Legal Question in Credit and Debt Law in Illinois

Am I legally obligated to pay interest on a pay day cash advance loan if the clerk forgot write up a contract detailing fees and interest prior to giving me cash? Received cash from a pay day loan biz for $300 on Feb. 2nd; clerk forgot to have me sign contract; (called me the next day to alert me of her error); just gave me the cash in exchange for a post-dated check; to date I've paid the principal amount of the loan only; am I legally obligated to pay the interest? What are my chances in court? I never went back in to signed a contract; the clerk waited 3 weeks before automatically debiting my bank acct; and have been doing so every other week; I live in Illinois


Asked on 4/26/12, 7:25 pm

1 Answer from Attorneys
Daniel Concannon LAW OFFICES OF DANIEL B. CONCANNON

Sounds like a decent chance they will not legally get the SUPER high interest rate they expected. However, they would be entitled to the money back which you stated you paid. How do they have your banking info, well that's from the check, but that doesn't mean they are entitled to automatically debit your bank account, and what they are doing could be in violation of the law. Call me for further details.

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Answered on 4/27/12, 5:14 pm


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