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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 live in Illinois and have the following...
M1y Direct Inc.
MMG Holdings
East Side

Please help....I feel like I am drowning!!

Sub: #81 posted on Tue, 07/28/2009 - 10:51


Hey everyone after days of searching for these scum bags I finally got a number.
These people are PDL Ventures, LLC,
They will tell you what is going to be withdrawn and when. They have all the information..... Please find out and block your accounts. They will have to be closed because these scum bags will use another sister company and draw again!!!

Sub: #82 posted on Thu, 07/30/2009 - 15:12


Report: Mycashnow
Category: Cash Services

Mycashnow ripoff Reno Nevada
*REBUTTAL Employee ..yep

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Are you also a victim of the same company or individual? Want Justice? File a Rip-off Report, help other consumers to be educated and don't let them get away with it!


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My Cash Now - ripoff Reno Nevada

First off this is the first time I have ever been to this webesite, I wish I had known about it longer.

Well please dont anybody be mad at me, I used to work for Mycashnow. In fact I was the supervisor for the call center. The call center is actually located in Reno, NV. altough the corporate headquarters is in Tennesse.

Just a couple notes about the many posts on this site: When I worked there (My employment abruptly ended in July 2004) all family members knew exactly where we were located, in fact we held parties in the office that our famlies were invited to. So whoever told they could not give out the address was an idiot.

The only 'office' in Carson City is a PO Box to recieve mail. To my knowledge it was something that was never checked. The woman who made a comment regarding the recording about the address is correct, and done intentionally.

Regarding the hold music, mycashnow tells its employees that it is a Christian company (something that they backed up at our Christmas party when the gave everyone a stack of Christian movies) thats why when you are on hold your hear sermons and Christian music.

This 'Christian' company fired me because I was getting to freindly with the employees. I know what you are thinking, that I got what I deserved because couldnt keep it in my pants. Well you would be wrong, the felt I was a threat because I had the employees on 'my side' and they didnt like the fact I was standing up for them and trying to help out 'the little people'.

I was told in a meeting previous to my firing that I could go far in this company with the 'right attitude'. Well I guess I didnt have the right attitude after trying to get the employees insurance the following week. Boom I was fired.

This wasnt even the worst of it, my wife worked with me in another department. Well after they fired they were determined to get her out as well, and the found the perfect reason. My wife had been late a couple of times, we later found out she was pregnant and was having morning sickness. Mycashnow told her it was nothing to worry about and that her job was not in jeopardy. The next they fired her for tardiness.

This is not a good company at all, and yes they do have multiple websites. Some have closed since I have been there and other ones have opened. But they are all under the corporate name of CREDIT PAYMENT SERVICES!

Well there I gave it away there big corporate secret, they do not go by mycashnow which is why it might be hard to get any company info about them. Well I guess you tell them Carey Brown (the owner) that I sent ya!

somewhere in, Nevada

mycashnow, paydaymax, discountadvances, paydayspot, credit protection depotmycashnow, paydaymax, discountadvances, paydayspot, credit protection depot, supportseven, basenine, logic marketing, and accountpros

for those of you who can never seem to pin this company down its main office is located at 5962 brainerd rd, chattanooga tn. and also has one office in costa rica. if you read the web agreement, its states they are located in grenada, antiqua, and other offshore spots.....not true. they do however funnel all funds to and from customers thru a bank in panama.

the credit protection depot is the collection agency who tries to recover funds. by law since they are listed out of the country, u only need pay the principal balance. the only way to keep this company from debiting ur acct is to call in, and chg ur bank acct # or to close the acct all together w ur bank, u should also chg ur reference ph #s bc they will call them.

this company is made to seem very large and hard to find. when infact they operate from an unmarked building beside a biglots in chattanooga. there are less than 30 people who take calls from all 4 companies, mycashnow, paydaymax, discountadvances, and paydayspot.

sitting less than 10 feet away are the people who work for the collections department for all 4 payday loan companies. there are only about 20 of them.

these people can only read scripts given to them verbatim off proprietary software. they are not allowed to give any other info. the company is so secretive that when the employees go next door to the biglots or a restaurant, they arent supposed to say what kind of work they do.

because of lawsuits, these payday loan companies dont operate in 13 of the 50 states and even had to move their location in reno, nevada to costa rica last summer.

also you should know they dont lend to people on any type of disability, self employment or military personnell. so if ur denied for that reason, its not because you have bad information, its just because they dont want to lend to you.

also you should know that if you dont pay, you will be reported to teletrack which is system for companies who dont do credit checks, but it wont affect your credit AT ALL. and no legal action will be taken against you, no matter what they say, they'll just note ur acct so that you cant apply anymore.

Sub: #83 posted on Sun, 08/02/2009 - 20:14


:shock: The Hell!

Sub: #84 posted on Mon, 08/03/2009 - 07:13

Cool_Abyss Cool_Abyss
(Posts: 2936 | Credits: )


I read your message on the first page of this thread and I can't tell you how much your advice helps me. Like so many others on this site, I've gotten involved with pdls. Being a single parent with no help from the other parent, I needed help and these 'loansharks' were eager to provide that 'help'. So, before I knew it, I had 4 pdls and most of my check went to them while my kids and I ate pb&j sandwhiches. Now, I've paid off two of the pdls, but for the other 2, I am going to be taking your advice and writing them demanding a refund. According to the wonderful state law links, they are only supposed to be charging $15.00 on a 200.00 loan. They've been charging me, and probably others, 60.00. So, I know that I've paid more than the principle. If I had known what I would be going through back then and if I had found this website, I would have simply stayed away, but while this has been completely frustrating, it has also been a good lesson. I'm glad to have come across your post. Thanks again for the wonderful information.

Sub: #85 posted on Tue, 08/04/2009 - 02:32


I live in new york I borrowed money from cash advance now 275 and united cash loans 300 the are trying to collect way over the amount of the prinipal I got this loans online and I think there website was Phished so a third party has all my information are they legal in the state of new york?

Sub: #86 posted on Tue, 08/11/2009 - 15:25


No payday loans are legal in N.Y., read your payday loan laws at the link below.

Sub: #87 posted on Tue, 08/11/2009 - 16:11

Shazzers Shazzers
Moderators Cum Industry Expert
(Posts: 17344 | Credits: )

should i try to resolve this payday loans myself or should i go through a consolidation company

Sub: #88 posted on Tue, 08/11/2009 - 17:37


We need more info before we can advise you, read the post above you.

Sub: #89 posted on Tue, 08/11/2009 - 18:01

Shazzers Shazzers
Moderators Cum Industry Expert
(Posts: 17344 | Credits: )

I have closed my bank account and am in process of contacting all of the illegal online payday lenders. If they are illegal how much am I legally responsible for? They did provide me with a physical address, but no license #. Am I still responsible for the principal amount if no license # is provided for me? Please advise.

Sub: #90 posted on Thu, 08/20/2009 - 12:37


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