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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]

Sub: #71 posted on Tue, 06/23/2009 - 22:03

Chrys Henderson Chrys Henderson

(Posts: 2538 | Credits: )

Are interenet pay day loans legal in Louisiana?

Sub: #72 posted on Wed, 06/24/2009 - 09:18


can someone tell me if this online payday advance is legal in Texas, their called integrity advance. I have paid $1500 already and i omnly borrowed $500, i was ill and lost alot of work so i was desperate and took this out to pay bills, i have not been able to catch up since...I feel sooo foolish. I will never pay this off, and i don't want to go through the hassle of canceling my bank account. I seen where you can send that letter, but what if they call my job and friends anyways? I couldn't handle the embarrassment.

Sub: #73 posted on Wed, 06/24/2009 - 15:17


I'm sorry, from my response above, the name wasn't integrity advance, it was

Sub: #74 posted on Wed, 06/24/2009 - 16:16

txjen004 txjen004

(Posts: 1 | Credits: )

[color=DarkBlue]CASHCENTRAL.COM is legal and they are following the required payday loan laws in CA by charging $15 per hundred, maximum loan $255 no more than $300 and there are no roll-overs. They are not only legal in CA, but they are also following the required guidelines and CA Payday Loan Laws. They come in handy when you need them once in a while.[/color][/color]

Sub: #75 posted on Tue, 06/30/2009 - 15:12


Can anyone tell me if these are illegal in California?
Midland Financial
Payday Loan Centers (Rocky Boy Technologies)
United Cash Loans
Cash Jar
Eastside Lenders
Geneva Roth Capital (AKA Loan Point USA)
RBT Loans
Cash Advance Network
Payday Wiz
ACC Funding (AKA The Cash Spot)
ACE Cash Services
FBD Loans (First Bank of Delaware)
3BPayday Loans

Sub: #76 posted on Mon, 07/06/2009 - 11:40

ecoguy777 ecoguy777

(Posts: 2 | Credits: )

Ihad to go to court for a debt that i do have. I,am out of a job.I was trying to pay but got behind on them for 6 month .Trying to pay other bills like house note ,lights,gas,water.they give me 30 day or garrish my check which i don,t have.I,am drawing unemployment as of now. can they take all my thing that i put up for the loan . Like tv,lawnmover weedeaters etc.

Sub: #77 posted on Wed, 07/08/2009 - 08:41


i want things clarified here.
i have a payday loan with i have paid them some not all. I am tryin to settle on an amount as they want hundreds of more then what i owe. i live in MA and i know it is illegal. what am i obligated to pay them? what the loan was? if they didnt reg with the small loan act do i not have to pay any interest? HELP they are the rudest people

Sub: #78 posted on Thu, 07/09/2009 - 11:34


in debt,
If you put it as collateral, then yes of course they can repossess the collateral.

Dealing With Illegal Payday Lenders.

Sub: #79 posted on Thu, 07/09/2009 - 21:47

Chrys Henderson Chrys Henderson

(Posts: 2538 | Credits: )

I live in Iowa how do i know if they are legal or not. United Cash Loans, 500 Fast Cash, National Payday

Sub: #80 posted on Mon, 07/27/2009 - 19:58

bnks_ngl bnks_ngl

(Posts: 8 | Credits: )

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