Wayne Coons Tricked By Quick Cash Loans Lender

Mr. Wayne Coons (Puyallup, Washington) had taken payday loan of $350.The report says that now it costs him hundreds of dollars more than he had estimated. Coons had prior borrowed payday loans from a store and thought online payday loans work in the same manner. He expected the lender, Ameriloan to deduct $457 from his account. Ameriloan had withdrawn $105. But he was astonished that yet he had to pay $450. In fact, $350 loan could cost him more than $1,000. Ameriloan had withdrawn $105 several times and the amount shown was static for a pretty long period of time.

Coons immediately turned to Department of Financial Institutions for help. He came to know that Ameriloan was not licensed under Washington for providing quick cash loans. He did not get back his money and had to close the account ultimately. "It's illegal to make a loan without a license," explained Deborah Bortner, the department's director of consumer services. "If you're not licensed, it (the loan) is not collectable and it's not enforceable."

But fortunately the companies that are not licensed under the state have no right to drag the borrowers to the court .They themselves are defaulters. The loans provided by such borrows are illegal loans. "If someone makes you a loan that's illegal, either because they don't have a license or they violate usury laws, you're not under any obligation to pay it back," said Norman Googel, an assistant attorney general in West Virginia.

Moreover Rick Brinkley, the head for Better Business Bureau of Eastern Oklahoma agrees with this statement. Already more than 2,000 complaints have been filed against online payday loan lenders in Oklahoma (US). Action will be definitely taken against them. This will relieve the borrowers.