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Loan is illegal, can debt collector get me to pay?

Date: Sun, 10/24/2010 - 03:23

Submitted by anonymous
on Sun, 10/24/2010 - 03:23

Posts: 202330 Credits: [Donate]

Total Replies: 9


Hey all,
Thanks to the fount of great information found on this site I was able to close my account and get out from underneath the disaster three payday loans had been causing me for months. Short version, I paid close to $3,000 on $650 from 3 payday loans over a few months.
Now I have been free from those bloodsuckers for 2 months. I verified they were illegal payday loans through my state, learned the laws, got informed and stopped that craziness. It is amazing how much everything has improved since I got that weight off of my shoulders.
Two of the loan companies immediately stopped and I never heard another peep after sending them emails like the ones suggested on this site. The third one then slowly started to call me occasionally and now it has become more frequent. I've just been ignoring them.

But, today I got a call from a separate debt collection agency about the debt. I just listened to what he had to say and didn't say anything other than confirming that my name was what he thought it was. He is demanding payment and all of that jazz.

My question is...How should i handle this? If the loan was illegal in my state can a debt collection company that bought my debt from the illegal pdl site still try to collect on me? It seems very strange that this would be legal. But, I didn't want to assume and just blow him off. I want these calls to stop!

Do I have any recourse? Or do I really have to pay this dirt bag?

(Also..I have paid WELL over my obligations on principal and the interest my state allows for legal loans.

I have verified the loan is illegal

I have filed complaints with the proper authorities.

I have documentation of all of my actions and proof of what they were paid.

I do NOT have a paid in full letter from any of the pdls.

I live in California.

The loan company was located on a Indian Reservation in Oklahoma, and is not licensed in my state, the loan was not in accordance with state laws (too much money, too many fees), and it got rolled over umpteen-million times.

Therefore, ILLEGAL!)

Thanks for all the help and sorry for the novel. Just thought i'd get all the info out the first time :P


....one more thing.


I know the initial response will possibly be asking for a debt validation letter from the debt collection agency. But my understanding is that their burden of proof may not include proving the legality of the loan. So, I wasn't sure if that was the only thing that needed to be done.


THank you again for any input!


lrhall41

Submitted by on Sun, 10/24/2010 - 03:33

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Do you know the name of the collection agency? I would suggest that you educate yourself on the FDCPA, since they are a 3rd party collector that means they are bound by the Federal Debt Collection Practices Act, see the link below for info on it:
http://www.expertlaw.com/library/consumer/fair_debt_collection.html#6
Click the link below to locate a free fair debt consumer Attorney:
http://www.fairdebtforconsumers.com/


lrhall41

Submitted by Shazzers on Sun, 10/24/2010 - 08:22

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Thank you again for you're help Shazzers!

I will definitely look into the FDCPA and use that to my advantage.

Any idea of wether or not I am liable to pay this debt to the debt collector? It really would seem strange if it was illegal to begin with, but now it becomes legal due to the fact that the debt collection company is in fact legal.


Thanks again for all the help!


J. - San Diego


lrhall41

Submitted by on Sun, 10/24/2010 - 12:39

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You say the loan company was on Indian land in Oklahoma; wonder if it's our good friends (!!!) at United Cash Loans or Ameriloans? If they are illegal in your State and you've more than overpaid them, it's my personal opinion that the collection agency is out of luck (can't give you any more concrete advice without knowing the name of the loan company and/ or collection agency, though)


lrhall41

Submitted by on Mon, 10/25/2010 - 04:57

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