Second Letter Template Anyone Can Use With the PDL Crooks

(Date)

(Your Name)
(Your Address)
(Your City, Your State, Your Zip)
(Your Phone)
(Your E-mail)

(PDL Name)
(PDL Address)
(PDL City, PDL State, PDL Zip)

RE: Payday loan account number (use your SSN if you don't have an actual PDL account number)

To Whom It May Concern:

As of today, (Date), I do not authorize (PDL Name), nor any representative, parent company, affiliate, or subsidiary of (PDL Name) to withdraw any funds from the checking account under the name of, (Your Name), account number (Your Bank Account Number), (Your Bank Name). In fact, I have closed this account to prevent further unauthorized activity in this account.

Your company is in violation of Louisiana Stat. Ann. § 3578.1 et seq. which states (in part):

Ҥ 1503 Licensure of Brokers

A. No person having an office in Louisiana shall broker a loan in Louisiana unless exempt by statute, without first being licensed and complying with the provisions of the Louisiana Loan Brokers Act.”

According to the Louisiana Office of Financial Institutions, your company is neither licensed nor registered in the state of Louisiana nor do you have an office in the state of Louisiana.

Furthermore, your company is in violation of other sections of Louisiana Stat. Ann. § 3578.1 et seq. I have summarized the applicable sections here.

Loan Term: 60 days
Maximum Finance Rate and Fees: $5 documentation fee + the greater of 16.75% of check or $45 (After default: months 1-12: 36% per year; months 13 and beyond: 18% per year)
Finance Charge for 14-day $100 loan: $25
apr for 14-day $100 loan: 650%
Rollovers Permitted: None (cannot renew or rollover but licensee may accept partial payment of 25% of amount advanced plus fees and enter into new loan)

In addition, your claim that the contract I signed is only governed by the law of the state in which your company resides is unsubstantiated. Your company solicited, accepted, and transacted business with a citizen of Louisiana. Thus your company is subject to the laws of Louisiana including usury laws and statutes governing “small loan” lenders.

According to your own Truth in Lending disclosure, your Annual Percentage Rate is 782.14%. According to Louisiana law (as shown above) the maximum allowable APR for payday loans is 650%. As you can see from your past records, on other loans I had with your company, I have paid well above the 650% APR allowed by Louisiana law. I will not be doing that in this case.

Since your company is in violation of Louisiana law, I am offering (PDL Name) an opportunity to settle this account. To date, I have paid a total of $315 on a $350 payday loan with your company. Since Louisiana law only allows a maximum of $87.50 to be charged on a $350 payday loan and I have already paid $315 of the total of $437.50 allowed by Louisiana law, I will be paying (PDL Name) the remaining balance of $122.50. You will soon be hearing from my representatives concerning the remaining terms of this settlement.

Furthermore, at no time will (PDL Name), any representative, parent company, subsidiary, or affiliate of (PDL Name) place any derogatory mark on my credit report with any credit bureau, nor any other check writing database, such as Teletrack or any equivalent database. In addition, (PDL Name) will not pursue any type of wage assignment (voluntary or otherwise) against me now or at any time in the future.

All telephone communication to my home or place of employment is to cease and desist and you will not contact my references at any time. All correspondence as of today shall be in written form through e-mail (using the e-mail address listed previously) or written letter through the United States Postal Service.

If (PDL Name) does not abide by the settlement conditions stated above, I will have no choice but to file a civil suit against (PDL Name) for the monetary damages that I am entitled to per Louisiana law, and all legal fees that I acquire during the course of such a civil suit. I will also formally complain to, and request that the Attorney General of Louisiana, Charles C. Foti, Jr., file criminal charges against (PDL Name) for its illegal lending practices to consumers within the State of Louisiana.

Please acknowledge receipt of this letter, and acknowledge acceptance of, and willingness to adhere to the settlement described above, in writing, within 24 hours of receipt. If I do not receive this acknowledgement within 24 hours, I will begin the legal proceedings described above.

Thank you for your prompt attention and cooperation in this matter.

Sincerely,

(Sign Here)

(Your Name)