Unlicensed Payday Loans
August 15, 2012
The Washington State Department of Financial Institutions (DFI) received complaints from a consumer who reported they obtained an online payday loan from 123wages.com. The consumer complained that 123wages.com charged excessive fees and interest and did not have an installment plan.
123wages.com lists their customer service number as (877) 894-6790 but has no listed mailing address or physical location. The company appears to be located outside the United States.
123wages.com is not licensed by DFI, and is not registered to conduct business in Washington by the Department of Licensing, the Department of Revenue, or the Secretary of State.
DFI strongly recommends that consumers deal only with those lenders that are properly licensed to conduct business. Consumers can determine whether lenders are properly licensed using the “Verify a License” feature on the DFI’s website at www.dfi.wa.gov.
Payday Loan Collection Laws
Washington State law prohibits threatening or harassing behavior by individuals attempting to collect a debt. The federal Fair Debt Collection Practices Act states that debt collectors must send consumers a written notice within five days of the first collection phone call, stating the amount of the debt and what it relates to. Debt collectors cannot state or imply that failure to pay a debt is a crime. They cannot call before 8:00 a.m. or after 9:00 p.m. They cannot harass or abuse consumers, or contact consumers' places of employment.
If you feel you have been the victim of a loan scam, contact the Federal Trade Commission at 1-877-FTC-HELP (1-877-382-4357), or online at www.ftc.gov.
If you feel you have been the victim of a loan scam involving the Internet, contact the Internet Crime Complaint Center at www.ic3.gov.
If you feel you have been the victim of a loan scam and are concerned about your personal financial information, contact your banking institution, and the three major credit bureaus.