new member with loans in vermont

Hi all,
I have several payday loans which I've started taking steps to sever from my wallet. I just want to see if I have taken the correct steps.
1) Contacted VT division of banking regarding internet payday loans in vermont and their legality. Was advised to close bank account and copy all e-mails, letters to banking division and the VT attorney generals office.
2) Closed bank account and opened up a new one. Placed a hard stop on the closed account and also placed ACH debit stops on all IPDLS.
3) Sent Cease and desist letter to all of the IPDLS wednesday 9/10 via e-mail, will be sending hard copies on monday. Copy of Cease and desist letter to follow @ end of post.

I've only recieved one reply from nevis marketing saying that I signed a contract stating that I would adhere only to bahama's/nevis law. I wrote them back saying that by lending to a vermont resident they have to adhere to VT law.
Also the VT AG office just wrote me back saying that they would create a file with all of my records, but to contact a private attorney if need be.
Thanks so much for any help in advance.

Copy of C&D
Date: 9/10/08 Discount Advance

After doing research regarding Internet payday loan laws in the State of Vermont, 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 State of Vermont in general:

8 V.S.A. Chapter 73 §2201 prohibits any person to engage in the
business of lending without first obtaining a license from the
commissioner.

8 V.S.A. §2233 Effect:

(a) No person who is required to be licensed under this chapter, shall
directly or indirectly charge, contract for, or receive any interest,
discount, consideration or charge greater than is authorized by section
41a or 46 of Title 9. No such loan for which a greater rate of interest,
finance charge, consideration or charges than is authorized by section
41a or 46 of Title 9 has been charged, contracted for, or received shall
be enforced in this state, and every person in any way participating
therein in this state shall be subject to the provisions of this
chapter. However, any loan legally made in any state which then had in
effect a regulatory loan law similar in principle to this chapter may be
enforced in this state only to the extent of collecting the principal
amount owed and interest thereon at a rate not greater than that
authorized by section 41a or 46 of Title 9.

(b) A loan solicited and made by mail, telephone or electronic means to
a Vermont resident shall be subject to the provisions of this chapter
notwithstanding where the loan was legally made. No person shall engage
in the business of soliciting and making loans by mail, telephone or
electronic means to residents of this state unless duly licensed. Such
licensee shall be subject to the applicable provisions of this title and
chapters 4, 59 and 61 of Title 9, but shall not be required to have or
maintain a place of business in the state.

(c) No person other than a bank, savings and loan association, credit
union, pawnbroker, insurance company, or seller of merchandise or
services shall engage in specialized financing, including but not
limited to tuition plans or other such financing, but not including
insurance premium financing, for residents of this state unless duly
licensed. Such licensee shall be subject to the applicable provisions of
this title and chapters 4, 59 and 61 of Title 9, but shall not be
required to maintain a place of business in this state. Such financing
may include more than one loan per borrower. A license granted to such
lenders shall be explicit in its authority with respect to the types of
business permitted. (Amended 1969, No. 243 (Adj. Sess.), § 7; 1975, No.
76; 1979, No. 173 (Adj. Sess.), § 10, eff. April 30, 1980; 1983, No. 77,
§ 2; 1995, No. 162 (Adj. Sess.), § 33, eff. Jan. 1, 1997.)

8 V.S.A. §2519 (a) (13) No licensee shall agree to hold a payment
instrument for later deposit. No licensee shall cash or advance any
money on a postdated payment instrument.

9 V.S.A. §41a(b)(1), (5) The rate of interest or the sum allowed:

(1) For single payment loans by lenders regulated by Title 8 and
federal savings and loan associations, the finance charge shall not
exceed 18 percent per annum.

5) For an installment loan not otherwise limited by the preceding
subdivisions of this subsection, the interest rate shall not exceed 24
percent per annum on the first $1000.00 of the aggregate balance
outstanding; and shall not exceed 12 percent per annum of the aggregate
balance outstanding in excess of $1000.00; or 18 percent annual
percentage rate on the aggregate balance outstanding whichever is
higher.


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 have closed my account with the ****** Bank to protect my interest in this matter, per instructions from The Vermont Department of Finance. 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. I have notified my employer about this matter so any attempts to do so on your part will be rejected.

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.
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.

Due to the fact that Internet payday loans must be licensed in the state of Vermont to be a legal and binding contract, your company should NOT issue loans to Vermont residents at all. I am requesting that you send me your license number which enables you to offer loans to Vermont residents.

The legal amount that could have been charged to my loan is the principal amount, even IF your Internet pay day loan were legal anywhere in the U.S.. I am willing to pay the principle amount of the loan only, however, this is only if you provide me with a physical address where I can send payments.

I must also inform you that I will be filing complaints with the Better Business Bureau, the Federal Trade Commission, and the Vermont 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.

Sincerely,


CC:
Better Business Bureau
Vermont Attorney General
Federal Trade Commission