Refuse to pay back loan

Not all payday lenders are operating illegal. You could be sued by the lender, or possibly even arrested for fraud if you decide to make a living borrowing money with no intentions of paying it back. Think twice before you believe everything you hear.

I have to agree with Shazzers........It depends on the state where you are located in order if payday lending is illegal. For example in NC, payday lending is illegal. However it is recommended that you pay back the principal that you borrowed.

Excuse me, but I did not say I was making a living out of it. I only asked a question. I am not refusing to pay. Like I stated before, a friend's lawyer told him this.

I would question that attorneys ethics.

More information is needed in order to determine why his lawyers advised him as such:

Where these internet based loans? Are they licensed to lend? Does your friend live in a state that prohibits PDL's or requires them to be licensed in that state?

If the lenders don't meet certain requirements, then they can be deemed illegal and therefore that is why the lawyer said not to pay them.

Each person's situation may not apply to this lawyers reasoning.

Be careful.