I foolishly took out a payday loan I just found out that payday loans are illegal in the state of Pa and the company I took out loan with has in their information that they only loan money to individuals in states where they are licenced and legal they are neither in Pa I am willing to pay amt I borrowed with a payment plan but not high interest what are my rights in regards to an illegal loan?
1 Answer from Attorneys
See an article on my website: http://www.rachelhunterlaw.com/articles/article_9_Pay_DAY_Lending.html
Basically in PA if the lender is not licensed, then it is limited to 6% interest. So you owe what you borrowed and 6% interest and no more. The payday lender is not allowed to collect the usurious rate of interest they are charging.
I would contact the PA attorney general's office for assistance.