I have two outstanding payday loan lenders that are threatening me with legal action. I took loans from at least one of these lenders, and the payments bounced when they tried to collect. They then proceeded to attempt to draw the funds several times (3 times each pay period, which is twice per month). My bank account is currently overdrawn approximately $800 dollars from these ACH transactions, which I am working with the my bank to pay off and close out. From reading your posts, I understand that this is illegal if the payday lenders are not licensed from the state of California, where I live. I replied to both emails that threaten the lawsuits with the following:
I'm writing in response to the email notification regarding a potential lawsuit against me. I would like to remedy this situation, but after doing some research I am starting to question the legality of this claim. Please provide me with (EZ Cash Net's and ACS) license number for operating as an online payday lender in California. Once this happens, I will gladly repay the principal owed on the account, which I believe is $300 (please correct me if I am wrong).
What should I do to work out this situation? I'm not sure I even have a loan with EZ Cash Net, although I am sure about ACS. I have not heard back from ACS, but EZ Cash Net responded immediately. Both lenders have claimed I owe them somewhere in the range of $800 to $1000 for late fees and interest. HELP!
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