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Payday Loans NJ Illegal (both parties)

MSF
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I just found out it is illegal to offer and accept Payday Loans in NJ. Basically, I am a just as guilty as the financial institution. One of the loans was sold to a collection agency. The initial loan was 300.00 and now they are trying to collect on 525.00. What is the best way to proceed with this without getting myself in trouble.

The collection company did send a letter, which I received yesterday stating they bought the loan. I was going to send a debt validation letter but not sure that is the best route considering the entire thing was illegal. My initial thought was to send a letter with a copy of the law and offer them 300.00 (initial loan)

Any suggestions?

Thanks




paulmergel


Posts: 15508
Credits: 135761.15272958

Sub: #1 Quote:Originally Posted by AnonymousI just found out it is illeg
Thu, 07/15/2010 - 07:15

Quote:
Originally Posted byAnonymous
I just found out it is illegal to offer and accept Payday Loans in NJ. Basically, I am a just as guilty as the financial institution. One of the loans was sold to a collection agency. The initial loan was 300.00 and now they are trying to collect on 525.00. What is the best way to proceed with this without getting myself in trouble.

The collection company did send a letter, which I received yesterday stating they bought the loan. I was going to send a debt validation letter but not sure that is the best route considering the entire thing was illegal. My initial thought was to send a letter with a copy of the law and offer them 300.00 (initial loan)

Any suggestions?

Thanks


i want to know where you saw this as that is news to me.as far as i know pdl's are illegal in NJ.nothing is stated about it being illegal to accept pdl's on the AG'S or DFI'S websites.again i want to know who told you this.if it was a pdl or collector.it's a lie.pdl's are totally prohibited,and there is nothing in the AG'S or DFI WEBSITES stating any legal liability on the consumers part.proceed as you would on an illegal loan.even file AG complaints with the NJ AG.you are only liable for the principle,and and debits go towards that.




ballplayersmom
Debt Samaritan
Posts: 365
Credits: 5657.2

Sub: #2 I live in NJ too and have not heard that it is illegal to accept
Fri, 07/16/2010 - 17:28

I live in NJ too and have not heard that it is illegal to accept pay day loans. Can you please provide us where you found that information???




Unregistered

Sub: #3 I called New Jersey Department of Banking and Insurance. They
Mon, 07/19/2010 - 07:31

I called New Jersey Department of Banking and Insurance.

They told me this.

(609) 292-5360




Unregistered

Sub: #4 Quote:Originally Posted by paulmergeli want to know where you sa
Mon, 07/19/2010 - 07:34

Quote:
Originally Posted bypaulmergel
i want to know where you saw this as that is news to me.as far as i know pdl's are illegal in NJ.nothing is stated about it being illegal to accept pdl's on the AG'S or DFI'S websites.again i want to know who told you this.if it was a pdl or collector.it's a lie.pdl's are totally prohibited,and there is nothing in the AG'S or DFI WEBSITES stating any legal liability on the consumers part.proceed as you would on an illegal loan.even file AG complaints with the NJ AG.you are only liable for the principle,and and debits go towards that.


I called New Jersey Department of Banking and Insurance.

They told me it was illegal to offer and accept.

(609) 292-5360

Should I send a debt validation letter to the collection agency. Should I mention the loan was illegal and offer the principal only or should I wait for validation.




ballplayersmom
Debt Samaritan
Posts: 365
Credits: 5657.2

Sub: #5 Well how is a consumer suppose to know who lives in NJ that it i
Mon, 07/19/2010 - 07:37

Well how is a consumer suppose to know who lives in NJ that it is illegal to take a pay day loan??? So what did the Department of Banking tell you?




paulmergel


Posts: 15508
Credits: 135761.15272958

Sub: #6 Quote:Originally Posted by AnonymousI called New Jersey Departme
Mon, 07/19/2010 - 07:39

Quote:
Originally Posted byAnonymous
I called New Jersey Department of Banking and Insurance.

They told me this.

(609) 292-5360


oh i see now.well ask your AG for a real opinon as i don't put any faith in any part of the banknig sector.your AG is who enforces the laws,not a greedy dept on the take with bail-out money.the NYBD(new york bank division)says the same thing about loans in NY.NY AG cuomo has a much different opinion.again the entire bank sector is based on greed,and sticking to the people.they are not allowed to interpret the law.the NJ dept of banking is wrong,and should be drummed out of office,but that is up to the citizens of NJ to do that.just know all pdl's are illegal,and you did nothing wrong.




Unregistered

Sub: #7 Quote:Originally Posted by ballplayersmomWell how is a consumer
Mon, 07/19/2010 - 07:41

Quote:
Originally Posted byballplayersmom
Well how is a consumer suppose to know who lives in NJ that it is illegal to take a pay day loan??? So what did the Department of Banking tell you?


Agreed!

However, as my ex-wife says, who is a lawyer and once a judge.

Ignorance of the law is no excuse




Unregistered

Sub: #8 I am not to concerned whether I broke the law or not. I would l
Mon, 07/19/2010 - 07:44

I am not to concerned whether I broke the law or not. I would like to deal with the collection agency.

The original payday lender was mesa financial.

They sold it to a collection agency, very fast and without ever contacting me.

The collection agency did contact me and I need to respond. What is the best way to send a debt validation letter on an illegal loan?

Thanks




Cool_Abyss

Posts: 2937
Credits: 17361.249242083

Sub: #9 Quote:Agreed! However, as my ex-wife says, who is a lawyer and
Mon, 07/19/2010 - 07:44

Quote:
Agreed!

However, as my ex-wife says, who is a lawyer and once a judge.

Ignorance of the law is no excuse


Excuse? I do not see excuses just research for alternate resolutions here.




paulmergel


Posts: 15508
Credits: 135761.15272958

Sub: #10 Quote:Originally Posted by AnonymousAgreed! However, as my ex-
Mon, 07/19/2010 - 07:48

Quote:
Originally Posted byAnonymous
Agreed!

However, as my ex-wife says, who is a lawyer and once a judge.

Ignorance of the law is no excuse


fine,but we always advocate paying back what was borrowed.that means the principle.nobody here looks kindly on anybody who states,or does otherwise.so i'm growing suspicious here.no person in NJ who takes an illegal online pdl is guilty of anything.quit going there.




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