kim662 Posted October 10, 2018 Report Share Posted October 10, 2018 Does anyone here know the laws on pay day loans? I've searched for answers but its still unclear. I'm in Michigan, payday loan company is in OK. $1000 original loan amount and they are trying to collect $240 every two weeks, to recur until next may! This is almost $5000! Is this legal? I thought it was once a month for 6 months, then they I realized they were taking the payment every 2 weeks. I obviously didn't read the fine print and should've looked into this further to start, but here I am. I have stopped the ACH withdrawal, and sent a message to AWL requesting a cease to any collection activity due to illegal loan practices. Can they sue me? Quote Link to comment Share on other sites More sharing options...
WhoCares1000 Posted October 10, 2018 Report Share Posted October 10, 2018 Legality depends on if this was an internet type loan or a brick and mortar place in Michigan. If internet, it is probably legal. If brick and mortar, probably not based on this link: http://www.ustatesloans.org/state-mi.html Quote Link to comment Share on other sites More sharing options...
kim662 Posted October 10, 2018 Author Report Share Posted October 10, 2018 It was an internet loan, but not based in the state of Michigan and was $1000. According to the Michigan payday loans rules that I am understanding, it can't be more than $600. Quote Link to comment Share on other sites More sharing options...
Clydesmom Posted October 10, 2018 Report Share Posted October 10, 2018 1 hour ago, kim662 said: Can they sue me? Can they? Yes Will they? Probably not. Go to this site: Michigan AG Pay Day Loans it details what to do and in what order if you believe they are breaking the law. Quote Link to comment Share on other sites More sharing options...
WhoCares1000 Posted October 10, 2018 Report Share Posted October 10, 2018 The problem with the internet payday loan company is that if Michigan tries to enforce its law on them, the company would simply cite the Omaha case and state that they can export whatever terms are in force in their home state which is probably not much under the commerce clause of the constitution. That said, if they sue you, they are going to have to bring the case in front of a local judge who might not be so happy with them circumventing Michigan law and if you bring up anything that will allow the judge to extinguish the debt, the judge will go for it. So, could they sue you, yes. Will they sue you, probably not. That said though, you will get very threatening calls and even scammers saying that you are going to be served and all sorts of things to get you to pay up. They will also call any family and friends to try to scare them into paying. What I would do is try to save up $1000 as quickly as possible and then contact the company and inform them that you will settle for the original $1000. They might accept it, they might not. Quote Link to comment Share on other sites More sharing options...
kim662 Posted October 10, 2018 Author Report Share Posted October 10, 2018 Thank you all for the input. I've stopped payment and sent a message to the company asking to cease collection on this due to unlawful loan practice. They emailed me back saying they will oblige the autopay stop and that I need to contact them for a repayment plan. So far, nice about it. We'll see. Quote Link to comment Share on other sites More sharing options...
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