Fresh Start Pay...HELP!
Date: Mon, 09/10/2012 - 08:29
I sent the below letter to Fresh Start Pay on 8/16/12, and they are continually calling me, which is fine, but now they're telling me that I need to have my attorney contact them or send them a power of attorney as they are going to continue to collect on the debt that is owed to them. I haven't been answering the phone but in a rash moment of not paying attention I answered the phone without looking at the caller ID and guess who it was......
Is there anything that I need to be concerned about???
[COLOR=black]Fresh Start Payday Loans[/COLOR]
[COLOR=black]4350 Salish Dr., Suite 100[/COLOR]
[COLOR=black]Vancouver, BC, V6N3M7[/COLOR]
[COLOR=black]After doing research regarding Internet payday loan laws in the Commonwealth of Virginia, I have found that your Internet payday loans are actually illegal. I have also found the following laws to be true applying to payday loans in the Commonwealth of Virginia in general: [/COLOR]
Quote:
Virginia State Information
Legal Status: Legal
Citation:
Payday Loan Act, §6.1-444 et seq. of the Code of Virginia.
Loan Terms:
Maximum Loan Amount: $500
Loan Term: Minimum 14 days, dependent upon pay cycle (term is double the pay cycle)
Maximum Finance Rate: 36% simple annual interest rate
[COLOR=black]Loan Fee: 20% of money advanced (i.e., $20 per $100 borrowed)[/COLOR]
[COLOR=black]Verification Fee: Not to exceed $5.00[/COLOR]
Debt Limits:
Maximum Number of Outstanding Loans at One Time: 1
Rollovers Permitted: None (cannot refinance, renew, or extend)
Repayment Plan: Allowed, Once in any rolling 12-month period (even if you obtain loans from different lenders or locations). Under an extended payment plan, you are permitted to repay the amount you owe in at least four equal installments spread out evenly over a term of at least 60 days. You will not be charged any additional interest or fees in connection with an extended payment plan, and interest will not accrue during the term of an extended payment plan.
Virginia code specifically states the following regarding licensure and Virginia's laws governing payday lenders apply to any entity making a payday loan to a Virginia resident.
§ 6.2-1801. License requirement
A. No person shall engage in the business of making payday loans to any consumer residing in the Commonwealth, whether or not the person has an office or conducts business at a location in the Commonwealth, except in accordance with the provisions of this chapter and without having first obtained a license under this chapter from the Commission.
B. No person shall engage in the business of arranging or brokering payday loans for any consumer residing in the Commonwealth, whether or not the person has an office or conducts business at a location in the Commonwealth.
[COLOR=black]I hereby revoke any and all ACH authorizations with your company from debiting any of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I also revoke any and all wage assignments I may or may not have signed with your company. I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for your collection purposes.[/COLOR][COLOR=black] I have notified my employer about this matter so any attempts to do so on your part will be rejected. [/COLOR]
[COLOR=black]The legal amount that could have been charged to my loan is the principal amount of $ 400 + $35.90 Finance Fee + $80.00 Loan Fee + $5.00 Verification Fee for a total of $ 520.90. Through debit entries to my account, I have repaid $ 805.00, which is an overpayment of $ 284.10. Please mark my account as PAID IN FULL and mail me a letter stating that fact, so that I may add it to my records. Along with the letter please send my refund $ 284.10 to the address above.[/COLOR]
I prohibit you or your affiliates to contact me via telephone at my place of employment or my home telephone number. I also prohibit you from calling my references listed on my loan. Once I inform you of this, you must stop telephone contact immediately or you will be once again breaking the laws of the Commonwealth of Virginia. I demand that any contact be made through US Postal mail or email only. I will need everything in writing to keep accurate records of all communication as per instruction from my Attorney General's Office.
Due to the fact that Internet payday loans must be licensed in the Commonwealth of Virginia to be a legal and binding contract, your company should NOT issue loans to Virginia residents at all. I am requesting that you send me your license number which enables you to offer loans to Virginia residents.
I must also inform you that I will be filing complaints with the Better Business Bureau, the Federal Trade Commission, and the Virginia Attorney General's Office.
I expect a response from your company no later than 5 days from the above date regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted.
Is there anything that I need to be concerned about???
[COLOR=black]Fresh Start Payday Loans[/COLOR]
[COLOR=black]4350 Salish Dr., Suite 100[/COLOR]
[COLOR=black]Vancouver, BC, V6N3M7[/COLOR]
[COLOR=black]After doing research regarding Internet payday loan laws in the Commonwealth of Virginia, I have found that your Internet payday loans are actually illegal. I have also found the following laws to be true applying to payday loans in the Commonwealth of Virginia in general: [/COLOR]
Quote:
Virginia State Information
Legal Status: Legal
Citation:
Payday Loan Act, §6.1-444 et seq. of the Code of Virginia.
Loan Terms:
Maximum Loan Amount: $500
Loan Term: Minimum 14 days, dependent upon pay cycle (term is double the pay cycle)
Maximum Finance Rate: 36% simple annual interest rate
[COLOR=black]Loan Fee: 20% of money advanced (i.e., $20 per $100 borrowed)[/COLOR]
[COLOR=black]Verification Fee: Not to exceed $5.00[/COLOR]
Debt Limits:
Maximum Number of Outstanding Loans at One Time: 1
Rollovers Permitted: None (cannot refinance, renew, or extend)
Repayment Plan: Allowed, Once in any rolling 12-month period (even if you obtain loans from different lenders or locations). Under an extended payment plan, you are permitted to repay the amount you owe in at least four equal installments spread out evenly over a term of at least 60 days. You will not be charged any additional interest or fees in connection with an extended payment plan, and interest will not accrue during the term of an extended payment plan.
Virginia code specifically states the following regarding licensure and Virginia's laws governing payday lenders apply to any entity making a payday loan to a Virginia resident.
§ 6.2-1801. License requirement
A. No person shall engage in the business of making payday loans to any consumer residing in the Commonwealth, whether or not the person has an office or conducts business at a location in the Commonwealth, except in accordance with the provisions of this chapter and without having first obtained a license under this chapter from the Commission.
B. No person shall engage in the business of arranging or brokering payday loans for any consumer residing in the Commonwealth, whether or not the person has an office or conducts business at a location in the Commonwealth.
[COLOR=black]I hereby revoke any and all ACH authorizations with your company from debiting any of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I also revoke any and all wage assignments I may or may not have signed with your company. I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for your collection purposes.[/COLOR][COLOR=black] I have notified my employer about this matter so any attempts to do so on your part will be rejected. [/COLOR]
[COLOR=black]The legal amount that could have been charged to my loan is the principal amount of $ 400 + $35.90 Finance Fee + $80.00 Loan Fee + $5.00 Verification Fee for a total of $ 520.90. Through debit entries to my account, I have repaid $ 805.00, which is an overpayment of $ 284.10. Please mark my account as PAID IN FULL and mail me a letter stating that fact, so that I may add it to my records. Along with the letter please send my refund $ 284.10 to the address above.[/COLOR]
I prohibit you or your affiliates to contact me via telephone at my place of employment or my home telephone number. I also prohibit you from calling my references listed on my loan. Once I inform you of this, you must stop telephone contact immediately or you will be once again breaking the laws of the Commonwealth of Virginia. I demand that any contact be made through US Postal mail or email only. I will need everything in writing to keep accurate records of all communication as per instruction from my Attorney General's Office.
Due to the fact that Internet payday loans must be licensed in the Commonwealth of Virginia to be a legal and binding contract, your company should NOT issue loans to Virginia residents at all. I am requesting that you send me your license number which enables you to offer loans to Virginia residents.
I must also inform you that I will be filing complaints with the Better Business Bureau, the Federal Trade Commission, and the Virginia Attorney General's Office.
I expect a response from your company no later than 5 days from the above date regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted.
Typical collection tactics. No worries. Keep responding with y
Typical collection tactics. No worries. Keep responding with your original letter.