Washington State Department of Financial Institutions

Consumer Alert:
E Cash Advance

Unlicensed Payday Loans

February 24, 2012

The Washington State Department of Financial (DFI) received a complaint from a consumer related to transactions entered into with e-cash-advance.com. The consumer alleged that this entity deposited the payday loan amount of $200, and told the consumer that $100 would be deducted for four months before the amount of principal would begin to be repaid. The consumer alleges that E Cash Advance withdrew $100 from the consumer’s account the first month, but then withdrew $560 the second month. The consumer further alleged that e-cash-advance.com originated a second loan without the consumer’s authorization.

E Cash Advance is not licensed with DFI and is not registered to do business with the Washington Secretary of State or Department of Revenue. Mail sent to the address on the e-cash-advance.com website, P.O. Box 571922, Murray, Utah, 84157 was returned to DFI as “undeliverable.” DFI notes that the e-cash-advance.com website advises that loans are not available to residents of Washington State; however, the DFI is unable to confirm this statement.

Verify Licenses

DFI strongly recommends that residents verify the license of any lender with which they consider doing business with. Consumers are urged to verify licensing status prior to giving the lender nonpublic personal information, such as social security number and checking account access. You can verify a license with DFI at www.dfi.wa.gov or by calling 1.877.RING DFI (746-4334).

Payday Loan Debt 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.

Report Violators

If you are suspicious of unlicensed activity by a payday lender please contact DFI at 1-877-RING-DFI (746-4334), or online at www.dfi.wa.gov.

If you feel you have been the victim of a loan scam please contact the Federal Trade Commission at 1-877-FTC-HELP (382-4357), or online at www.ftc.gov.

If you feel you have been the victim of a loan scam involving the Internet please contact the Internet Crime Complaint Center online 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.

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