Payday loan Hell!
Date: Tue, 04/20/2010 - 12:33
I'm a New York State resident living in Syracuse. Back in February. I took out a payday/cash advance loan for $500.00 dollars from a company called Loanpointe USA. I've made a total of 5 payments towards the loan totaling $730.00. The payments were only to extend the loan, the payments did not go towards the principal balance. I still owe the $500.00. I'm not sure what to do regarding this loan. I can't afford to pay anymore. Is it legal for them to charge such high interest? I don't think they are backed by a bank. If not, what should my next steps be? I appreciate any information you can give me.
Payday lending is prohibited in the state of NY by the laws. You
Payday lending is prohibited in the state of NY by the laws. You can check out the state laws here. Hence, the lender you have is operating illegally in your state.
Since you only owe the principal amount to an unlicensed lender you have paid them way more than what you should. IMO you may demand a refund from them as well. Check out the following link to read more on dealing with unlicensed payday lenders.
http://www.debtconsolidationcare.com/paydayloan/illegal-pdl-dealings.html
