impact cash

It's them. The whole idea of whether they are legal or not in other states is a red herring people throw around on this site though. An AG is only an advocate for a state. He might take the position that the loan is illegal but unless he gets either (a) gets the lender to settle and agree to stop doing business with his state's residents or (b) convinces a judge to order it, it's only his opinion. Meanwhile pdl contracts all have clauses that require all disputes - including collection - to got to arbitration, usually before the NAF. Not many lenders bother taking you to arbitration but if they do, the NAF will almost always accept the lender's position that the loan was made in the state where the lender is licensed. (I can see the 80 posts from the regulars on this denouncing me coming already, but that's what the NAF does - whether "the community" likes it or not.) Then most states have laws on the books requiring courts to enter judgments based on the arbitration award alone, and specifically forbid the courts from revisiting any of the issues decided in the arbitration. (This is because most states have policies favoring the use of arbitration rather than overbooked courts to settle disputes so they limit court review. It's not some special loophole that only applies to payday lenders.)

That't the bad news. Now the good. VERY few lenders use this vehicle because it's very expensive to file for arbitration, conduct that hearing, then hire an attorney in the borrower's state to convert the award to a judgment, then find a way to collect the judgment under the borrower's state laws. Not worth it for a $300 loan, that's for sure. And there are things you can do.

1) Try to settle the loan with the lender. You can do it yourself or hire a service like Langhorne or Oakview to help you. You need to close your bank account so they can't get anymore money than make a lump-sum offer on the balance. If you've already paid them more than you borrowed you may even be able to get them to mark the loan PIF.

2) File complaints with your state AG and/or banking authorities. Most lenders will back down when they get even a form letter from a regulator, regardless of what I said at the top about whether the regulator can simply declare them illegal. They just don't want to take the chance that the regulator will take them to court.

3) Close your account and weather the storm of phone calls. They'll try to browbeat you to death, but eventually they'll just stop trying to collect. Like I said, they rarely take legal action. The worst that can happen if you just don't pay (and can handle the calls) is you MIGHT get a negative entry on your credit report. But even that is rare. Usually, the worst they do is put it on Teletrack or DP Bureau, which just means you can't get more payday loans.

Hi don34,

Yes, they are legal in Utah. You will have to work out payment arrangements with them.

Utah appears to me to be the most PDL-friendly state in the Union. Am I wrong? There is no limit to the fees nor the interest that they can charge you.

chrys

so i am assumimg impact cash llc and impact cash usa are the same people. the loan was through impact cash usa

Check to see if they have the same address, also check the BBB for addresses. I would also call the DFI in Utah to be sure they are one in the same. Their number: 801-538-8830 DFI's email: [email]slong@utah.gov[/email]

They are the same.

see: 'http://whois.domaintools.com/impactcashusa.com'

and: California's Cease and Desist Order.

chrys