East Side Lenders

Review: a [redacted] called my place of employment and told me I owed a bill for which I have no clue why- he stated it was a payday advance in 2010 but did not provide me a amount nor could he tell me what my address was at the time of loan. he told me I was playing games and threated me that he would handle me and hung up.Desired Settlement: proof of debt to be sent to me. phone call to be listened to by company and mr mason given training on compliance laws and regulations from [redacted]. I will also complain with [redacted] today.

Business

Response:

[redacted]’s requested a $500.00 loan from East Side Lenders on 6/29/2010. The current balance is $175.00. The last payment we received was on August 6, 2010. After multiple attempts to contact [redacted] to make payment arrangements, her loan was sent to a third-party collection agency in October 2010. Please contact the collection agency to make arrangements to pay this balance however we have enclosed a copy of the original loan agreement and electronic signature for [redacted]’s review.

Thank you for bringing this matter to our attention.

Review: In November 2012 I requested in writing that this account be validated which I never received a written response. I reviewed my credit report yesterday and it seems that this file may have been obtained by Enhanced Acquistions, LLC as the have placed this account on my credit report as a collection account.

Review: Here is correspondance emailed to Eastside Lenders on 3-25-2013. I have not received a response.

Dear East Side Lenders, LLC

It has come to my attention that payday lenders must be licensed by the state of Texas 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. For my current loan, to date I have received a deposit of $750 on 12-24-2012 and have had the following payments made:

1-4-2013 : $225

1-18-2013: $225

3-15-2013: $312.50

This totals $762.50 and results in an overpayment of $12.50 At this time I am requesting a return email acknowledging that my loan has been paid in full. Also, I would like a refund of the $12.50 overpayment. A refund check of $12.50 should be mailed to me at the address you have on file.

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.

I also have had two previous loans that I am requesting refund of overpayment. Details are as follows:

Loan disbursed: 9-6-2012 for $750; payments are as follows:

9-14-2012: $325

9-28-2012: $395

10-12-2012: $385

10-26-2012: $260

For loan disbursed 9-6-2012 in amount of $750, a total of $1365 was paid. This results in an overpayment of $615; refund can be mailed to address on file.

Loan disbursed 10-31-2012 for $750; payments are as follows:

11-9-2012: $300

11-23-2012: $195

12-21-2012: $650, $195 and $195

For loan disbursed 10-31-2012 in amount of $750, a total of $1535 was paid. This results in an overpayment of $785; refund can be mailed to address on file.

Please respond to this email with acknowledgement that my account has been satisfied in full. Details of when I can expect the refund check, as discussed above, should also be included in the email.

Thank you,

Jennifer Demiter

**My Current Address is [redacted]Desired Settlement: Due to being an unlicensed lender in the state of Texas, I have learned that I am only responsible for the principal balance. I request a refund for the overpayment of three loans, total amount $1412.50

Thank you.

Business

Response:

East Side Lenders is responding to your correspondence regarding the above-captioned

account.

We are sorry to learn that [redacted] is dissatisfied with the terms of the loan offered

by East Side Lenders however East Side Lenders, which is located in Delaware, is licensed by the

State of Delaware to make small loans. All such loans are approved and funded in Delaware,

with repayment to be made in Delaware. The East Side Lenders loan agreement and website

contain all disclosures required by Delaware and federal law and make it clear that all

transactions are governed by Delaware law. On the advice of counsel, East Side Lenders

maintains that the choice of Delaware law as controlling in the loan documents would be

upheld, as all of the significant contacts in the loan transaction occur in Delaware. The loan

agreement is legal and enforceable and we are unable to issue [redacted] a refund.

[redacted]’s loan has been referred to a collection agency. She can contact them at

[redacted] to discuss payment arrangements and/or settlement options.

Thank you for bringing this matter to our attention.

Sincerely,

Consumer

Response:

I have reviewed the response made by the business in reference to complaint ID [redacted] and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below.

"State credit laws, rate caps and licensing requirements apply to payday lenders taht arrange loans via the Internet. regardless of where the online payday lender is located, it must comply with the credit laws of the state where the consumer resides."

There is no record of license for Eastside Lenders with the Texas Office of Consumer Credit Commissioner, which houses the licenses.

Business

Response:

East Side Lenders continues to maintain that the choice of Delaware law as controlling in

the loan documents would be upheld, as all of the significant contacts in the loan transaction

occur in Delaware. The loan agreement is valid. However, because customer satisfaction is very

important to us, we have decided to waive the remaining balance of $937.50. [redacted]s

account has been closed and we wish her well in the future.