Illegal payday loan balance sold to collection agency

[Anonymous]

I live in a state that has outlawed payday lending and the debt is from AFTER they outlawed payday lenders in the state of MD.

I had an old payday loan that I paid WAY more than the orginal princple and told them so. I stopped paying on it last years including shutting down the account they were withdrawling from and moving to a credit union.

I was able to discuss with the bank so that it didn't go into a negative account balance. Anyhow the few times I did talk to them since last fall I explained that the debt isn't valid and I wasn't paying anymore on it. Esp since the only thing I signed was a different product years ago and that they just kept adding unrequestion debt. I know I was dumb for every engaging with them (it was cashnet USA FYI). So they sold the debt to a CO.

I got a debt vaildation letter today. I am working towards an FHA refi of my house ideally in June. I am hoping to keep this illegal debt off my report. Does anyone have a course of action they would recomend in this sitution including sample letters? 

[Anonymous]

Look up the governing statutes. Draft a letter citing those statutes word for word. Inform them that the loan was in violation of state law, and if it is placed on (or not removed from) your reports, you will forward all information regarding this illegal action to your states AG, as well as filing your own action in state district court.

State that you consider this debt to be fully extinguished as being illegal and predatory under MD state law, and further collection activities will be considered a Violation of both state and federal law.

Include standard C&D verbage as well.

If they so much as squeek about it further do not hesitate so consult an attorny. You can find low cost consumer attorneys through NADA.

[Anonymous]

And make sure you send the letter CMRRR.

[Anonymous]

Is that Certified Mail Return Receipt

[Anonymous]

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@Anonymous wrote:

Is that Certified Mail Return Receipt

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Yes. You want proof they have recieved your notice.