Response from Texas OCCC

I emailed this forum last week about my payday loans and was told since 5 of the 6 were not licensed in Texas (were I reside) then I should close my bank account and inform them that I will only be paying back the amount loaned to me since they were not licensed in my state. I contacted the Texas OCCC just for verification and this is what they told me. If it is true then it sounds to me like I have to pay them all back, fees, interest and all. Please confirm.
"Federal statutes allow payday lenders to be licensed or registered in other states and then "export" the rates of that particular state thorough out the United States, known as Federal Preemption. Thus when you sign and take a proceeds from a loan, regardless of whether or not it is licensed in Texas, the loan may be regulated by another state. You would need to look at the Terms and Conditions of your contract in order to determine which states, if any, has statutory authority. In other words, "Who governs the Contract?" There should be a paragraph to that nature in the contract.

As with any contract, you are normally obligated to fulfill the terms and conditions of that contract unless there are viable reasons that you should not, i.e. fraud, deceptive practices, etc. This action, not completing the contract, normally requires the ruling of a court of competent jurisdiction."