I live in CA and opened a PDL online with Payday Max. I have a loan open with Payday Max which I now understand is illegal in CA. I borrowed $520. My first payment of $172.90 is coming due on 11/19/2013. This amount is all Finance fees because I had to extend the loan because I couldn't afford to pay it all back in full on 12/20/2013. I understand with illegal PDL's in California you are only responsible for the Principal amount. I am not sure what this is. Being that I am in CA, my understanding is legal PDL's I am only responsible for a total of $300. But being that I borrowed $520 am I responsible for that amount or the legal total of $300. I'm confused. I sent my ACH revoke letter to PayDay Max today, but I want to know what I am supposed to pay. $520 or $300. Thanks for your help.
Since Payday Max is an illegal lender, so you owe them nothing more than the borrowed amount. No interest, no fees. Simply close down your old bank account and open a new one to stop debiting money from your account. Don’t pay them an extra penny other than the principal balance.