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LegalGems
LegalGems, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 3204
Experience:  Research Attorney; Private Practice; Attorney Mentor; Mediator
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about payday loans on the internet, i have 4 with outrageous

Resolved Question:

about payday loans on the internet, i have 4 with outrageous interest
Submitted: 10 months ago.
Category: Consumer Protection Law
Expert:  LegalGems replied 10 months ago.

LegalGems :

Hi! LegalGems here. I have extensive consumer law experience and will use this to assist you with your issue today. The problem with internet pay day loans is that unlike brick and mortar banks, they have no government oversight. So for example, while a brick and mortar bank is not allowed to engage in "usurious lending" (aka loan shark), there is no regulation precluding online banks. However, they are still subject to the Truth in Lending Act. I'll explain more below.

LegalGems :

The TILA requires the lender to clearly state to the buyer the interest rate, the actual cost of the loan, etc.

LegalGems :

Failure to do so is a violation of TILA, and is also considered misrepresentation (that is actually a legal cause of action).

LegalGems :

If they do alot of business in your state, you can file with the Attorney General. For example, here is an article in a different state showing a successful lawsuit for predatory lending. http://www.lawyersandsettlements.com/articles/internet-payday-loans/payday-loan-loans-check-cashing-18802.html#.Ui9oDn9q0Sc

LegalGems :

Did you have any questions on the above? It appeared that you were typing, and I wanted to be sure and answer all of your questions.

Customer:

how do i find out about these companies? they are all tribal owned.

LegalGems :

Let me check on that. I have never been asked that before. Just give me a moment please.

Customer:

are you still there?

LegalGems :

Apparently you can file a complaint with your attorney general and the FTC (www.ftc.gov). - yes, sorry, was researching and found some info-

LegalGems :

The tribes are arguing sovereign immunity, but the government is cracking down, since the rates they are charging are unconscionable.

Customer:

what do i do and i checked with the BBB and their not listed.

LegalGems :

Let me get you the complaint form.

Customer:

ok thanks

LegalGems :

https://www.ftccomplaintassistant.gov/#&panel1-1 - here you go. They are far reaching - they just cracked down on a payday lender with agents in India! So that is good news. In the meantime, you should find a friend, or even a local bank, that will loan you some money. Hopefully you have some kind of collateral you can offer. Smaller banks are generally more flexible. It's hard to get out of these situations.

LegalGems :

Did you have any other questions on the above? I wanted to make sure you did not have any pending concerns before I stepped away for a bit.

Customer:

i set up payment arrangments with 3 of them, yhe my cash now is overseas. do i have to pay all that interest?

LegalGems :

For now, legally, yes. However, you may want to negotiate with them. Or if you are seriously in debt, it's a good idea to at least consult with a bankruptcy attorney, and I will explain why.

LegalGems :

Often times, people will be in over their heads, and they will scrape every penny together to pay off their debt, including borrowing from friends/family. Then, because they are so overwhelmed, the economy is bad, they finally decide to declare bankruptcy. The problem with this strategy is that

LegalGems :

the friends/relatives who kindly lent the money usually end up with a discharged debt - and the debtor is not allowed to repay it, because they must treat all creditors the same.

LegalGems :

Also, once a party declares bankruptcy and gets a clean slate, the clock starts ticking, and you are that much closer to re-establishing your credit, and having a new start.

Customer:

i dont want to claim bankruptcy thats out of the question, if i dont pay they will go to a debt collecter and i can pay them is this goog stratagey?

LegalGems :

Understood. If you don't pay them, they will probably either hire a collection agency, or sell the debt. Generally, it is best to negotiate with the original creditor, as they are the ones who need to give the debt collector permission to agree to a negotiated settlement. However, I have seen debt collectors pay pennies on the dollar for debt, and then settle for 1/2 the amount owing. So I would first attempt to negotiate with the actual lender.

Customer:

thats what im doing, i have a 2500.00 loan , at first it was western sky then cash call now its delbert services and i never paid late

LegalGems :

That's good! Yes, you should negotiate a lesser amount, or a lower interest. Or like I mentioned before, get a third party loan so you can pay these guys off, and save a fortune on interest.

Customer:

ok thank you . can you e-mail me a transcricpt of all of this chat please so i can show my wife.

LegalGems :

I actually don't have that capability (the experts are independent contractors-end users). But when you close the chat, customer service tells me there should be a print/save button in the bottom corner. Also, you can link to this in your email, as they send notices of my responses to your email. And you are very welcome. Good luck with all this, and don't forget about the link above to file the complaint with the FTC. If they recover, they generally pay restitution to the individuals affected.

LegalGems, Lawyer
Satisfied Customers: 3204
Experience: Research Attorney; Private Practice; Attorney Mentor; Mediator
LegalGems and 5 other Consumer Protection Law Specialists are ready to help you
Expert:  LegalGems replied 10 months ago.
Curtis, I wanted to be sure and thank you for using JA/Pearl.

I hope you found the information I provided useful. I hope you can work something out so you don't have to pay the interest.

If you would like to request me for your future legal inquires, please put TO LEGAL GEMS in front of the question, and I will do my best!
Take care.

Please be sure and complete the customer satisfaction survey the site will be sending you so that I can continue to provide affordable information to our customers. Thank you!

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