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Dealing With Unlicensed Payday Lenders

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Updated on July 14, 2010: At the bottom of this post is a newer version of a letter template which you may or may not want to use, make sure you use your own words, this is only a sample.

If everyone will just give a link to this thread to the new members who come here for guidance it may be more helpful and less work for the experienced members who are researching information. I wrote this awhile back and am most happy to share it. THANKS!

You are only obligated to pay back the principal amount you borrowed from an unlicensed/illegal Internet Payday Lender.

What should you do?

Close your account asap, if you are unable to close your account, go into your bank and ask to speak with the Branch Manager, tell him/her you need a hard debit block placed on your account immediately! Explain that you are revoking ACH authorizations from unlicensed/illegal companies, and have learned these companies are notorious for ignoring revocation, therefore it is important to BLOCK any withdrawal attempts on your account to protect your interest. This is your privilege, do not accept no for an answer. The following link will provide you important information regarding closing accounts. CLICK HERE
What next?
AFTER your account is secure send each pdl (the unlicensed and illegal) an email similar to THIS (please scroll down to locate letter template). Tailor this letter to your needs, and try to write it with the same basic concept in your own words. You will need to research and locate email addresses/physical addresses if you don't already have them, I suggest that you type the name of the pdl (example: "oneclickcash address") in the search box in the upper right hand corner of this forum. You may also search for addresses HERE at the Better Business Bureau.
File complaints: Most of the time, you can file a complaint online with the following, I encourage you to follow through with doing so, you will need to search the Internet for your state Attorney General's website, however, here are links to file complaints for the FTC, Online complaints: Federal Trade Commission., and the BETTER BUSINESS BUREAU.
Keep in mind that you may not receive a response for days, or even weeks, or, you may receive harassing and threatening phone calls. I have found the best way to deal with this is not to respond or reply, simply hang up.
Side note: If you have paid an illegal/unlicensed payday lender above and beyond the principal amount you borrowed, it might be a good idea to demand a refund and a paid in full letter/receipt. You may or may not get one or both. It still doesn't hurt to include that tidbit in your letter. :)
[QUOTE]
Date:

Name Of PDL

Your Name
City, State
Account #

This letter is to inform you that I am aware of the FACT that the loan you issued to me, is NOT legal or binding in my state. For your convenience, I have included my state payday loan laws below.

(Insert Your State payday loan laws here)

(Insert either (a) OR (b) which ever statements below which applies to you)

(a) The state of (insert your state) prohibits payday loans, therefore, I am bound by the state laws where I reside. As I have no presence in your state or country (only insert one choice, state or country, depending on your situation.), therefore I have no legal obligation to the 'governing laws' you may have detailed.
OR
(b) The state of (insert your state) requires Internet payday lenders to be licensed in MY state. I have already researched this information, your company does NOT have a license to lend in the state of ___________, if I am mistaken I will need proof in the form of a license number so that I may verify it with my Attorney General. I am bound by the state laws where I reside. As I have no presence in your state or country (only insert one choice, state or country, depending on your situation.), therefore I have no legal obligation to the 'governing laws' you may have detailed.


Be advised that as of today (insert todays date) I am revoking ANY and ALL ACH authorizations with your company from debiting any AND all of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I also revoke ANY and ALL wage assignments I may have signed, by you, including but not limited to; any of your affiliates, dba's, and collection agencies assigned to this account. None of the above no longer have my permission to access my accounts or impose a wage assignment.


I will only communicate to resolve this matter via email. If you ignore this notice and attempt to contact me or any of my references via telephone, you will be ignored and any payments owed will be delayed. I am willing to pay the principle amount of the loan only, however, no address means NO payments, this is not negotiable.

If you do NOT reply to this notice within 48 hours I will be forced to file complaints with my Attorney General (insert name of your attorney general), the BBB and the Federal Trade Commission. If you reply to this notice with any misleading legal implications or menacing course of actions you are unable to follow through with, I will be forced to take actions against you which could cause you to lose your license in the state of (insert the state they are licensed in) < (only use this statement if the illegal lender is licensed to lend in a state other than yours) and cause damage to your reputation, which could potentially decrease your clientele!



Sincerely,

Your Name[/QUOTE]




Hi, I am really wondering how FL law deals with multiple online payday loans. I have several online payday loans - but the state of FL says you are only allowed to have one. Does that mean that these lenders are illegal?

Sub: #11 posted on Sat, 02/14/2009 - 21:49

Unregistered


brini, I answered you in your other post.

Again I suggest you make a new thread.

We need to know the name of the companies, whether they are store front or internet and how much you borrowed and how much you paid back including any fees.

Sub: #12 posted on Sun, 02/15/2009 - 03:54

nohiogal nohiogal

(Posts: 2582 | Credits: )

Thank You...Will do!!!

Sub: #13 posted on Wed, 02/18/2009 - 13:44

jvue jvue

(Posts: 15 | Credits: )

THANK YOU!!!!! Ive had these guys debit my acct till it was forced closed by my bank. I have now filed the letters with them, and they have zero'ed my accts and are also issuing me refunds for all amounts paid. As I am a MA resident they were quick to have me happily zeroed!

Trust me, there are always silver linings!

Sub: #14 posted on Thu, 03/12/2009 - 13:16

Unregistered


I live in CA. how do i know whether they are illegal payday lenders or not.
payday one, cash central, zip19, paydaymax, ezpayday,national payday, and integrity(iadvancecash.com) they are all internet based. i need whatever help i can get to get these paid off!

Sub: #15 posted on Wed, 03/18/2009 - 08:48

Unregistered


Please make a new thread in the forum and we can help more.

Just at a quick glance there are some you listed that are illegal.

Sub: #16 posted on Wed, 03/18/2009 - 08:53

nohiogal nohiogal

(Posts: 2582 | Credits: )

I live in GA and have 2 payday internet loans. Are these illegal?

Sub: #17 posted on Wed, 03/25/2009 - 06:03

Unregistered


To the guest above,

To furthur assist you, please start another thread listing your PDL names, how much you borrowed, and whether they are storfront or internet lenders. Thanks!

Sub: #18 posted on Wed, 03/25/2009 - 06:09

Cool_Abyss Cool_Abyss
Moderators
(Posts: 2936 | Credits: )

"Side note: If you have paid an illegal/unlicensed payday lender above and beyond the principal amount you borrowed, it might be a good idea to demand a refund and a paid in full letter/receipt. You may or may not get one or both. It still doesn't hurt to include that tidbit in your letter. "

So how does this work with lenders that don't allow you to make interest only or principal + interest payments? The ones that require you to pay in full and then reloan?

For example I'm basically paying $200 a month for a $300 loan, and have been for the last 6 months, however they only offer full repayment, and then reloaning, as an option.

1) Am I able to apply the interest paid for the same loan amount, at least during this year?

2) This is a company I have confirmed is illegal in my state and is not a CSO, so does it even matter? If the lender is illegal would I technically be required to repay them anything at all, even if I had just taken out the loan?

Sub: #19 posted on Wed, 04/01/2009 - 08:27

Unregistered


well stu,if you borrow you should at least pay back what you borrowed.we always advocate that.they can't however charge interest or fees.ant contract they come up with is worthless as they are unlicensed.two questions.
how much was borrowed?
how much was debited total by this pdl?
that would help us help you.

Sub: #20 posted on Wed, 04/01/2009 - 12:10

paulmergel paulmergel
Moderators Cum Industry Expert
(Posts: 15512 | Credits: )

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