LLS America (Little Loan Shoppe)

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.

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?

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.

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.

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. ;)

HI Bobbiejo,

Please tell the state where you reside.

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

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.

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?

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.

LLS is stating they are an unsecured short term installment loan, is that different from a pdl? Are the laws different for these type of loans?

Installment loans do not fall under payday loan laws. Is LLS licensed to lend in the state of FL?

How can I find out if LLS is licensed in Rhode Island?

Thanks,

Mike

Is LLS licensed to lend in New Jersey?

Let me do some searching. I'll be back with answers shortly.

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LLS is not licensed in NJ.
LLS is not licensed in FL.
LLS is not licensed in RI.

Since LLS is not licensed in NJ and is not consider a PDL how can we fight them??

The same way you would any other illegal lender. They're unlicensed, therefore not allowed to lend to you.

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I just spoke to the Dept of Business Regulation in RI. After verifying that LLS America has no license in RI (as OhioGal had already told us) I asked how should I respond to the emails telling me I owe them money. They told me the best response is to ask them "What is your RI State Lenders License number?"

Mike

Mike - I posted the link for the list of RI licensees but a moderator has to review and approve it first. I forgot to deactivate it :)

I was thinking about this post last night and trying to parse out the true difference between "installment loans" and "payday loans", why they are regulated differently, etc. The conclusion I reached, and someone with more knowleged maybe can confirm this, is that it's not really whether they call themselves an installment loan or not - it's where the money comes from. Companies like First Bank of Deleware are not subject to payday loan laws because they are a bank, not because they issue installment loans. So - what's my point - even if LLS is saying they are an installment loan, since they are not a bank they are subject to the usury laws of the resident state of the lendee. I know in AZ loans under $10,000 made by nondepository institutions, i.e. not banks, are capped at 36% interest and must be licensed. If LLS is not licensed and is giveing loans at a higher interest rate, it doesn't matter what they call the loan, they are violating the law. These are just my thoughts - not a legal opinion or anything - but it's how I read the law in AZ. Just food for thought.

Quote:

Thanks, Paul.

Thanks OhioGal and Paul!!

Mike

Hey guys, Its been a couple weeks. Have had some personal things going on but Im back! Still have 2 PDL's, I havent done much pushing in the last month because I have been consumed with trying to find a job!!! But needed to get back to things and try to figure out how to deal with LLS and Global Group!!!!