I would like some assistance with an account that I have with an installment loan company (I reside in Michigan). I submitted the following email.
It has come to my attention that payday lenders must be licensed by the state of Michigan in order to offer loans to its residents. Since your company has no license in my state, the loan contract I have with you is not valid. Although I am not legally required to do so, I am willing to repay the principal balance of this loan. To date, I received a deposit of $2,450 on September 11, 2013. I made two payments of $400.47 starting on October 3, 2013 bringing the total paid to $800.94. At this time I am requesting a return email acknowledging that my balance is only the principal owed with no interest of a total of $1649.06.
As of 10/28/2013, I am also revoking authorization for ACH withdrawals and any wage assignment I may have signed. I have given a copy of these revocations to both my bank and my employer. Any future attempts to collect funds in this manner will be blocked.
Please respond to this email with acknowledgment that my account will be satisfied upon payment of $1649.06.
I received the following response from an American Web Loan address....
I certainly do apologize for any confusion. We do not fund payday loans. We are an Installment loan company. Below are the first two paragraphs of the agreement you signed:
THIS CASH ADVANCE AGREEMENT (this "Agreement") is between you, as borrower/debtor, and Clear Creek Lending (“CCL”), an arm of the tribe of the Otoe-Missouria Tribe of Indians, a federally recognized Indian tribe, as lender. Anytime this Agreement references "you" or "your," it means you as the borrower; when it references "Lender," "we," "us" or "our," it means CCL; when it references "tribe" or "tribal," it means the Otoe-Missouria Tribe of Indians; when it references "Loan," it means the transaction between you and us pursuant to the terms of this Agreement, including, but not limited to, this consumer loan. “Bank Account” means the bank information, including bank account and routing number, provided in this Agreement.
This Loan is made and entered into with you by CCL, an arm of the tribe, wholly-owned and operating under the authority and laws of the Otoe-Missouria Tribe of Indians. This Agreement is subject solely to the laws and jurisdiction of the Otoe-Missouria Tribe of Indians. By entering into this Agreement, you acknowledge and consent to be bound by all the terms in this Agreement; you consent to the exclusive subject matter and personal jurisdiction of the tribal courts for all disputes arising from this Agreement; and you understand and agree that state laws or regulations do not apply to this Agreement, the interpretation of this Agreement or the enforcement of this Agreement.
They do not have a license in Michigan, so should my next step be to close my bank account and demand a cease and desist letter from my Attorney General?
Any help would be appreciated.