Arbitration clause

Others who are more legal-savvy than I will be along soon; however, I did a search on My Cash nows' physical location, and while there's 1 supposed US address, they're also listed as being in Panama and/or Canada. If they're located in another country and PDL's are illegal in NY, I can't see where they'd be able to enforce any arbitration. JMO, of course?!

I with agree Pachacutec, cant see how they could enforce it.

Well since all the regulars here state that the illegal PDL's are not able to bring you in front of the legal system and since they also say its illegal to do paydayloans in NY state then I can't see how this little disclosure can be enforced or why would we bother sending out those form letters from that other thread on this site?

You are in NY. PDL's are illegal in NY. They can not enforce anything.

Arbitration awards can be enforced in any state where the losing party has assets to collect. How they go about collecting is a function of state law (some states allow garnishments, others don't for example) but federal law requires state and federal courts to enforce arbitration awards, at least in general. Not sure if there are any special rules that apply to consumer debts but there is nothing in the Federal Arbitration Act that separates them out. Probably why a few congressmen are trying to get the law changed now to exclude consumer debts from mandatory arbitration.

Things have changed in the last week and the 2 major arbitrators will no longer offer the service. It is now on the backs of the court system...

The key here will be whether the judges get tired of the debtors or creditors first. In most cases, the creditors have a signed agreement and it will be upheld.

This is for all lenders and CA's, not just PDL's.

IF a pdl is illegal they can not use legal means to enforce anything.
NY state prohibits these loans , and the courts will not honor anything from them.

Actually, any person can sue another person in small claims. Now winning the case is another story. Just because they are not licensed in a given state does not mean that they would not be allowed to file the case, it only menas that they would have a tougher time winning the case. The right judge on the right day could rule in the favor of the PDL.

Reality is that they would not waste thier time and money to file when the cards are stacked against them, so I would not worry.

Trust me there is no chance in hell of an ILLEGAL PDL company trying to sue you in small claims court or any other venue, especially in a State like NY where PDL loans themselves even from legal company's is prohibited. Almost all of these illegal internet payday loan companies bank on the fact that you will want to get another loan and have no other source for loans so they know you will come back for more down the road when needed. They have no leg to stand on in a state that has prohibited them from operating in their jurisdiction.

"Guest," I agree with you. Anyhow if they knowingly offer a PDL to someone in a State where PDL's are prohibited, then wouldn't that automatically make any contract null and void since it IS illegal? Too, so many of the internet PDLs are located overseas; I can't imagine them spending the time and money it would take to come to this country and sue a person in small claims court.

Yes the contract means nothing but like others have said the right thing to do is to pay off the money that was lent to you and not a dime more. To do otherwise is stealing though I have spoken to lawyer friends who say these companies know they are going to get quite a few of their customers hooked into a never ending cycle of outrageous debt and should never be offering loans to people in venues where they are not supposed to be operating. That is just pure greed.