help with cease and dessist letter in california

Here is the EXACT letter I used on my 7 payday loans I had. I have settled and resolved with all of them. Took some time but it worked. Once I sent this letter, via fax and email, I kept emailing everyday and also called until I got it resolved. I know it is long but it worked


After doing research regarding Internet payday loan laws in the state of California, I have found that your Internet payday loans are actually illegal.
I hereby REVOKE any and all ACH authorizations with your company from debiting any of my personal accounts, per Federal Law, Regulation E Section 205.10 Preauthorized transfers., I have closed my account with XXXXXXX to protect my interest in this matter, per instructions from the California Department of Corporations.
I also revoke any and all wage assignments I may or may not have signed with your company, I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for your collection purposes. I have notified my employer about this matter so any attempts to do so on your part will be rejected.
I demand that any contact be made via email or US postal mail only. I will need everything in writing to keep accurate records of all communication .
I prohibit you or your affiliates to contact me via telephone at my place of employment. I also prohibit you from calling my references listed on my loan.
Due to the fact that Internet payday loans MUST be licensed in the state of California to be a legal and binding contract, I am requesting that you provide me a copy of your license and license number which enables you to offer loans to California residents via the Department of Corporations.
The legal amount that could have been charged to my loan is the principal amount of $300, even IF your Internet payday loan were legal anywhere in the US. I am willing to pay the principle amount of the loan only, however this is only if you provide me with a physical address where I can send payments. As of today???s date I have paid you $270. I will pay the additional $30 to equal a total of $30.
I must also inform you that I will be filing complaints with the Better Business Bureau, Federal Trade Commission, California Department of Corporations as well as the California Attorney General???s Office.
I expect a response from your company no later that 5 days from the above date regarding this matter. This response may only come via email or US Postal mail. No telephone contact is permitted.

Sincerely,


Your Name and Your email address

CC: Federal Trade Commission
Department of Corporations California
Better Business Bureau
California Attorney Generals Office


I have also found the following laws to be true applying to payday loans in the State of California in general:
FINANCIAL CODE
SECTION 23035-23038 states:
23035. (a) A licensee may defer the deposit of a customer's
personal check for up to 31 days, pursuant to the provisions of this
section. The face amount of the check shall not exceed three hundred
dollars ($300). Each deferred deposit transaction shall be made
pursuant to a written agreement as described in subdivision (e) that
has been signed by the customer and by the licensee or an authorized
representative of the licensee.
(2) That if the customer's check is returned unpaid, the customer
may be charged an additional fee of up to fifteen dollars ($15).
(3) That the customer cannot be prosecuted in a criminal action in
conjunction with a deferred deposit transaction for a returned check
or be threatened with prosecution.
(4) The department's toll-free telephone number for receiving
calls regarding customer complaints and concerns.
(5) That the licensee may not accept any collateral in conjunction
with a deferred deposit transaction.
(6) That the check is being negotiated as part of a deferred
deposit transaction made pursuant to Section 23035 of the Financial
Code and is not subject to the provisions of Section 1719 of the
Civil Code. No customer may be required to pay treble damages if
this check does not clear.
(1) The licensee cannot use the criminal process against a
consumer to collect any deferred deposit transaction.
(h) Under no circumstances shall a deferred deposit transaction
agreement include any of the following:
(1) A hold harmless clause.
(2) A confession of judgment clause or power of attorney.
(3) Any assignment of or order for payment of wages or other
compensation for services.
(4) Any acceleration provision.
(5) Any unconscionable provision.
(i) If the licensee sells or otherwise transfers the debt at a
later date, the licensee shall clearly disclose in a written
agreement that any debt or checks held or transferred pursuant to a
deferred deposit transaction made pursuant to Section 23035 are not
subject to the provisions of Section 1719 of the Civil Code and that
no customer may be required to pay treble damages if the check or
checks are dishonored.
23036. (a) A fee for a deferred deposit transaction shall not
exceed 15 percent of the face amount of the check.
(b) A licensee may allow an extension of time, or a payment plan,
for repayment of an existing deferred deposit transaction but may not
charge any additional fee or charge of any kind in conjunction with
the extension or payment plan. A licensee that complies with the
provisions of this subdivision shall not be deemed to be in violation
of subdivision (g) of Section 23037.
(c) A licensee shall not enter into an agreement for a deferred
deposit transaction with a customer during the period of time that an
earlier written agreement for a deferred deposit transaction for the
same customer is in effect.
(d) A licensee who enters into a deferred deposit transaction
agreement, or any assignee of that licensee, shall not be entitled to
recover damages for that transaction in any action brought pursuant
to, or governed by, Section 1719 of the Civil Code.
(e) A fee not to exceed fifteen dollars ($15) may be charged for
the return of a dishonored check by a depositary institution in a
deferred deposit transaction. A single fee charged pursuant to this
subdivision is the exclusive charge for a dishonored check. No fee
may be added for late payment.
(f) No amount in excess of the amounts authorized by this section
shall be directly or indirectly charged by a licensee pursuant to a
deferred deposit transaction.
(g) A licensee shall be subject to the provisions of Title 1.6C
(commencing with Section 1788) of Part 4 of Division 3 of the Civil
Code.
23038. (a) Any person who violates any provision of Section 670 of
the John Warner National Defense Authorization Act for Fiscal Year
2007 (Public Law 109-364) or any provision of Section 232 of Title 32
of the Code of Federal Regulations, as published on August 31, 2007,
in Volume 72 of the Federal Register, violates this division.
(b) With respect to any deferred deposit transactions covered by
Section 670 of the John Warner National Defense Authorization Act for
Fiscal Year 2007 (Public Law 109-364) or by Section 232 of Title 32
of the Code of Federal Regulations, as published on August 31, 2007,
in Volume 72 of the Federal Register, a person that does not market
deferred deposit transactions to, or does not enter into those
transactions with, covered borrowers, as that term is defined under
Section 232 of Title 32 of the Code of Federal Regulations, as
published on August 31, 2007, in Volume 72 of the Federal Register,
shall not be in violation of Section 394 of the Military and Veterans
Code.

Just out of curiosity, what makes these companies illegal? I have about 5 PD loans open and I am stuck in that cycle. 2 are ones that you listed as illegal. What are my rights? I've just been laid off so obvioulsy I cannot pay these guys now. What do I do? I am in the process of closing my checking account. Thanks for the help!

In the state of California, payday lenders must be licensed in the state. If you are not licensed, you are therefore 'illegal.'

I have just received a collection letter and call from TK Credit Recovery aka TK Financial on behalf of EP Processing...an internet payday lender...I am filing a complaint with the California Department of Corporations protesting their tactics....the collector told me that if I did not pay today, that my account was scheduled for charge off tomorrow...any thoughts.

They can charge off all they want tomorrow, but if this place is indeed illegal, chances are it's not going to make it to your credit report. Our position here is to pay back what you owed, that is, what the company actually gave you and what you had use of--and not to worry about the outrageous fees they all charge. If you have been rolling over your loan and paying the fees each time, I would count that towards the principal. Many people in the community have overpaid outrageous amounts towards their loans.
If you have overpaid, by all means demand a refund. Also don't forget to protect your money by closing the bank account they are hitting and getting a new one.