Illegal Finance Charge on Payday Loan
I live in memphis, TN, I took a $400.00 loan from DiscountAdvances.com and they added a $202.50 finance charge, I either have to pay them the whole $652.50 they want on 10/21 or can pay just the $202.50 finance charge for a two week extension, after which they will again want $652.50, I can\'t afford to make either deal with DiscountAdvances.com at the moment.
I consulted TN Dept of Financial Institutions to see whether my payday loan was or was not within the states legal guidlines as suggested. The man i spoke with said he would have to review it further but said that they company didn\'t appear to be licensed for business in TN, that I likely only needed to pay the principal borrowed, and that several things on my loan application were not in holding with state regulation.
The finance charges ($202.50) DiscountAdvances.com placed on the loan exceed the 15% ($70.59) they are allowed to charge me.
TN also has recently changed the laws to include a no choice of law rule, blocking DiscountAdvances.com\'s claim that all loans fall under the governing laws of Castries, St Lucia.
The man said whatever I planned to do I should take steps to secure my bank account against withdraws if I dispute this loan...
Im not sure what to do now?
Thanks for helping me early, and thank you again.