Consumer complaint received 2018-10-29
Company: ZARVAD III S.A.
State: CA
Product: Payday loan, title loan, or personal loan
Sub-product: Payday loan
Issue: Problem with the payoff process at the end of the loan

Complaint:
This is the company response after stating I paid them a total of {$1100.00} even though I only received {$770.00} : MyPaydayLoan.com XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX . XXXX XXXX XXXX Dear XXXX, In acknowledgment of the email we received, we would like to clarify the issues pertaining to the transaction you originated with Mypaydayloan.com. 
First, we wish to remind you that all correspondence from Mypaydayloan.com is copyrighted, and you consented to such before applying for an advance. 
Specifically, the website states : Except where expressly provided otherwise herein, all emails, comments, feedback, information or materials submitted to Mypaydayloan.com through or in association with this web site ( " Submissions '' ) shall be considered Mypaydayloan.com 's copyrighted property. By providing such Submissions to Mypaydayloan.com, you agree to assign to Mypaydayloan.com all worldwide rights, title and interest in the copyrights and other intellectual property rights to the Submissions.Any publication, posting, or dissemination of such information is in direct violation of this agreement and you will then be liable for copyright infringement, disclosure of confidential information, and breach of contract. Additionally, because it would be difficult, if not impossible, to determine the amount of damages to Mypaydayloan.com, you will be liable for liquidated damages in the amount of {$25000.00}, per violation, for your publication, posting, or dissemination of information from or relating to Mypaydayloan.com. You agreed to this provision immediately after your email was validated, and before you proceeded with the application. Failure to remove any postings within two business days of receipt of this letter may result in a civil suit for liquidated damages.Mypaydayloan.com is a XXXX XXXX corporation with servers, offices, employees, and all other important elements of the transaction located in XXXX XXXX. You engaged in an unsolicited transaction with Mypaydayloan.com, a XXXX XXXX company. Furthermore, in the contract you agreed that the transaction would be deemed to occur in our country, XXXX XXXX, and you agreed to be bound by XXXX XXXX   XXXX.Specifically, the contract you signed in order to receive an advance clearly states : GOVERNING LAW : Both this agreement and the application is considered to be executed at our offices in XXXX XXXX, XXXX XXXX, and this transaction and agreement with us shall be governed by, construed, and enforced solely in accordance with the internal laws of XXXX XXXX.Forum selection clauses, like the one above, are supported by U.S. case law. For example, see the opinion of the United States Supreme Court XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, ( XXXX ). Likewise, U.S. courts have upheld the sovereignty of foreign entities engaging in unsolicited business in the United States. XXXX XXXX XXXX, XXXX v. XXXX XXXX , XXXX, XXXX XXXX XXXX, XXXX ( XXXX Cir. XXXX ) Furthermore, the controlling forum for a contract is determined by the lex loci contractus, which is the law of the place where a contract is made. A contract is deemed to be executed where the final act necessary to make it binding has been completed. In this instance, the transaction was not binding until reviewed and approved by Mypaydayloan.com, after they received all information from you to make a decision to enter into the agreement. Hence, the final act to make the transaction binding was in the jurisdiction of XXXX XXXX, and that countrys laws are binding. See e.g., XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX , XXXX. , XXXX XXXX XXXX, XXXX ( XXXX Cir. XXXX ) .Lastly, any comment about specific interest rate caps based on the laws of your state simply do not apply, as the money transferred to you was an advance on a check, and not a loan. There are important differences that are a benefit to you and should be clarified.First, in order for a transaction to be a loan, it must accrue interest. You were charged a flat fee per {$100.00} dollars advanced. Because a fee is not interest, there is no accrual element to this transaction. When you defaulted you were not charged a percentage of the unpaid balance. You were charged a fee for defaulting, and you may have also been charged an NSF fee, if applicable, both of which you agreed to in the contract.Secondly, if a transaction is a loan, it has a compounding element whereby any unpaid charges would be included in the interest calculation and added to the total amount owed. Instead, in your transaction with us, you agreed to be charged flat fees for overdue balances and other breaches of your contract. Those fees do not compound or increase as the unpaid balance goes up.As such, the standard usury lawsor maximum allowed interest ratesdo not apply to this transaction. This principle is no different than when your bank charges you an overdraft fee to cover a check where there are not enough funds in the account to cover the check. You were advanced funds based on your next check from your employer. So whether that was five days away or twenty, the fee is the same.You are hereby advised to abide by the agreements in your contract with Mypaydayloan.com, and contact the collections department to make a payment arrangement. Failure to do so within two business days of receipt of this letter will result in your account being reported to appropriate credit agencies as in default of your obligations, and sent to an outside collection agency, which will subject you to additional fees and may prevent future credit transactions with other companies. Please govern yourself accordingly. The current balance is {$1300.00}, we can split it in 12 biweekly payments of {$100.00} starting on XX/XX/XXXX. 
Sincerely, XXXX XXXX. 
XXXX ext XXXX This company continues to call my cell phone and my work phone after being told to cease and desist contacting me.

Company response to consumer: Closed with explanation