ROCHESTER, New York, May 7, 2013 /PRNewswire/ --
Leading short term loan comparison website, PaydayLoan-Lenders.com, publishes a new consumer guide. Entitled "How to Deal with Unlicensed Payday Lenders," the guide is geared towards consumers living in states that prohibit payday loans or that have taken payday loans from unlicensed lenders with loan terms that are in violation of the legal limits prescribed by the borrower's state of residence.
The site is committed to increasing consumer education and awareness of predatory and illegal practices within the short term loans industry. The guide has been published in order to equip consumers with the necessary information on how to handle unlicensed lenders and take practical measures to prevent them from taking unauthorized interest payments via the consumers' bank accounts.
The website made the announcement of the guide's publication in the following statement that was released to the press.
"Although payday loans are prohibited in at least 13 states and the District of Columbia, some lenders still continue to offer consumers within these forbidden territories payday loans, with interest rates and fees far in excess of that which can legally be applied. PaydayLoan-Lenders.com has decided to produce an informative and actionable guide on what steps consumers need to take if they have an unlicensed or illegal payday loan. We invite consumers to our website to read the free guide."
The guide includes information on cancelling bank automatic repayments and advice on paying the principal of the loan but not the interest. Although at law illegal payday loans are not enforceable, the guide still recommends that consumers repay the principal to avoid the possibility of legal action being taken against them for recovery. In order for this to happen, the lender would need to obtain judgment in their favor in the form of a civil court order compelling repayment. In addition, the guide also details the importance of opening a new, unconnected bank account and requesting repayment of any overpayments made to the payday lender.
PaydayLoan-Lenders.com is a loan comparison website that features a number of reputable lenders that operate in strict accordance with state and federal short term loan laws. Read the guide at: