LoanShopOnline.com legal in NY?
Date: Wed, 08/10/2011 - 10:07
I took out a payday loan from them last year for $500... I couldn't pay them at the time... closed my bank account... opened new bank account. Today I had an ACH withdraw for LOANSHOPCOLLECTIONS for $650. I went to the bank to file a dispute because I didn't authorize them to withdraw money from this account. We had to call the LoanShop from the bank and the collection agent said my agreement gave them permission to withdraw from any future bank accounts until it was paid.
I never actually signed anything, it was all done via email.
What can I do?
I never actually signed anything, it was all done via email.
What can I do?
Payday loans are illegal in NY. Any contract you signed with th
Payday loans are illegal in NY. Any contract you signed with them is void. Talk to you bank manager. Explain that, although you're not legally obligated to do so, you feel morally obligated to repay the $500 you borrowed but no interest is due to this company. Ask them to refund you the $150 and stress that this was an unauthorized withdrawal from your account.
Also, have them close this account (or at least assign you a new account number that in no way links to the old one).