arrangements with them.


Submitted by Justme on Thu, 07/06/2006 - 13:57

Justme

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