What to do if I was lied to by an online payday loan company?

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What to do if I was lied to by an online payday loan company?

I am willing to pay what I owe but they have taken $180 already 2 weeks after getting $600. I was told the $180 would be 1x a month not every 2 weeks. I am willing to pay them back but there rate is crazy can I just pay them the differnce which would be $420 or do I have to pay them $600 giving them a total of $780?

Asked on October 10, 2012 under Bankruptcy Law, New Jersey

Answers:

B.H.F., Member, Texas State Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You have a couple of options.  The first is contractual.  If the contract allows you to pay it off early, then considering getting a loan with a legitimate lender, pay this company off, and get away from them.

Your second option is to file a complaint with the Attorney General in New Jersey.  New Jersey has laws that are similar to the federal "truth in lending" laws.  They may be able to help you get a complaint going.  However, you can also retain your own attorney to help you with a state or federal claim.  You really do not want to file a claim on your own.  It sounds like there is some apparent violation in that they misrepresented a material term and are charging excessive interest.  However, the trick is going to be deciding where to file a lawsuit and who to serve with notice of the suit since this is an online company. 

A third, less extreme option, is to hire an attorney just to send a letter on your behalf.  These companies often continue to take advantage of people for as long as they can... once the are called on their illegal activities, they sometimes become more amicable and reasonable. 

Regardless of which option you chose, you need to get together a copy of everything that you have agreed to and any documentation thereof.  You may have additional remedies in that contract.  At the very least, it will save an attorney or the AG sometime legwork time so they can start working on your issues sooner.


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