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I recently took out an online payday loan to help cover unexpected expenses. I just found out that they do not have a CAB License here in Texas, they do not have a membership with the OLA (even though their website says they do) and their offices are located in Costa Rica. I sent them a letter letting them know that I just found out that the loan contract was not legal & binding here in Texas, because they don't have a license. They said that it doesn't apply to them, because they say that the contract was executed under the Governing Laws of Costa Rica, but the contract does not state that, infact nowhere does it state that they reside in Costa Rica and I was not informed of this at the outset, if I had known, I would have never proceeded with the loan. I offered to repay just the principle of $300, but they refused saying that I signed a legal & binding document. But how can it be legal & binding, because they extended a loan illegally, they are based outside of United States & no where on the contract, website or verbally was I informed they are located in Costa Rica. What are my options?

Your options are loud and clear. You need to pay only the principal amount. You're not required to pay interest rates, late fees, and other charges. Let the company say whatever they want. You should to stick to your point that the contract is null and void. Just tell them one thing, you won't pay a penny more than the principal amount. If they're willing to accept, it's good for them. If they don't, then you would be happy to enjoy the money.

Sub: #1 posted on Mon, 06/24/2019 - 00:07

Nick Jonas Nick Jonas

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