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  1. #1
    Join Date
    Feb 2012
    Location
    California
    Posts
    4

    Default Default on a Payday Loan

    My question involves collection proceedings in the State of: Michigan


    A few years ago i had a payday loan that i still owed a couple hundred dollars, since then i have moved about 4 times, but am now settled. I havent received anything from them for at least a year and a half. Does that mean it went away, or that they havent caught up to my address changes yet?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Default on a Payday Loan

    Your debts don't magically disappear when you move around - it's just harder for your creditors to track you down.

    You can check your credit report to see if the debt is reported.

    If you want to pay off what you owe, or try to negotiate a lesser payoff, contact your creditor.

  3. #3
    Join Date
    Feb 2012
    Posts
    2

    Default Re: Default on a Payday Loan

    Could you provide more details as far as what type of payday lender they are? If it is a brick and mortar lender, then chances are they are licensed because MI requires payday lenders to be licensed as of 2006 9http://www.michigan.gov/ag/0,1607,7-164-17334_17362-171016--,00.html)

    Reference that website I pasted there, as that is straight from the MI gov. You can also check if your lender is licensed in your state through the MI government website. A little digging in Goodle will get you the right place for that.

    If your payday lender is an online one, then you might have more of a case against them as they are either based off shores, or on Indian reservations. This allows them to make loans that take advantage of people in need with outrageous rates, and can not even be sued by state attorneys. In my state of CA for example all payday lenders have to be licensed, so I am protected from any legal action by them.

    While the online lenders act outside the laws regarding how much interest they can charge etc, the fact of the matter is that they deposited money into your account. So I will argue that you only have a case if you paid back the original amount loaned to you, otherwise if you paid above that amount you can even demand a refund above the principal.

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