PDL Help In Michigan
Date: Wed, 06/19/2013 - 12:55
I am writing today to ask for guidance regarding three payday loans that my spouse took out (one in Feb, two in May days apart). After reviewing the site and seeing what has been posted I did some checking (Michigan office of financial and insurance services) and found that these online loans are not licensed in the state of Michigan.
The loans are as follows:
Lender: Blue King Inc (tribial affiliation)
Loan Amount:$400.00
Amount paid towards loan: $811.40
Loan Balance:$403.00
Lender: Liquid Cash (liquid ventures LLC)
Loan Amount: $600.00
Amount paid towards loan: $360.00
Loan Balance:$600.00 + $180 Finance charge
Lender: Integrity pay day loan
Loan amount:$300.00
Amount paid towards loan: $135.00
Loan Balance:$300.00 + finance Charge
As I appreciated what my spouse was doing, I am now freaking out because the loans become due at the end of the month and there is no way they can all be paid. So I have complied a letter (copied and edited from this site) to send to each lender informing them that the loans are illegal. I will send them out tomorrow after I speak with my bank and see what my options are.
I have complied a cease and desist letter (as I have a feeling I will need one) to send out after I have emailed each letter.
Here is a copy of letter (unedited)
Dear Lender,
It has come to my attention that payday lenders must be licensed by the state of (insert state) in order to offer loans to its residents. Since your company has no license in my state, the loan contract I have with you is not valid. Although I am not legally required to do so, I am willing to repay the principal balance of this loan. To date, I received a deposit of $500 on (insert date), and have had 6 bi-weekly withdrawals of $120 debited from my account. This results in an overpayment of $220.
At this time I am requesting a return email acknowledging that my loan has been paid in full. Also, I would like a refund of the $220 overpayment. A refund check of $220 should be mailed to me at the address you have on file.
I am also revoking authorization for ACH withdrawals and any wage assignment I may have signed. I have given a copy of these revocations to both my bank and my employer. Any future attempts to collect funds in this manner will be blocked.
Please respond to this email with acknowledgment that my account has been satisfied in full. Details of when I can expect the refund check, as discussed above, should also be included in the email.
Sincerely,
Here are my questions:
1) Will that letter work for what it is intended
2) Am I handling this correctly
3) Is there anything I should do differently?
4) Can we be held Legally/criminally responsible?
5) Any advice on anything I should do different?
Any advice Is greatly appreciated
The loans are as follows:
Lender: Blue King Inc (tribial affiliation)
Loan Amount:$400.00
Amount paid towards loan: $811.40
Loan Balance:$403.00
Lender: Liquid Cash (liquid ventures LLC)
Loan Amount: $600.00
Amount paid towards loan: $360.00
Loan Balance:$600.00 + $180 Finance charge
Lender: Integrity pay day loan
Loan amount:$300.00
Amount paid towards loan: $135.00
Loan Balance:$300.00 + finance Charge
As I appreciated what my spouse was doing, I am now freaking out because the loans become due at the end of the month and there is no way they can all be paid. So I have complied a letter (copied and edited from this site) to send to each lender informing them that the loans are illegal. I will send them out tomorrow after I speak with my bank and see what my options are.
I have complied a cease and desist letter (as I have a feeling I will need one) to send out after I have emailed each letter.
Here is a copy of letter (unedited)
Dear Lender,
It has come to my attention that payday lenders must be licensed by the state of (insert state) in order to offer loans to its residents. Since your company has no license in my state, the loan contract I have with you is not valid. Although I am not legally required to do so, I am willing to repay the principal balance of this loan. To date, I received a deposit of $500 on (insert date), and have had 6 bi-weekly withdrawals of $120 debited from my account. This results in an overpayment of $220.
At this time I am requesting a return email acknowledging that my loan has been paid in full. Also, I would like a refund of the $220 overpayment. A refund check of $220 should be mailed to me at the address you have on file.
I am also revoking authorization for ACH withdrawals and any wage assignment I may have signed. I have given a copy of these revocations to both my bank and my employer. Any future attempts to collect funds in this manner will be blocked.
Please respond to this email with acknowledgment that my account has been satisfied in full. Details of when I can expect the refund check, as discussed above, should also be included in the email.
Sincerely,
Here are my questions:
1) Will that letter work for what it is intended
2) Am I handling this correctly
3) Is there anything I should do differently?
4) Can we be held Legally/criminally responsible?
5) Any advice on anything I should do different?
Any advice Is greatly appreciated
Since all of your lenders are
Since all of your lenders are illegal, so you owe them nothing more than the principal. No interest, no fees. It would be better for you to close down your old bank account and open a new one to stop debiting money from your account. Don't worry mate....illegal lenders can't do anything. You may ask them for the refund, but it fully depends on their discretion whehter or not to return back your money.
