Payday Loan Help in NJ

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Latest post 06-06-2011 10:34 AM by Michael D. Siegel. 13 replies.
  • 12-01-2009 10:17 AM

    Payday Loan Help in NJ

    I obtained a payday loan back in May in the amount of $400. I was unaware that payday loans in NJ are illegal.As of date I have paid them $1,275.00 and closed my checking account. I contacted the bank to dispute the over payments of $875 in which they told me I could not dispute payday loan payments. I have filed a complaint with the Better Business Bureau. I wanted to know how I go about getting my overpayments back and if anyone knows the statute which bans payday loans in NJ. Any help would be greatly appreciated.

  • 12-01-2009 10:31 AM In reply to

    Re: Payday Loan Help in NJ

    Actually, there is no law in NJ banning payday loans.

    NJ's civil usury statute (NJSA 31:1-1) and criminal usury statute (NJSA 2C:21-19) supposedly prevents any lender from charging excessive interest rates but doesn't prevent lenders from charging fees, no matter how much, as long as the borrower agrees.

    You signed a contract agreeing to the interest rate and fees and I can almost guarantee that the payday loan company had lots of lawyers writing that contract so it would be well within the law.

    Nobody did anything wrong to you. You voluntarily got into this all by yourself. Not only will you not get any money back, but if you still owe a balance, the payday loan company would be well within its rights to sue you for it.

     

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 12-01-2009 12:30 PM In reply to

    Re: Payday Loan Help in NJ

    They have charged me an interest rate of 576.32%. I would say that is pretty exhorbitant. From the research I have done, they can only charge 30%.

  • 12-01-2009 12:35 PM In reply to

    Re: Payday Loan Help in NJ

    If you borrowed $400, how much do they think they owe you?

    How often can they apply the 30% interest and to what do they apply it to?

    What does it say in the agreement you signed?

     

     

     

  • 12-01-2009 12:38 PM In reply to

    Re: Payday Loan Help in NJ

    Regardless of the interest, unless it were at 0%, I do not see how you could claim overpayment of $875.  Would that not mean they lent you the money for free?

  • 12-01-2009 12:39 PM In reply to

    Re: Payday Loan Help in NJ

    All I can tell you is that the payday loans are not illegal and there are legal ways to get around the usury limit.

    Either have an attorney review your contract or call your state's attorney general or consumer protection agency for assistance.

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 12-01-2009 1:24 PM In reply to

    Re: Payday Loan Help in NJ

    I have contacted the Attorney General.  The limit on interest is 30%. If that is the case then I am only responsible for paying $460. So for arguments sake the reimbursement should be for $815.

  • 12-01-2009 3:01 PM In reply to

    Re: Payday Loan Help in NJ

    You may want to do a internet seach under 'pla payday'

    I think you are going to be surprised as to that limit of 30%

     

  • 12-01-2009 3:37 PM In reply to

    Re: Payday Loan Help in NJ

    I researched several websites and they all said the ceiling on the interest is 30%.

  • 12-01-2009 4:02 PM In reply to

    Re: Payday Loan Help in NJ

    If you believe what you read in wikipedia, that average payday loan is for $500. 

    Finance charges ranged from $10 per $100 up to $30 per $100 borrowed. The most frequent rate was $25 per $100, or 650% annual interest rate (APR) if the loan is repaid in two weeks.

     

     

  • 12-01-2009 4:03 PM In reply to

    Re: Payday Loan Help in NJ

    are you sure you did not agree to pay 30% interest per day?

  • 12-01-2009 6:33 PM In reply to

    Re: Payday Loan Help in NJ

    I did not read the interest rates in Wikipedia. I researched on several legal websites. No I did not agree to pay 30% per day.

  • 06-03-2011 3:26 PM In reply to

    Re: Payday Loan Help in NJ

    The Usury law dictates that interest includes all fees, penalties and attorney fees. "A way around Usury you say". Well I have fought against credit card companies charging them with Usury and they have dismissed their lawsuit because they didnt want to pursue their claim once I broke down the actual interest which effectively came to over 30%. I think your an attorney trying to scare people. I actually fought and won such a case and my advise to anyone in the same predicament is to fight it. If they want to risk their business on your one case let them. You have a valid claim and Usury is real and if proven subjects the offending party to up to $250,000 in fines and they may owe you twice what they are suing you for.

  • 06-06-2011 10:34 AM In reply to

    Re: Payday Loan Help in NJ

    You are wrong.  Usury does not include legal fees and collection costs, like court fees.  It is also perfectly legal to estimate those costs by agreement, saying that collection costs shall be assessed at "20 percent of the amount due."  Late charges, and other penalties are considered interest for usury purposes, but negative amortization will increase the principal balance, and accordingly, the amount of interest which can be legally charged.

    Michael D. Siegel, Esq.

    Siegel & Siegel, P.C.

    One Penn Plaza

    New York, New York 10119

    Phone: 212-721-5300

    email: sieglaw@optonline.net

    website: www.siegelandsiegel.com

    Serving the metro New York area, including New Jersey

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