• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Payday Loan Fraud????

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

K

KatieKate

Guest
A local checkcashing/payday loan place here in town starting giving loans of MORE than the legally allowed $300 pay day cash advance. They are loaning $400 cash at an $80 fee under the "guise" of selling internet service. I wrote a check to him , post dated two weeks in advance. Since it was such a high amount, he said it had to done a different way. he had me fill out a form saying he was selling me "internet service" for that dollar amount. I never received any internet service from him. He put the check through, and unfortunalely, i was going to have to write another one to make everything clear and he wouldn't let me, so I stopped payment on it. I did more research on paydal loans, etc. and as of 9/1/01 in the state of NC they are illegal. My Question is what recourse he has against me, and if there is any protection for me? I do intend to pay the check, just over time and not one lump sum. Any help or insight you could lend would be appreciated.
 


racer72

Senior Member
Yes, you can be charged with fraud. I can find nothing in the NC state code banning short term loans. Also, the $80 fee charged in equal to a loan at 20% per month, or 240% for a year. Your $400 loan will cost you $960 if you pay it back in one year.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top