If an on-line payday loan and the company has deducted more money than the original loan, am I due a refund?

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If an on-line payday loan and the company has deducted more money than the original loan, am I due a refund?

The total amount deducted was $4,755 and the original loan amount was only $250. They are unlicensed in CA and I know that state law prohibits rollover on these particular loans. I have contacted them and they will only credit me back $250 but I have overpaid by $4,225. I want to know if I have a case in pursuing a full refund?

Asked on February 3, 2011 under General Practice, California

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Now we can really see why these type of loans are prohibited by state law.  How your state law allows you to attach the loan is what you need to figure out.  That is best answered by an attorney in your area.  I would, however, start by contacting your state Attorney General's Office Consumer fraud division to see if they can help in any way with this matter.  They often take up causes involving their state residents and they may know of other claims that were made against the pay-day company.  Do you have a copy of the agreement that you signed?  You should get that out to read with the attorney and for the advocate.  Good luck to you.


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