Expert: Jason Barnette, Esq. - 9/25/2009

Question
QUESTION: Dear, Jason

I live in the state of Oregon, I made the mistake of taking out an internet loan, my question is as follows. Is the contract i signed legal and binding as this company is not licensed to to business in my state or in the USA for that fact. From my research they left the state of Utah and have been fined in Illinois for providing loans. The contract they get you to sign state the governing law is where they are located. Heck you can't even pen down there location, from what I understand from research they are located in the Nassan, Bahamas. I'm sick of them calling me at work, I've asked them stop. Oregon law state's lenders have to be licensed in the state regardless of if they are Internet providers or store front. Can I tell them to go take a flying leap?

I closed my bank account per the Oregon Division of Finance instruction, sent a letter to revoke ACH on my account, and any wage assignment if applicable, and to contact me via e-mail and not call my place of work. they don't listen very well and have no regard for the law. I did not default on the loan just stop them from draining my bank account, from what I was told by the Division of Finance I morally owe they, the principle minus the two 90.00 refinance fees they deducted from my account fro a total of 120.00, to which they will have no part..they want 540.00 this amount is principle plus fees.

I hope I'm taking the right road with this. sorry to rattle on I just  I'am upset with myself and the how they do business and they are not even in the USA, I hope you have some advise on such matters.

Thank you

David Macon Jr

ANSWER: David:

If you choose not to pay them it seems they would have little recourse.  I can't advise you not to pay it but, if you chose not to they really can't do anything.

Jason Barnette
Barnette Law Offices, LLC
1800 Hayes Street; Suite 122
Nashville, TN 37203
615-585-2245
http://www.barnettelawoffices.com

---------- FOLLOW-UP ----------

QUESTION: Thank you Jason, morally i should pay the 120.00 as I did take the loan, but not knowing I was dealing with a pretty underhanded group. They want more than I'm willing to give, and that's according to my state's laws. I'm just tired of the phone call, that I won't answer don't need confrontation at work.
Maybe I should record the conversation..is that legal?

Answer
David:

Send them a letter telling them not to call you any further or you will report their business practices to your Attorney General and Secretary of State.

Jason Barnette
Barnette Law Offices, LLC
1800 Hayes Street; Suite 122
Nashville, TN 37203
615-585-2245
http://www.barnettelawoffices.com