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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. :)

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.
(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!


Your Name[/QUOTE]

I sent an email as suggested to an "illegal" lender, and they wrote me back and said my "threats" have reported to their legal counsel. I made no threats, I was actually more polite than I should have been. Anyway, they say the agreement I made is governed by Costa Rica laws, not Texas, and I should not try to change the rules of our agreement. If anyone wants to see the emails in full let me know.

Any suggestions?

Sub: #101 posted on Fri, 09/04/2009 - 06:38

kaechelle kaechelle

(Posts: 2 | Credits: )

send an e-mail stating that you can use a vacation,and when they extradite you to costa rica you can get in some beach their response stated.they are not based in this country and can do nothing.i wouldn't worry about it.

Sub: #102 posted on Fri, 09/04/2009 - 06:50

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

I am trying to get out of the payday loan craziness. I have 6 loans and I believe 5 out of the 6 are illegal in Arizona. Does that only make me liable for the principle on the loan? Also do the interest/fees already paid count towards this principle? I have read a lot of posts but Arizona is different then what I have read.

Sub: #103 posted on Fri, 09/04/2009 - 13:43

Kristin Kebble Kristin Kebble

(Posts: 8 | Credits: )

Has anyone got the address to this pdl Centurion LPUSA -8003518820. I have blocked this company from my bank but the bank gave me back only some of the debits. I HAVE PAID THAN 2 TIMES THE AMOUNT I borrowed. The bank said I should of notified them earlier

Sub: #104 posted on Sun, 09/06/2009 - 10:39


I have searched the forums for the letter to sent the pdls .Please help getting no where fast and about to be debitted again.

I have read all the post and getting a feeling of hope that I MIGHT beable to get thru this mess. NJ bankings systems sucks including td bank...

Sub: #105 posted on Mon, 09/07/2009 - 05:31


go to the WATCH OUT FOR section to the right.the letters should be there.

Sub: #106 posted on Mon, 09/07/2009 - 07:05

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

I did not see any letter template for illegal PDL providers?

Sub: #107 posted on Sat, 09/12/2009 - 15:20


(Posts: 11 | Credits: )

I did not see any letter templates to be used for letter to illegal PDL providers? Please advise.

Sub: #108 posted on Sat, 09/12/2009 - 15:23


(Posts: 11 | Credits: )

Originally Posted by MB1
I did not see any letter templates to be used for letter to illegal PDL providers? Please advise.

Go back to the first page and read the very first post, there is a link in it for a template.

Sub: #109 posted on Sat, 09/12/2009 - 20:21

Shazzers Shazzers
Moderators Cum Industry Expert
(Posts: 17345 | Credits: )

I live in ohio and was wondering if these lenders are illegal here or not.


thank you

Sub: #110 posted on Tue, 09/15/2009 - 05:53


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