Letter from NH Cash to BBB in response to my complaint - What now?

[quote]From Me to BBB (10/9/2008):
NHcash is not licensed to do business in the state of NY nor are any other payday loan companies allowed to do business in the state of NY. NHCash was notified of the law with a copy of the law for the state of NY. They cannot say they were not conducting business in NY because per the AG's office, if they contact someone in NY, loan someone in NY and withdraw money in NY they are doing business in NY. This company, as well as others should know where they are allowed to lend and where they are not allowed to lend. They need to block any state that does not allow payday loans. They are taking advantage of desperate people by charging them outragious fees and lending in places that they are not licensed and then try to turn around and blame it on the customer and as soon as a customer gets educated and says enough is enough, then they automatically decide to send them to a collection agency who them makes threatening phone calls, etc. I became educated before the amount I had paid them back the $200 deposited into my accoutn. Additionally, today I received an email from them stating that my balance is $302 (which is absouletely ridiculous). I would like this account marked PIF upon payment being sent, and will need written notification of that before sending. NHCash is in violation of the NY law regarding payday loans. I think if they were investigated further, I am sure that it would be found that they are operating illegally in other states as well. I have requested that the company provide me with a physical address where I can send my payment of $200 OR charge off this account, as this debt is illegal, uncollectable and void.

From NH Cash to BBB (10/17/2008):

Ms. T***** has no basis for her complaint. She applied for her first loan with nhcash.com in early August and paid off that loan with no issue, then reapplied in early September and now refuses to pay what she owes citing NY payday lender regulations as her defense.

Nhcash.com does not fall under the guidelines of NY state pay day lender law because we are not pay day lenders , we offer signature loans on the honor system. The agreement that Ms. T***** signed clearly states '' If you submit this Signature Loan Master Agreement (Master Agreement hereinafter) to us, we will process it the same as if you submitted it in person to us at our offices in New Hampshire or Utah, regardless of your state of residence. All aspects of transactions occurring on our website, nhcash shall be deemed to have been completed physically within the state of New Hampshire. Due to the foregoing, for all borrowers, this Master Agreement is governed by the laws of the State of New Hampshire except for residents of Utah, whose transactions with nhcash, LLC shall be governed by the laws of the State of Utah. IF YOU DO NOT WANT TO ENTER INTO A SMALL LOAN AGREEMENT ACCORDING TO THE LAWS OF THE STATE OF NEW HAMPSHIRE OR UTAH DO NOT EXECUTE THIS MASTER AGREEMENT.''

Ms. T***** committed fraud against our company as well as that of her financial institution when she informed her bank that we were not authorized to debit payments from her account. We have supporting documentation to prove that we did in fact have her authorization for the payments presented.
Nhcash contacted her financial institution where upon we were informed that this is not the first time that Ms. T***** has performed this type of transaction and they were fully aware of the situation. In fact, they also were looking into her for fraudulent claims.

Her balance was explained to her many times and she still refuses to acknowledge what she owes. She insists that we provide her with a guarantee Paid in full upon receipt of her $200 payment. Nhcash will not provide such a guarantee as that is not the balance which is due.

Ms. T**** states that we sent her to a third party collector when in fact we have not. The only contact made with Ms. T***** has been via email and a phone call from the owner of nhcash before payment was even due in order to clarify issues Ms. T***** raised in email correspondence. We advised her at that time what her balance was because she advised our company on multiple occasions to process payment through her bank. nhcash.com has not violated fair debt collections practices or any pay day lending laws as neither of those regulations apply to this situation.

Ms. T***** used our service three times. She electronically signed the documents we use three times. She provided payment authorizations two times. We processed her payments accordingly those two times. After doing so she went to her bank and misleads them that she did not provide those authorizations. Ms. T***'s bank reversed the ACH charges based on her fraudulent representation of the facts. Ms. T****** took a lawful loan from nhcash.

In sum, Ms. T**** has the funds we issued her originally which she never paid back, PLUS she got her bank to take additional funds from our bank account (reverse ACH). We believe her conduct in this matter extends beyond simple collections into criminal fraud. She used a third party to decrement our bank account based on false pretenses. She did to us what she told her bank we did to her. We intend to pursue this matter well beyond the BBB forum.

My rebuttal response to BBB (10/21/2008):
I am in my full rights to revoke debit authorization from their company, as I was in my full rights to give it. NHCash has loan shark rates that range from 328% to 1,114% apr for their loans. They are taking advantage of the situation of low-income, struggling inviduals. Additionally, my bank is in full cooperation with me, and are fully aware of that I have not committed any fraud of any kind and they have tried to use the word "fraud" and other illegal scare tactics, since this debt in illegal, void and uncollectable. Nevertheless, I fully intend to pay them back the principal amount that was deposited into my account, which is all I am liable for ($200). However, I am try to prevent some poor soul from being taking advantage of in the same way I was.


Question to the forum:
My mother works for the Department of Justice and she has assured me that there was nothing criminal in my actions and I informed them in writing of my revocation. Additionally their rates of 328-1114% are illegal in my state of New York. I have sent letter to AG of my state as well, but have yet to received response. NHcash. They still have not been cooperative. Should I still send them $200? Or still play hard ball, since they are saying $200 is not enough? Additionally, I have spoke to my bank and they never pulled funds from NHcash they simply have never let them make debits again. NHcash is hot mad with me right now. What is my next step?[/quote]