I HAVE BEEN FRAMED !

by Big Jim 27 Replies latest jw friends

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  Big Jim

  This is the story. I have been operating a pay-day loan business for almost 2 years now. I started out in business with a brother who passed away almost a year ago. Those of you that do not know what a pay-day loan is let me explain; people mostly poor people who cannot get credit anywhere else come to my type of business and borrow anywhere from $100.00 to $1000.00 till there next pay day. We have a fee that we charge that is $30.00 per every $100.00 that they borrow. If they cannot afford to pay it back on there next pay-day they can pay a re-newal fee that is the $30.00 per $100.00, however that does not come off of the money that they borrowed. Most clients pay that fee for three or four months on a bi-weekly agreement before they pay it off.

  Well when my partner died I had to come up with a pretty good lump sum to satisfy his estate. To make a long story short business was good and I needed more funds so I found a company that would fund me for a % of the fees. I met with these people only one time and we came up with an agreement that suited us all. I was to retain 40% of the fees that would be paid to me bi-weekly and I was to report to there operations manager daily, that which I did. Well this O/M had me fed-ex her blank checks on a monthly baises so she could pay the other partys involved, well after doing business for about nine months the two partners showed up at my office claiming they had never received one dime from the operation and was not aware I was sending there O/M checks and they want to know where all the money is.

  This O/M had me send the security dogle off of the back of my PC when she found out they were coming to my office, this device when removed prevents me from getting in to any of my customer files, she also logged on to PC anywhere and deleted all the files so there are no records to show payment history etc.

  This same O/M approved for me to write myself a check on the company account for $10,000.00 to be paid back over one year in which they say they had no knowledge.

  These two partners claim they never received any money from there investment while the O/M claims they received monthly checks.

  Someone is lying here and I have been thrown in the middle of it.

  I am considering closing down and fowarding all my active paper files to them and letting them figure it out themselves. They have known there O/M for over ten years now and me for only 9 months.

  Any advice on this matter would be appreciated. I allways here if you hire an attorney before the fact it looks like guilt.

  Please respond. Thanks.

  PS: they have removed me as a signer on the account o I cannot obtain any records to help myself. All the statements whent to O/M
• 

  cnn77

  Jim,

  Take it to the FBi - they will be able to help you recover the PC stuff and then sue them in civil and criminal court.

  you want a good attorney that I use - he is ex-fbi then email me on this link and I will give you his name and number.

  Regards
  cnn
• 

  Big Jim

  CNN77

  Thans for the reply. Your e-mail location is locked. e-mail me if you would. [email protected]

  Thanks
• 

  hippikon

  people mostly poor people who cannot get credit anywhere else come to my type of business and borrow anywhere from $100.00 to $1000.00 till there next pay day. We have a fee that we charge that is $30.00 per every $100.00 that they borrow.

  Let me get this right - You charge 30% interest per week from "mostly poor people" - then someone comes along and rips you off.

  Sorry but my heart bleeds for you!
• 

  Prisca

  A bit of info on pay-day loans.....

  [quote]Some businesses evading state laws banning loans

  Web posted Nov. 10 at 08:56 PM

  By Marcy Gordon
  Associated Press

  WASHINGTON -- Some storefront businesses are evading state laws banning ``payday'' loans, made to tide people over until their next paychecks at punishingly high interest rates, the Consumer Federation of America said in a survey released Tuesday.

  The small, short-term loans to cash-strapped people, often made by check-cashing businesses, have become a booming business nationwide, estimated by the consumer group at $1 billion a year. Stand-alone outlets specializing in payday loans also have sprung up, often in poor neighborhoods.

  ``Consumers who have maxed out their credit cards are turning to payday loans for quick cash,'' Jean Ann Fox, the group's director of consumer protection, told a news conference. She called the practice, which is legal in most states, ``the modern-day equivalent of loan sharking.''

  An official of the National Check Cashers Association, a trade group representing the businesses, maintained many consumers use payday loans only for emergency needs. They provide convenient short-term credit, said Bob Rochford, the group's deputy general counsel.

  With the payday loans, a consumer gives the check casher or payday lender a postdated personal check and receives a small cash loan. The check casher or lender holds the check until the customer's next pay day, when the customer can do one of three things: allow the check to be cashed, redeem it by paying cash to cover the loan plus a fee, or roll it over by paying the fee to extend the loan for another two weeks or so.

  Typically, interest rates charged are equivalent to 391 percent or 780 percent a year, depending on how many days the loans are made for and whether they are rolled over because the borrower can't afford to pay them off, according to the Consumer Federation. For example, some 14-day loans cost $17.50 for every $100 borrowed.

  Rochford called the consumer group's data completely misleading, saying it was unfair to cite the equivalent annual rates of interest for such short-term loans. The federation ``has made a bogus presentation,'' he said in a telephone interview.

  Eighteen states ban such cash-advance loans. But Ms. Fox said a survey in eight states showed some businesses make payday loans through out-of-state national banks to evade state bans.

  Rochford disputed that statement. He noted that credit card companies such as Visa and MasterCard often issue cards through out-of-state banks, notably Delaware, whose laws are more favorable to them.

  In other states that allow payday loans but prohibit rolling them over, the consumer group's survey found some lenders skirting the law by telling customers they could pay off the first loan and immediately take out another.

  In addition, not all lenders comply with the maximum fee for payday loans in states where they are allowed, according to the survey. It said 10 of the 19 lenders surveyed in Florida charged more than 10 percent of the check's value, while half the Tennessee lenders canvassed charged fees above the legal state limit of $15 per $100 borrowed.

  The consumer group is calling on states to enforce existing laws, Ms. Fox said.

  To avoid the steep fees for payday loans, consumers should budget carefully and set aside a savings nest egg to cover emergencies, the group advises. Consumers also should consider getting overdraft protection, for a fee, for their checking accounts, the group says.

  Consumers who use payday loans should borrow only as much as they can afford to pay back with their next paychecks and still have enough to make it to the next pay day.

  There are about 6,000 check-cashing outlets in the United States, according to the check cashers' trade group. It does not have an estimate for the number of stand-alone payday lenders.

  [quote]

  . http://augustachronicle.com/stories/111198/bus_124-7476.shtml

  Big Jim - I hope you are able to get some very good legal advice. You have been extremely naive - even when I was a kid, I knew how foolish it was to sign a blank cheque. I hope you learn to be more more business savvy next time!
• 

  Simon

  30% a week! wow, no wonder they are poor!

  I will never criticise my bank ever again...
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  logical

  Jim

  How can you work for a fucked up GREEDY company like that?

  If poor people cannot get credit from elsewhere, its most likely because the creditors are saying: "YOU CANNOT AFFORD IT". And their interest rates are MUCH lower than 30%.

  Are you surprised you've been messed around? You're in a dodgy business to start with.
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  individuals wife

  I have seen the devasting effects that these sort of schemes can cause and I find it very distasteful that these poor people can be taken advantage of at a time when they are desperate. Lending money at such exorbitant rates of interest can lead to a ongoing downhill spiral of debt and borrowing more to pay off that debt.

  I think it is a shame that people in dire financial straits have to
  resort to these measures, all they are doing is making somebody else very rich.

  Big Jim - Is this is a Christian way to treat people who are disadvantaged?
• 

  Amazing

  Big Jim: Cnn77 is correct, get an attorney NOW!. You need the meanest, toughest bulldog attorney and trial lawyer you get get. I am not sure the FBI has jurisdiction unless your loan operatioin is federally regulated. See an attorney first and he/she will help you decide on the appropriate authority to notify. It does appear you were scammed.

  To: Individual's wife: I understand your concern about the huge fee, and share your sentiment that it is very expensive, but try to hold back the judgment of Big Jim. I work closely in the financial markets, so here is some insight. First, credit is a "risk" business. The greater the risk, the higher the fees or interests. Yes, it seems backwards to the way one would normally think, that is, if a person is poor, then the higher rates cause harm and make them a higher risk. But, when you are lending money, and people do not pay you back, pretty soon you are poor, and the people who default have the money. So the higher fees are there to offset these loses. I have never used a pay-day service, but have come close a couple of times. When in need, the service can be valueable. - Amazing
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  individuals wife

  Amazing - I apologise if I sound overly judgemental, I just feel that very often these sort of schemes cause more problems than they solve.
  I live in an area where wages are very low and a lot of young families have fallen into the trap of borrowing money from people who charge high interest. It is the high interest that causes many of them to default. In desperation I have known some to take out extra loans to cover the original debts thereby increasing the problem ever further.

  There is now an alternative here which seems to be working very well and that is the local Credit Union, people can pay into the union when they have a bit to spare and can borrow more against it. Because a lot of the participants know each other they are more likely to honour their debts. A much more friendly concept don't you think?!