IPDL Status Question

Ashley, I received a "written off" from AIP. They were no longer doing loans in NC, they were prohibited in the first place, so they called me up one day and said that they were going to write my loan bal:$350.00 off and my account would be closed. I called them back and requested a PIF letter anyway. They sent me one, so now I have proof on paper..I would get a PIF letter just to be on the safe side... :D

You need to get a PIF Letter in the event that this does somehow end up on your credit report.

Written off and PIF both get you to the same place, but if it showed up on a credit report, it would be easier to dispute if you had a PIF letter. Ultimately, it would come off either way, but better to be on the safe side.

I think this brings up an interesting topic of IPDLS getting written off. I think you are going to see a ton of IPDLS getting written off in the near future because of the state of chaos that the PDL/IPDL/IPDL Debt Collection Industries are in.

Gee, that is good info...Check ur other post.. :D

In fact, the volume of my IPDL work is decreasing because these IPDLs are much more willing to just write it off where you were making payments rather than sell it to our company for pennies on the dollar. It makes more financial sense. Partially this is due to the fact that our company and similar companies are paying much less for this type of IPDL debt where the rollovers already exceed the principle plus legitimate interest. I have seen just in the past 2 years, the price we pay for this type of debt cut in half if not more than half. It's just getting harder and harder to collect on because of the laws and other factors.

But you are also going to see a lot of write offs because of so many companies closing up shop or ceasing business activity in states where it is no longer legal.

How would you suggest getting a IPDL company to mark it PIF or write it off when PDL are illegal in my state. The company insists that I pay them the remaining balance...

This is good info, Doug :D Now see, you can really help alot of us members out.

Well, which company are you dealing with? How much have you paid and how much was the original loan? Are they licensed anywhere? How much is left on the remaining balance? Have they shown any willingness to compromise? And finally, are you willing to pay any more amount?

I know that's a lot of questions, but to give you the best answer, I would want to know that information.

:arrow: Little Loan Shoppe (first address in NV, new one UT)
:arrow: original loan $100.00
:arrow: paid $25.00 renew fee, m.o. pmt $31.25
:arrow: Not sure about being licensed, but PDL are illegal in my state
:arrow: paid total of $56.25, saying that I still owe them $68.75??
:arrow: think that I owe them $43.75 for remaining balance to total $100.00

If you are willing to pay the $43.75, I would be shocked if they would not mark it as PIF. They would have to be absolute morons to refuse $43.75, and essentially hold out for $11 more

I think there is a realistic chance that ultimately, they just write off that debt given that it is small and PDLs are not legal in your state. Financially, it would not make any sense to sell that account at the rate they are going to get for it. Unless, they have an exclusive third-party collector who is contractually obligated to buy all their debt at a certain percentage of the total account.

You may think about writing them a letter asking them to write off the debt since it is such a small amount and PDLs are illegal in your state. If they have violated the fdcpa in the collection of the debt, I would throw that in the letter. Is it really worth it for them to run the risk of an AG complaint over 60 bucks. Hell no. Surely, someone on here would look over your letter and/or help you out with writing a good letter to them if you needed assistance.

BOTTOM LINE: If you are willing to pay the 43.75, surely some knucklehead there will take it and mark it PIF. If you don't want to go that route, try sending a letter citing laws, the small amount, and PDL's status in your state. And, if that fails as well, the loan probably ultimately gets written off anyway.

Well, thanks...I have sent them emails and emails and they send back the same one that says I signed a contract in Utah and the contract was done with my virtual signature that was scribbled onto notepad and emailed to them. They cut and pasted where they needed it to be and then emailed me a copy?? I checked over the "contract" and it says NV, not UT. Also, the next email said that I got the loan while I lived in a different state, I have never lived in another state. I have been here in NC for 22 years, my entire life... Also, when I talked to them today, they said that I owed them $93.75 and they refuse to mark it PIF. The emails that I sent them included NC laws and also my AG's info and their AG's info. They don't seem to be thinking about marking it PIF, would you pay them $93.75 or file the complaint???

I'd file the complaint certainly, first. CC Little Loan Shoppe with anything you send to your AG and their AG. I would file the complaint with both AGs.

Worst case scenario, even after the complaints they still refuse to mark it PIF or write it off and you get nowhere with the AG. Then you pay it off. I don't think this account is getting sold unless their third-party collector has to buy it pursuant their contract.

The stupidity and poor business skills of their action on this account is analagous to Bass and Associates in that these companies treat all accounts the same whether big or small and regardless of other factor like the legal status of PDLs in the debtors' state. They are treating this account as if it's good debt, and it isn't. It's 100 bucks in a state where PDLs aren't legal.

The comparison to Bass is that Bass and similar CA's treat all their accounts the same whether they should expect to collect 100 or 1000 on the account and regardless of the relevant law. They just harass, harass, harass and violate, violate, violate.

Ok, I will go ahead and file the complaint. Thanks again for your helpful info. :D

Is it me or are we starting to see a lot of migration into Utah after state legislation changes cause PDLs to shut down.

You may indeed be seeing a large migration of PDL companies to Utah, because Utah's PDL law seems set up to serve the lender, not the consumer, which is just WRONG. See below:



So correct me if I'm wrong here, but putting no limit on interest, no limit on the number of loans a person can have out at one time, no specification on legal action or payment plans.....doesn't this seem set up to serve the lender, rather than the consumer?

I recently helped a newcomer to the site who lived in Utah - unfortuntately, they really had no choice but to pay the loan as quickly as possible, because the law there affords no protection to the consumer at all. :evil:

You're right. I'm looking at an article from the Deseret News about PDLs in Utah. Legislators favor PDLs because they believe that putting a cap on interest rates would affect larger financial institutions. There is no legislation regarding IDPLs at all. And sadly, according to this article, while there are stories about people suffering from PDLs, no victims are ready to step forward and tell their stories.

There are only two people in Utah who are actively pursuing this issue. One is a woman by the name of Linda Hilton, who is the coordinator of the Coalition of Religious Communities. Another is Don Hester, co-owner of debt free Consumer Counseling, a company that is highly rated with debt consolidation Care. I think the bottom line is that before we can get any sort of action going, it needs to come from the masses -- the victims of PDLs and the way to do that is to get the word out through advertising/and flyers.

Linda approached me at the time I was homeless to help her with her efforts with the Coalition of Religious Communities. I declined because I was already handling enough just to try to get back into the mainstream and bring security back into my family's life. Now that I'm beyond that point, I will contact Linda and see what I can do to help.

seems Utah and Deleware are their favorite places and laws to quote

Did a little checking: Little Loan Shoppe is a Canadian company. They are registered in Utah. here's their address and the name of the person you need to contact:

503 West 2600 South
Bountiful, Utah 84010

Registered Agent is Troy Wallin at the same address.

What I don't get is why Utah. Nevada, Delaware and Oregon are the states that most people like to incorporate in because those states have statutes protecting the principals of the company, making it harder to trace the responsible person/entity and protecting them from liability. Nevada must have enacted some statutes making it harder for PDLs in that state.