Pay Day Loan Help
Date: Thu, 12/10/2009 - 18:22
Hello All,
I reside in CT and have a total of 6 pdls as follow
My Cash Now over the last 7 years have borrowed 8577 dollars have paid back over 14000
Pay Day Loan Yes borrowed 350 have paid back 680
VIP Loan Shop borrowed 400 have paid back 360
CCS borrowed 300 have paid 75
Great Sky Cash borrowed 300 have not paid anything yet
Lakota Cash borrowed 400 have not paid anything yet
Per recommendations, I have closed my bank account and sent the following C and D letter via email to all from whom I have borrowed (it is altered slightly for each company so as to reflect the actual amounts etc and I really do work for a contractor of the department of defense and my clearance is really at risk...question is...what do I do now???
Date: 12/10/09
My Cash Now
Michelle Redford
Stonington, CT
To Whom It May Concern:
After a recent security clearance renewal to update my clearance for my job, I was reprimanded and told to do some research regarding Internet payday loan laws in the State of Connecticut.
Through this research, I have found that your Internet payday loans are actually illegal. I have also found the following laws to be true regarding payday loans in the State of Connecticut in general:
Connecticut internet payday lenders are not legal, either because of restrictive laws, or because the state does not license companies not located in that state, but requires a state issued license to lend.
CONNECTICUT SMALL LOAN LAW
No one other than a bank, credit union, or pawnbroker can make small consumer loans up to $15,000 in Connecticut at a rate higher than 12% a year, unless they become licensed with the Banking Department as a small loan lender.
Another potential barrier to payday loans in Connecticut is the small loan law's prohibition of "assignment of wages" (CGS ?? 36a-568). While there is technically no formal assignment of actual wages, opponents of payday loans might argue that this is in effect what is happening because the loans are made with the expectation that the next paycheck will be deposited to cover the loan.
I work for a contractor of the Department of Defense branch of the United States Government. I carry a secret security clearance and am in no way allowed to participate in any ???illegal??? activity under penalty of losing my clearance due to an involvement with companies performing illegal acts in the state in which I reside.
I hereby immediately 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 Liberty Bank to protect my interest in this matter, per instructions from The Connecticut Department of Finance and the issuer of my security clearance.
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 through US Postal mail or email only. I will need everything in writing in order to keep accurate records of all communication as per the instruction from my Attorney General's Office.
I prohibit you or your affiliates to contact me via telephone at my place of employment or my home telephone number. 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 CT to be a legal and binding contract, your company should NOT issue loans to Connecticut residents at all.
I am requesting that you send me your license number which enables you to offer loans to Connecticut residents.
The legal amount that I could have been charged on my loans over the last 7 years is the principal amount, even IF your Internet pay day loan were legal anywhere in the U.S.
Due to this fact, the amount in interest charge fees and principle payments that I have already paid to you is over and above the original principal amount borrowed.
I am not denying that I borrowed the money, and I understand and agree that I am obligated to pay the principle amount of the loan, however, based on what I have already paid including interest charges???my payments more than answer the original loan amounts.
Total Principle Borrowed between August 2002 and December 2009 - $8955.00
Total Principle Paid between August 2002 and December 2009 - $8518.80 (still have a current loan with you with a principle balance remaining of $436.20)
Total Interest and Fees Paid between August 2002 and December 2009 - $5485.60
Total Paid to My Cash Now Between August 2002 and December 2009 ??? $14440.64
Subtracting the $8955.00 (total amount borrowed) and the $436.20 (principle balance on the loan that is still open) The difference I am owed is:
$5049.44
I demand an immediate refund for the amount I paid over the principle, and a paid in full letter/receipt as written evidence that you have in fact zeroed out my account so that I may show the issuer of my clearance that I have in fact remedied the breach of conduct for which I have been called to account.
I must also inform you that under the advisement of an agent of the Government (the actual reviewer and issuer of my security clearance), as a protection against both present and future problems with my job as a result of my affiliation with a company found to be guilty of illegal activities, I have been instructed to file formal complaints with the Better Business Bureau, the Federal Trade Commission, and the CT Attorney General's Office and to keep them updated on all activity regarding the situation up to and including how you ultimately end up choosing to handle it..
I expect a response from your company no later than 5 days from the above date regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted.
Sincerely,
Michelle Redford
CC:
Better Business Bureau
Connecticut Attorney General
Federal Trade Commission
I reside in CT and have a total of 6 pdls as follow
My Cash Now over the last 7 years have borrowed 8577 dollars have paid back over 14000
Pay Day Loan Yes borrowed 350 have paid back 680
VIP Loan Shop borrowed 400 have paid back 360
CCS borrowed 300 have paid 75
Great Sky Cash borrowed 300 have not paid anything yet
Lakota Cash borrowed 400 have not paid anything yet
Per recommendations, I have closed my bank account and sent the following C and D letter via email to all from whom I have borrowed (it is altered slightly for each company so as to reflect the actual amounts etc and I really do work for a contractor of the department of defense and my clearance is really at risk...question is...what do I do now???
Date: 12/10/09
My Cash Now
Michelle Redford
Stonington, CT
To Whom It May Concern:
After a recent security clearance renewal to update my clearance for my job, I was reprimanded and told to do some research regarding Internet payday loan laws in the State of Connecticut.
Through this research, I have found that your Internet payday loans are actually illegal. I have also found the following laws to be true regarding payday loans in the State of Connecticut in general:
Connecticut internet payday lenders are not legal, either because of restrictive laws, or because the state does not license companies not located in that state, but requires a state issued license to lend.
CONNECTICUT SMALL LOAN LAW
No one other than a bank, credit union, or pawnbroker can make small consumer loans up to $15,000 in Connecticut at a rate higher than 12% a year, unless they become licensed with the Banking Department as a small loan lender.
Another potential barrier to payday loans in Connecticut is the small loan law's prohibition of "assignment of wages" (CGS ?? 36a-568). While there is technically no formal assignment of actual wages, opponents of payday loans might argue that this is in effect what is happening because the loans are made with the expectation that the next paycheck will be deposited to cover the loan.
I work for a contractor of the Department of Defense branch of the United States Government. I carry a secret security clearance and am in no way allowed to participate in any ???illegal??? activity under penalty of losing my clearance due to an involvement with companies performing illegal acts in the state in which I reside.
I hereby immediately 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 Liberty Bank to protect my interest in this matter, per instructions from The Connecticut Department of Finance and the issuer of my security clearance.
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 through US Postal mail or email only. I will need everything in writing in order to keep accurate records of all communication as per the instruction from my Attorney General's Office.
I prohibit you or your affiliates to contact me via telephone at my place of employment or my home telephone number. 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 CT to be a legal and binding contract, your company should NOT issue loans to Connecticut residents at all.
I am requesting that you send me your license number which enables you to offer loans to Connecticut residents.
The legal amount that I could have been charged on my loans over the last 7 years is the principal amount, even IF your Internet pay day loan were legal anywhere in the U.S.
Due to this fact, the amount in interest charge fees and principle payments that I have already paid to you is over and above the original principal amount borrowed.
I am not denying that I borrowed the money, and I understand and agree that I am obligated to pay the principle amount of the loan, however, based on what I have already paid including interest charges???my payments more than answer the original loan amounts.
Total Principle Borrowed between August 2002 and December 2009 - $8955.00
Total Principle Paid between August 2002 and December 2009 - $8518.80 (still have a current loan with you with a principle balance remaining of $436.20)
Total Interest and Fees Paid between August 2002 and December 2009 - $5485.60
Total Paid to My Cash Now Between August 2002 and December 2009 ??? $14440.64
Subtracting the $8955.00 (total amount borrowed) and the $436.20 (principle balance on the loan that is still open) The difference I am owed is:
$5049.44
I demand an immediate refund for the amount I paid over the principle, and a paid in full letter/receipt as written evidence that you have in fact zeroed out my account so that I may show the issuer of my clearance that I have in fact remedied the breach of conduct for which I have been called to account.
I must also inform you that under the advisement of an agent of the Government (the actual reviewer and issuer of my security clearance), as a protection against both present and future problems with my job as a result of my affiliation with a company found to be guilty of illegal activities, I have been instructed to file formal complaints with the Better Business Bureau, the Federal Trade Commission, and the CT Attorney General's Office and to keep them updated on all activity regarding the situation up to and including how you ultimately end up choosing to handle it..
I expect a response from your company no later than 5 days from the above date regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted.
Sincerely,
Michelle Redford
CC:
Better Business Bureau
Connecticut Attorney General
Federal Trade Commission
You have done the right thing by closing the bank account. Don't
You have done the right thing by closing the bank account. Don't give away information on your new account to the lenders when they call. However, you may need to arrange for moneygram (or debit card) payments since you owe on the principals (you are only required to repay the amount borrowed from the illegal lenders). Get a paid in full letter from each of the lenders when you clear the principal.
Thank you for the advice. I have already overpaid two of them..
Thank you for the advice. I have already overpaid two of them...hoping that the demand for a refund of the overpayment amounts will pay off the others and resolve the situation...I will keep you posted.
Do you happen to know offhand if any of the ones I listed are legal in CT??? They are all Internet based.
