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Response from Mypaydayloan.com - Help with RESPONSE please

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I sent letter to mypaydayloan.com and received the following response. They are claiming i am inviolation of copyright laws? I know this is an illegal lender - I am in PA and this is an online payday loan. I have received from other companies, but this is the first time I have seen one like this. Has anyone else received a response like this one:

In acknowledgment of the email we received, we would like to clarify the issues pertaining to the transaction you originated with Mypaydayloan.com.

First, we wish to remind you that all correspondence from Mypaydayloan.com is copyrighted, and you consented to such before applying for an advance.

Specifically, the website states:

Except where expressly provided otherwise herein, all emails, comments, feedback, information or materials submitted to Mypaydayloan.com through or in association with this web site ("Submissions") shall be considered Mypaydayloan.com's copyrighted property. By providing such Submissions to Mypaydayloan.com, you agree to assign to Mypaydayloan.com all worldwide rights, title and interest in the copyrights and other intellectual property rights to the Submissions.

Any publication, posting, or dissemination of such information is in direct violation of this agreement and you will then be liable for copyright infringement, disclosure of confidential information, and breach of contract. Additionally, because it would be difficult, if not impossible, to determine the amount of damages to Mypaydayloan.com, you will be liable for liquidated damages in the amount of $25,000, per violation, for your publication, posting, or dissemination of information from or relating to Mypaydayloan.com. You agreed to this provision immediately after your email was validated, and before you proceeded with the application. Failure to remove any postings within two business days of receipt of this letter may result in a civil suit for liquidated damages.

Mypaydayloan.com is a Costa Rican corporation with servers, offices, employees, and all other important elements of the transaction located in Costa Rica. You engaged in an unsolicited transaction with Mypaydayloan.com, a Costa Rican company. Furthermore, in the contract you agreed that the transaction would be deemed to occur in our country, Costa Rica, and you agreed to be bound by Costa Rican Law.

Specifically, the contract you signed in order to receive an advance clearly states:

GOVERNING LAW: Both this agreement and the application is considered to be executed at our offices in San Jose, Costa Rica, and this transaction and agreement with us shall be governed by, construed, and enforced solely in accordance with the internal laws of Costa Rica.

Forum selection clauses, like the one above, are supported by U.S. case law. For example, see the opinion of the United States Supreme Court in M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1, (1972). Likewise, U.S. courts have upheld the sovereignty of foreign entities engaging in unsolicited business in the United States. Crown Beverage Co., Inc. v. Cerveceria Moctezuma, S.A., 663 F.2d 886, 888 (9th Cir. 1981)

Furthermore, the controlling forum for a contract is determined by the “lex loci contractus,” which is the law of the place where a contract is made. A contract is deemed to be executed where the final act necessary to make it binding has been completed. In this instance, the transaction was not binding until reviewed and approved by Mypaydayloan.com, after they received all information from you to make a decision to enter into the agreement. Hence, the final act to make the transaction binding was in the jurisdiction of Costa Rica, and that country’s laws are binding. See e.g., Mitsubishi Int'l Corp. v. Clark Pipe & Supply Co., Inc., 735 F.2d 160, 164 (5th Cir. 1984).

Lastly, any comment about specific interest rate caps based on the laws of your state simply do not apply, as the money transferred to you was an advance on a check, and not a loan. There are important differences that are a benefit to you and should be clarified.

First, in order for a transaction to be a loan, it must accrue interest. You were charged a flat fee per $100 dollars advanced. Because a fee is not interest, there is no accrual element to this transaction. When you defaulted you were not charged a percentage of the unpaid balance. You were charged a fee for defaulting, and you may have also been charged an NSF fee, if applicable, both of which you agreed to in the contract.

Secondly, if a transaction is a loan, it has a compounding element whereby any unpaid charges would be included in the interest calculation and added to the total amount owed. Instead, in your transaction with us, you agreed to be charged flat fees for overdue balances and other breaches of your contract. Those fees do not compound or increase as the unpaid balance goes up.

As such, the standard usury laws—or maximum allowed interest rates—do not apply to this transaction. This principle is no different than when your bank charges you an overdraft fee to cover a check where there are not enough funds in the account to cover the check. You were advanced funds based on your next check from your employer. So whether that was five days away or twenty, the fee is the same.

You are hereby advised to abide by the agreements in your contract with Mypaydayloan.com, and contact the collections department to make a payment arrangement. Failure to do so within two business days of receipt of this letter will result in your account being reported to appropriate credit agencies as in default of your obligations, and sent to an outside collection agency, which will subject you to additional fees and may prevent future credit transactions with other companies. Please govern yourself accordingly.

Sincerely,
Erika 888-269-2303 ext 65





Dear Mypaydayloan


I printed out that pile of crap you just emailed me and used it as toilet paper. I do not live in nor have I visited Costa Rica thus I am not subject to your laws. I live in and am governed the law of the state of Pennsylvania which states that payday loans are prohibited. Thus you will not get another penny from me....I owe you nothing!! Do not call me or any of my reference. Should you choose to send me to collections, I will simply cease and desist any agency you sell/assign this illegal debt to. Should they violated that cease and desist, I will be happy to collect statutory damages under the FDCPA. Should you report this to the credit bureaus, which I am pretty sure you do not since you are not a licensed or US based company, I will simply dispute the tradeline.


Do yourself a favor...mark my account and paid in full and remove all contact information.


Govern yourself accordingly


Sub: #1 posted on Thu, 08/15/2013 - 21:33

SOAPLADY SOAPLADY
Moderators Cum Industry Expert
(Posts: 17209 | Credits: 4746.15)

Thank You SoapLady. I have sent the response. I will be interested to see what they reply.


Sub: #2 posted on Thu, 08/15/2013 - 22:40

livingonedayatatime livingonedayatatime

(Posts: 31 | Credits: 5.41)

they have as much chance of getting 25,000.00 from you as the amount they say you owe on your loan.they are pathetic aren't they.


Sub: #3 posted on Fri, 08/16/2013 - 00:02

paulmergel paulmergel
Moderators Cum Industry Expert
(Posts: 15506 | Credits: 1356.56)

i am referencing that copyright BS they sent you.


Sub: #4 posted on Fri, 08/16/2013 - 00:07

paulmergel paulmergel
Moderators Cum Industry Expert
(Posts: 15506 | Credits: 1356.56)

I have never seen this before... I guess they imply that copy/paste of email, website, loan agreement on a forum like this one is copyright infringement but is it really? $25,000 fine sounds like some scare tactic... I'd reply that they can kiss my...and enjoy the beauty of Costa Rica instead of working in some boiler room.


Sub: #5 posted on Fri, 08/16/2013 - 00:22

Matt Matt

(Posts: 36 | Credits: 5.04)

I have gone back and forth with this crazy lady at MPL - I told her I was willing to payback the principal only at the amount of $50/mo until paid in full. payment in the form of Money order only and to please provide an address. This is her latest response.


Please direct your attention to my previous email in order fo you to understand the nature of this transaction, which terms you accepted by signing the contract!


Once again, if what you are asking for is a payment arrangement we can schedule it as follows:

Total Balance of $715.00 split into 6 biweekly payment of $119.16. If you do not want to accept this payment plan offer then you will have to pay the PRINCIPAL of $400.00 by tomorrow.


It is very disappointed that you were fine with this transaction terms when you asked us for the cash advance and wanted us to deposit the money into your bank account, and now that you have to honor your debt you do not like the terms anymore! Please reply and let me know the option you choose.


Sub: #6 posted on Fri, 08/16/2013 - 00:59

livingonedayatatime livingonedayatatime

(Posts: 31 | Credits: 5.41)

respond like this:


dear idiot.i'm done here.you are not legal in the US,and especially in my state.you are lucky to get the principle remaining much less the inflated amount you claim.btw it is up to you to follow the state pdl laws and now you want to try and guilt trip me.ain't gonna happen.now i will pay back the principle remaining at my leisure,and FTC,AND AG complaints will be filed against you.


respond that way as they are dellusional,and stupid as well as illegal.


Sub: #7 posted on Fri, 08/16/2013 - 01:23

paulmergel paulmergel
Moderators Cum Industry Expert
(Posts: 15506 | Credits: 1356.56)

I would stick to my guns and tell them that the only thing they will get from me would be principal and on my terms, if that is 50$ till you get it paid or they get nothing, simple as that. It's a take it or leave it situation, no address no money order. If they send you to an outside ca then cease and desist them.


Sub: #8 posted on Fri, 08/16/2013 - 01:42

cb cb

(Posts: 44 | Credits: 4.65)

So I keep going back and forth and I get this as the latest from ms erika. Do I just write this off and ignore her?


This is a TWO WEEK cash advance. You were given $400 all at once, which seems you already spent and enjoy! and now, a month a week later, after you conveniently used the money we gave to you, you simply refuse to pay the corresponding fee!


I am willing to work with you and give you the option to pay back only the amount you borrowed but there is no way that we can let you make small monthly payments. As I already informed you it is not this company's practice to lend money for free and for customers to pay back the way you are requesting. Your state law is not a valid "excuse" for you not to honor your obligation as the contract clearly states this transaction is binding to Costa Rican law and you agreed to that by signing the contract, you would have not signed it, we would not have lent you any money!


The best I can offer you is to split the principle into 2 biweekly payments of $200 each we will need to schedule the payments on 8/23 and 9/06. I need a confirmation by Monday 8/19.


Erika


Sub: #9 posted on Fri, 08/16/2013 - 21:20

livingonedayatatime livingonedayatatime

(Posts: 31 | Credits: 5.41)

repsond like this.


dear dummy:what part of i'm done with you don't you get?since you want to be stupid as well as illegal you can etradite me to the shitball known as costa rica before i pay you another dime.this is my last response to your lies,insulting offers,and threats you can't carry out.


respond like that verbatim.then ignore,or laugh at her future emails as they literally can do nothing but lie,and try to sway you with those lies.


Sub: #10 posted on Fri, 08/16/2013 - 22:49

paulmergel paulmergel
Moderators Cum Industry Expert
(Posts: 15506 | Credits: 1356.56)

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