Legal Question in Consumer Law in Pennsylvania

I applied for a loan online. I received the loan, with no problem. Later on in the week, a different company sent me an email stating that I was approved for a loan and the funds would be deposited in my account. I never applied for this loan; I immediately replied that I was not interested. A few days later I received a blank contract with my name printed on the line, stating I agreed to the loan. I called the company that emailed me. I was told that it was too late, they already deposited the funds in my account and they would draft my account, for repayment. I sent a cease and desist letter for access to my account, they illegally went back into my account to withdraw the money they deposited, then sent me an email stating that is what they did, this sent my account into overdraft, I called and they said they would refund me the 30.00 they charged, and they wanted to work with me. But could not refund me what my bank charged. I advised they did not have a contract to go into my account and any further incident with my account would constitute fraud. On Dec. 27, they went into my account again to get Payment for a loan that I did not request or approve. They went back into my account and charged me 30.00 for the money not being available. What can I do now?


Asked on 12/30/12, 7:53 am

1 Answer from Attorneys
Rachel Hunter

You must have gotten a pay day loan. First, close your bank account. Second, refund the money to the lender in the sum you borrowed. You will need to talk to your bank about this and fill out any forms that you need to accomplish this.

The lender cannot charge you usurious interest if they are not in compliance with PA law and registered. They are instead limited to 6%. Find out if they are registered or not and only repay them 6% for the days that you had the loan if they are not. Contact the PA banking department or the PA attorney general to find out if the lender is registered.

I can't stress this enough - stay away from payday loans. They are always a bad deal.

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Answered on 1/02/13, 7:29 pm


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