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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]

That is great! I am glad it all worked out :D

Sub: #41 posted on Tue, 04/14/2009 - 02:12

nohiogal nohiogal

(Posts: 2582 | Credits: )

I am equally worried about loan sharks as we call some payday lenders here in the UK who use all sort illegal tactics to compel debtors to pay up.
Someone was wondering how they could identify such lenders.
It is as simple as making sure you visit the sites of reputable firms or comparison companies to find out how to borrow with little risk.
One example of such is Only Finance, which you could search for on Google.
You could compare offers here and only go for the best.
Best of luck :D [/url]

Sub: #42 posted on Wed, 04/22/2009 - 12:36


What letters did you send to get a refund?????
My Cash now owes me $3900!!

Sub: #43 posted on Wed, 04/22/2009 - 14:15


You can use the standard letter but add in the letter that you demand a refund.

Sub: #44 posted on Wed, 04/22/2009 - 14:28

nohiogal nohiogal

(Posts: 2582 | Credits: )

I know the AZ PDL Laws but WHERE do I go to see which companies are legal or to check a company out? I've asked several companies now for a business license number and I'm always told to go online and check.

Sub: #45 posted on Fri, 04/24/2009 - 11:40

gp gp

(Posts: 28 | Credits: )

"Posted: Wed Apr 22, 2009 2:28 pm Subject:

------------------------------------------------------------------------ --------

You can use the standard letter but add in the letter that you demand a refund.
To infinity, and beyond"



Sub: #46 posted on Fri, 04/24/2009 - 12:19


I live in LA and I have at least 6 pdls that are internet...I need to get out of this rut..I need some MAJOR help in this regard!! Thanks

Sub: #47 posted on Sun, 05/03/2009 - 20:44

mariasmom33 mariasmom33

(Posts: 4 | Credits: )

Well now, my interest has been piqued again with this particular thread and its overall theme... I had asked this before, but didn't get all the info I needed (most likely "my bad", as all of you are so helpful, responsive and kind). It would seem that deavvaed12 had major success in receiving refunds.... and what's this I'm reading that internet pdl's aren't allowed in PA(???)..... The internet payday lenders I have dealt with in the past folllow.............

I keep hearing that these 2 companies are legal, reputable, easy to work with, etc., so I may not luck out and/or be eligible for any refunds for monies paid paid beyond principle:

CashNet USA

Others not totally sure of their legality in PA (or at all), but I have paid back the principal and months (some even over a year) of interest/finance charges between 2007 and 2008:

US Fast Cash
United Cash Loans
Pay Day Loan Yes!
Paycheck Today
Cash Advance Network
FastWire Cash
Cash Central
Cash Transfer Centers (I know this is the one in Malta)
Little Loan Shop
Impact Cash USA
Quickest Cash Advance
Cash Direct Express

May I please ask that the standard "letter" be posted again (or referenced to where I can find/see it) and I realize that each letter should contain a "refund demand" as well.

Thanks for any and all help/advice.


Sub: #48 posted on Tue, 05/05/2009 - 07:53


Here is the link to the letter. Scroll to the 13th post to locate it.

I would suggest you start a new thread as more people will see it and be able to help.

Sub: #49 posted on Tue, 05/05/2009 - 08:29

nohiogal nohiogal

(Posts: 2582 | Credits: )

i did............thank you

Sub: #50 posted on Tue, 05/05/2009 - 08:45


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