Consumer complaint received 2019-03-28
Company: LDF Holdings, LLC
State: SC
Product: Payday loan, title loan, or personal loan
Sub-product: Payday loan
Issue: Charged fees or interest you didn't expect

Complaint:
I sent the following letter to XXXX, XXXX XXXX Sky Trail Cash on XXXX XX/XX/2019. I need the CFPB assistance with resolution : XXXX XX/XX/2019 XXXX, XXXX d/b/a Sky Trail Cash XXXX XXXX   XXXX XXXX XXXX XXXX, WI XXXX To Whom It May Concern : After doing research regarding Internet Tribal payday loan laws in the State of South Carolina, I have found that your Internet payday loans are actually illegal. I have been in contact with South Carolina State Department of Financial Institutions and they have verified that your company is not licensed in South Carolina, therefore the loan contracts I have had with XXXX, LLC d/b/a Sky Trail Cash according to my state 's laws, are not enforceable. 

It has come to my attention that payday lenders must be licensed by the state of South Carolina in order to offer loans to its residents. Since your company has no license in my state, the loan contracts I have had with XXXX, LLC d/b/a Sky Trail Cash are not valid. 

I have conducted hours of research and have consulted with authorities. The practice of online payday seeking affiliations with Native American tribes in an effort to take advantage of the tribes special legal status as sovereign nations is abhorrent. This rent-a-tribe model is under scrutiny. Courts are cracking down on tribal lenders. 

The Consumer Financial Protection Bureau recently sued four online payday lenders in federal court for allegedly deceiving consumers and collecting debt that was not legally owed in many states. The complaint alleges violations of the Truth in Lending Act and the U.S. Consumer Financial Protection Act. It seeks restitution of money that borrowers paid involving illegal loans, plus penalties and a halt to the practices. While the lenders will likely claim that their loans are governed only by tribal law, not federal ( or state ) law, a federal court rejected similar arguments last year in a case brought by the FTC against lending companies. 

Tribal lenders have been found and identified in the Public Justice Report to be regularly making loans with interest rates well above state and federal regulations sometimes up to 700 percent. 

I have researched XXXX, XXXX d/b/a Sky Trail Cash and there are volumes of complaints against this tribal entity. XXXX, XXXX d/b/a Sky Trail Cash hides behind its tribal status to act in a predatory, harassing, and very nearly illegal manner. In my research, the repeated theme is the harassment, threats and predatory nature. Additionally, the extreme in fee charging which goes against the policies of many states. 

At this time I am requesting a return email acknowledging that my account is marked paid in full in good standing. 

I am also revoking authorization for ACH withdrawals. 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. 

Please respond to this email with acknowledgment that my account has been satisfied in full. 

I demand that any contact be made through email only. I will need everything in writing to keep accurate records of all communication as per instruction from my Attorney General 's Office. I prohibit you or your affiliates to contact me via telephone at my place of employment or my home telephone number. I also prohibit you from calling my references listed on my loan. 

I must also inform you that I will be filing complaints with the Consumer Financial Protection Bureau, Better Business Bureau, the Federal Trade Commission, and Wisconsin and South Carolinas Attorney General 's Office. 

I expect a response from your company no later than 1 day from the above date regarding this matter. This response may only come via email. No telephone or postal mail contact is permitted. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX SC XXXX XXXX CC : Consumer Financial Protection Bureau Federal Trade Commission Better Business Bureau South Carolina State Attorney General Wisconsin State Attorney General

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation