Legal Question in Credit and Debt Law in California

Payday Loans

I had a payday loan that unfortunately went to collections for $390.00 which is the amount of the check. The collection agency is now charging me an additional $390.00 plus $235.00 in interest. Is it legal to charge double or triple of the amount of the loan. I have offered to pay $390 for the check plus the return check charge of $33.00 but the collection agency wants over $1,000 for a $390 check. Thank You.


Asked on 8/01/05, 7:24 pm

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: Payday Loans

You need to review the loan agreement you signed, but chances are they cannot charge you more than 10% annula interest.

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Answered on 8/01/05, 7:37 pm


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