Author Topic: Notice of default/Right to cure....Can they really do this?????  (Read 4508 times)

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Ms. T

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I received a $600 loan from All Credit Lenders back in 12/2008.  I initially denied getting the loan because it just didn't seem right, but they kept calling me enticing me to get the loan so against my better judgement I got it. 

Before I signed the papers, because I didn't understand the language on the paperwork, I simply asked them if I paid the loan off in February 2009, how much interest would I have to pay?  The lady told me it would estimate to a little over $100.  Let me add that I was also paying monthly on the loan.

In February 2009, I called to get the pay off amount and the pay off amount was 3x more than what I was originally told.  I was off and refused to pay the amount they requested.  I told them I would have no problem paying the amount that was originally agreed to and they wouldn't accept it, so I dropped the subject.  I was then told that the payments that I had made on the loan were INTERST ONLY payments; none of the payments went to the principle amount owed. 

Now, I received a certified letter in the mail from All Credit Lenders, which was signed by my 12 year old son because I wasn't home.  The letter is referencing WIS.STAT.425.104 and stating that my past due amount is over $2000 (I remind you I only borrowed $600), that includes a daily interest of $7.  Also, the letter states that if I do not pay the total amount past due plus interest by the end of this month, they have the right to commence action for my entire outstanding balance and/or repossession of my motor vehicle securing the note without further notice.

Now, my issue with this is my motor vehicle is currently being financed through another company and has absolutely nothing to do with them.  I know that they can take me to court, but can they repossess my vehicle as well?  This just doesn't sound right to me at all.  How do you suggest I move forward?

silverzgirl

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Re: Notice of default/Right to cure....Can they really do this?????
« Reply #1 on: August 17, 2010 05:39:32 PM »
Are you in Wisconsin?

If so, TrueQ, where are yoouuuu? This sounds like a hellabuncha violations to me.
“Know your enemy and know yourself and you can fight a hundred battles without disaster.”  - Sun-Tzu

I am not a lawyer, nor do I play one on TV. I once thought I was a lawyer when I was litigating in a courtroom, but turns out I just had Patron induced bed spins and dreamed it all. Take my posts with a grain of salt...and a shot of Patron. But not so much you think you are a lawyer.

Ms. T

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Re: Notice of default/Right to cure....Can they really do this?????
« Reply #2 on: August 17, 2010 05:44:57 PM »
Yes, I'm in WI.  How did you guess?

CleaningUp

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Re: Notice of default/Right to cure....Can they really do this?????
« Reply #3 on: August 17, 2010 05:49:46 PM »

...Now, I received a certified letter in the mail from All Credit Lenders, which was signed by my 12 year old son because I wasn't home.  The letter is referencing WIS.STAT.425.104 and stating that my past due amount is over $2000 (I remind you I only borrowed $600), that includes a daily interest of $7.  Also, the letter states that if I do not pay the total amount past due plus interest by the end of this month, they have the right to commence action for my entire outstanding balance and/or repossession of my motor vehicle securing the note without further notice....



See bolded text.


You gave us a hint.    :vbbiggrin:

Ms. T

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Re: Notice of default/Right to cure....Can they really do this?????
« Reply #4 on: August 17, 2010 05:52:27 PM »
Duuuuhhhhh to me!  I apologize, I'm moving waaaaayyyy too fast!  Just a bit frustrated at these people, that's all!  ???

trueq

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Re: Notice of default/Right to cure....Can they really do this?????
« Reply #5 on: August 17, 2010 06:10:28 PM »
This is an auto title loan?

If it is, it would help to read the contract.

This thing sounds illegal under the Wisconsin consumer Act.

Read this article:

http://www.familyandconsumerlaw.com/2010/06/adventures-in-arbitration-new-consumer.html

Ignoring the arbitration implications...this attorney feels the consumer had defenses under this Payday loan racket, which is a similar kind of situation to what you describe, but those issues in this case became moot by the arbitration issue.

I'd call the attorney that wrote this blog.   Replevin/auto title loan issues are not part of my experience under WI consumer act.
My free speech is not legal advice.  If you need legal advice, you need to talk to a lawyer.

Litigation Defense record
Arbitration record:   9 wins * 0 loses
Court Record:         2 wins * 2 judgments (1 of the 2 judgments has been vacated, other judgment upheld on appeal, marked "satisfied", because I wrote a check.)

The one bank that beat me in court, I now have a $2200 limit credit card from them again.
Redemption is always possible.

silverzgirl

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Re: Notice of default/Right to cure....Can they really do this?????
« Reply #6 on: August 17, 2010 06:32:02 PM »
Was this a title loan? I did not think you could do these unless you had the title free and clear (which you do not if you are financing it.)
“Know your enemy and know yourself and you can fight a hundred battles without disaster.”  - Sun-Tzu

I am not a lawyer, nor do I play one on TV. I once thought I was a lawyer when I was litigating in a courtroom, but turns out I just had Patron induced bed spins and dreamed it all. Take my posts with a grain of salt...and a shot of Patron. But not so much you think you are a lawyer.

Ms. T

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Re: Notice of default/Right to cure....Can they really do this?????
« Reply #7 on: August 17, 2010 06:51:51 PM »
No this is not an auto title loan, which is why I am so baffled by the wording in the letter that they sent to me registered mail.  This was simply a regular unsecured loan that I made payments on until I was going to pay it off two months later.

trueq

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Re: Notice of default/Right to cure....Can they really do this?????
« Reply #8 on: August 17, 2010 07:13:27 PM »
If that is the case....the letter itself is a Wisconsin Consumer Act violation.    It also violates the Wisconsin Deceptive Trade Practice Act under Wis 100.18.

Under the Deceptive Trade Practice Act, it doesn't have to be false or deceptive, only untrue.

So if they threatened repossession of your car or other property, when they had no security interest...busted!

I'd have an attorney review and sue.
My free speech is not legal advice.  If you need legal advice, you need to talk to a lawyer.

Litigation Defense record
Arbitration record:   9 wins * 0 loses
Court Record:         2 wins * 2 judgments (1 of the 2 judgments has been vacated, other judgment upheld on appeal, marked "satisfied", because I wrote a check.)

The one bank that beat me in court, I now have a $2200 limit credit card from them again.
Redemption is always possible.

Ms. T

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Re: Notice of default/Right to cure....Can they really do this?????
« Reply #9 on: August 17, 2010 07:30:12 PM »
Thank you sooooo very much.  All of this information has been very helpful.  I'm getting right on this matter as we speak.

poultny

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Re: Notice of default/Right to cure....Can they really do this?????
« Reply #10 on: August 18, 2010 01:49:52 AM »
I have had an original creditor "write off" the balance owed to them. Can a 3rd party collection still collect the debt

CleaningUp

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Re: Notice of default/Right to cure....Can they really do this?????
« Reply #11 on: August 18, 2010 12:06:18 PM »
Yes.

Write-off (aka charge-off) is an accounting event that occurs, by regulation, not later than 180 days after default.


Plubbo

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Re: Notice of default/Right to cure....Can they really do this?????
« Reply #12 on: August 27, 2010 11:04:16 PM »
No this is not an auto title loan, which is why I am so baffled by the wording in the letter that they sent to me registered mail.  This was simply a regular unsecured loan that I made payments on until I was going to pay it off two months later.

I am not an attorney.  I cannot give legal advice.  However, you signed an agreement, and since there is no usury law in Wisconsin that I could locate, they have the right to collect your $2000+ plus $7/day.

The fact that they lied to you in an attempt to cause you to take the loan is an affirmative defense -- fraud in the inducement.  You need an attorney to represent you for this; it's not pro se kind of pleading.  Fraud in both the state and federal courts (and this sounds like a state case where judges have minimal patience for pro se litigants) requires strict and detailed fact pleading.  See F.R.C.P. 9. 

I don't know if you have TILA or FCBA claims.  You should consider a good attorney from a firm like Edelman Combs in Chicago for a reference to a Wisconsin practitioner, or to take the case themselves.  Payday loan services like this are much more ruthless than loan sharks, and they mean it when they say they'll sue.  At $7/day in interest, you are collecting $300 per month in liability.  They wil come after you for that because it's legal, no matter how despicable it is.

Sorry
 :sharked:

trueq

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Re: Notice of default/Right to cure....Can they really do this?????
« Reply #13 on: August 27, 2010 11:10:15 PM »
The claim here is under the Wisconsin consumer Act.  Chapter 427.104.

Wisconsin consumer Act is a strict liability statue.   The only defense is bona-fide error, which is defined under Chapter 425 the exact same way as FDCPA.

A violation of FDCPA is a per se violation of Wisconsin consumer Act under Chapter 427 (rules of administrator under DFI-BKG 74.16 (9).

So, sure go for fraud in the inducement, but bring the easier claims under the Wisconsin Consumer Act.
My free speech is not legal advice.  If you need legal advice, you need to talk to a lawyer.

Litigation Defense record
Arbitration record:   9 wins * 0 loses
Court Record:         2 wins * 2 judgments (1 of the 2 judgments has been vacated, other judgment upheld on appeal, marked "satisfied", because I wrote a check.)

The one bank that beat me in court, I now have a $2200 limit credit card from them again.
Redemption is always possible.

Plubbo

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Re: Notice of default/Right to cure....Can they really do this?????
« Reply #14 on: August 27, 2010 11:39:16 PM »
The claim here is under the Wisconsin consumer Act.  Chapter 427.104.

Wisconsin consumer Act is a strict liability statue.   The only defense is bona-fide error, which is defined under Chapter 425 the exact same way as FDCPA.

A violation of FDCPA is a per se violation of Wisconsin consumer Act under Chapter 427 (rules of administrator under DFI-BKG 74.16 (9).

So, sure go for fraud in the inducement, but bring the easier claims under the Wisconsin Consumer Act.

Sure looks like you are right under 427.104(j), but you are limited to actual damages plus costs.  With fraud, however, it could be triple the amount alleged as due and owing.

 

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