How to tell if a payday loan lender is legal in my state?

None of these payday loan companies are licensed in your state as PDLs are prohibited in the state of Maryland. So, you're only liable to pay them the exact amount that you've borrowed. If, in any case, you've paid more than the principle amount then you can ask for a refund. If they refuse, you can file lawsuit against them with the FTC or your states' Attorney General.

CLICK HERE to find out how to deal with illegal lenders.

Thank you so much! I will try and use the letter listed in other replies as well as my other reply and see what results I get!

I just wanted to let you both know I have a call into Maryland's department of financial regulation. I spoke with someone just a few minutes ago and she is going to get back with me first thing tomorrow morning! Thanks for all the advice. I will definitely keep you informed of what she tells me.

I spoke with the lady at the department of financial regulation in Maryland this morning. I have faxed her everything I have (contracts, etc) on the companies I am dealing with. One lender in particular (eastside lenders) she knew and stated they are in the processing of filing something against them. I have been informed to not even pay anything else, even if my principal is not paid off due to the fact the loans are illegal in maryland. Even if the company is licensed in my state, she stated they have specific laws regarding interest rates and the contracts prove the rates are WELL over the law. If I am contacted by them or a collection agency (which is also illegal as these type 'loans' are uncollectable), I am to state my account has been turned over for investigation to her state agency and give them her name and phone number. They never contact the state and she stated over people have mentioned that once they have told them that, the calls and emails cease.

I personally recommend everyone to contact their state department of licensing regulations to get the specific information for payday loans as every state is different. As was mentioned before, ALL pay day loans are illegal in the state of Maryland.
I have spoken with my bank and as it is not feasible for me to close my account, I will be having a hard debit block placed on my account so all ACH debits will be returned and not hit my account. It will affect the fact that I can not use my debit card, but I can deal with that until I can open a new account.

Hi Karen,

It's good that you're being helped by the department of financial regulation. The reason that we advocate to pay the principal amount to the illegal lenders is that you're responsible for the loan and as a moral matter, may pay it back. It's up to you. Best of luck and keep us posted.

Update as of 11/01/2010 on EastSide Lenders and DeluxeCashClub:

I received a phone call Friday 10/29 from the lady at MD's Department of financial regulation. The attorney for Eastside Lenders has requested a hearing (I am NOT the only MD resident who contacted the state) and she asked if I would be willing to be a 'witness' on the state's behalf when it goes to court.
Also, after my first 'return notice' email was received I had sent them a reply email as per the MD DFR. NOthing. Then about a week later I receive my payment reminder email. I forwarded them the original email I had sent them and restated certain points. Nothing. About 2 weeks later I receive a "paid in full" email and am now on their VIP list! I can get discounted rates!!! Too funny!
I have kept that email, just in case down the road someone tries to come after the money.

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Good to hear that that you got the PIF!!!!!! Congratss!!!!