I'm trying to figure out what makes you think the fee they're charging is illegal. How is it an advance fee if they're charging it after they've obtained credit for you?
I agree, I doubt those places will do anything either. I just wanted him to know that I am pursuing every avenue possible, even if I'm not. Really, as long as I can't be taken to small claims court and ruled against, nothing else matters to me. I just couldn't see how I am misinterpreting anything and I could actually be ruled against. *shrugs*
I'm trying to figure out what makes you think the fee they're charging is illegal. How is it an advance fee if they're charging it after they've obtained credit for you?
You're getting hung up on the words "advance fee" in reality what is important is that they are charging a fee for securing a credit line. That is what is illegal, not when they decide to bill it.
According to the Florida Attorney Generals website...
"In Many states these businesses are illegal.
Over the past few years, many states have enacted legislation prohibiting loan brokers from charging an advance fee. In Florida, assessing or collecting such a fee is a felony. There are some businesses such as banks and credit unions which are exempt from this prohibition. In Florida, contact the Office of Financial Regulation to determine if the company you are dealing with is acting legally. In other states, you may want to contact consumer agencies such as the Attorney General's Office and local consumer agencies in the county where the company is located to determine if there are complaints or legal actions pending against the company. Do not rely solely on Chambers of Commerce or other business associations where membership is the based on payment of a fee."
The way I read this... unless I'm misinterpreting something, is that a company (outside of bank/credit union, which these guys are definitely not) cannot charge a fee for securing a loan.
Where do you get the idea that it's illegal to charge a fee for obtaining a loan?
As far as I can tell it's from this:
I have no idea how you read that and conclude it's illegal for a third party to charge any fee for obtaining a loan.
Second sentence...
"In Florida, assessing or collecting such a fee is a felony. "
Continue reading. Banks, etc are exempt.
Second sentence...
"In Florida, assessing or collecting such a fee is a felony. "
Right, certain banks and credit unions. These guys aren't either.
"Such a fee" means they're referring to the previously mentioned fees, advance fees. Why do you think the fee you're being charged after they obtained a loan on your behalf is an advance fee?
Not trying to argue - but you don't know that. There is *some* definition somewhere that will allow this. A Junk Debt Buyer in new hampshire qualifies as a "bank" because they extend credit exclusively to debtors to pay off their old debt. Its fucked up.
Because of that - they can collect on the accounts without registering or being subject to teh FDCPA.
I don't think it matters much whether they charge you right away or a week later, the fact of the matter was they were going to charge no matter what. They couldn't really charge it up front anyways, as no one would have agreed to it. They had to hide it in their TOS and then claim you owe it.
Again, I think we are getting hung up on the words advance fee's. What is illegal, is charging a fee or collecting a fee, for securing a loan. You cannot charge or collect a fee for securing a loan, unless you are an exempt credit union or bank.
You can keep saying that and thinking it, but so far you've only found proof that it's illegal to charge an advance fee. I'm not getting "hung up on" the words "advance fee" - that phrase has a legal definition, and I'm trying to explain to you that you're ignoring it.
It does not say "advance fee" which you are quoting from somewhere.In Florida, assessing or collecting such a fee is a felony.
should answer the question as to a fee being accessed before any work was done, and it being a felony.She was informed that when she did her application online she checked a box agreeing to the terms and one of the terms was that she would be charged $150 regardless of whether or not she accepts the line of credit.
I just posted about this last night.
In Florida, assessing or collecting such a fee is a felony.
It does not say "advance fee" which you are quoting from somewhere.
FL Attorney General said:Over the past few years, many states have enacted legislation prohibiting loan brokers from charging an advance fee. In Florida, assessing or collecting such a fee is a felony.
That combined with
should answer the question as to a fee being accessed before any work was done, and it being a felony.She was informed that when she did her application online she checked a box agreeing to the terms and one of the terms was that she would be charged $150 regardless of whether or not she accepts the line of credit.
I understand I am not obligated to accept any credit line offered to me as a result of this application, that final approval of my application can be subject to my credit standing and/or income verification, and that I am responsible for a one hundred fifty dollar fee to AcQuired, if and only, requested services herein are rendered.
She gave them permission to obtain the loan on her behalf, they did it, and as far as I can tell Florida allows them to charge a fee for that.
In Florida, assessing or collecting such a feeis a felony.
and that I am responsible for a one hundred fifty dollar fee to AcQuired, if and only, requested services herein are rendered.
The fee is payable once they have "applied for and secured a credit line". Your decision to not accept the secured credit line is irrelevant, and my guess would be that if for some reason they had been unable to secure a credit line (your wife's credit was so bad nobody would take on the risk), then there would not have been a bill.
if and only, requested services herein are rendered
Unfortunately it is just a guess as the OP didn't post the entire contract, only that one blurb, so there is no way for us to know if they were to be charged regardless of them finding credit for his wife.
That being the part that needs clarification from the OP.
I understand I am not obligated to accept any credit line offered to me as a result of this application, that final approval of my application can be subject to my credit standing and/or income verification, and that I am responsible for a one hundred fifty dollar fee to AcQuired, if and only, requested services herein are rendered.I understand it is a criminal offense, to 1) use another person�s credit information or sign another person�s name to obtain this loan, 2) to submit false and/or misleading information on the credit application, 3) to confirm current employment, when in fact you are currently unemployed or have been notified of job termination on an immediately upcoming date, 4) to accept a loan for the payment of surgery expenses, when in fact you are in the process of, or are planning to file, bankruptcy leading to default of the loan obligation for financial services from the financial institution. I hereby state under the penalty of perjury, I have not committed any of the offenses stated above, and understand that I may be subject to civil action for any attempt to defraud, slander, and/or malign AcQuired Loans (AcQuired) and/or the lenders, and/or breach this Agreement in any manner. I understand too, I am responsible for all charges incurred under its terms, should I choose to accept or use any credit account offered as a result of this application. I affirm to be at least 18, and a U.S. Citizen and/or resident, and that I have the capacity and authorization to submit this application and accept financial services offered as it result. In accordance with all current standards and requirements regarding privacy and confidentiality I hereby allow the release of the above information to AcQuired, and authorize, request and empower AcQuired and its agents to apply for, secure and accept credit lines and terms and conditions on my behalf via phone, fax or online service, and or to provide referral and/or counseling services in their efforts to help me achieve my goal as above. I also authorize AcQuired and/or its agents to monitor and/or record calls, verify information I provide, obtain my credit report if necessary, and share to the extent permitted by law this information with others as necessary in their efforts, and I instruct lending sources to consider this application a duplicate if received within the past ninety days. I understand AcQuired is an independent processing/marketing company, not a lender, and entirely separate from any lender, engaged in the business of providing the above services, and therefore neither approves nor denies applications, sets interest rates, terms or plan/program fees, nor discriminates against any person for any reason.I understand, unsecured personal loans have a higher risk of default than any other type of loan, because there are no �goods� (car, boat, furniture, etc.) for the lender to take back and resell to someone else should the borrower fail to pay, nor can the lender require a medical/dental provider to refund payment for purchases or services rendered, where the funds were paid directly to the borrower. Accordingly, I understand approval criteria for unsecured personal loans for elective medical/dental services is more rigid, and that interest rates are generally higher than those of credit unions and commercial lenders for retail purchases. I understand further, eligibility for these loans is typically limited to employed persons with established credit history, and that applicants with well established and positive credit history have a greater chance of being approved, and experience lower interest rates and costs, as their risk of default is statistically low. Conversely, I understand, applicants with minimal Income and/or Credit History, High Debt-To-Income Ratio, High Balances, Low FICO Scores, History of Open Collections, Charge-Offs, Late Pays, and Past Dues, Excessive Obligations, Recent Bankruptcy and Judgments have less chance of being approved, and/or experience higher interest rates and costs, as their risk of default are statistically higher. In an effort to help offset the costs of risk lenders experience with these loans, I understand fees of from five to twenty percent or less are common in patient financing, and that I am responsible for any such fees, which can be included in the amount financed, where lender authorized, and typically disclosed in formal credit documents. I understand, as a national average, about only fifty percent of applications for patient financing are approved without a co-applicant, that interest rates are typically based on the Prime rate plus �risk� as perceived by the lender, and that rates of from nine to twenty-six percent are typical for standard plans, whereas lower and zero percent rates are typically promotional, and subject to availability, approval and less forgiving default criteria, as determined by individual lenders offering them. I have read and/or understand and accept the terms of this application, agree to save and hold harmless AcQuired and its representatives from any and all claims and/or actions, including but not limited to attorney�s fees and costs connected in any manner to this application, and affirm the information contained to be true and submitted by the person named herein whether or not signed. If the meaning of any portion of this Agreement differs in interpretation, in any language other than English, the meaning as written in English shall be the considered meaning.
Florida Statutes 687.141 - Loan brokers; prohibited acts
Florida Statutes > Title XXXIX > Chapter 687 > § 687.141 - Loan brokers; prohibited acts
No loan broker shall:
(1) Assess or collect an advance fee from a borrower to provide services as a loan broker.
(2) Make or use any false or misleading representations or omit any material fact in the offer or sale of the services of a loan broker or engage, directly or indirectly, in any act that operates or would operate as fraud or deception upon any person in connection with the offer or sale of the services of a loan broker, notwithstanding the absence of reliance by the buyer.
(3) Make or use any false or deceptive representation in its business dealings or to the office or conceal a material fact from the office.
Seems clear to me. Wife requested a service to obtain a loan. They did, she turned down the loan. Too bad, services were rendered, spelled out there in the ToS.
The fee charged is not an advance fee. The fee was billed after a line of credit was secured. She was not billed in advance for those services.
Pay up.
Right, certain banks and credit unions. These guys aren't either.
they aren't either so the law does not apply and its a service
No loan broker shall:
(1) Assess or collect an advance fee from a borrower to provide services as a loan broker.
Kristen,
I would indeed recommend that you consult with an attorney, as you will most certainly be advised our fees are valid and due per the terms you agreed to in the application.
Regarding the Attorney General’s website, we are first of all not a loan broker. Secondly, our fee is not charged in advance, and thirdly, our application does not say “absolutely no fees”. More correctly, it states that there is no “application fee”. The difference, is that an “application fee” is charged in advance to have your application accepted for review (which some patient financing companies do), whereas a “processing fee” is charged, as stated in our terms, if and only requested services herein are rendered. And, as the “service” you “requested” in the application, that we “apply for and secure” loan offers on your behalf was indeed “rendered”, the fee is legally due.
It is unfortunate you consider our correspondence threatening, as I was our intention to afford you the opportunity to honor the terms of your application, and I will be pleased to afford you another.
15 days from today’s date either have your attorney contact us, or remit the payment due.