PDLs debiting with DBAs is it legal?
Date: Thu, 05/22/2008 - 07:42
Submitted by eulogyforinnocence
on
Thu, 05/22/2008 - 07:42
Total Replies: 4
I am in a dispute with ameriloan and United Cash loans on BBB site and this is what they are saying"
"At the time of the application the terms and conditions were presented and she had the opportunity to print them at that time. She had to answer a question whether she understood the terms before we could even receive the application to process. In addition, there was a 48-hour time frame the customer could cancel the agreement without incurring a fee. Before each debit we sent an account summary, which explained the terms once more, and all of the options for repayment. This form was emailed at least 10 days before each debit; it also included our customer service number to ask any additional questions. We also have a direct email link on our website to answer any inquiries. If the customer had wanted to avoid additional fees, they needed to pay the full amount due on the first debit due date, which was in the original contract, as well as the account summary emailed to the customer very shortly after the funds were placed in their own account, for their own use, at their request. The original loan documents can be faxed directly to the customer once we are given a fax number to send them to. This loan was from 2005, and $250.00 was deposited 03/15/05.
The customer agreed to pay $390.00 at the time of deposit, and zero was ever paid from her account toward this debt. All other debits were returned by her bank unpaid. She currently is in Recovery Collections with a balance of $505.00.
We will reduce to $250.00 until 06/15/08. This waives all pay**THE DEPOSITED AMOUNT MUST BE PAID BACK****
The $250.00 must be paid via Moneygram by 06/15/08 -we will stop collections at this time to give customer a chance to pay the reduced balance.
Moneygram (available at most Wal-Mart's)
Pay to: United Cash Loans
Receive Code: 4309
City/State: Miami, OK
Account-COMPLIANCE/12044449"
This was from 2005 and I don't even remember them, but if what they say is true... $390 on a $250 loan is kind of extreme isn't it?
They only want me to pay back the principal amount which is great, but I seriously can't come up with that in ONE month. My household comes first and I have 5 kids, a mortgage, car-note and insurance to take care of! But I'm positive they won't understand... and watching you guys, I've learned that I will NEVER send any money to them via Moneygram.
I sent them a loan revocation letter via fax and email just recently and they responded to NEITHER. I'm so fed up with these folks and can't wait to get completely out of debt or this will haunt me for the rest of my days.
First of all United Cash Loans is part of MTE. They are hoghly i
First of all United Cash Loans is part of MTE. They are hoghly illegal and ae not licensex anywhere to lend, I would disput this with your bank if any money is debited from you.
Yeah, thats the wicked thing about it... this is from 2005,
Yeah, thats the wicked thing about it...
this is from 2005, that bank account (with Wachovia) has been closed due to NSF fees out the ying-yang, Wachovia now has sent to account to collections and now I'm totally busted with Wachovia bank and owe them over $800 because of United Cash Loans and ameriloan.
I thought by sending them to BBB they would falter, but they are fighting back and I feel like I'm running out of options.
I've spent all morning at work trying to come up with something and I'm looking to respond to them with this:
"After research of the legality of internet payday loans in the state of Maryland, I United Payday Loan????????s actions are illegal and fail to comply with Maryland Consumer Laws.
???????Legal Status: Prohibited
Citation: Consumer loan act applies. Md. Code Ann. Com. Law II ???? 12-301 et seq.
Small Loan Rate Cap 2.75% per month; 33% per year???????
United Cash Loans, nor any representative, parent company, d/b/a, affiliate, nor subsidiary of United Cash Loans, are legally allowed to issue consumer loans to Maryland residents, as you are not licensed to practice or conduct business in Maryland. Yet they knowingly solicited a loan from a Maryland residence in attempt to supercede these laws and overcharge me. This statement complies with Ann. Code of Maryland Commercial Law Article ????12????????302 stating:
???????A person may not engage in the business of making loans under this subtitle unless the person is licensed under or is exempt from the licensing requirements of Title 11, Subtitle 2 of the Financial Institutions Article, the Maryland Consumer Loan Law -- Licensing Provisions.???????
I have contacted the Maryland Commissioner of Financial Regulation????????s office and the Maryland State Attorney General????????s Office regarding your internet payday loans and was informed they are indeed illegal in Maryland. Because of this United Payday Loans are no longer permitted to solicit or collect funds from any resident of Maryland. Therefore this account and any additional accounts I have on file, should be marked as paid in full/closed with no collections due with your organization, with all consumer and credit reporting agencies (to include Experian, Equifax, TransUnion, and Teletrack) and all collections should cease and desist per Maryland State Attorney General????????s Office, Consumer Protection Division communication:
?????????????? Please be advised that payday loans are not permissible in the state of Maryland. Additionally, such loans are considered consumer loans subject to the Maryland Consumer Loan Law, Title 12, Subtitle 3, Commercial Law Article, Maryland Code Annotated. Additionally, a person who makes a consumer loan is required to be licensed, unless exempted from the requirements of a license.
In addition, you should be aware that any person or organization that violates Maryland law is not obligated to receive or retain any principal, interest, or other compensation with respect to the loan. If any further information is needed please feel free to contact the Maryland Attorney General????????s Office, Consumer Protection Division at (410) 528-8662.???????
United Cash Loans exceedingly continued to try and debit monies from my account using the original company along with several d/b/a's in an attempt to severely blemish the bank account, causing the account to go into arrears by hundreds of dollars in NSF fees. Because of the new information that was given to me via the Office of the Maryland Commissioner my account was closed.
I don't remember ever physically signing any agreements with this company, which according to my state of residence, Maryland consumer laws, that in order for all contracts to be rendered valid they must be done in person, with a Notary Public who is licensed in Maryland."
Is it appropriate? How should I respond? Shall I shoot myself in the foot now, to numb the pain in the ar$$e these PDL's are giving me? :lol:
Hello out there? Am I typing too much or people just don't li
Hello out there?
Am I typing too much or people just don't like my screen name?
I need some help! I'm tryna battle these folks with all my might but I'd love some guidance :).
reply
your letter looks good,i would look into fraud charges with the bank.from 2 years ago that is totally insane.those fees should be reversed.
