Legal Question in Credit and Debt Law in Pennsylvania

I live in Pennsylvania and have several outstanding payday loans. Each were for $200.00 a piece. I've paid the bi-weekly $60.00 fee three times on these loans. Which means I essentially paid back $180.00 to these online payday lenders. I have switched bank accounts due to a relocation, but still live in PA. I don't want to tell these Payday lenders my new account information, as I don't want to continue paying these fees. What can happen to me if I don't pay the full $200 plus fees to these lenders? And...is closing my checking account without telling them, illegal?


Asked on 7/27/12, 9:54 am

1 Answer from Attorneys
Rachel Hunter

Check with the PA banking department to see if these payday lenders are registered in PA. If not, they are not supposed to make loans to PA debtors.

What you have done is not a crime. The payday lenders are the criminals, not you. Pay day loans are such a bad bad idea. Don't do these again.

If the lender is legitimate (doubtful), then try to negotiate to pay back what you owe, but get the agreement in writing before you pay them a dime. If they are not legitimate, see what assistance the PA banking department can provide.

I would not repay anything more than what was borrowed if this is an online and unregistered lender. However, I would only pay when you have the funds - not this bi-weekly stuff. At that time,. I would make them an offer of money and tell them to take it or leave it - if they do not accept, then you don't pay.

Most online lenders are overseas. They are not licensed to do business in the US. They are not going to get a lawyer and sue. Nor will you go to jail. Do not listen to their empty threats.

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Answered on 7/27/12, 10:01 am


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