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Sued By Payday Cash Advance Lender

On Lawyer & Legal » Consumer Law & Fraud

1,943 words with 1 Comments; publish: Wed, 08 Feb 2006 09:33:00 GMT; (80093.75, « »)

I am in Michigan. I went to one of those paycheck advances last year and borrowed $1000 and wrote 2 checks for a total of $1300 to pay this back. Every 2 weeks I went into the place and just paid the interest on this which was $240. After several months of just paying the interest, I decided I could no longer pay $480 every month. I told the owner that I cannot pay anymore and I offered to just pay the $1000 originally borrowed. He said NO. So now, 5 months later I get served court papers and now I owe, under Michigan law, $4832.12. I called the lawyer in charge of the case but can only work out a plan to pay back 500 every 2 weeks until the 4832.12 is paid in full. Failure to pay, the lawyer said he can take my car, house or whatever.

What can I do about this besides just pay the total off 2 weeks at a time? Would getting legal advice make any difference? PLEASE HELP>

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  • 1 Comments
    • This type of loan appears to fall under the Michigan Deferred Presentment Service Transactions Act. The loan and fees you describe appear to violate the limits set by that Act. (I can't be certain without more facts, but it's worth exploring.) You can file a complaint with the Office of Financial & Insurance Services, which should investigate any violations of that Act.

      As you have been served with a lawsuit, you should take care to file an answer on time as well as to raise possible affirmative defenses including the possible charging of an unlawful interest rate. If you do not answer on time a default judgment will likely be entered against you. It would benefit you to have your situation reviewed in detail by a lawyer.

      #1; Wed, 08 Feb 2006 12:34:00 GMT