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Posted: Thu May 24, 2007 1:32 pm Subject: Electronic Signatures

I am currently disputing a payday loan agreement (Gross Overpayment on loan). Per NC statute, the loan is null and void simply because they are not licensed to do business in NC, but I wanted some advice on the contract, because I never physically signed the document, only typed my name (which anyone could do). Can they hold me to this so-called electronic signature even though the contract may be deemed null and void?

Help!

Posted: Thu May 24, 2007 1:39 pm Subject:

Part of the Uniform Electronic Transactions Act:

Section 7 gives legal recognition to electronic signatures, records and contracts
(a) A record or signature may not be denied legal effect or enforceability solely because it is in electronic form.
(b) A contract may not be denied legal effect or enforceability solely because an electronic record was used in its formation.
(c) If a law requires a record to be in writing, an electronic record satisfies the law.
(d) If a law requires a signature, an electronic signature satisfies the law.

Posted: Thu May 24, 2007 1:43 pm Subject:

Thanks Goudah. I was going to ask the same question. That doesn't however make a contract legal if it does not follow the law. Correct?

Posted: Thu May 24, 2007 1:47 pm Subject:

Right, just because the signature is legal it doesn't have any effect on the other parts.

But it also depends on the contract law in your state. Some states will say the contract is void if there are illegal clauses, while others will say that just the illegal clauses are void, while the legal parts of the contract stand.

But in NC payday loans are completly illegal! So I wouldn't worry about fighting the contract on technicallities, I'd get them for doing business in a state where it is clearly not allowed!

Posted: Thu May 24, 2007 1:48 pm Subject:

According to the Electronic Signature Act, they are just as legal as pen and ink signatures. Have a look on this Act in the FTC Website.

http://www.ftc.gov/os/2001/06/esign7.htm

Read more on this "electronic signature" stuff.

http://www.debtconsolidationcare.com/collection-agencies/about27242.ht ml

I always believed that digital signatures are not valid in a contract, but if you read the laws, they seem to be valid.

Posted: Thu May 24, 2007 2:06 pm Subject:

Before we go wandering down a rabbithole,let's remember under basic contract theory the contract is null & void. Most courts have held if a contract violates sections of common law,it is not a contract.By living where you are,the contract cannot be enforced since the loan was illegal to begin with.Contact your attorney general and let him explain the facts of life to these loansharks.

Posted: Thu May 24, 2007 2:11 pm Subject:

Thanks everyone! You all have been very helpful.

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