I’m filing a complaint against a payday loan company, can I stop paying the loan until it is resolved?

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I’m filing a complaint against a payday loan company, can I stop paying the loan until it is resolved?

Filing a complaint with the BBB and OAG. The original loan amount was $600 to date I have paid $2880 and nothing has gone towards the principle. I feel that I was misinformed about the repayment terms. What can I do ?

Asked on February 7, 2011 under Bankruptcy Law, New York

Answers:

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

Answered 10 years ago | Contributor

That is really unbelieveable!  Well you can stop paying if you want but that may indeed prompt the loan holder to file an action against you for what would be a breach of your agreement (contract) to pay.  May I suggest that in addition to filing with the Better Business Bureau and the State Attorney Genera's Office - both very good ideas as starters - that you seek consultation with an attorney in your area on the matter?  Use the money in a much wiser way by paying someone to look at the agreement and let you know where you stand legally with regard to the law in New York. Good luck to you.


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