Stupid legality issue

The are prohibited in NC . . . There are some users here from NC that could probably tell you how best to go about it, but you should close your bank account and write each company a letter stating that according to NC laws, pdl's are illegal, and that your loan should be marked paid in full. File complaints with your state's attorney generals office. In the letter state that you also revoke any and all wage assignments you may have signed. Send it certified mail.

Since these loans are illegal, technically speaking interest cannot be charged. You are only responsible for paying the principle amount back.

Does this statement release the pdl company from following NC (Where I live) laws?

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No, choice of law contracts are not legal. The fact of the matter is you cannot pick and choose who's laws you can follow. You are bound by the laws of the state that you are operating in, and federal case law has found that electronic businesses are doing business in the state that the consumer is in.

I have another question. I have been getting and paying off pdls since 2005. In June of 2006, I moved from SC(legal) to NC(not legal). Some loans that are outstanding have carried over. Which laws apply to them?

Again, thank you so much for taking the time to talk to me. I feel so stupid for getting tied up with pdls in the first place.

That's an interesting question. Did you update your address info with the pdl's? Also, are these just rollovers, or did you pay off the loan and then reloan?

The state that you were in at the time the document was signed (electronically most likely) would be the laws that should be followed.

That's what I was thinking as well. I am researching now what the status of each of the loans is. I know this is a horrible situation to be in, and not keeping better track is even worse, but that is where I was. I think I will just let anything that happened in SC go, and only worry about original loans that happened in NC. Thanks again for all your help.

Anytime . . . Most of us have been in up to our necks with payday loans, and survived, so there is hope.

As far as the ones that you took out in SC, there are specific amounts they are allowed to charge. So if they are charging more then allowed you could always fight them from that point too.

Does the following statement releas the pdl companies from following NC (Where I live) laws?

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Nope, no matter what they write in the contract, they cannot pick and choose who's laws they follow.

Does any one know for sure what would happen if I put a "stop payment" on an ACH debit from an online payday loan account or will I have to close my account altogether? I live in SC and am in-between jobs. I will not have the funds in the bank when it comes due. I contacted them and they said to send a money order before the due date, but I cannot do that until I get paid in three weeks. Will I get into trouble legally if I do either of these choices?