Practice Areas

Consumer Rights

Illegal Payday Loans

A payday loan generally is a short-term, high-interest cash loan, often under $500, which is targeted at borrowers who need money between paychecks.  Payday loans are provided at stores and via the internet.  Due to high interest rates and unfair terms or fees, many borrowers become trapped in debt cycles that far outlast the term of the original payday loan.

Many online payday lenders violate state laws by charging a higher interest rate than allowed.  In response, states have taken a wide variety of approaches to limit predatory payday lending, and regulate the payday loan industry. Most states have enacted payday lending laws that restrict the amount of interest and/or fees that may be charged to borrowers and provide other protections for borrowers.  A helpful summary of these state laws is available on the National Conference of State Legislatures’ website.

Kai H. Richter

Consumer Law Attorney

           Learn More »

In addition, some payday lenders report delinquent borrowers to credit reporting agencies.  If the underlying loan is illegal, as many payday loans are, then it may also be illegal for credit bureaus to report the loans on a consumer’s credit report.

The attorneys at Nichols Kaster understand how unfair and intimidating it can be to take on a payday lender on your own, and we would like to help.  Please contact us if you have taken out a payday loan in the last three years that is harming your credit, or if you are concerned that you may have an illegal payday loan.