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Payday lenders in Massachusetts

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avigeant83
New Contributor

Payday lenders in Massachusetts

This isn't from my account but I've been helping my co-worker with his credit rebuilding and so far everything looks good. Except for one thing, he says that he pulled out about 6 small payday loans and they are sending threatening messages to his e-mail. I told him that in the state of Massachusetts they are illegal and need to be licensed in Massachusetts to do such transcations. He wrote back to two of them about the laws and contacting FTC, BBB, and Massachusetts Div of Banks about their harassment and loans, they quickly stopped. So if they put these accounts into collections and on his CR, how quickly or even if he could, get it removed?

 

Thanks guys, I feel like I've been helping a ton of friends and family members from this site.

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Shogun
Moderator Emeritus

Re: Payday lenders in Massachusetts

Were these loans repaid?  Also, you say they are payday loans and they are illegal in your state.  I'm sorry but I'm not really familiar with the laws governing this from your state, but if they were taken out from a business in the state, how were they illegal?

 

There a many "bottom feeder" CAs that are out there collecting on these types of loans.  It seems that even if the loans were repaid that there are CAs out to collect on them.  I would continue doing what you are doing and fight them on this.

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avigeant83
New Contributor

Re: Payday lenders in Massachusetts

Well my friend I'm not sure if he repaid them but it doesnt sound like he paid them all off or maybe the charges/interest rates kept growing. They are illegal because in Massachusetts you can't have an interest rate higher than 23% and etc etc. They also have to be licensed in Mass which they are not to do such loans.

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