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Can I Close My Bank Account and Try to Make Reasonable Payments on a Tribal Payday Loan Without Being Sued? Should I pay the loan back at all?

Question: Can I close my bank account and try to make reasonable payments without being sued? I have taken out 2 Internet payday loans through a tribal lending company.

Answer: Tribal lenders are not licensed to make loans in Illinois and you are not obligated to repay the loan at all. Consumer loans made by unlicensed lenders (those which are not banks, savings & loans, credit unions, or licensed by the Illinois Department of Financial and Professional Regulation) at more than 9% interest are void by Illinois statute. There are also substantial statutory damages for making illegal loans. Given the grossly overreaching nature of the loans in the first instance, I would not suggest that you make any payments or provide any banking information at all.

We can help you both defend claims against you and assert your rights under the Fair Debt Collection Practices Act, the Illinois Interest Act, and other laws.