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Illegal payday lender now in collection

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I followed the step by step process for dealing with illegal Payday lenders for a loan of $700 taken out in May of 2017, I stopped paying in July 2017 with a total paid of $765. I have received a collection letter for $1200 and after sending them the request for dispute they sent me a copy of the "installment loan agreement and promissory note". I don't know what to do now, am i obligated to pay this now?

Okay. What is the name of the payday loan company? Are they legal or illegal? If the loan is illegal, then there is no need to care about the installment loan agreement and promissory note. They can't do anything.

Sub: #1 posted on Thu, 10/03/2019 - 00:50

Nick Jonas Nick Jonas

(Posts: 427 | Credits: )

Thank you for your response, just a couple questions about my next steps...Do I need to send them documentation? How do I keep them from reporting negatively to the credit bureau?

Sub: #2 posted on Fri, 10/04/2019 - 12:42

Geraldine Geraldine

(Posts: 8 | Credits: )

Usually, payday loans get reported in the credit reports when they go to the collection agencies, which usually happens with legal payday loans. But you're talking about illegal payday loans.
Last year TransUnion was sued due to violating federal law of including void and uncollectible payday loans on credit reports. So, don't worry about it.
Keep checking your credit reports and if you find such listing, take the necessary steps.

Sub: #3 posted on Fri, 10/11/2019 - 01:32

Good Nelly Good Nelly
Industry Expert
(Posts: 2825 | Credits: )

If the payday lender is illegal, you don't need to worry. Just pay off the principal amount. Don't pay any interest for your pdls.

Sub: #4 posted on Fri, 10/11/2019 - 06:35

Craigh.terry Craigh.terry

(Posts: 273 | Credits: )

If the lenders are no legal, then you are just liable to repay the principal amount, not the interest.

Sub: #5 posted on Mon, 10/14/2019 - 06:16

Sanders Patricia Sanders Patricia

(Posts: 1238 | Credits: )

This is a recurrent problem. Collection agencies can report to credit bureaus once loans are assigned/sold to them. Plain green and Cash Call have the same problem. Plain Green is a tribal lender and when people stop making payments, they assign the accounts to Cash Call. Now, Cash Call reports the accounts to collection agencies and trouble begins.

Do one thing. Dispute the listing with credit bureau and get it removed.

Sub: #6 posted on Tue, 10/15/2019 - 22:41

Nick Jonas Nick Jonas

(Posts: 427 | Credits: )

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