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I am confused and really hoping someone can help

Date: Mon, 05/11/2009 - 15:02

Submitted by anonymous
on Mon, 05/11/2009 - 15:02

Posts: 202330 Credits: [Donate]

Total Replies: 6


I had some internet pay day loans that were not licensed to operate in my state. (I checked this out with the Dept. of Finance in my state.) I wrote the pay day loan people the certified letters. After some unpleasant phone calls they quit calling. Now about 3 months later I have gotten a bill from a collection agency concerning on of these unlicesed/illegal internet payday lenders. Do I have to now pay the collection agency if the collection agency is licensed by my state? This particular payday lender collected $900.00 on a $300.00 loan. I thought the payday lender owed me about $600.00.

What do I do next?


Leading Edge, ARM??? It is probably one of them. Oh wait there is also sunrise(MTE likes to try and use them.)

Please let us know which collection agency is contacting you about this. If your states DFI helped you through this and you sent out your letters to the PDL's telling them you know they are not legal to lend in your state. Then you should contact your state DFI again and inform them of the activity of the collection agency and to find out if they are even licensed to colect in your state. I mean, you way overpaid on that loan and just to get a paid in full letter to me is good enough to be done with the PDL mess.


lrhall41

Submitted by puddlejmpr on Mon, 05/11/2009 - 20:19

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I'm interested to know this, too......I have paid Eastside and GFSIL more than what I borrowed and am getting ready to send out the "you are illegal" documentation and begin the fight of I don't owe you anything. Is there any chance in hades they are going to give me a paid in full letter? and if not can I get strong armed by the collection agencies? This is a good point....


lrhall41

Submitted by on Tue, 05/12/2009 - 07:13

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If the loan was illegal then the collection on the loan is also illegal.

Most illegal lenders have the same collecters that they use and they don't have licenses either. They cannot do a thing but threaten and harrass.

Once in a blue moon they get a legal collection agency but they back off fast when told the original loan was illegal.


lrhall41

Submitted by nohiogal on Tue, 05/12/2009 - 07:15

( Posts: 2582 | Credits: )


Look on this letter you received to see if it states:

This is an attempt to collect a debt from a debt collection agency, you have 30 days to dispute the validity of this debt, otherwise it will be deemed valid.

Something to that effect^^
Anyway, the FDCPA states collection agencies are bound by law to give the debtor 30 days to dispute the debt. Even if the above isn't mentioned in your letter, send them a validation letter, certified return receipt requested. MAKE them validate the debt, that means they will need to furnish you with a signed contract (you signed), how they computed the amount owed, etc. If you type in "debt validation" in the search box located in the upper right hand corner of this forum you will come up with a number of threads explaining the debt validation process, you can also get sample letters from this site.


lrhall41

Submitted by Shazzers on Tue, 05/12/2009 - 07:18

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