Round 2 with Cash Call/Western Sky
Date: Fri, 09/21/2012 - 06:42
[INDENT][COLOR=black]Thank you for your correspondence. Per your written request the ACH draft has been stopped on this account per your request as of September 9, 2012. Also, we have investigated your concerns and have confirmed that the debt referred to in your correspondence is valid and that we are correctly reporting all credit information for this loan. In summary, this is a valid debt that has not been paid in full. The payoff amount as of September 20, 2012 is $2,814.71; your remaining principal balance is $2,306.67. You have made only 18 payments toward your loan, out of 37.[/COLOR]
[COLOR=black]Additionally, the terms of the loan remain intact and the same as when you signed and executed your loan agreement. You do not dictate the terms of the loan. For your ease of review, attached please find an additional copy of your Loan Agreement. I have also included a copy of your payment history and your actual payment schedule for your records.[/COLOR]
[COLOR=black]Notwithstanding the aforementioned, in an effort to resolve this matter, and in light of your excellent repayment history, CashCall is willing to either (i) Reduce your interest rate to 47%, which will in turn significantly reduce your monthly payment amount, or (ii) Settle your account for a lump sum payment of $2,000.00 to be paid in guaranteed funds, on or before September 28, 2012. [/COLOR]
[COLOR=black]Please call us at 714-221-3300 no later than Monday September 24, 2012 to accept this offer.[/COLOR]
[COLOR=black]In summary, this loan is valid and enforceable, and we have confirmed that his account balance is accurate and that we are reporting all credit information correctly for this loan. [/COLOR]
[/INDENT]Is that sweet that they want to settle the loan AND reduce my interest rate. My reply is:
[INDENT][COLOR=black]Ms Chavez,
Per the MN state statues (§47.20; §334.03) any contract that has an interest rate that exceeds the allowable 8% interest rate for written contracts are voided; thus any contract is not valid. Additonally the penalty for Usury states that (§334.02): payor may recover full interest on premiums paid with costs; usurious interest will results in forfeitures of all interest and payor may recover twice interest paid.
[COLOR=black]Based on the state statues referenced above, there is no legally binding contract. The amount deposited in my account as been more then paid back; I have paid a total of 5,081.12 for a 2600.00 loan. Thus once again I demand that you send me a paid in full and that Cash Call either be deleted from by tradeline or update my tradeline to a paid in full status.[/COLOR][/COLOR]
[/INDENT]
Any other suggestions?
Thanks Soaplady... Found that they are still over the allowed ra
Subd. 3.Finance charge for loans.
(a) With respect to a loan, including a loan pursuant to open-end credit but excluding open-end credit pursuant to a credit card, a financial institution may contract for and receive a finance charge on the unpaid balance of the principal amount not to exceed the greater of:
(1) an annual percentage rate not exceeding [URL="https://www.revisor.leg.state.mn.us/statutes?year=2011&id=21.75#stat.21.75"]21.75[/URL] percent; or
(2) the total of:
(i) 33 percent per year on that part of the unpaid balance of the principal amount not exceeding $750; and
(ii) 19 percent per year on that part of the unpaid balance of the principal amount exceeding $750.
The usury cap has nothing to do with your loan. The reason your
The usury cap has nothing to do with your loan. The reason your contract is unenforceable/voided is because it's tribal.
[QUOTE]The Fort Laramie Treaty, 15 Stat. 635, between the United States and the tribes of the Sioux Nation, ???created the ???Great Reservation??? for the Sioux and set off lands ???for the absolute and undisturbed use and occupation of the Indians.??? ??? Calhoon v. Sell, 71 F.Supp.2d 990, 999 (D.S.D.199 (guoting 15 Stat. 635) .FN8 Under the treaty, States may not ???interfere with reservation self-government??? or tax on-reservation activities. Rice, 463 U . S. at 718. This gives tribes the power to regulate ???the activities of nonmembers who enter consensual relationships with the tribe or its members, through commercial dealing, contracts, leases, or other arrangements,??? but only when the ???non-Indians [are] on their reservations.??? Id. at 565.FN9 [/QUOTE]
Well I'd say both are relevant the usury cap and the tribal stat
Well I'd say both are relevant the usury cap and the tribal status
Well you'd be wrong. The fact that the lender is tribal makes
Well you'd be wrong.
The fact that the lender is tribal makes the entire loan contract unenforceable. Even if they were charging below the usury cap, it would still be an illegal, unenforceable contract in the U.S.
Wow this is dejavu.. I got the EXACT same letter from her too! E
Wow this is dejavu.. I got the EXACT same letter from her too! Exact same payoff to settle, the reduction in interest rate to 47%, etc, even the same date to "accept" the offer! What are you going to do?
I have filed a complaint with the
Consumer Financial Protection Bureau per the direction of my state attorney. My state attorney has also sent them a letter requesting they send a written response to them within 10 days of receiving her letter (dated 9/26).
I have sent another email to Ms. Chavez stating:
Ms. Chavez,
I still await the Paid In Full statement from you. Please foward this as soon as possible. Please be advised that I have filed complaints with my State Attorney General, Ms. Lori Sawson, the State of MN Department of Commerce and also with the Consumer Financial Protection Bureau.
I would appreciate your prompt response.
Sincerely,
I guess I will wait and see what they do next. They haven't called me, sent me any letters and/or emails so I'm not sure what they will do.