Legal Question in Consumer Law in Illinois

After speaking with you some attorneys via e-mail and face-to-face, I have truly done some research on payday lenders and what is illegal activity. After looking them up, it appears they are not licensed with the state of Illinois. One of which I have paid the principle maybe three times over. I have decided to become proactive and take some matters into my own hands. Here is what I picked up from a consumer site and a way to deal with Illegal lenders. Is this a good and valid plan of action?? Please advise.

The internet is full of unlicensed payday lenders who are fooling innocent loan seekers, simply because the seekers don�t know that these lending websites are working illegally. When people find out about their unlicensed payday lenders they panic as they don't know what to do.

If you ever fall into the trap of illegal payday lenders, you will have a tough time coming out of the trap. These illega l payday lenders will make you fall deep into dept by making you pay them again and again, although they are not allowed to operate since they are illegal.

However these illegal pay lenders take advantage of seekers who don't really know about their illegal status. Many seekers have paid more than required to these illegal lenders, although they only had to pay the principal amount since illegal lenders cannot levy interest charges on the loan.

Here are few steps to follow if you are dealing with an unlicensed payday lender:

1. Visit your state's Attorney General's website and check out the payday loan laws existing in your state to know whether you are dealing with an illegal dealer. If you reside in Massachusetts or Florida, then internet payday lenders are illegal in your states. Once you know that your payday lender is illegal move on to the next step.

2. Immediately close or freeze your account. However illegal lenders do not heed to revocation order, so you need to personally visit your bank and hard block your account. Inform the manager the reason behind closing the account. Tell him, that you need to safeguard your savings from being withdrawn by illegal pay lenders who don't heed to revocation orders.

3. The best thing to save your money from illegal payday lenders is to close your account completely, or the payday lender will later debit your account as he already knows your account information. Update your employer about your recent findings and ask him not to entertain any requests by the payday lender to send your salary to him.

4. Do some research on Google and find the address of your payday lender. Inform the payday lender that you have found about his illegal operation and you will only pay him the principal amount taken. Also inform the payday lender that you have cancelled the entire loan you have applied for and ban them from accessing your wages or getting in touch with your employer to collect money. Tell the payday lender that you have closed you account and you would soon be filing a complaint against them at Attorney General's Office. Ask them to reply via e-mail within five days.

5. File a complaint against the illegal payday lender with Better Business Bureau, Federal Trade Commission and your state's Attorney General. If the payday lenders try to threaten you through phone calls and e-mails simply ignore them. Since they are the illegal parties you can make them work on your own conditions.

6. In case you did not pay the principal sum yet, pay back the payday lender the principal amount and get him sign a written agreement which states the settlement of loan according to your terms. Pay the principal amount only through money order and refrain from using your credit card. If you have already paid the lender more than the principal sum, ask him to refund it back to you.

By following the above mentioned steps you can successfully come out of the trap laid by many illegal payday lenders out online.

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