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How can I get back the amount I paid on illegal payday loan?

Date: Tue, 03/17/2020 - 21:35
Submitted by Brevan on Tue, 03/17/2020 - 21:35
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I had paid the interest rate on a payday loan as I could not repay it on time. Later I found out that it was illegal payday laon. What do I need to do to claim the refund. I have read I can send any kind of letter. Is the Cease and Desist Letter the same thing? Is the lender bound to repay the amount? can I file a lawsuit to claim the amount?


Hey Brevan!

As far as I know, you have to pay back the principal only if you have taken out an illegal payday loan. You can claim for a refund from them if you have paid monthly interest to them as well.
Remember, you have to pay the principal only and not the interest if your payday lender is an illegal org.


You can file a lawsuit against the company under predatory lending lawsuits for illegal loan tactics if the lender has not repaid the extra amount they have taken from you.

A Cease and Desist Letter won’t help you much in this case. As the C&D Letter is made for a debt collection agency so the law won’t help you much in your scenario.

Thanks!


Submitted by Ryan Miller on Wed, 03/18/2020 - 03:20

Ryan Miller

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Take the following steps to get a refund from them:

Send an email specifying that you won't make further payments anymore
Mention that you have revoked the ACH authorization with them. Before sending this email, make sure you have contacted the bank and done the needful. Don't go to the bank due to COVID 19 right now. See if it can be done online.

You may get a reply stating the contract is valid and stuff. But that is BS. You just send them another email stating that if they don't give you a refund, you will report the matter to SAG.


Submitted by David Martin on Mon, 03/23/2020 - 02:03

David Martin

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