Figuring out if lender is legal or not?
Date: Tue, 10/15/2019 - 05:32
I am currently trying to help a family member that got in a bad way and took out some very high interest loans. This individual has been paying on them for quite some time and from looking at what they owe vs what they paid it seems like they are getting no where.
These lenders are Mobiloans and Plain Green loans. I've tried searching information regarding them and the state we live in but all I'm finding is old posts from the early 2010's or the recent court cases where they went bankrupt and got sued.
We are located in Indiana and I have put in a request with the state department of finance but who knows how long it will take for them to get back with us. I've searched the states online licensed lenders and can't find either company, but I'm not sure if maybe they're hiding under a different name or a parent company.
Can anyone help as to whether these 2 companies are legal in Indiana? As I understand it if not then they only have to pay back the principal amount correct?
Thank you,
Nick
Both of them are not legal in
Both of them are not legal in Indiana. Yes. You understood it right. Your friend has to pay only the principal amount, which I think he has done it. Ask him to revoke the ACH authorization with lenders asap.
Surprisingly he received a
Surprisingly he received a call from Indiana DFI confirming the same thing. We got a response from Mobiloans that said they will no longer do ACH per his request but are still arguing he owes the debt because per the contract he agreed to forgo all of his state laws. I typed him up a response explaining they are not licensed in Indiana and therefore the loan was illegal from the very start and should have never been issued, also that he had more than paid the principal based on the money they have debited from his account. We will see what they say to that.
Plain Green responded with a please call to discuss the matter, and when we did they tried to say that because they issued a loan in Indiana that means they are legally allowed to operate there. When pushed for a license confirming they were allowed to they put us on hold for about 10 minutes while a "supervisor" could be found to talk to us. All that amounted to was them saying we are but it will be escalated to a higher up who will email proof they are licensed in Indiana. He hasn't heard or received an email yet.
I honestly wish they would have asked for help earlier, I could have saved them THOUSANDS from these loans.
Better late than never
Better late than never Nicholas. The loan agreement is null and void because the lender is illegal. No matter what they say, the truth won't be changed. What Plain Green is saying is completely baseless.