Find Out If They Are Licensed In Your State
Get in touch with your state’s Attorney General’s office. You can do a Google search for its website online, and from there get the payday loan laws of your state to confirm if the lender you are dealing with is licensed to operate in your state or not. For the states of Florida and Massachusetts, the operations of all Internet payday lenders are illegal. If you discover the payday lender is illegal or unlicensed, then take the following action immediately:
Close Your Account
Close your account immediately. But be aware that they have the reputation of not carrying out revocation order, and so may not close the account, therefore go to your bank and tell the Manager you want a hard debit block immediately placed on your account.
Let them know you are revoking ACH authorizations from illegal companies, and you need to do this to protect your money from been withdrawn by them because you understand that even though you have closed your account with them these companies don’t carry out revocation orders. You can print out a copy of payday loan laws of your state and give it to the Manager.
Ensure your bank heeds to this request
To be on the safe side, it is better you close that bank account to prevent the payday lender from later trying to debit your account as they already have your bank account details. Also, inform your employer about your action against payday lenders so that they don’t honor any request from any payday lender to send your wages to them.
Send Email And Letter To The Payday Lender
You will need to do a little research online for the email and physical addresses of the payday lender – type in the payday lender’s name into Google search and you will be able to get it. Send them an email as well as a letter to their physical address (this is good for your documentation).
Let them know you have researched and found they are illegal to operate in your state, therefore you will only pay back the principal sum, which is what you are supposed to pay even if their payday loans were licensed to operate anywhere in the US. Tell them you have revoked all wage assignments you may have signed with them, and so forbid them and their agents from having access to any part of your wages, or contacting your employer for the purpose of collecting your wage.
State that you have revoked ACH authorization to any of your personal accounts, and that you have closed your bank account, which they know about to safeguard your interest. Let them know you will be filing complaints against them with the Better Business Bureau, the Federal Trade Commission, and with your state Attorney General’s Office.