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Like a moron I took out a payday loan with an overseas company (didn't realize that part at first) a while back. As per the contract, they have the option to renew it each payday UNLESS notified otherwise. Now, I am in TX where that is illegal...just fyi. The contract states notified in writing or by phone. I told them over the phone I didn't want to renew, but they did anyways. Several times. Other stuffws going on at the same time so I switched my direct deposit so they couldn't get any mroe of my money. I sent them an email stating they were illegally drafting my account for amounts and on dates other than agreed upon and that they were operating illegally by issuing loans to TX residents in violation of Texas lending laws. By this time they had deducted $270 from my account on a $300 loan. I offered to pay them the remaining $30 on the principle and call it even, to whcih they agreed, then the following day they attempted to draft $280 from my account. After further review of the s-sign portion of the contract, it does not even include my full name, besides the fact it is illegal in TX, and they violated the terms even if it had been legal and a valid enforceable contract. It was later sent to a CA in Houston who contacted me. I explained the situation and stated I looked forward to seeing them in court. Never heard back from them. Novemeber of 2011 I noticed a company called Lighthouse Recovery LLC had pulled my Transunion report 4 seperate times in a matter of a week. When I called the number listed on my report a Powell Law Office answered the phone. We went round and round a while, and they guy was spouting off I hadn't paid, I violated a legal contract, I hadn't complied with the contract by notifying them in writing by fax that I wanted the full amount deducted (it says by phone in my contract), and that the contract was based in some South American country (I forget which one) and was under their laws. When I argued that, he accused me of not reading the contract (it was from the caribean, not Belize or wherever he stated) and that he knew the contract well which he obvisouly did not. I demanded he send me proof they legally owned the debt, they could legally collect in TX, and a full validation of the debt and copies of the contract and all associated documents included proof of deposits and transactions. By this time they had already received my first letter requesting all of this. I then sent a second letter demanding the same information. Since then, I have not seen or heard anything from either company but I am worried about 1 thing. He said that if needed they would take this to arbitration as was in the contract. I have no idea if they will attempt to do so, or if some other CA may attempt to either collect/sue/arbitrate over this matter. Do I have a legal leg to stand on to file some sort of mothion barring this from ever occuring? That way when/if this thing raises it ugly head again i can send the next bottomfeeder scumbucket CA the ruling from the court showing this was a void and unenforceable contract and that they have nothing to go on to pursue it further?

Thanks in advance

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Now, I am in TX where that is illegal

My 2 cents: if you haven't already closed the account you used to receive the loan, do so. Check your state's laws concerning illegal payday loans. I know in my state those types of loans are uncollectable. Those companies have no recourse here.

I doubt the company would pay for arbitration for such a small amount. THe initiation fee alone is more that what's "owed."

Stop talking to the CA or lawyer on the phone and don't even bother trying to reason with them. They are illegal and know options are limited. File a complaint with your state AG too. I believe eventually they will go away if they truly are an illegal payday loan company.

Pickles

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Thanks,

I know the loan is in violation of several Texas statutes regarding lending, and the signature portion might also work as a defense. I only spoke with the CA once, and that was because I called to see who was pulling my credit and why. They pulled it under the name of a CA, but the law office which i had already received a dunning letter from and had replied to demanding verification answered. I didn't know about the cost of the initiation fee. I am not worried about the original PDL, my fear was some other CA would buy this alleged debt and force arbitration and seek extra fees and all and I was looking to see if there was a way to prevent this from ever happening. If the costs are that high, then I doubt any one ever will. They are claiming less than $600 owed, so it's not a huge amount, I just refuse to pay anything more than the $30 left of the original principle since they violated their own contract which is in direct violation of state law.

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