If payday loans are illegal in my state is there anything I can do about the interest and other fees charged?

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If payday loans are illegal in my state is there anything I can do about the interest and other fees charged?

I took out a payday loan a while ago. The interest/ finance chargers are terrible. When I went to the website I saw that they are not able to issue loans in PA where I live. Is there anything I can do about this?

Asked on September 2, 2010 under Bankruptcy Law, Pennsylvania

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Here is the problem.  If you took out a payday loan based on an internet company and the website specifically states they are not able to issue loans to consumers in your state, both you and the lender can be considered equally culpable but the reality is you can probably get your money back if the government agency (banking or attorney general) who regulates this entity in your state can locate this company.  If you took out the loan and then realized what happened, the state laws that apply will depend on whether a) your state allows payday loans and hence regulates them through licensure or b) completely disallows such conduct and considers it criminal activity if a loan is indeed taken out by a Pennsylvania consumer. 

Contact your state's banking department and attorney general for further direction and information.


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