Home > Research Legal Advice > Debt / Lending Agreements > Please let me know if I should pay PDLs principal amount ?
Asked 3 months ago - Staten Island, NY
FlagHello , I leave in New York State . I borrowed a several loans from PDL last fall . Unfortunately I wasn't able to pay it back and I signed up a settlement program with Oak View Law Group - OVLG ( California ) . It didn't work in my favor . My debt grew almost double . So I decided to cancel with OVLG . I was searching on internet the law and I've learned that PDL are not legal in New York State and I should report PL to BBB . Also , I asked for the laywers' name at OVLG to check on his credibility in New York State but they didn't provide me his info . I think that this OVLG do not have any lawyer and they are not legit either .
Please note, I am licensed only in Pennsylvania. The following is not legal advice but rather my personal and practical thoughts on how to battle payday loan companies. Pay Day Loan companies are notorious for not following the proper procedures, but they rarely file a lawsuit. Instead they rely upon threats of arbitration, predatory lending practices, high interest rates, and harassing collection tactics. For example, they often threaten criminal action contrary to state and Federal collection practice laws. Note, there are no debtor prisons in the United States, you can not be imprisoned for not paying a debt.
You should begin the process of protecting yourself by sending a certified mailing to the payday loan company asking for validation of that debt which includes a request for a copy of any contract. The letter should also ask for an accounting of all charges and payments to date on the account. Demand that they cease and desist from any collection communications. Finally, if you dispute any portion of their debt (or their interest rates), inform them that you dispute that debt. You can find sample debt validation/dispute letters on the internet. Keep a journal and record any and all communications efforts that come after receipt of that letter as they might be in violation of the law; which could be used to argue that they have waived their right to collect the debt.
A word of caution, these efforts won’t eliminate any obligation (it might even incur further penalties) but, in theory, it should stop the debt collector from harassing you and will serve as a basis of possibly identifying future violations in collection laws. Note, however, payday loan companies rely upon a belief that they have immunity from collection laws due to their status as Indian nations.
You can also try the state attorney general’s office for guidance as well as the Federal Trade Commission.
Stew Crawford, Jr., Esq.
Crawford Law Firm
A Full Service Law Firm Serving New Jersey & Pennsylvania
223 North Monroe Street
Media, Pennsylvania 19063 (Philadelphia Area)
1-877-992-6311
www.crawfordlaw.org
E-Mail: landlord@subroaw.us
Report the loans to the State Attorney General. while PDL loans are illegal in NY these loans are being made by Indian owned companies from Indian reservation lands. They are arguing that they are exempt from state law as they are a sovereign nation under federal law. The issue has not been decided yet and is still winding its way throgh the court system but NYS is putting pressure on these companies and trying to force a settlement. With the help of the attorney general you may be able to cancel the debt or reduce it to the original principal amount borrowed.
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