Payday and online lenders often charge very high (and illegal) interest rates and prey on consumers in desperate financial situations. These lenders continue to target borrowers even in states where excessively high-interest loans are prohibited, including Virginia, Maryland and Hawaii.
Here are some answers to a couple common questions regarding payday and online loans. If you’re trapped in a high-interest loan, contact us below for a free consultation.
Even if your lender says certain state and federal laws don’t apply to the loans they service, that might not be true.
Payday and online loan servicers often make these inaccurate claims to avoid liability for their actions. They might even tell you that they have a special exemption from U.S. lending laws because they’re subject to the laws of another country.
Look up your state’s laws and, if they conflict with your loan, seek legal counsel.
Payday and online lenders usually require borrowers to authorize withdrawals from their bank account as part of the loan application. So, stopping the withdrawals should be just as easy as authorizing them, right?
Not necessarily. Some abusive lenders will continue to withdraw funds from an account even after a borrower has revoked authorization. Borrowers should take immediate legal action against any unauthorized withdrawals.
At Kelly Guzzo, PLC, we’ve helped many consumers win cases against predatory, high-interest loan servicers. Our attorneys have secured some of the nation’s largest settlements to date with online lenders, totaling more than $1 billion in class action settlements.
If you’ve obtained a high-interest loan, we’ll meet with you free of charge to discuss next steps.