Payday loan reporting on credit bureaus

If you have a payday loan with an illegal lender (unlicensed in your state) then you can and should sue to remove the debt from your credit report. It does not matter if you paid it back or not.

The approach depends on your state:

1. If you are a California resident, there is an excellent law in California used by my law office frequently. You can sue the creditor directly in state court.

2. If you are not a California resident, it is more complicated. Most likely you will have to rely on the federal credit reporting act, which means you will have to dispute the debt, cause the credit bureaus to reinvestigate and then sue when the debt is not removed.

As far as we know, illegal lenders do not report to credit other than Cashcall for Western Sky loans. However, we do have cases all the time in which a CA will report illegal debt. Is this the actual lender or a CA reporting? If it's a CA it should be quite easy to remove it.

Hi guys,

I didn't see you had replied.

The company that is reporting is Northern Resolution on behalf of Bayside, I've disputed twice and both times it comes back as verified.

What can I send the the CB to prove it isn't valid?

I am in Washington DC. I know that pdls are prohibited here.

Who would I sue? Bayside or the CA?

You could sue the credit bureau AFTER you have disputed it and presented evidence to the credit bureau with your dispute. The evidence should show that your payday loan contract was illegal and void under D.C. law, including the contract identifying the lender and the printout from the government website showing that lender is not licensed.

Unfortunately under the federal law you cannot sue the furnisher of information directly but have to go through this dispute process.

So basically, send them a copy of my state's pdl laws, and they should be able to remove it? If not, then I can go after the CB?

i had a couple report.i did this.filed a dispute stating the loan was illegal and my AG was on it.you must file the AG complaint as the CB will look into that.got them removed.

I called Transunion today and told them about the illegal lending, I am going to go ahead and mail in my dispute as well and include the documentation about illegal pdl lending, that should be good enough, right?

Yes Daniel, the bureaus should remove debts where you have presented proof the loan was illegal. If the bureau refuses, you have a federal claims under the FCRA against them. Make sure you back it up with the loan agreement and a copy of your local law banning PDLs

I couldn't find the agreement, but I did send them a copy of the state laws. Hopefully that is enough.

I have no clue where the paperwork is. May have to dig for it if they don't accept it.