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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]

Thanks Shazzers,
Thanks for sharing this information. Now a days Payday Loan Solicitation not allowed here - Jason is popular and useful while run short off money.

Sub: #51 posted on Wed, 05/06/2009 - 03:32

simonmorkel1 simonmorkel1

(Posts: 1 | Credits: )

I live in Alabama. I have all internet based loans:
United Cash Loans
Discount Advances
Greenlight Funding
Cash Banc
Cash Net USA are they legal if not what do i do besides putting a hold or closing my account?

Sub: #52 posted on Tue, 05/12/2009 - 21:20


Please start a new thread.

More people will see it and you will get more help.

Sub: #53 posted on Wed, 05/13/2009 - 02:48

nohiogal nohiogal

(Posts: 2582 | Credits: )

Bea brought up a good ? in this area...can you send cease and desist to lender in dealing with illegal PDL's e.g. Eastside?

Sub: #54 posted on Wed, 05/13/2009 - 11:52

fixingit fixingit

(Posts: 228 | Credits: )

fixinqit - you can send it, i really 100% would.. all of my loans were illegal and i sent it and most did agree to it. all i meant was they do not necessarily have to listen to your letter..

Sub: #55 posted on Wed, 05/13/2009 - 13:01

bea2ls bea2ls
(Posts: 3840 | Credits: )

It is certainly worth a try.

Sub: #56 posted on Wed, 06/03/2009 - 23:01

Chrys Henderson Chrys Henderson

(Posts: 2538 | Credits: )

i have 4 of the out with loan shop online,ace servicing,sds processing,inmyaccount are they all legal? and sds processing keeps chargeing interest on the loan not what i had signed about so is all these legal and what can i DO?

Sub: #57 posted on Fri, 06/12/2009 - 08:40


I to was taken by fast cash. person called me and i stated no i do no authorize this she said i need to reply to the email so i did turns out that email states that i authorize!! i filled out an afadavit with my bank and was able to retrieve 120 back. they took the 300 back then another 400 so 120 out of 400 is still horrible. I closed my account opened a new one and learned my lesson, borrow from a friend or family matter much better stress.

Sub: #58 posted on Tue, 06/16/2009 - 10:03


i received a call from check protective services about a payday loan i could have done in 2004 for 275.00. i probably paid some extension fees. i donot remember the loan but they have my old bank information. i ask to get the information from this service but they refused to give it to me. it was an internet action she said. i live in the state of maryland.

Sub: #59 posted on Wed, 06/17/2009 - 05:57


the also stated that i could be legally charged since the email address was my office address. i work for the state. she said that i could lose my job as well as go to jail. help

Sub: #60 posted on Wed, 06/17/2009 - 06:00


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