Governing Law

There is a federal court precedent that answers this question:

"If a business solicits business, accepts business,and continues to transact business with a consumer in another state, the court held that, in fact, the "electronic" business is conducting business in the consumers state, and therefore, is subject to the laws and courts of that state."

The common faqs are listed in the Alabama Banking Department website. Go here

http://www.bank.state.al.us/FAQ_deferred_presentment_act.htm

I know that the internet lender has to follow the laws of the state where borrower resides. And the contract was prepared in the illegal way if they say that their state laws will be followed. Did you check them to be licensed in your state as well as in their state? Unauthorized debits in the checking account are illegal. You should report the company to your and their state AG's office.