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From what I have learned by searching through these forums -

BetterCash/MoneyLion - may or may not be legal - at least one person posted that they had used the sample letters to dispute with them and had received a response similar to their account would be closed out - if anyone can provide further insight about how to proceed with this lender, I would greatly appreciate it. I just don't know whether or not to continue to paying the amount requested on schedule or to do something differently.

Spotloan - it is my understanding that this is an illegal lender?

Elastic "Line of Credit" - it is my understanding that this may be a legally licensed lender (FDIC Insured) in Florida, but their interest rates appear to be WAY higher than the maximum interest rate allowed in Florida - I may be confused about how the maximum interest works in Florida - so maybe someone else in Florida can help me understand correctly?

I recently entered a debt management program through credit counseling, but they advised they do not include or work with any of these lenders, so I'm still on my own in handling those.

Any suggestions or comments greatly appreciated.


Usually, the debt management companies or consolidation companies will not include any payday loan into their debt payoff program. This is because, in the case of illegal pdls, you don't have to pay a cent extra for the interest. You just have to pay the principal amount and get rid of it.

Sub: #1 posted on Thu, 11/14/2019 - 23:18

Good Nelly Good Nelly
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Are they illegal? If yes, then the debt relief company may not include it. However, you just need to repay the principal amount.

Sub: #2 posted on Fri, 11/15/2019 - 05:06

Sanders Patricia Sanders Patricia

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I know this - my question was if anyone had insight about the legality/illegality of these lenders. I understand why they could not be included in the DMP - this was explained by my credit counselor. I would like to send letters to any of the 3 that are illegal, but didn't want to send a letter to one that isn't actually illegal - if that makes sense? I guess the worst they could do is write back and say that doesn't apply to them.

Sub: #3 posted on Fri, 11/15/2019 - 06:34

James G Barnes James G Barnes

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Your question is justified. See, the first 2 loans are illegal. I know this fact very well. Now, as far as Elastic is concerned, you have to be tactful. They have not followed the state laws. So, this loan has also become illegal. In these cases, you should pay only the principal amount.

Sub: #4 posted on Mon, 11/18/2019 - 02:33

Nick Jonas Nick Jonas

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Nick, can you provide any guidance on what you would feel is being tactful? I take it that you are indicating that the sample letters could be too antagonistic or demanding? If so, I would definitely be interested in some insight as to what you and/or anyone else might consider to be more tactful??

Thanks SO much to everyone who has chimed in to help me thus far!


Sub: #5 posted on Tue, 11/19/2019 - 13:28

James G Barnes James G Barnes

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Elastic Credit has not followed the state laws. They are in this business for a long time. So they know it very well. It's just that they won't accept it upfront. So in this case, you have to inform them that since they have violated the state laws, so you'll pay only the principal amount. The loan agreement is not valid anymore.

Sub: #6 posted on Tue, 11/19/2019 - 23:09

Nick Jonas Nick Jonas

(Posts: 427 | Credits: )

Thank you Nick! I will send them a letter as well.

Sub: #7 posted on Wed, 11/20/2019 - 05:21

James G Barnes James G Barnes

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