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LLS America (Little Loan Shoppe)

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I was told on another thread that LLS America (Little Loan Shoppe) is not licensed in FL. I live in Florida it's a $300 Internet based loan from LLS (Little Loan Shop). They are charging me $105 in fees every 2 weeks on a $300 loan. I sent them the template letter stating they were illegal and this is the response I received. Where do I go from here, my loan isn't beind right now but it will be as of wednesday......please advise.

We are in receipt of your letter, and would like to take this opportunity to address you concerns. The Little Loan Shoppe (???LLS America???) prides itself in complying with the law and providing excellent products and customer satisfaction. We take very serious all complaints and allegations against our practice and procedures.

In order to provide the best services available to our clients we comply with best practices including federal banking guidelines such as the Truth in Lending Act and Regulation Z disclosures. As part of those disclosures, and more particular to the instant matter, is the fact that LLS clearly presents the following disclosure to its borrowers:

GOVERNING LAW: You acknowledge that we are a Utah-based lender, and you acknowledge that this consumer Unsecured Short Term Installment Loan Agreement is governed by the laws of the State of Utah. You acknowledge that Utah laws governing this Unsecured Short-Term installment loan agreements may differ significantly from the laws of the state where you reside. You agree that courts located in Salt Lake City, Utah, shall have exclusive jurisdiction and venue of any disputes arising from this Unsecured Short-Term installment Loan Agreement.



I would be more than happy to fax you a full copy of your contract please provide a fax number.




paulcahill80

Debt Samaritan
Posts: 2287
Credits: 25094.4

Sub: #1 The same old illegal PDL tantrum of being governed by the laws o
Mon, 09/13/2010 - 15:50

The same old illegal PDL tantrum of being governed by the laws of some other state. Whatever they say, your state laws prevail. You are not subjected to Utah laws. Tell them if they don't comply to your request, you will file cases against them with the Office of Financial Regulation and the FTC. Don't pay heed to their BS.




screwedinaz
Posts: 56
Credits: 1050.65

Sub: #2 I am not familiar with Florida laws, but in AZ the way the law r
Mon, 09/13/2010 - 16:01

I am not familiar with Florida laws, but in AZ the way the law reads if a lender is not licesened any loan contract issued by that lender is void and they are not entitled to collect on the principle, interest or any fees. I don't know if it's been said somewhere else, but I was a bit confused on the whole "which law prevails" question as well until I thought about the fact that it doesn't matter what the contract says because if the lender was illegal under state law then the whole contract is void, including the part that says you agree to ____ law applying. As has been advocated, it's probably best to pay back what you orignially borrowed, but I am wondering if anyone whose state law is similar to AZ has pressed this issue?




Bobbiejo
Posts: 13
Credits: 306.2

Sub: #3 I borrowed 2 loans totaling $600 and I have paid them $570, so I
Mon, 09/13/2010 - 16:11

I borrowed 2 loans totaling $600 and I have paid them $570, so I should only have to pay them $30 which is what I stated in my letter I was willing to do. I am also concerned because I went into my bank (Bank of America) and they said they couldn't put a freeze on my account, they had me close it out and opened a new one for me. My concern is am I going to get in trouble for closing out the account, and is it going to be forced open agian when this pdl tries to withdrawl money on wednesday? I asked the bank manager and she said that wouldn't happen. I have one other internet loan from Magnumn, I borrowed a total of $3250 and paid $3990. I sent them the same letter and I haven't received a response yet. I am wondering if I have made thing worse for myself.




Bobbiejo
Posts: 13
Credits: 306.2

Sub: #4 Also I just logged into my account with Magnum and this is what
Mon, 09/13/2010 - 16:14

Also I just logged into my account with Magnum and this is what is says:

Your account is currently in our collections department. Please contact our Collections department for information regarding your account.

Even though I haven't defaulted on this loan yet, my payment isn't due until 9/15.




screwedinaz
Posts: 56
Credits: 1050.65

Sub: #5 Take a deep breath and relax - the worst thing that could happen
Mon, 09/13/2010 - 16:20

Take a deep breath and relax - the worst thing that could happen is that they call and harass you. It's your bank account, you can close it for whatever reason - you are not going to get into trouble. If your old account gets forced open and the debits go through, go to the bank with your ACH revocations and get them to reverse the charges. I know it's scary and right now you are freaking out - I was there two weeks ago - but I now have PIFs from two of my lenders and I am working on the 3rd. You will get through this. ;)




paulcahill80

Debt Samaritan
Posts: 2287
Credits: 25094.4

Sub: #6 HI Bobbiejo, Please tell the state where you reside.
Mon, 09/13/2010 - 16:21

HI Bobbiejo,

Please tell the state where you reside.




Bobbiejo
Posts: 13
Credits: 306.2

Sub: #7 Florida..sorry the first post was from me too, I couldn't log in
Mon, 09/13/2010 - 16:22

Florida..sorry the first post was from me too, I couldn't log in for some reason.




paulcahill80

Debt Samaritan
Posts: 2287
Credits: 25094.4

Sub: #8 Magnum is not licensed in Florida. So, it's all right that you c
Mon, 09/13/2010 - 16:42

Magnum is not licensed in Florida. So, it's all right that you closed your account. Let them send your debt to any collection agency they like. No one can legally collect an illegal debt. Send Magnum a letter/fax/email stating that you have revoked all ACH authorizations and ask for a refund of $740. Also ask for a PIF (Paid in Full) letter.




Bobbiejo
Posts: 13
Credits: 306.2

Sub: #9 I already did that today via fax and email. I have seen alot of
Mon, 09/13/2010 - 16:51

I already did that today via fax and email. I have seen alot of post where Bank of America has let ACH transfers come through for months after you close the account. Do you know how anything about that?




Bobbiejo
Posts: 13
Credits: 306.2

Sub: #10 screwedinaz: Thanks I am really freaking out, it's just I am on
Mon, 09/13/2010 - 17:03

screwedinaz: Thanks I am really freaking out, it's just I am on my own with 3 kids and no help (not even child support). I want to do the right thing but I can't pay what they are asking. At least I only have these 2 and I learned a valuable lesson. Some times its nice to know others are going through the same thing. I probably would still be trying to pay these if I didn't find this forum. I am sure I will have many questions in the days to come.




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