PA law on online payday loans given by LSO

I have an outstanding loan with LSO. I spoke with a very rude representative of LSO and tried to set up a payment plan due to my financial hardship. He told me that he did not want to hear my excuses and that I had better have the $800 paid by 4 p.m. that day, and then hung up on me. It is now two months later and he continues to call my residence as well as my job, eventhough I have told him several times not to call my job. I have received various emails. I live in PA and I borrowed $500.00. I cannot continue to receive phone calls at my job. I cannot afford to pay a lump sum of $800.00. Please help

5 Answers

Thanks for the information.  I emailed Loan Shop online the following:

Date:  November 8, 2011

Loan Shop Online

This letter is to inform you that I am aware of the FACT that the loan you issued to me, is NOT legal or binding in my state.


The state of Pennsylvania requires Internet payday lenders to be licensed in MY state. I have already researched this information, your company does NOT have a license to lend in the state of Pennsylvania, if I am mistaken I will need proof in the form of a license number so that I may verify it with my Attorney General.  I am bound by the state laws where I reside. As I have no presence in your state, therefore I have no legal obligation to the 'governing laws' you may have detailed.

I will only communicate to resolve this matter via email.  You are to cease telephone contact immediately. If you ignore this notice and continue to contact me or any of my references via telephone, formal actions will be taken. I am willing to pay the principle amount of the loan only, however, no address or no agreement means NO payments, this is not negotiable.

I am still aware of the FACT that the loan you issued to me, is NOT legal or binding in my state. In the state of Pennsylvania, payday lending is not authorized.  If you do NOT reply to this notice within 48 hours I will be forced to file complaints with the Pennsylvania Attorney General, the Better Business Bureau and the Federal Trade Commission.  


I expect a response no later than Friday, November 11, 2011 or I will have no choice but to file the complaints. Please be aware that I have sent this correspondence via email and have kept a copy for my records in the event that formal action needs to be taken.







I have not heard anything yet.  I have paid them $300 so far.  So I will send them the balance and be done with pay day loans for good.  I'm not sending them a dime more until I receive an acknowledgement email by my deadline.







My previous posters are right. If you want you can file complaints against your illegal lenders in the following address:
Pennsylvania Department of Banking
# Address - Market Square Plaza, 17 N. Second Street Harrisburg PA 17101
# Phone - (717) 214-8343
# Fax - (717) 787-8773

Tell them that lending of pdls is not legal in your state. So, you're not required to pay anything more than the principal amount. If you have not paid back the principal amount yet, then borrow money from your friends and pay the remaining balance. 

As they're illegal, you're not liable to repay a dime more than the principal amount. Get into a debt settlement plan so that you can reduce the principal amount and pay pff the remaining amount with ease.

How much did you pay before defaulting?  Also, who is LSO? LoanShopOnline?  PDLs are illegal in the state of PA.  Anything you've paid can be subtracted from the principal amount of the loan.  If you've already paid back the $500 in rollovers, you owe nothing further.  If you've paid more, ask for a refund.

You can find out how to deal with illegal lenders here.

Also, if you stop answering his calls and arguing with him, he'll tire of calling you.  He keeps calluing because he thinks he can get your money.

How to Deal with Unlicensed/Illegal Payday Lenders - Step by Step Instructions

I am not an attorney. I am not offering legal advice. The information and ideas I share are my opinion only and do not necessarily reflect the opinion(s) of the owners of this website.

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