Legal Question in Credit and Debt Law in California

Payday Advance Loan

In early 2002 I was a little short on cash so I took out a payday loan over the internet. This turned out to be a horrible idea! I borrowed $500 and was charged a fee of $87.50 which I paid along with the $500 and considered it done. Unfortunately, the company kept taking $87.50 every week from my account! I talked to the bank and asked them to stop pay all requests from this company. I got a threatening email from someone at the loan company advising that they could repossess all my assets if I didn't pay back the loan and the $87.50. I tried to clarify that I had paid it but they kept trying to take money from my bank account and insisted that I needed to pay them another $500. There is no phone number, they only have an email address. I haven't heard anything from them since August 2002, but I'm worried that at some point they will try to take me to collections and put a blemish on my credit record. The only proof I have that this was paid back is bank statements. I'd like to contact them and ask for a zero balance letter but am worried that they will then pursue collecion action against me. What should I do? I am constantly worrying about this!

Asked on 2/12/04, 4:27 pm

1 Answer from Attorneys

Christopher M. Brainard, Esq. C. M. Brainard & Associates - (310) 266-4115

Re: Payday Advance Loan

I need more facts, but I would write them a letter and then sue them fraud. You can contact me if you like for a free consultation at 310-266-4115

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Answered on 2/13/04, 4:55 am

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