Form letter for accounts currently open
First of all, I want to say thank you to everyone that is providing help and guidance for those of us that are asking questions. It is really appreciated.
Ok, now on to my situation. I took out a loan with Mobiloans, to pay off another debt. However, after doing some searches, I have now found out that Mobiloans is not licensed in California. While legally, I am not obligated to pay them anything, I would still like to pay the principal balanced borrowed.
I've done some more research in this forum, and I do see a form letter in regards to those who have *already* paid their accounts in full, and are requesting a refund for amount overpaid.
How about for those of us who still have accounts open with Mobiloans? What type of letter should I send them?
This is what I have so far:
Dear Mobiloans,
It has come to my attention that payday lenders must be licensed by the state of California 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 $800 on 4/22/2013, and have made two payments on: one on 5/2/2013 for $150.00, and one payment on 5/17/2013 for $260. The total being $410.
I request that you restructure my account so that all previous payments made go towards my principal, and when all payments made towards you equal the principal amount borrowed, you close my account.
Respectfully,
Kevin
Anything else I should add, or should this be good?
Again, thank you everyone, for any help that you may be able to provide.
First of, welcome. I do hope
First of, welcome. I do hope that you have closed your bank account and opened a new one not linked in any way. I would tell them you only now owe $390.00 and will only pay by money order to an address they provide. You can pay them how much you want, when you want. Do not let them dicate to you. You are in control. Keep us posted on your progress and good luck!
Morally we recommend you pay
Morally we recommend you pay at least the principal back. Make sure you follow the steps.. here is the link: to help - You want to make sure your account is secure before sending.. http://www.debtconsolidationcare.com/paydayloan/dealingwith-illegallenders.html
Here is the example you should be following:
"Dear Lender,
It has come to my attention that payday lenders must be licensed by the state of California 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 $800 on 4/22/2013, and have made two payments on: one on 5/2/2013 for $150.00, and one payment on 5/17/2013 for $260. The total being $410, leaving a balance due of $390. I am willing to repay the $390 balance via prepaid debit card or money order only via US mail in ((however many) monthly installments of $xx each on (insert date(s)). that works for you)
At this time I am revoking ACH authorization. You are no longer authorized to withdraw payments from my checking account. I am also revoking 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.
I demand that any contact be made through US Postal mail or email only. I will need everything in writing to keep accurate records of all communication as per instruction from my state Attorney General's Office. I prohibit you or your affiliates to contact me via telephone at my place of employment, my home or cell telephone number. I also prohibit you from calling my references listed on my loan. Please respond to this email to set up payment arrangements as outlined above.
