East Side Lenders
Date: Thu, 06/17/2010 - 22:58
Submitted by Donna1264030061
on
Thu, 06/17/2010 - 22:58
Total Replies: 3
I received the following letter from East Side Lenders today in response to my letter to them disputing what they say I owe:
East Side Lenders, which is located in Delaware, is licensed by the State of Delaware to make small loans. All such loans are approved and funded in Delaware, with repayment to be made in Delaware. The East Side Lenders loan agreement and website contain all disclosures required by Delaware and federal law to make it clear that all transactions are governed by Delaware law. On advice of counsel, East Side Lenders maintains that the conduct of a national internet lending program itself is insufficient to establish legislative or regulatory jurisdiction over East Side Lenders. In addition, on advice of counsel, we maintain that attempts to regulate East Side Lenders extraterritorially run afoul of the dormant commerce clause of the Constitution. Finally, on the advice of counsel, East Side Lenders maintains that the choice of Delaware law as controlling in the loan documents would be upheld, as all of the significant contacts in the loan transaction occur in Delaware. In responding to your letter, East Side Lenders notes and reserves these objections, as well as others, including, but not limited to, personal jurisdiction.
Your loan has been cancelled; however you still owe $275.00 to pay back the remaining principal borrowed. We are willing to settle this account for principal only, although we are not legally obligated to take this step. East Side Lenders has taken the above-reported actions because of its continuing commitment to customer satisfaction and for no other reason.
History: I took out a loan with East Side Lenders on 10/30/09 in the amount of $300 plus the $90 fee. From 11/13/09 thru 01/22/10, I paid them a total $607.50 through roll-overs and paydowns. I have already filed complaints with the BBB, FTC and AG offices. I reside in Arizona.
Question: Do I respond to this letter? What are my next steps?
East Side Lenders, which is located in Delaware, is licensed by the State of Delaware to make small loans. All such loans are approved and funded in Delaware, with repayment to be made in Delaware. The East Side Lenders loan agreement and website contain all disclosures required by Delaware and federal law to make it clear that all transactions are governed by Delaware law. On advice of counsel, East Side Lenders maintains that the conduct of a national internet lending program itself is insufficient to establish legislative or regulatory jurisdiction over East Side Lenders. In addition, on advice of counsel, we maintain that attempts to regulate East Side Lenders extraterritorially run afoul of the dormant commerce clause of the Constitution. Finally, on the advice of counsel, East Side Lenders maintains that the choice of Delaware law as controlling in the loan documents would be upheld, as all of the significant contacts in the loan transaction occur in Delaware. In responding to your letter, East Side Lenders notes and reserves these objections, as well as others, including, but not limited to, personal jurisdiction.
Your loan has been cancelled; however you still owe $275.00 to pay back the remaining principal borrowed. We are willing to settle this account for principal only, although we are not legally obligated to take this step. East Side Lenders has taken the above-reported actions because of its continuing commitment to customer satisfaction and for no other reason.
History: I took out a loan with East Side Lenders on 10/30/09 in the amount of $300 plus the $90 fee. From 11/13/09 thru 01/22/10, I paid them a total $607.50 through roll-overs and paydowns. I have already filed complaints with the BBB, FTC and AG offices. I reside in Arizona.
Question: Do I respond to this letter? What are my next steps?
Please note I am not a resident of Delaware, have never prescrib
Please note I am not a resident of Delaware, have never prescribed to be a resident of Delaware and have no Delaware presence, as such am not subject to the Delaware laws you detail.
They are a boatload of these lenders located at mailboxes etc. i
They are a boatload of these lenders located at mailboxes etc. in Wilmington! They are using the state for its weak lending laws! They do not apply to internet loans made out of state! Demand a refund from them under the condition that you will withdraw your complaints!
Quote:Originally Posted by frogpatchThey are a boatload of these
Quote:
Originally Posted by frogpatch They are a boatload of these lenders located at mailboxes etc. in Wilmington! They are using the state for its weak lending laws! They do not apply to internet loans made out of state! Demand a refund from them under the condition that you will withdraw your complaints! |
I agree!