PDL in Illinois

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Originally Posted by dgotti99 I've been researching some PDL compnaies on-line to see if they are illegal in illinois, but I read on a legal forum that if I signed the contract I am bound by the laws of the company in which the PDL is located?? Anyone ever deal with this before? Any help is greatly appreciated. I need to get relief from this.

No, you aren't bound by the laws of the company in which the lender is located. Please cite the source of this misinformation so we can determine what context they were using it in. To be a payday lender in Illinois, you have to be licensed. No license, no lending. Simple as that. If you did take a loan out from an unlicensed, and thus illegal, lender in the state of Illinois then you are only obligated to repay the principal. To determine if you still technically owe the lender anything, tally up what you've paid (including fees and interest) and compare it to the loan you took out. For example, if you took out a $400 loan and paid $350 in principle, fees and interest already the most you are on the hook for is $50. If, however, you have paid $500 on the loan (principle, fees and interest) you are due a $100 refund.

There is a plethora of information in the forums about how to deal with payday lenders, legal and otherwise. Your best option at this time if you have any outstanding loans is to contact your bank now and see how you can best secure the account. Banks don't like predatory lenders any more than you do. It this person's opinion that your conversations should start (and end) with the branch manager to verify all the information you receive is accurate. What you'll want to ultimately do is either close your checking account or put an ACH freeze on your current account if it cannot be closed - regardless of reasons. Some banks have touchy rules and policies regarding account closure. The branch manager should be well versed in them, or at the very least be able to research the matter quickly and provide you with direction.

Just remember to turn off automatic bill pays that are tied to your old account, tie up loose ends with outstanding checks or pending debit card charges to expedite the account closure / freeze process. After the old account is secure (or ideally closed) and you have a new account established, then send out an ACH revocation letter to your lender(s). There is a nice template available here on the forums that will get you started. (Put it into your own words if you can) You should give yourself a week to have this all completed, with the ACH letter going to your lenders 3 business days before their scheduled pull.