Payday-Loan-Yes

Date: Fri, 04/29/2011 - 09:12

Submitted by anonymous
on Fri, 04/29/2011 - 09:12

Posts: 202330 Credits: [Donate]

Total Replies: 1

I filled out a general app for a loan. This company responded and I asked to see the loan documents and figure out the fees before I agreed to the loan. When I saw the interest rate I decided I would not sign the loan. The next morning there was a deposit of $300 in my account from them. Many emails flew back and forth and a customer rep admitted in writing that they had processed the loan even though I had not signed it. I have been fighting them ever since. They have taken 3 payments of $105 so I have paid back the original loan. I sent them the letter I saw on this website and included the emails that showed I never actually signed for the loan to start with and also revoking the ACH and any wage assignment. I provided the payment dates and amounts and said that I was paid in full. They are still fighting with me and sent me this statement:

[COLOR=black][FONT="]****Governing Law Both parties agree that this Note and your account shall be governed by all applicable federal laws and all laws of the jurisdiction in which the Lender is located, regardless of which state you may reside, and by signing below or by your electronic signature, you consent to the exclusive exercise of regulatory and ad judicatory authority by the jurisdiction in which the Lender is located over all matters related to this Note and your account, forsaking any jurisdiction which either party may claim by virtue of its residency. **** I apologize you are liable for the loan in full.

They say that even though I paid over $300 ($315 to be exact) that I have not paid on the original amount I have only paid the fees and they say I still owe them $405 (the $300 plus a new $105 fee). I don't know what to do. My bank won't do a stop payment or hard block and I don't know if they will try to debit me again. I do not want to close my bank account over this, I have been with my bank for more than 7 years. [/FONT][/COLOR]

Is their statement above legal? They are not licensed in my state (NY) but they are saying it doesn't matter. Can anyone advise me on what to do?

No, what they are doing is not legal. Talk to the bank again, sh

No, what they are doing is not legal. Talk to the bank again, show them the email/letter stating they messed up and that you never authorized them to deposit or deduct anything. This is theft, and the bank is required to block them from taking money (although, they may place a hold on the entire account, not just these debits). File complaints with the AG, FTC, and your local authorities for theft. I tried yesterday to post some good information with precedents on why your state holds jurisdiction, not theirs and that they are bound by your state laws, but for some reason the post wouldn't go through.
Anyway, if you never agreed to it, then they cannot deduct one cent from you, by doing so it is theft. Their statement is BS, the are full of BS. Take the documents to the bank, then file complaints/charges. Heck, I'd even try and find a lawyer to sue them as well.

lrhall41

Submitted by on Fri, 04/29/2011 - 09:59

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