Legal Question in Credit and Debt Law in Florida

My wife took out a PayDay loan on a website for $1000 in August. Since then, she had made five payments of $500 for a total of $2500 and has been told she still has five more payments to go (for a total of $5000 paid on a $1000 loan made five months ago). Is this even legal? I don't know the details of what she signed, unfortunately. The company is located out of state, and is not accredited by the BBB and furthermore has an F rating by the BBB. Are we just screwed and we'll have to bite the bullet and pay the full amount of the loan? I just can't believe that we've already paid $2500 on a $1000 loan and it's not even halfway paid off yet.


Asked on 1/09/16, 3:23 pm

3 Answers from Attorneys
David Slater David P. Slater, Esq.

I suggest you read the agreement she signed. Sounds like a scam.

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Answered on 1/09/16, 3:30 pm
Alan Wagner Wagner, McLaughlin & Whittemore P.A.

i doubt that they can do this. read the agreement. My bet is that you have already repaid more than required and they are scamming you

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Answered on 1/09/16, 5:13 pm
Barry Kaufman The Law Office of Barry W. Kaufman

This is not necessarily a scam, depending on the terms of the contract. The interest rates on payday loans can be astronomically high. You MUST READ THE AGREEMENT to determine whether this is truly a scam, or if your wife made a valid and perfectly legal agreement (however distasteful the terms of the agreement may be).

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Answered on 1/10/16, 7:37 am


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