Response from Magnum Cash Advance
Date: Fri, 04/02/2010 - 15:07
Hi all, I sent my letter I posted a couple of days ago. I have recieved this response from Magnum Cash Advance. It seems to be a collection letter from their collection department.
"Dear Amanda *****:
This letter is notice that the above loan is now in default. This default has occurred as the result of the closure of your account at TD Bank. Your non-payment is a violation of the Consumer Loan Agreement and Promissory Note which you signed.
Your account is being forwarded to a national collection agency. If you do not respond to their attempts to contact you, your default will be reported to the major credit bureaus (Experian, Trans Union, and Equifax), which will severely impair your ability to obtain credit in the future.
To avoid these actions, you must contact me within five (5) business days of the receipt of this letter.
Very Truly Yours,
Collections Department
Collections"
I have written a response letter to send to the collections department, please let me know if it is ok:
" April 2, 2010
Magnum Cash Advance Collection Department:
Your company is illegal in the state of PA as of February 1, 2009. Due to the fact that both of my loans were issued after February 1, 2009 they are considered illegal in my state and I will only pay the principle amount borrowed on each loan.
I have borrowed $1000.00 in loans from your company and have paid back $891.99 to date.
Here is the break down of what was borrowed from your company and amounts that were paid back:
First loan: January 12, 2010 ??? Credit to my checking account for $500.00 from Magnum CA
January 29, 2010 ??? Debit to my checking account for $216.17 from Magnum CA
February 1, 2010 ??? Debit to my checking account for $467.48 from Magnum CA
Total Loan Amount - $500.00
Total Payments Made to Magnum CA - $683.65
Total Overage charged by Magnum CA - $183.65
Second loan: March 2, 2010 ??? Credit to my checking account for $500.00 from Magnum CA
March 15, 2010 ??? Debit to my checking account for $208.34 from Magnum CA
Total Loan Amount - $500.00
Total Payments Made to Magnum CA - $208.34
Amount owed for this loan to Magnum CA - $291.66
Amount owed for last loan($291.66)
??? Overage paid for first loan ($183.65)
= ($108.01) still owed on account.
I would like to settle my account as paid in full. I am willing to pay your company the rest of the principal amount owed to settle my account which is ($108.01 owed). As you can see from above this is how I came up with this amount owed.
If you accept this offer then I will need a valid address to mail a money order to your company since my checking account is now closed and will need a letter stating that my account is now paid in full.
This will be my only offer since this is the amount that I legally am obligated to pay your company.
- I hereby revoke any and all direct debit authorizations I have made to you.
- I demand that any contact be made through US Mail or email only. Also, all contacts between us must in writing to keep accurate records of all communication as per instruction from my Attorney General's Office.
- I prohibit you or your affiliates to contact me via telephone at my place of employment or at my home or cellular telephone numbers. Persuant to the PA Fair Credit Extension Uniformity Act, you are hereby notified that my employer does not permit contact of this type. I also prohibit you from contacting any references listed on my loan documents.
- You are also hereby notified that I am revoking any voluntary wage assignments I may or may not have signed. I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for collection purposes.
Sincerely,
Amanda *****"
It is not too detailed or missing anything is it. I am just hoping that I worded it correctly since I do not want them finding some kind of loophole to charge me all the extra fees.
Thanks a bunch you guys!!
Also, they are illegal right, I didn't think they could report me to the 3 credit bureaus???
"Dear Amanda *****:
This letter is notice that the above loan is now in default. This default has occurred as the result of the closure of your account at TD Bank. Your non-payment is a violation of the Consumer Loan Agreement and Promissory Note which you signed.
Your account is being forwarded to a national collection agency. If you do not respond to their attempts to contact you, your default will be reported to the major credit bureaus (Experian, Trans Union, and Equifax), which will severely impair your ability to obtain credit in the future.
To avoid these actions, you must contact me within five (5) business days of the receipt of this letter.
Very Truly Yours,
Collections Department
Collections"
I have written a response letter to send to the collections department, please let me know if it is ok:
" April 2, 2010
Magnum Cash Advance Collection Department:
Your company is illegal in the state of PA as of February 1, 2009. Due to the fact that both of my loans were issued after February 1, 2009 they are considered illegal in my state and I will only pay the principle amount borrowed on each loan.
I have borrowed $1000.00 in loans from your company and have paid back $891.99 to date.
Here is the break down of what was borrowed from your company and amounts that were paid back:
First loan: January 12, 2010 ??? Credit to my checking account for $500.00 from Magnum CA
January 29, 2010 ??? Debit to my checking account for $216.17 from Magnum CA
February 1, 2010 ??? Debit to my checking account for $467.48 from Magnum CA
Total Loan Amount - $500.00
Total Payments Made to Magnum CA - $683.65
Total Overage charged by Magnum CA - $183.65
Second loan: March 2, 2010 ??? Credit to my checking account for $500.00 from Magnum CA
March 15, 2010 ??? Debit to my checking account for $208.34 from Magnum CA
Total Loan Amount - $500.00
Total Payments Made to Magnum CA - $208.34
Amount owed for this loan to Magnum CA - $291.66
Amount owed for last loan($291.66)
??? Overage paid for first loan ($183.65)
= ($108.01) still owed on account.
I would like to settle my account as paid in full. I am willing to pay your company the rest of the principal amount owed to settle my account which is ($108.01 owed). As you can see from above this is how I came up with this amount owed.
If you accept this offer then I will need a valid address to mail a money order to your company since my checking account is now closed and will need a letter stating that my account is now paid in full.
This will be my only offer since this is the amount that I legally am obligated to pay your company.
- I hereby revoke any and all direct debit authorizations I have made to you.
- I demand that any contact be made through US Mail or email only. Also, all contacts between us must in writing to keep accurate records of all communication as per instruction from my Attorney General's Office.
- I prohibit you or your affiliates to contact me via telephone at my place of employment or at my home or cellular telephone numbers. Persuant to the PA Fair Credit Extension Uniformity Act, you are hereby notified that my employer does not permit contact of this type. I also prohibit you from contacting any references listed on my loan documents.
- You are also hereby notified that I am revoking any voluntary wage assignments I may or may not have signed. I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for collection purposes.
Sincerely,
Amanda *****"
It is not too detailed or missing anything is it. I am just hoping that I worded it correctly since I do not want them finding some kind of loophole to charge me all the extra fees.
Thanks a bunch you guys!!
Also, they are illegal right, I didn't think they could report me to the 3 credit bureaus???
They can TRY reporting to the CRA's but you can easily have it r
They can TRY reporting to the CRA's but you can easily have it removed by disputing it due to the fact they are not a licensed lender in your state. The letter looks fine to me!
