East Side Lenders, LLC
40 E Main S
Ste 410
Newark, DE 19711
Email: [email protected]
NAME
PHONE
Last Four of SS#: XXXX
CITY, STATE, ZIPCODE
After conducting research regarding Internet cash loan laws in the state of Michigan, I have found that your Internet cash loan are not legal or recognized as a business to operate in the state of Michigan. I have enclosed a copy of these laws, which your company is in DIRECT VIOLATION of.
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. 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 cash loans must be licensed in the state of Michigan to be a legal and binding contract, your company should NOT issue loans to Michigan residents. I am requesting that you send me your license number, which enables you to offer loans to Michigan residents.
The legal amount that could have been charged to my loan is the principal amount, even IF your internet fast cash loan were legal anywhere in Michigan. Therefore, on the basis of fraud and deception on the part of your company acting a licensed Michigan PDL, any prior contracts signed are null and void. At this time, I am requesting a letter via mail showing my account as “paid in full” as well as any negative remarks made to outside companies be reversed immediately and effective the date of this notice.
Furthermore, your representatives falsely representing themselves as “officers” to make threats of arrest, harm, and imprisonment is a DIRECT VIOLATION OF THE FAIR DEBT COLLECTIONS PRACTICES ACT and subject to severe penalties and punishment by Federal Authorities. All harassing calls and messages have been recorded and turned over to both local and federal authorities. Please be advised police reports have also been filed based on the threats made by your representatives.
I must also inform you that I have filed complaints with the Better Business Bureau {for Michigan and Delaware}, the Federal Trade Commission, and the Michigan AND Delaware Attorney General's Office. Also, since it has been revealed that this company is in violation of Delaware regulations and has been informed of this through prior legal documents citing such violations and complaints; this complaint has now been forwarded to the State Bank Commissioner Robert Glen. All agencies are now collaborating with the mentioned authorities in regards to the numerous illegal business transactions your company has conducted in various states, including Michigan.
Any collection company affiliated East Side Lenders who is attempting as a third party to collect this illegal debt, is also in violation of Fair Debt Collection Practices Act. Your company should advise them immediately, that this account was forwarded to them in error. Should East Side Lenders continue their attempt to collect on this debt, which has been deemed as illegal according to Michigan laws, would be a direction violation of the Fair Debt Collection Practices Act. This company will be pursued by the named governing bodies for attempting to collect on an illegal transaction on your behalf.
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. Telephone contact is strictly prohibited from the date of this letter.
Sincerely,
NAME
CC:
Better Business Bureau of Delaware
Better Business Bureau of Michigan
Michigan Attorney General
State Bank Commissioner of Delaware
Federal Trade Commission
Michigan Office Financial & Insurance Services
Delaware Board of Financial Institutions
Federal Bureau of Investigations
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Sent: Tuesday, March 16, 2014 10:13 AM
To: Weigold, Mark W (DLEG)
Subject: Pay Day/Fast Cash loan question
Hello,
Do internet based payday loan and fast cash lenders with no physical location in Michigan need to be licensed by Michigan to lend legally to Michigan consumers?
Thanks!
Response:
From: Weigold, Mark W (DLEG)
Sent: Tuesday, March 18, 2014 8:19 AM
To:
Subject: RE: Payday/Fast Cash loan question
In response to your inquiry:
Being internet-based is not an exemption of Michigan statute. The location of the entity providing the payday and fast cash loan (deferred presentment transaction in Michigan) does not create an exemption either. Based on your representation, a license is required to provide deferred presentment transactions in Michigan. Severe penalties may be incurred if an entity operates in Michigan without the requisite license.
Sincerely,
Mark W. Weigold, Manager
Consumer Finance Section
Office of Financial and Insurance Services
611 W. Ottawa Street
3rd Floor
Lansing, MI 48933
Business: 517/335-2073
Fax: 517/335-1501
Administrative action and fines to be imposed for unlicensed payday and fast cash lenders
OFIS Commissioner Linda A. Watters today announced she is cracking down on companies that are conducting unlicensed deferred presentment transactions. Deferred presentment providers, commonly known as payday lenders, who are operating without licenses will face administrative action and fines by the Office of Financial Services (OFIS).
Currently OFIS regulates payday lenders under the Deferred Presentment Service Transactions Act signed into law by Governor Jennifer Granholm in 2005. The law requires that deferred presentment providers be licensed at each location where they are conducting business. All Michigan deferred presentment providers were required to be licensed by June 1, 2006.
“While the majority of deferred presentment providers have complied with the law, we are aware of some payday and fast cash lenders who are operating illegally,” Watters said. “This law was put into place to protect consumers, and we intend to deal with all offenders to the full extent of the law.”
To date, OFIS has issued licenses to 780 locations. Access to licensee information may be found at www.michigan.gov/ofis under “Who We Regulate”.
Operating without a deferred presentment license is a violation of the law and violators are subject to a civil fine of not less than $1,000.00 or more than $10,000.00 for each violation.
However, if the Commissioner finds that a person has violated this act and that the person knew or reasonably should have known that he or she was in violation, the Commissioner may order the person to pay a civil fine of not less than $5,000 or more than $50,000 for each violation. The Commissioner may also order the person to pay the costs of the investigation.
OFIS is reviewing and investigating complaints, advertisements, and web sites in determining unlicensed deferred presentment activity. Companies found not in compliance with the licensing requirements will be dealt with to the full extent of the law, taking into consideration its cooperation with OFIS, how long the company has operated without a license, the number of deferred presentment transactions conducted, willfulness and intention of operating without a license, and in what capacity the company is in compliance with the law other than operating without the requisite license.
The law prescribes the conduct of deferred presentment service providers in a number of ways, including specific fee maximums for each loan on a reverse sliding scale; limiting the number of loans that a consumer can have at one time; imposing a maximum transaction amount of $600; providing a method for customers to seek restitution in case of a violation; and giving consumers the ability to voluntarily enter into a payment plan.
Companies that intend to conduct deferred presentment activities need to apply to the Commissioner and receive the appropriate license prior to conducting deferred presentment business.
