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Why do illegal pd loan companies offer loans?

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I don't understand why they do. For example, e-payday loan is illegal/unlicensed which technically means if they borrow anyone money, the borrower could not pay them back and they'd have no legal means to collect the money from what I've read. If i was a lender i'd do my damnedest to be a legal/licensed company.

You would think that after all the complaints they receive that they would try to get legal and follow the state laws. They probably get away with more people who don't know any better than those of us who battle them.

Sub: #1 posted on Thu, 07/10/2008 - 01:20

PinkLady PinkLady
(Posts: 1722 | Credits: 277.47)

Well i mean i'd get legal to save my butt if somebody didnt pay. Companies like epayday loan have no recourse if someone decides not to pay. I dont know if they dont because it costs alot of money to be legal/licesed or what.

Sub: #2 posted on Thu, 07/10/2008 - 01:48


It costs them money, and then they'd have to follow all sorts of regulations for each state - When they are unlicensed, they can just charge what they want and hope to get away with it.

Think about it like this - You are an illegal pdl. You loan to 10 people at 860% apr. These 10 people roll over their loans 5 times each because they can't pay them off. You've made a killing. Maybe 2 of them get educated about the laws, and stop paying. Maybe another 4 just default and stop paying, and you get a collection company to scare some more money out of them.

If they were legal, they wouldn't be able to collect nearly as much, or roll over the loans as much as they do. So in the end, they do make more, but it is a higher risk. Higher risk, higher payout.

Sub: #3 posted on Thu, 07/10/2008 - 02:00

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.93)

I'd say they do it because, unfortunately, most people don't know they're illegal and, goudah says, people keep rolling over the loans forever and they make piles of money. The lucky ones among us find this site or other ways to escape the PDLs. I just wish there was a way to reach more people and let them know there ARE ways to get of the rotten things...

Sub: #4 posted on Thu, 07/10/2008 - 19:56


They are predatory lenders, plain and simple. Desperate times call for desperate measures and they are right there ready to lend a willing hand and they are so so sweet about it when doing so. Only when you fight back do they show their true colors. I, for one, am on a mission to educate as many people as I can about the horrors of the PDL world. I try and send each and every tidbit of info I can to my State AG, Senators, Legislators and Representatives who are there to protect us. Fortunately, I live in New York State and PDLs are prohibited here. I honestly think that fact worked in my favor when trying to do battle with these slugs. Again, I feel very lucky that I was able to get out from under this situation without any financial loss and minimal amount of time. Someone was watching over my shoulder. If it wasn't for the fact that I got the flu this year, the first time in over 30 years, I wouldn't have had the time to search the internet for help. This board has been a lifesaver for me. Education is key.

Sub: #5 posted on Thu, 07/10/2008 - 21:37

llw1995 llw1995

(Posts: 1422 | Credits: 149.03)

I would like to comment that if it wasn't for this place that 2 out of my 17 pdl's would still be making a huge killing off of me. So until people get wind of this website or others like it; why not take a chance and lend monies illegally...

It's a sad world....but hopefully somehow we will get even smarter...

Good Luck to all in this bad mess.

Sub: #6 posted on Fri, 07/11/2008 - 01:07

purplegirl69 purplegirl69

(Posts: 250 | Credits: 40.58)

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