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clp10_09

clp10_09

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Published by Charlton Butler
More consumer pleadings and instructions manuals and so on to fight the Banks trying to take your and my homes through lies and deceit
More consumer pleadings and instructions manuals and so on to fight the Banks trying to take your and my homes through lies and deceit

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Published by: Charlton Butler on Oct 12, 2011
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10/12/2011

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 1
Chapter 9 Complaint against Payday Lender Disguising ItsLoans as Sales of Internet Access (FL)
Lynn Drysdale has been a staff attorney with Jacksonville Area Legal Aid, Inc. for 16years. Her focus is in the area of consumer finance and bankruptcy with an emphasis on assetpreservation and community economic development , unfair and deceptive consumer practices,debt collection and other consumer concerns raised by low-income individuals. She is involvedin litigation, legislative advocacy and community education. Ms. Drysdale is a 1985 graduate of the University of Florida College of Law. She is also a licensed mediator.This chapter is a class action complaint against a payday lender who was disguising itspayday loans to avoid complying with consumer protection laws. Payday lending involves veryexpensive short term consumer loans that are payable at the consumer’s payday but oftenrenewed at great cost.
1
The payday lender allegedly disguised its loans as sales of internet accessand of career training video tapes. The complaint alleges that the disguised loans violate theFlorida usury laws, the Florida civil criminal practices act, the Truth in Lending Act,
2
theElectronic Funds Transfer Act,
3
the Forida collection practices act,
4
and Florida UDAP .
5
Thecompliant seeks declaratory and injunctive relief, actual damage, and attorney fees.
1
 
See
National Consumer Law Center, Cost of Credit § 7.5.5 (2d ed. 2000 and Supp.).
See also
, National ConsumerLaw Center, 3 Consumer Law Pleadings on CD-Rom § 4.1 (1997).
2
 
See
National Consumer Law Center, Truth in Lending § 2.2.4.3.5 (5
th
ed. 2003).
3
 
See
National Consumer Law Center, Consumer Banking and Payments Law § 4.4. (2d ed. 2002).
4
 
See
National Consumer Law Center, Fair Debt Collection Practices § 11.2 (5th ed. 2004).
5
 
See
National Consumer Law Center, Unfair and Deceptive Acts and Practices § 3.2 (5th ed. 2001).
 
 2
IN THE CIRCUIT COURT, FOURTH JUDICIAL CIRCUIT,IN AND FOR DUVAL COUNTY, FLORIDA
CASE NO.:DIVISION:[CONSUMER 1] and [CONSUMER 2], on behalf of themselves and those similarly situated,Plaintiffs,v.JOHN GILL, an individual, KIMBERLY DANIELS, an individual and JAG FL, LLC., a Floridacorporation doing business as Florida Internet,Defendants.
CLASS REPRESENTATION COMPLAINT
The Plaintiffs, [Consumer 1] and [Consumer 2], on behalf of themselves and otherssimilarly situated, by and through their undersigned attorneys, sue the Defendants, Jag Fl, LLC, aFlorida corporation doing business as Florida Internet Florida Internet (collectively referred to as“Florida Internet”), John Gill and Kimberly Daniels and allege:
JURISDICTION
 1. This is a class action lawsuit brought pursuant to the Florida Usury laws, the federalTruth in Lending Act, the federal Electronic Funds Transfer Act, the Florida ConsumerCollection Practices Act and the Florida Deceptive and Unfair Trade Practices Act based uponFlorida Internet’s loan scheme created in an effort to avoid Florida usury laws and to misledFlorida consumer into signing its criminally usurious loans without the benefit of the federally-mandated consumer credit disclosures. Defendants use a standardized, form, consumer loancontracts entitled “Internet Computer Access Rebate Purchase Application and Contract” in thesubject transactions. The Defendants also use illegally extortionate practices in their attempts tocollect these illegal loans.2. The Plaintiffs are seeking class declaratory and injunctive relief (temporary andpermanent), statutory and damages, in excess of $15,000.00, exclusive of interest, costs andattorney’s fees.
PARTIES
3. The Plaintiffs are consumers residing in Jacksonville, Duval County, Florida.4. At all times relevant herein, Florida Internet was and is a Florida corporation doingbusiness in Jacksonville, Duval County, Florida as a consumer lender.
 
 35. The Defendant, John Gill, is an Alabama resident, residing at 402 Rive Oak Way,Phoenix City, Alabama who at all times material to this complaint was doing business inJacksonville, Duval County, Florida though his business, Florida Internet.6. The Defendant, Kimberly Daniels, is a Florida resident, residing at 81 ZoradydaAvenue , Apt. A, St. Augustine, Florida who at all times material to this complaint was doingbusiness in Jacksonville, Duval County, Florida through Florida Internet.
JURISDICTION AND VENUE
7. The Court has jurisdiction of the parties and the subject matter of this action.8. Venue is proper in Duval County, Florida because the parties executed the contracts inDuval County and payments were due in Duval County, Florida.
HOW DEFENDANTS’ LOAN SCHEME WORKS
 9. The Defendants provide pay day loans to Florida consumers. In order to conceal thetrue nature of their loans and to illegally circumvent Florida’s Usury Laws and pay day loan andfederal cost of credit laws, Defendants attempted to disguise their loan transactions astransactions for the sale of Internet usage time and “career” training video tapes.10. Florida Internet’s true business practice was to accept borrowers’ checks withknowledge that there are insufficient funds in the account to cover the amount of the checks, toadvance money to the borrowers using the check and access to the borrowers’ checking accountas collateral and to require repayment of the loan within two weeks. The loan’s short term isdesigned to allow borrowers to repay the loan with their next pay check.11. Under the terms of its contracts, Internet usage time had to be by appointment duringregular business hours which were subject to change and its customers never received the videotapes. Florida Internet was not equipped to provide free Internet usage time to the volume of consumers who entered into their pay day loan transactions. Rarely, if ever, does a borroweractually use this services as Internet access is provided all around town for free. Also, thecomputers at Florida Internet look as if they are not operable.12. The loan contract describes the principal amount of loan as a “rebate.” Each “rebate”requires a payment every two weeks for an indefinite period of time. The payment required is inan amount equal to one-sixth of the “rebate.”13. When a borrower contacts Florida Internet for a loan, they are told they have to bringin a pay stub and must have a bank account.14. As a condition of the Internet usage time sale, borrowers are required to provideFlorida Internet with a check marked “VOID” and often a check in the amount of the loan plusinterest. They require a borrower to agree to allow Florida Internet to automatically deduct sumsfrom his/her checking, saving or credit card account.15. Florida Internet holds these checks until the loan falls due. On that day the borroweris required to come to the store to repay the loan with cash and to retrieve the checks.16. If the borrower does not come in to pay off the loan, Florida Internet will require ainterest only payment or will automatically debit the borrower’s account for an amount equal tothe entire loan or interest which has accrued for the month. When Florida Internet obtains the“interest only” payment, the loan is “rolled over” for the same length of time as the original loan.The principal will not be reduced by the monthly payments and additional fees are charged.

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