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I have many pdl’s that are eating my lunch, and I am ready to take the advice on this site to turn things around. However, a couple of my loans are through 'lenders' that ARE licensed in my state (Alaska). If I close my checking account, set up a new one, should I try to allow debits from the 'legal' lenders? Do I send them the same letters as the illegal lenders? In short, how do I differentiate (or do I) between the legal and illegal?
Allow debits from legal lenders
Welcome to the forums!!!
The lenders who are licensed to do business in your state are called legal lenders. On the contrary, the lenders who are not licensed in your state are called illegal lenders. You can’t send legal lenders the same letter that you have sent to the illegal lenders. You are liable to pay both the principal and interest to the legal lenders. As far as the illegal lenders are concerned, you can get out of this trap by paying back them only the principal.