Payday loan threatened to be sent to collections

I obtained 3 different payday loans that turned out to be illegal in my state of California. I closed my acount and have defaulted on them but plan to make payment arrangements to pay off what I legally owe. $315 for each loan. I am now getting emails stating that the laons will be sent to NCA which I am sure they will try to collect more than what is legelly owed. What can I do at this point? I have sent an letter via email stating that I will pay off what is legally owed bjut have not received any repsonse.

Well ,Trujilt if you think that the lender is charging excessive interest, fees and hence violating the state collection regulations, then you can contact the California Department of Corporations. You can also file a complaint with the Better Business Bureau.

I would suggest you to send a debt validation letter via registered mail with return receipt requested. If they still don't respond and send it to collections, then it will become a bit more easier for you to deal with.

The debt validation letter will not work for an original creditor as they are not bound by those laws. Send them another letter stating that they are illegal in your state and that should they send the account to collections you will report them to your states regulatory agencies and that they will not receive one single penny.

If you end up getting a call or letter from the CA, reply to them that the loan was illegal and you are under no obligation to pay one single penny. Inform them that should they contact you again about the debt in any way or put it on your credit reports that not only will you turn them in for collecting on an illegal debt but that you will also sue them.

Thanks for the great info. I am preparing myself in the event that I get a call or letter from a CA. I more or less figured that the payday loan laws would cross over even if the account went to collections. I just wanted to be sure. Thanks for the help!

I can understand if it's illegal, you don't have to pay on it. However..if the PDL's are sent to a CA, they may report it to the CB (that's happened to me a few times). But..my question is how can the CA, legally, report the PDL not paid..when the PDL was illegal in the first place?I STILL have a few CA's on my CR, trying to collect for PDL's. How can I get them removed, if I can?