Legal Question in Credit and Debt Law in California

I have become overwhelmed with payday loan fees and in doing a bit of online research as well as contacting the Department of Corporations, it turns out that several of these companies are not legally doing business in CA. The Dept of Corporations has advised me to file complaints, which I am doing, but in the mean time, is there anything I can do or send to the Payday loan companies to negotiate alternative payment plans? I can't afford this anymore. I take full responsibility and whatever I should pay, I will figure out a way to do so, but any advice on ways to deal with this would be greatly appreciated!


Asked on 2/25/13, 1:50 pm

1 Answer from Attorneys
Edward McCutchan Sunderland | McCutchan, LLP

If the payday loan companies that you are obligated to are not legally doing business in California then they cannot bring a lawsuit against you under California's Revenue and taxation Code. I would write such companies a letter keeping a copy stating that they are illegally doing business in this state taking the position that you will repay the amount borrowed interest free in a monthly amount that you can afford subject to a written agreement on the matter.

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Answered on 2/25/13, 1:56 pm


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