Can anyone tell me what the laws about payday loan

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check with your state's department of Commerce and see if the ppl company is approved for business in your state. If not, you only need to pay the principle not the finance charges. From the amounts you listed if they are not licenced you've repaid the loan. There is also  a letter that I got from this site that you can send them to stop the ach deductions. In addition to the letter close the account and open another one with a different bank.

Here is the letter I recently sent:



Your name
Your address

Attention {contact name if any}
Payday loan lender name
Payday loan lender address

Re: {account number}

After researching Internet payday loan laws in the State of _______, I have found that your Internet payday loan activity is actually illegal. I have also learned the following laws apply to payday loans in the State of _______ in general,

{Your State Information payday loan laws (usually stating they legal/illegal and interest/fess caps)}

I hereby revoke any and all ACH debit authorizations with your company from debiting any of my personal accounts, per Federal law, Regulation E Section 205.10 Preauthorized transfers. I have closed my account with the {bank name} to protect my interest in this matter, per instructions from the _______ Department of Finance. I also revoke any and all wage assignments I may or may not have signed with your company, I no longer authorize you, your company, or your affiliates to attach any part of my wages or contact my employer for your collection purposes. I have notified my employer about this matter so any attempts to do so on your part will be rejected.

I demand that any contact be made through US Postal mail or email only. I will need everything in writing to keep accurate records of all communication as per instruction from my Attorney General Office. I also prohibit you or your affiliates to contact me via telephone at my place of employment or my home telephone number. I also prohibit you from calling my references listed on my loan.

Due to the fact that Internet payday loan lenders must be licensed in the state of _______ to be a legal and binding contract, your company should NOT issue loans to _______ residents at all. I am requesting that you send me your license number which enables you to offer loans to _______ residents. (Alternatively, you can point out at any violation.)

The legal amount that could have been charged to my loan is the principal amount, even if your Internet payday loan were legal anywhere in the U.S. I am willing to pay the principle amount of the loan only, however, this is only if you provide me with a physical address where I can send payments.

I must also inform you that I will be filing complaints with the Better Business Bureau, the Federal Trade Commission, and the _______ Attorney General Office.

I expect a response from your company no later than 5 days from the above date regarding this matter. This response may only come via US Postal mail or email. No telephone contact is permitted.


Your Name

Better Business Bureau
_______ Attorney General
Federal Trade Commission

Attach this quote from Electronic Funds Transfer Act in the end,

907. Preauthorized transfers
(a) A preauthorized electronic fund transfer from a consumer's account may be authorized by the consumer only in writing, and a copy of such authorization shall be provided to the consumer when made. A consumer may stop payment of a preauthorized electronic fund transfer by notifying the financial institution orally or in writing at any time up to three business days preceding the scheduled date of such transfer. The financial institution may require written confirmation to be provided to it within fourteen days of an oral notification if, when the oral notification is made, the consumer is advised of such requirement and the address to which such confirmation should be sent.
(b) In the case of preauthorized transfers from a consumer's account to the same person which may vary in amount, the financial institution or designated payee shall, prior to each transfer, provide reasonable advance notice to the consumer, in accordance with regulations of the Board, of the amount to be transferred and the scheduled date of the transfer.
[Codified to 15 U.S.C. 1693e]



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