Cash Call
Date: Mon, 07/02/2012 - 09:05
I have made them aware that their loans are not welcome in the state of GA and sent them this:
After some further research in regards to tribal loans in the State of Georgia, I have found that this loan activity is actually illegal. I have also learned the following laws apply to payday loans in the State of Georgia in general,
The loan originator was Western Sky, the loan is illegal even when it is being held by CashCall.
Legal Status: Prohibited (Industrial loan lenders must be licensed in GA)
Laws: Industrial loan act applies.
[COLOR=black][URL="http://www.georgia.gov/vgn/images/portal/cit_1210/21/40/108048177OCGA7-3GILA.pdf"]Ga. Code Ann. 7-3-14[/URL]
[URL="http://rules.sos.state.ga.us/docs/80/3/1/02.pdf"]Ga. Comp. R. & Regs. r. 80 3-1.02(7)[/URL]
[URL="http://law.justia.com/codes/georgia/2010/title-16/chapter-17/16-17-1/"]O.C.G.A. Section 16-17-1 et seq.[/URL][/COLOR]
Attorney General Sam Olens Intervenes to Stop Illegal Payday Lending in Georgia
At the urging of Georgia Attorney General Sam Olens’ office, Payday Financial, LLC, Green Billow, LLC and Western Sky Financial, LLC, payday lenders which claim to be Native American owned and operated, have agreed to cease making loans in Georgia. The Attorney General’s office alleges that the companies made illegal payday loans in Georgia through websites they operate.Georgia law specifically prohibits the making of payday loans, including the making of payday loans to Georgia residents through the internet (O.C.G.A. § l6-17-1, et seq).
According to the Federal Trade Commission, Martin A. Webb operates Payday Financial, LLC, and several related businesses in Timber Lake , South Dakota . The entities offer short-term, high-fee, unsecured payday loans of $300 to $2,525 to consumers throughout the country, advertising on television and through websites.
The businesses purport to be “wholly Cheyenne River Sioux Tribal Member owned…operating within the Cheyenne River Indian Reservation.†Although, attorneys for Mr. Webb claim that the companies are exempt from Georgia law due to tribal (sovereign) immunity, theAttorney General’s office has made clear that when a company conducts business in Georgia , Georgia law applies.
“When it comes to payday lending in Georgia , there is no gray area.It is unquestionably illegal in any form,†said Attorney General Sam Olens. “We will not stand for unscrupulous, out-of-state lenders taking advantage of Georgia consumers by skirting our laws.â€
“The Attorney General’s timely and decisive action resulted in this entity ceasing to do business in our state,†said Governor’s Office of Consumer Protection Administrator John Sours. “We are pleased that Georgia consumers will benefit and look forward to ridding our state of all such illicit operators.â€
Cash call response - I have no idea what to do next
Just got the response:
[SIZE=3]I???ve discussed your complaint with the company at length and unfortunately they???re unwilling to agree to your request. Here is the exact text of their response:[/SIZE]
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[FONT=Times New Roman][SIZE=3][COLOR=#000000][COLOR=blue]Initially please be advised that on June 20, 2012, CashCall stopped Mr. monthly ACH as well as ceased all calls to Mr. in accordance with state and federal guidelines, and took steps to ensure all future contact will be in writing only. [/COLOR][/COLOR][/SIZE][/FONT]
[FONT=Times New Roman][SIZE=3][COLOR=#000000][COLOR=blue]With regard to Mr. loan, please be advised that CashCall is servicing an unsecured installment loan that Mr. obtained from Western Sky. It is not a payday or deferred deposit loan. Further his payments are not ???renewal??? payment but rather installment payments scheduled to be repaid over 25 months. [/COLOR][/COLOR][/SIZE][/FONT]
[FONT=Times New Roman][SIZE=3][COLOR=#000000][COLOR=blue]monthly installment Further, his loan was originated and funded by Western Sky on December 29, 2010 in the amount of $2,525.00 which is the loan amount of $2,600.00 minus the $75.00 Prepaid Finance Charge/Origination Fee As such, all questions regarding the origination and funding of Mr. loan should be directed to Western Sky, at: P.O. Box 370, Timber Lake, South Dakota, 57656. [/COLOR][/COLOR][/SIZE][/FONT]
[FONT=Times New Roman][SIZE=3][COLOR=#000000][COLOR=blue]As background, Western Sky is a wholly Cheyenne River Sioux Tribal Member owned business and is located and operates within the exterior boundaries of the Cheyenne River Indian Reservation. Western Sky loans are initiated, approved, issued and disbursed within the confines of the Cheyenne River Indian Reservation. Western Sky is licensed with the Cheyenne River Sioux Tribe. [/COLOR][/COLOR][/SIZE][/FONT]
[FONT=Times New Roman][SIZE=3][COLOR=#000000][COLOR=blue]Upon review of the file sent to CashCall by Western Sky, the loan documents clearly indicate that the laws of the Cheyenne River Sioux Tribe apply exclusively to the terms and conditions of Mr. loan, and he further accepted this choice of law and jurisdiction by executing his loan document. These facts were explained to when she applied and again when she signed his Consumer Loan Agreement (???Note???). Western Sky does not have any physical presence Georgia or any other State of the Union. [/COLOR][/COLOR][/SIZE][/FONT]
[FONT=Times New Roman][SIZE=3][COLOR=#000000][COLOR=blue]The Truth in Lending Act Disclosure Statement at the top of page one clearly displays the Annual Percentage rate (???APR???) as 139.17% and a Total Finance Charge of $8,265.82. The APR was disclosed in accordance with the requirements of the Truth in Lending Act. Notwithstanding these disclosures, borrowers are free to pay their loan in part or in full at anytime without penalty. was also sent a settlement statement via electronic mail to the address he supplied, confirming the terms and conditions of the Note, on December 29, 2010. [/COLOR][/COLOR][/SIZE][/FONT]
[FONT=Times New Roman][SIZE=3][COLOR=#000000][COLOR=blue]On January 1, 2011, per the Notice of Assignment, Sale or Transfer of Servicing Rights e-mail sent to the address provided by loan was sold to WS Funding, LLC (???WS???), and is currently being serviced by CashCall. Under long-standing principles of assignor-assignee rights, CashCall is permitted to stand in the shoes of the maker of the loan and enforce the terms of that loan pursuant to the choice-of-law provisions contained in the agreement. [/COLOR][/COLOR][/SIZE][/FONT]
[FONT=Times New Roman][SIZE=3][COLOR=#000000][COLOR=blue]As of the date of this response, the current payoff amount is $2,540.22. The remaining principal on the account is $2,306.67. The last payment was received on June 1, 2012 and the account is current. [/COLOR][/COLOR][/SIZE][/FONT]
[FONT=Times New Roman][SIZE=3][COLOR=#000000][COLOR=blue]In an effort to resolve this matter, CashCall is willing to reduce current interest to 45% which will greatly reduce his monthly payment. Please have contact Elissa from CashCall at (949)-752-4630 if he would like to accept this offer or for further assistance with his account.
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As you can see, they???ve provided a complete explanation of the various events affecting your agreement. I realize that you???re probably not satisfied with the explanation, but the company has made it clear to me that this is their final position and they???re unwilling to issue any additional credit.
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[SIZE=3]If you wish to pursue your concerns, you may want to consider filing a formal complaint with your Attorney General, FTC or legal action in small claims court. [/SIZE]
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[SIZE=3]I sincerely regret that I was unable to effect a settlement that you would regard as fair and appropriate. Other than keeping the report on the company???s file, I???m sorry to say there is nothing else I can do. Please know that I???ve done my absolute best to assist you and, though the outcome of your complaint did not turn out as you wished, I hope you???ll consider using our service next time.[/SIZE]
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Regards,
--
April Jimenez
818.401.4582
[URL="http://www.trustlink.org/"]www.Trustlink.org[/URL]
and then I get this
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Thank you for your correspondence. Contrary to your statements, CashCall did respond to your first e-mail of June 19, 2012, on June 20, 2012 in a letter from Jean Kohles, which outlined the fact that your loan was funded by Western Sky Financial (???Western Sky???), not CashCall. As stated in your Notice of Loan Transfer, dated January 1, 2011, your loan was purchased by WS Funding and is currently being serviced by CashCall.
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As stated in Ms. Kohles??? letter, and in CashCall???s response to the complaint you filed recently with the Better Business Bureau, the loan in question isnot a payday loan, as you referenced in your correspondence. Rather, it is an installment loan with a definite term, scheduled to be repaid over 36 months. To date, you have made 17 of the 36 payments, leaving 19 monthly payments remaining. In summary, this debt is legal and valid, and we will not be issuing you a refund. The payoff amount on this loan as of July 2, 2012 is $2,574.67. As a courtesy, please find attached a copy of your Actual Payment Schedule and an additional copy of your Loan Agreement for your records.
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Notwithstanding the aforementioned, and in light of your excellent repayment history, CashCall is willing to settle this matter for a lump sum of $500, to be made in guaranteed funds no later than July 11, 2012. Please let me know if you would like to accept this offer.
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Sincerely,
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Elissa Chavez
Director of Fraud Prevention/Dispute Resolution
(949) 752-4630- Direct
(866) 590-2274, ext. 4630- Toll-Free
You only owe them $2525. Anything you've paid over that, you're
You only owe them $2525. Anything you've paid over that, you're due a refund.
Choice of law doesn't apply.
This isn't a payday loan, it's an installment loan. Payday loan laws don't apply. What does apply is the fact that, they are not licensed to lend in the state of GA or any other state, which makes your contract unenforceable.