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Unliscened Payday Lenders and Courts

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So, here's a question-- a friend got an online loan from Action Payday. She currently has paid 1200 on a 400 dollar debt (yes, I have yelled at her for not keeping a close eye on things), but today we went to the bank, closed out the account and ensured they can't take anymore.

Now, As far as I can see and the Department of corporations can find out, Action Payday isn't licensed in the state (they're supposedly located in Nevis, West Indies).

Can they sue for any recovery at all? My assumption is you could pretty much deep six any small claims suit by just pointing out that A. they're operating illegally in the state and B. they have already recovered far more than the original loan by illegal methods.

Any suggestions?

You will still want her to follow the steps in the link below in my signature on how to deal with completely.. First step is done bank account is secure.. :)You will want to demand a PIF letter and also a refund of $800.00 - more than likely will not get - but you have to ask for.. Site that they are breaking the laws of you state by not being licensed to lend there and usury laws to boot. If can be of more assistance please just ask..

Sub: #1 posted on Sat, 09/07/2013 - 08:10

HelpinAZ HelpinAZ
(Posts: 1873 | Credits: 288.12)

We'll probably do that-- problem is that the company is located in Nevis, West Indies, which advertises itself as a "collection proof" place for trusts and LLCs. There is no American address given on the website although the owner may actually be another individual and some companies located in the United States . the Arkansas AG has filed suit against an individual alleged to run the company.

So my plan helping her is to A. if we can find an actual address send a PIF and B, sue in small claims court. That latter won't do anything honestly, unless the owner has any assets in CA, but it'll provide some information that will pop up when other people search for the company.

But yeah, thanks for your help-- I'm continually kicking myself that I didn't see this coming in time to warn her.

Sub: #2 posted on Sat, 09/07/2013 - 12:51


You'll probably do what? A. You can email them the letter to revoke ACH authorization and cancel wage assignments.. which needs to be done right away, your not sending them a PIF you are demanding one be sent to you... And the only way to protect her money is to close her account and open a new one not linked to the old one. B. You can't sue in small claims some company based offshore - I don't think any court will allow that, the person you are suing must be available to be served..

Sub: #3 posted on Sat, 09/07/2013 - 19:02

HelpinAZ HelpinAZ
(Posts: 1873 | Credits: 288.12)

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