Extortion accusation

lol ummmmm noooooooo, you have done NOTHING wrong!!! What you are doing is called negotiating!!! I think you struck a chord in them though. Just keep doing what you're doing, because you are not doing ANYthing wrong.

The more I think about this, the madder I am becoming!! If they have identified them selves as legal council, request a name, address, telephone, and license to practice law in your state. Grrrrrrrrrrrrrrrrrrrrrrrr!! :x

Thanks Shazzers!
I appreciate your help, I figured that they were full of it - but wanted to double check myself. I am asking for the information you suggested that I request, I'll let you know what happens.

You have to feel good about helping people in this forum, you've made a VERY POSITIVE difference in my situation and I greatly appreciate everything!

The members of this forum have walked in your shoes, we understand what it's like. Take good care.

Good luck with this Blondie. I doubt any D.A. would take the case, but I do think your tactics crossed the line from negotiation to extortion. No one on this board has any problem calling it extortion when a collector says he'll prosecute or sue unless he gets paid. Seems to me the same would be true when reversed. Normally, when you negotiate a pdl you tell them why they are illegal, etc., and advise the lender that you will contact your state regulators unless . . . It's the same threat, but it's IMPLICIT rather than EXPLICIT and the pdl can't use your words against you.

Overtly saying that you'll file or revoke complaints depending on what financial settlement you make with a lender, at least from my layman's understanding, probably goes too far. I understand why you (or anyone else) would want to say it. But why give a pdl ammunition?

blondie i read what guest (above my thread) wrote but i still say to go with shazzer's advice.. this loan is illegal and does have a legal leg to stand on! all you really did was state the facts, and i doubt they have any kind of real legal council.
the only thing i disgree with is revoking their complaints, i can see how that may seem like extortion actually though i would not worry about it.. but in my humble opinion, i would never revoke any complaints (not sure if you even can, to be honest). they lent money out illegally and it should be reported to the FTC, Attorney General and even the BBB (who cannot really do much but at least it makes them look even worse to people looking for companies)

Quote:

Guest, on those grounds, anyone who ever files a lawsuit and loses should be charged with extortion.

I would say it's only extortion if you're making threats that have no legal standing. (IE CA's threatening arrest when they legally cannot take that action is extortion.) Threatening to or actually filing complaints against a company on belief of an unlawful act having been committed is not extortion, it's enforcing ones rights.

I had a customer several months ago that took a loan and, before the first payment was even due, the customer filed complaints with the state AG and DFI claiming we charged unlawful interest and should not be allowed to collect on the loan. Obviously the AG requested our response and copies of the loan documents, which I responded and provided copies of everything the debtor signed. The AG & DFI office both found our loan terms were well-within the law, and the complaint lacking any real merit, and dismissed the debtor's complaint. Does that mean I can turn around and charge the debtor with extortion for making false complaints? Not at all; any policing authority would laugh if I tried that.

that makes sense, debt cruncher, and since the poster's loan was not even legal i do not see them doing anything wrong (though i still would not revoke any complaint). the illegal lenders will say anything to scare people into paying. i am glad blondie was not scared :)

A collection agency for 1 of my lenders told me I was trying to extort money from them.....I laughed, talked to the president of the company and then was issued a refund of part of the money paid.

Here's the response received when I requested licensing information.

I do not need to be licensed by the State of Kentucky to represent my client in this matter.



We are seeking to enforce our rights under the contract which you knowingly executed, and would prefer to do so in an amicable manner. If you do not want to resolve this matter via these discussions, you obviously have the right to do so. Please note that if we cannot resolve this amicably, we will pursue further collection efforts, which will include all legal remedies available to us.



Also, we are not trying to ???buy??? your silence, you are free to pursue all remedies available to you, as are we. However, should we mutually agree on a settlement of this matter, like almost all settlement agreements, ours must be kept confidential.



The settlement offer detailed below will remain available to you through the indicated deadline of 5 pm ET Friday, August 28, 2009. Please advise as to your decision.

Just to catch everyone up to date the initial offer of this settlement. The intial loan was for $300 and I had repaid $90 in fees when the loan was rolled over the first time. I advised this company that would leave a remaining balance of $210 by my records and not $300, as originally asked to pay in the intial settlement offer. I explained that if they wanted to credit me all the interest and roll over fees that I'd paid them on past loans, they would actually owe me a refund. I further advised that if they wanted to mark my loan with a $0 balance and PIF that I would consider revolking these complaints. How is this extortion...I just don't get this.

Any advice?

Any advice?

I would send them a debt validation letter and ask them to show all records of payment made by you as well as the contract that you signed. Further, I would contact the department in your state that regulates collection agencies and find out what their advice is.

i agree i would send a dv as well as a c & d letter via certified return receipt mail. i would not speak with them on the phone again neither.