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Do I have to pay back an illegal loan?

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I have a loan from E-Paydayloan. I found out they were illegal and unlicensed. Does that mean I legally have to pay them back? Thanks.




Hello Guest,
If your PDL is ILLEGAL, most would agree you are morally obligated to pay back the principal borrowed. I would send them a money order for principal amount and be done with them.

Sub: #1 posted on Mon, 07/21/2008 - 22:08

Cool_Abyss Cool_Abyss
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It depends on your state - Some state's you legally have to pay back the principle, it's not just morals.

Also, not paying back at least the principle could possible give the company cause to charge you with fraud. NOTE - This is only in cases where the loan was taken out and no payments made.

Sub: #2 posted on Mon, 07/21/2008 - 22:11

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.91)

State is Minnesota. Also, how can I be charged with fraud when the company charging me with it is illegal and unlicensed.

Sub: #3 posted on Mon, 07/21/2008 - 22:13

Unregistered


To clear this up what state are you in? Also have you paid back anything in fees towards this loan?

Sub: #4 posted on Mon, 07/21/2008 - 22:14

Cool_Abyss Cool_Abyss
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I am just curious, how can an illegal company take you to court? Wouldn't the fact that they aren't licensed to lend make the contract null and void. I am not advocating NOT paying back a loan, I just want to be clear about this. :)

Sub: #5 posted on Mon, 07/21/2008 - 22:16

Shazzers Shazzers
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First off - MN companies don't need to be licensed in MN and don't need to follow MN laws.

Second - If you defraud anyone, legal or not, you could still be charged. Just because I rob a drug dealer doesn't mitigate my crime.

Sub: #6 posted on Mon, 07/21/2008 - 22:16

goudah2424 goudah2424

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Nope, there are many pdl's that do take people to court, and they are illegal. They bank on people not knowing better.

And as far as the fraud, it wouldn't matter if the company was legal or not, if you intentionally defraud them it's a crime.

Sub: #7 posted on Mon, 07/21/2008 - 22:17

goudah2424 goudah2424

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Also, it depends on state law wether the contract is null and void. In some state's it is, and in other's it isn't.

It would all depend on the judge. It is entirely possible that a judge could rule in the pdl's favor.

Sub: #8 posted on Mon, 07/21/2008 - 22:18

goudah2424 goudah2424

(Posts: 7936 | Credits: 1224.91)

I don't know about the fraud thing, but personally, I repaid what was deposited into my account with two exceptions. UsFastCash gave me a PIF with $30 still remaining on my account. . .their decision. Star Advance gave me a PIF with $293 still remaining on my account. . . .again, their decision. Their Administrator felt that even though I offered to pay, the amount of aggravation that they gave me trying to get that payment to them, was payment enough. She forgave the loan immediately. So yes, morally, you should pay what they gave you.

Sub: #9 posted on Mon, 07/21/2008 - 22:18

llw1995 llw1995

(Posts: 1422 | Credits: 149.03)

That is a good question? I have been threatened with fraud and garnishment by an ILLEGAL PDL beacause I challenged there legality and licensing. Some use this as a scare tactic to collect.

But if you take a PDL from a company itentionally knowing you are not going to pay. That is fraud. They would have to prove that on their end. In addition, if you give misleading information on your loan app to these companies that also can be dangerous.

You will find the Payday loan laws for Minnesota here (just select your state),
http://www.debtconsolidationcare.com/paydayloan/explain-p dls-laws.html

Sub: #10 posted on Mon, 07/21/2008 - 22:19

Cool_Abyss Cool_Abyss
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