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Dec 2012

Internet Payday Loans are Illegal in Virginia

Posted by / in Virginia Bankruptcy, Weekly Posts / 173 comments

Internet payday loans are illegal in Virginia.  They are a felony.  (In order to make payday loans in Virginia, they have to have a licensed office in Virginia.  The internet payday loans do not have offices Virginia–they are on the internet.)

Since the people behind the internet payday loans could be sent to jail in Virginia, the internet payday loan companies are careful to stay beyond the limits of Virginia law.  Some claim to be operated by Indian tribes, which cannot be regulated by state governments.   Others are in foreign countries.

Internet payday loans are a transaction with Tony Soprano

When you get an internet payday loan, you are dealing with organized crime. People like “Tony Soprano.” The good news is, they are digital organized crime.

Their internet payday loan websites seem friendly enough, but to understand who you are dealing with, think of the Godfather, or Tony Soprano.  When you sign up for an internet payday loan you need to understand you are dealing with organized crime.

Digital organized crime.  Because they are “digital” they will not really come around to your house and shoot your dog, the way Tony Soprano might.  They will, however, make illegal threats.

Most of those threats will be on the phone, but sometimes they come by email.  Here’s an extreme example.   It’s a threat that the consumer will be arrested for bad checks and bank fraud for not paying back the internet payday loan.  That threat is total bogus.  The people who are guilty of bank fraud are the internet payday loan companies themselves.

Even after bankruptcy, my clients sometimes still get these illegal threats–and they ask if I can get the bankruptcy judge to stop them.

Sorry, the answer is no.  Think about it this way.  The didn’t care they could get one to five years in jail just for making the internet payday loan…do you think the internet payday loan people care the bankruptcy judge will fine them?

So, what can you do?  Here’s my best advice.  Just say, “My bankruptcy lawyer told me you’d try that BS on me.” And hang up.  You may have to do it five or six times.  But when they know you have wised up, they will move on to someone else.

Is there any good news?  Sometimes, we get lucky.  Sometimes the illegal internet payday loan ends up in the hands of a legal debt collector.  Here’s one example.   Kathy, not her real name, got an internet payday loan through Pay Day Loan Yes.  Pay Day Loan Yes, on their website, does NOT have any information about where they are located.  (Godaddy says the company that owns the website had an address in Gulf Breeze, FL.  That’s the address of the UPS store which is obviously just a mail drop.)

(Pay Day Loan Yes claims that they do not make the payday loans themselves–they just arrange them.  That dodge is also illegal in Virginia.)

While Pay Day Loan Yes is operating illegally in Virginia, their debt collector, NCA appears to be a legitimate outfit.  A legitimate debt collector, collecting an illegal internet payday loan can get sued under the Fair Debt Collection Practices Act.  We plan to do that for Kathy.  (PS  I was wrong–this debt collector is a scam outfit too.  They are trying legitimate means to collect illegal debts, but when I tried to track them down, they evaporated, too.)

What’s the big lesson in all this?  Don’t give you social security number, bank account info, and phone numbers to Tony Soprano.

PS  Here’s a link to the Federal cyber crimes reporting website.  Complaining there might encourage prosecution of the worst of these internet payday loan scam collectors, if they can find them.

You can read more in this blog from my friend John Merna, a bankruptcy lawyer in Tidewater.


PPS.  A guy in Illinois is suing Payday Financial LLC, under Illinois law.  Payday Financial claimed that they could only be sued on the Cheyenne River Sioux reservation–and a US District Court agreed!   That was reversed on appeal by the Seventh Circuit.  They said the tribal court of the Cheyenne River Sioux is not qualified to decide what does or doesn’t violate Illinois payday loan law.  (You can read that here.)   Hope he wins and can collect.   That pretty much ends the owned by an Indian tribe dodge.

PPPS. Scott Tucker is the “businessman” behind most of the Indian Tribe Payday Loans, who also owned a NASCAR team and races his own car.  He was arrested February 2016, and convicted   October 2017 on 14 Federal charges.

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Robert Weed has helped fifteen thousand people file bankruptcy in Northern Virginia. Robert Weed is a frequent panelist and speaker at the meetings of the National Association of Consumer Bankruptcy Attorneys. He is one of Northern Virginia’s most experienced personal bankruptcy lawyers. As an expert on changing consumer bankruptcy laws, Robert Weed has been interviewed on local and national TV and quoted in newspapers across the country.

  • Arnold Blais

    March 1, 2013, am31 1:23 AM

    Remarkable issues here. I am very happy to see your article.

    • Robert Weed

      March 1, 2013, am31 6:09 AM


      Thanks for your encouraging words.

  • Paul S.

    April 7, 2013, am30 7:49 AM

    The worst bit of my financial situation is a loan originated from Western Sky, then sold to CashCall. I’m not sure if it is a “payday loan” but that was how I thought of it. The APR is 116.73%. I’ve tried making extra payments to pay it down but it seems like they just get erased by the interest.

    I’m working on pulling together all the documentation to schedule an appointment with your office, but I wonder if this loan would fall under this category of illegal payday loans? How do you know if you have one of these?

    I couldn’t find a better page to post this question on, but do you advise just stopping payments I can’t afford on this loan for now until I can meet with someone? (Basically my monthly bills add up to more than my income if I continue servicing all my debts, and that doesn’t include money for groceries for me and kids. I got into this situation originally due to a divorce but also my own financial mistakes.) I’ve looked a bit for this one bit of information too that I’m not sure about… if I still get stuck with a chapter 13 will the interest rates possibly be reduced from these usurious amounts like 116.73%?

    • Robert Weed

      April 7, 2013, pm30 5:49 PM


      Yes, Western Sky is illegal in Virginia–so is Cash Call. Don’t pay them.

  • Paul S.

    April 7, 2013, pm30 8:11 PM

    Thanks, Robert. 🙂 You will definitely be hearing from me in the near future once I get all my documentation together. I’m hopeful you will have some advice pointing me in a good direction out of this self-made mess.

  • Kim P

    June 24, 2013, am30 5:53 AM

    Could you tell me if these companies are considered legal payday loaners in Virginia. 1.NetCredit 2.Great Plains 3.Mobiloans

  • John Merna

    June 26, 2013, pm30 10:08 PM

    I stumbled on your blog about payday loans being illegal in Virginia. Thank you for your kind comment at the bottom. I am sure your readers/clients are aware that when they are hiring you they are hiring one of the foremost bankruptcy attorneys in the state of Virginia, if not the country.

    Great article!

    John G. Merna

    • Robert Weed

      June 26, 2013, pm30 10:10 PM


      Thanks for your generous comment.

  • Courtney J

    June 28, 2013, pm30 7:12 PM

    I had an account with Great Plains Lending, LLC that was sold to NCA-NationalCredit Adjusters that is based out of Kansas. Are they a legit collection agency? They called me last week and I offered to send a monthly payment via mail and they stated that they wouldn’t accept it unless I paid with a debit or checking account. Should I ignore them? Please help!

    • Robert Weed

      June 28, 2013, pm30 7:37 PM


      You didn’t tell me if you’re in Virginia. If you are, yest ignore them, don’t pay.

      Just researched through my own blog and found my notes on NCA–I think those are scammers, too. They don’t want a check because they don’t want anyone to be able to locate their bank account in the US.

  • Malikah McNeal

    July 23, 2013, pm31 1:04 PM

    I am located in Virginia and i recently took out a loan from castle pay day online. When I discovered that they were charging outrageous fees and found out they were illegal in Virginia , I stopped paying and closed my account. However I recently received a call from a collection agency indicating that they bought my information and that if I don’t pay it could go on my credit report. Should I pay them?

    • Robert Weed

      July 25, 2013, am31 11:45 AM


      The debt collector knows they are collecting an illegal debt. So you could sue them under the Fair Debt Collection Practices Act–if you could find them.

      I’d be surprised if they put something on your credit, but if they did, you could ask the credit bureau to take it off. If the credit bureau doesn’t fix it, then you can sue somebody who really is in America and get it fixed that way.

      So, what should you do? I don’t think you should pay these people, because I don’t think they will really put it on your credit. Because the credit bureau doesn’t allow scam outfits to hit your credit–because then the credit bureau could get sued.

      But what if they do? If you were my bankruptcy client, I’d fight them, because I don’t let people do illegal stuff to my clients, as long as American law is available to stop them.

      You’d have to check around and find a lawyer who would help you fight. One place to look is NACA. http://naca.net/. Good luck.

  • Malikah McNeal

    July 25, 2013, pm31 8:38 PM

    Thank you for the advice! That was very helpful.

  • Will

    August 17, 2013, am31 1:47 AM


    Thank you so much for your free advice on this blog. I am truly grateful for your time and hope there is something, anything I can do to repay the favor in the future. Just stumbling on this site has made my day. I had no idea these loans were illegal and it irritates the crap out of me that they allowed them to process, knowing they were. Just so I am clear…I don’t have to pay these animals a thing? I understand being harassed but as it stands I just want to know I can breathe. Thank you again Mr Weed and if you’re ever in the Roanoke Valley I owe you a lunch.

    • Robert Weed

      August 17, 2013, pm31 5:57 PM


      Right. Internet payday loans are illegal in Virginia. That cannot enforce them in court in Virginia; and don’t dare try because they could get prosecuted if they set foot here.

      Thanks for the offer of lunch.

      I lived on Roanoke in 1973 and usede to eat lunch at the Texas Tavern. I think it’s still there. http://www.texastavern-inc.com/

  • Roy

    August 20, 2013, pm31 8:44 PM

    I live in Virginia and I just read your blog. While it gave me some relief, I am worried that if I don’t pay, they will start making harassing calls to my place or work. How do I continue to ignore them while preventing these calls?

    • Robert Weed

      August 20, 2013, pm31 9:55 PM


      I don’t have any good answer to that. Like I said, they already KNOW they are illegal, so doing more illegal stuff will not bother them. The only advice I can give you is be STRONG when you tell them you will NEVER pay. If you act wobbly, they will keep calling for sure.

  • Angela Kern

    September 12, 2013, am30 12:30 AM


    Could you also please confirm if Plain Green Loans are illegal in Virginial? Are companies such as Plain Green Loans, and Mobiloans considered payday loans? Since companies like this are illegal, can the put negative infomation on my credit report?

    • Robert Weed

      September 12, 2013, am30 12:58 AM


      Did you go to their store down on the corner. Or did they give you a loan in the Internet. You know the answer to that better than I do.

      Obviously they will put negative stuff on your credit report if the credit bureaus let them. Because it does not bother them to do stuff that’s illegal. Do the credit bureaus block them. I think they try.


    September 16, 2013, pm30 9:02 PM

    I just saw your blog and it is great. Can you tell me what you know about Cashnetusa.com. I have been unable to find a license for them and I opened up a line of credit with them.. I have already paid back what i borrowed but, they tell me they are licensed.

    • Robert Weed

      September 18, 2013, pm30 4:16 PM


      The only people who are licensed in Virginia have to have stores in Virginia. If you borrowed form them over the internet, they are not licensed in Virginia.

      What reason do you have to think they are telling you the truth. Of course they lie. They are criminals.

  • Jenn

    September 19, 2013, pm30 11:17 PM

    I stumbled on this great informative blog and understand most online payday lenders for the state of VA is illegal. My question of concern is when you sign the loan agreement most have in fine print about Wage Assignment..What is the best measure to prevent them from placing an Assignment on your wages??

    • Robert Weed

      September 19, 2013, pm30 11:25 PM


      They can’t. They are illegal–they can’t go to court and do anything.

  • Justin Payne

    October 24, 2013, am31 12:02 AM

    I have a loan from two companies both Mobil loans and Great Plains lending, They both are owned by Indian Tribes. Mobil loans I owe about 750.00 bucks the fees are high. I can not pay them back and tried to reason with them. What other actions should I take I do not want them to garnage my wages or keep going up on fees on the default loan . Any suggestions?

    • Robert Weed

      October 26, 2013, pm31 12:39 PM


      I don’t know whether those loans are legal where you are or not. I’m a Virginia lawyer, sorry. If they are illegal, just don’t pay them. And talk to your bank about blocking them.

      As I say in my blog you need to expect to get totally illegal debt collectors trying to collect the illegal loans. You just have to let them know they don’t scare you and they will leave you alone.

      But the first question is are those loans illegal where you are. I don’t know the answer to that.

  • Regis

    October 29, 2013, pm31 6:06 PM

    I originally got a loan from western skies who gave the loan to Cash Call and now the loan is being collected by delbert services.I’m from Hampton,Va by the way.The loan was for 850 I only got 500 because of a 350 processing fee.Up to this date I have paid 513 and I’m am struggling already financially.I’ve read how this organization is a scam and at the time I didn’t know this type of loan was illegal in Va since I was approved.I am behind on nearly all my bills it is holiday season am I obligated to pay this loan. If I don’t will they be able to take legal action.

    • Robert Weed

      October 29, 2013, pm31 6:12 PM


      I think my blog answered that question. “Internet Payday Loans Are Illegal in Virginia.”

  • Amy

    November 8, 2013, am30 3:16 AM

    I am very happy I have come across this website. I live in Va and currently have two internet loans with Mobiloan and Great Plains. I am having diffculty paying the loans. I thought that they could be paid monthly (I did not throughly read all the necessary infomation due to needing the funds) I was unaware at the time that it was illegal in the the state of Va.

    • Robert Weed

      November 8, 2013, am30 11:39 AM


      Glad to help.

  • chris

    November 13, 2013, pm30 8:05 PM

    I have a line of credit loan though cashnetusa since a line of credit loan doesn’t fall under the payday law here in virginiaif I stop paying can they come after me also I heard there is a lawyer in northern virginia that cashnet usa uses and he has been able to collect for them let me know is this true

    • Robert Weed

      November 13, 2013, pm30 8:14 PM


      Why do you think it’s not a payday loan? Because they told you? I haven’t heard about a lawyer in Northern Virignia suing people for CashNET so I went to the Virginia Court system website http://www.courts.state.va.us/courts/ and looked to see how many people CashnetUSA has sued in Fairfax County–the answer was NONE. Maybe they sue under another name????

      • chris

        November 13, 2013, pm30 9:47 PM

        A dana wiggins told me about the lawyer in northern va and I call va scc and they told me cashnet usa could loan money in va online because they say its a line of credit I’m just confused about all just not sure what to do and thanks for helping as much as you have with your blog

        • Robert Weed

          September 22, 2014, pm30 10:18 PM


          I’ve done more research on CashnetUSA. Did they offer to let you pay it back at no interest in

          25 days? If they didn’t, then it’s illegal for them to charge you more than 12% interest, Under Code of Virginia 6.2-1501. And you don’t have to pay them back, under Code of VA 6.2-1541.

  • Kelsey

    November 17, 2013, am30 12:57 AM

    Not filing for bankruptcy or anything, but I was looking up info about Great Plains Lending. I began an account with them back in July and came across this post. They are illegally operating in Virginia? Should I, too, stop payment to them? Do I talk to them? and If they are illegally operating in Virginia, will it affect my credit score if and when I don’t pay?

  • Tammy

    November 17, 2013, pm30 4:21 PM

    I received a voicemail from an unknown number from Jessica Campbell and she said an affidavit with my name and social security number was on her desk and it was imperative for me to call her back with my statement and to call back and if not there would be criminal charges and jail, I goggled the number she said and it was from National Recovery Services which is a debt collection agency, she didn’t state what it was about or where she was calling from, I have had defaulted payday loans one from Ace Cash Express and Cash net usa cash net usa was online but I have paid them off from ppl calling saying they are debt collectors, I live in Virginia, Could you please help with this?

    • Robert Weed

      November 17, 2013, pm30 5:26 PM


      At the bottom of my blog is the link to the Federal cyber crimes reporting site. Nothing I can do. Illegal collectors collecting illegal debts is a matter for the FBI! Report them!

      After you report them, take a deep breath. Then promise yourself in the future you won’t give your name and contact info the strangers operating on the internet.

  • Dawn

    December 5, 2013, am31 4:09 AM

    Mr. Weed, thank you so much for the information in this blog. I live in Virginia and have been drowning in internet payday loans. Your blog has given me hope.

    • Robert Weed

      December 5, 2013, am31 11:04 AM

      Thanks Dawn, I hope it does.

  • Malikah McNeal

    December 24, 2013, pm31 6:13 PM

    I am located in Virginia and I recently took out a loan from Alternative Finance Company, LLC and I am not certain if it is a payday loan or an installment loan. This is their website address: http://virginialoansnocreditcheck.com/how-it-works/

    It seems as if nothing I pay ever really goes to the principal, I am just paying interest. I have looked for them on this website : http://www.scc.virginia.gov/bfi/reg_inst/pay.pdf. but I don’t see them. Can you please provide me with some advice.

    Thank you.

    • Robert Weed

      December 26, 2013, am31 11:08 AM


      What I’m seeing now is everybody who used to Say they were “payday loans” aren’t saying that any more. I’m not sure what they claim to be or how they claim to be legal.

  • Stephen Fitts

    December 25, 2013, am31 1:41 AM

    So Great plains lending is illegal in Va even though they say its legal?

    • Robert Weed

      December 26, 2013, am31 11:08 AM


      What I’m seeing now is everybody who used to Say they were “payday loans” aren’t saying that any more. I’m not sure what they claim to be or how they claim to be legal.

      • Stephen Fitts

        December 31, 2013, pm31 3:11 PM

        So when i filled out the application online and selected VA as my state, and they funded me, does that mean they are legal? Or does that mean they are taking a chance hoping i dont find out that they are illegal in Va? (Great Plains Lending)

  • Robert Weed

    December 31, 2013, pm31 3:33 PM


    They figure you’ll never know they are illegal–or even if you see it here that they can scare you into paying them anyway. Also at their enormous interest rates, they can afford to not get paid by some people and still make a whole lot of money.

  • Robert

    January 6, 2014, pm31 5:29 PM

    Thanks Robert for this post! Upon reading I immediately got hope in that there really is a way to get out of the payday loan mess I got myself into. One of my lenders, Plain Green Loans (not on the list you supplied and claim to be a tribal entity), charged me interest ranging from about 120% to 239% on several different loans I’ve had with them. I think on usury law alone this is illegal from what Ive recently learned. Over these different loans spanning about 2.5 years I’ve borrowed $9000 and paid back $11,900+. I’ve read that since the interest rate is so high that these loan agreements arent enforceable in VA (where I live). Some even suggested requesting a refund for any overpayment above principal. Have you ever heard of getting refunds based on this? I will definitely be letting them know I am not paying. They have received enough money from me!

    • Robert Weed

      January 7, 2014, pm31 8:58 PM


      Thanks for your good words. Glad to know my post was helpful to you.

  • Joe

    January 13, 2014, am31 2:39 AM

    Hello Attorney Weed, I currently have loans with 3 different companies Casnetusa, Mobiloans, and AmericanWebLoans. Two of these companies claim to be line of credit loans, therefore circumventing PDL laws in VA. Do you have any idea what the ramifications would be if I were to close my checking acct. and issue letters claiming illegal loan practices in the state of Virginia?

    • Robert Weed

      January 13, 2014, am31 10:48 AM


      I’ve told you all I know.

  • Mandy Thompson

    January 16, 2014, pm31 5:35 PM

    My husband got a loan on the intenet from plain green loans. We found out it was illegal soon after. (This was not the 1st one he has had and has paid them all off before) when we found out it was illegal we called them and told them we would not pay them bc they were illegal here in va and they could use all the interest that we paid before to pay this debt off. They have now sent it to Nca which I just spoke to and told her it was illegal. What can I do now?

  • Robert Weed

    January 28, 2014, am31 11:47 AM

    Internet payday loans are illegal in Virginia–and many states. And they can only make money if the legal banks handle their payments. So the Justice Department has started “Operation Choke Point” to hold the banks accountable, under the law, for handling transactions they know are illegal.

    You can read more about that here. http://dealbook.nytimes.com/2014/01/26/justice-dept-inquiry-takes-aim-at-banks-business-with-payday-lenders/?_php=true&_type=blogs&_r=0

  • Robert Weed

    January 30, 2014, pm31 9:55 PM

    The Attorney General of New York recently got Western Sky to agree to refund $35 MILLION in illegal charges to people in New York. [email protected]

    Obviously Western Sky was NOT able to get their Indian Tribe defense to stand up.

    Maybe the new Attorney General of Virginia will go after those scammers, too. http://www.oag.state.va.us/Consumer%20Protection/index.html

  • Monyetta

    February 10, 2014, pm28 2:56 PM

    I had dealings with Plain Green LLC while I resided in VA. I have since relocated due to employment (I was unemployed at the time of the loan). However, I was unaware that this company was not and is not licensed to do business in VA. Now, I have received threatening phone calls to garnish my wages in my new state of residence (KY). Can they do that?

    • Robert Weed

      February 11, 2014, am28 11:28 AM


      Sorry but I don’t know. Don’t know anything about Kentucky law. I do know they sometimes call and make threats they can’t carry out. Try googling the phone number they are calling you from.

  • james A

    February 18, 2014, am28 3:19 AM

    i took out a ” line of credit “online with cashnetusa when i was in VA would that still be like a payday loan that is not legal because a firm in va beach is saying that they are going to serve me papers in IL and saying they are going to charge me over 4000 dollars of inteerst when cashnet said what they wrote off was nowhere near that amount then they sent me stuff in an email with someone else name then corrected that but had on there cashwebusa in the letter but on top with cashnetusa??? do you think i have anything to worry about

    • Robert Weed

      February 18, 2014, am28 11:18 AM


      It’s not smart to do business with scammers–you need to worry about being smarter now.

  • scott

    March 6, 2014, am31 2:32 AM

    I can’t get a straight answer from Mark Kubiak of the virginia AG’s office. I have one of those Western Sky/Cash call/Delbert loans. I don’t want to pay them if they are illegal. Also, do you know what the allowable interest rate for these types of loans is?

    • Robert Weed

      March 6, 2014, am31 11:40 AM


      If you were in Northern Virginia, I’d be glad to meet and talk about fighting them for you. But I can’t take you as a client because you are outside of my service area. Maybe Jason Krumbein at Krumbein Consumer Legal Service will help.

      Obviously there’s no legal interest rate if the loans are illegal.

  • Malikah

    March 7, 2014, am31 12:53 AM

    Does a company called pre-legal checks systems exist? I received a call from someone named Fred Reynolds. His phone number came up as restricted or blocked. He left a voice message and left the number 850-764-0170. When I called him back he said a group of lawyers were bringing suit against me for castle payday loan that I took out for $500 which was an installment loan that I never paid back. I did pay it back so I don’t know why they are calling me. He said that his jobs is to try to settle it before it goes to court. He said if I go to court they can ask for as much as 3000 dollars. Can they do this in the state of Virginia? He also mentioned that if I settle now he could set up payment plan for over 5 months and only charge about 1000 dollars or if I have it now I can pay $759. Does this make sense or this a scam of some sort? Again I already paid this company back. I also contacted the Federal Trade Commision and they said that internet installment loans do not need to be licensed in Virginia? Is any of this true?

    • Robert Weed

      March 9, 2014, am31 12:10 AM


      From what you say, you already know the answer your own question.

      But here’s one more suggestion….Google the phone number. 850-764-0170. If it is the number of a legit business, the business will come up. If it’s not, then it won’t.

    • veronica zamora

      April 24, 2014, pm30 4:11 PM

      I just received a call from a similar number, but he gave me his name as Frank Reynolds. gave me the same story, but from a loan i got from Ace Cash Express. yes i do owe on a loan but for some reason i always feel scammed on these because of how urgent they make it seem. im wondering if you ever did fnid out if he is legit? i mean i dont mind paying it but however, i dont want to give an illegal man money.
      im in texas.

      • Robert Weed

        April 24, 2014, pm30 6:10 PM


        There’s no way to find out if they are legit. But if they sound scary, they probably aren’t.

  • Jerry Bangalan

    March 11, 2014, pm31 6:44 PM

    I am being told i took a online payday loan in 2008 here in the state of va. Was that law in effect then? do i need to repay upon receiving a letter of validation? A third party called me tried to collect and upon asking for their real phone number ( they have a number generator) they hung up.

    • Robert Weed

      March 11, 2014, pm31 7:12 PM


      I can post general info for the public–I can’t be your lawyer on your specific situation.

      But I’d note that there’s a five year statute of limitations in Virginia–and you say it’s more than five years.

      And probably they told you everything they need to know when they hung up after you asked for their real phone number.

  • Elizabeth Johnson

    April 10, 2014, pm30 9:17 PM

    I had taken a payday loan out with a company called My Cash Now back in 2008. I’m sorry I mistyped, I meant to say 2011. I initially took the loan out in 2011.I was making payments on what I owed until March 2012 because it seemed as if I was never going to finish paying. So today which is 04/10/2014 I recieved a call from an Officer Harrison stating that I need to set up payment or else they will take it to court and serve me with a warrent under Virginias Fraudulent conversion Act, she also called it Theft by deception. The remander of the balance was 400.00, however they are saying due to late fees I now owe 1212.00. I did not see them on the site you posted in a previous post, however I am worried that they will send me to court and or tarnish my criminal record. A little while later I recieved a call from Century Claims stating the case was passed on to them and they could set up payment arrangements, I took their number and told them I would have to speak to my lawyer first and would get back to them. I am in Northern Virginia and just was not sure what to do. Any advice?

    • Robert Weed

      April 12, 2014, pm30 2:47 PM


      Sorry I am NOT your lawyer, so I can’t tell you exactly what YOU should do. But you’ve read my blog, so you know what I think about internet payday loans that are illegal in Virginia and the illegal debt collectors that then try to collect them.

      Do you really think “Office Harrison” was a police officer? If he was, why would he have sent you to “Century Claims”? If he’s not, do you think honest people claim to be police officers? If the lie about being police officers, so you think they are telling the truth about ANYTHING?

      Here’s the link to the Internet Crimes Reporting Center. http://www.ic3.gov/default.aspx. Whatever else you decide to do, you should report them.

      Hope this helps. https://local.yahoo.com/info-165874834

  • Sam Rivera

    June 4, 2014, pm30 7:02 PM

    I also have a loan with Western Sky, a.k.a Delbert Services. I saw your answer to Paul S, so I understand that this loan is illegal in Virginia based on your reply. What action should I take? Can we make an appointment so you can hear my case and fight this guys?

    • Robert Weed

      June 4, 2014, pm30 9:22 PM


      What do you need to fight them about? I’ve never seen them come to court in VA. Are they hitting your credit report? I do see them do that…. Are they calling you–send them in writing “I dispute this debt and I refuse to pay.” Send it certified and keep a copy.

      Let me know what happens.

      • Sam Rivera

        June 5, 2014, pm30 3:21 PM

        Thanks Mr. Weed!

  • debbie

    June 18, 2014, pm30 6:42 PM

    I have to loans from online one from cashnet.usa and the other from net credit are they legal in virgnia

    • Robert Weed

      June 18, 2014, pm30 10:07 PM


      I can’t name names, but you can figure it out based on what I said.


    June 19, 2014, pm30 5:50 PM

    Hi Mr. Weed, my question is I had a payday loan with a place called First Virginia and Allied Cash Advance – They are not internet loans, but they actually have buildings in VA. The only thing is they are not listed on the list of Payday Lender Licenses. They have a collection agency from a different state – trying to collect. If they are not on the list are they legal in VA? Thanks

  • Jeremiah

    July 16, 2014, pm31 2:34 PM

    Do you know anything about loan reverse a site that has popped up recently claiming they can get you refunds on illegal online payday loans from $250 to $1000 per loan. Any info would be appreciated. Also I have a loan with advance America which is a licensed
    VA lender that I gave a check to at the beginning of the loan. I have made some payments to them reducing the balance but have fallen behind on payments can they still deposit the check even though it’s for more than what I owe them. Thank you Mr.Weed your blog is inspirational and hopeful for all of us dealing with these issues.

    • Robert Weed

      July 16, 2014, pm31 2:53 PM


      Sorry that Advance America is licensed so you are essentially defenseless against them.

      The other site that claims to get back money form illegal lenders probably wants your account info, so they can take more from you.

  • Jeremiah

    July 23, 2014, pm31 7:56 PM

    NCA referenced in the beginning of this blog has purchased my loan with plain green loans and has apparently put something negative on my credit report. Should I schedule a consultation with your office or a consumer rights lawyer. I stopped paying my payday loans back in April and am now receiving calls from people like Levy Brown and Keller and the such just need an idea of where to go to put these people in there place.

    • Robert Weed

      July 23, 2014, pm31 8:04 PM


      If somebody has put an illegal loan on your credit report; then there’s somebody who can be sued. How do you know that. Have you gone to annualcreditreport.com and looked. Or are they just telling you that.

      If it’s just phone calls, then about all you can do is make complaints to the people who can prosecute them.

  • Charlene

    August 6, 2014, am31 2:04 AM

    Robert -Just Came across your Article and Blog Very , Very Helpful , I wish I have read it sooner but I know now ! And I have learned the hard way about these internet loans. I believe in paying my Debts and was going to pull money from my Retirement Savings to pay them off but, I was doing the math we had payed back the loans double if not triple and balance has gone no where and I was just telling my husband that I was going to stop making payments because, enough is enough ! Reason I deceided to research and see if this was illegal and if it would effect my credit! Thank You and God Bless You

    • Robert Weed

      August 6, 2014, am31 10:41 AM


      Glad I could help.

  • Sarah

    August 9, 2014, pm31 9:17 PM

    I have a “line of credit” loan with cashbetusa. I can’t tell if they are legal in the state of Virginia or not from the posts on this blog. Most recently I revoked their permission to withdraw from my account, but they did it anyway. This caused my account to overdraw. Are they legal and do I have anything to stand on? Please help! Thanks for listening!

    • Robert Weed

      August 9, 2014, pm31 9:25 PM


      The fact that they took it out anyway tells you they know they are illegal and don’t care. Have you complained to your bank. Did you tell the bank to try to block them? https://robertweed.com/2013/02/24/how-to-tell-your-bank-to-stop-payday-loan-withdrawals/

      • Sarah

        August 11, 2014, am31 12:15 AM

        Yes, I sent them a notice to stop them from debitng my account , but the said they couldn’t unless I did a stop payment on the account which would cost money. Cashnetusa stopped debiting a couple of times, but they did take a payment this past Friday. So they are illegal?

        • Robert Weed

          August 11, 2014, am31 10:53 AM


          Well a stop payment would have cost less than having Cashnetusa take money out. Cashnetusa taking the money out was certainly illegal. My blog tell you all you need to know to figure out if the the loan was illegal, too. You need to figure out what you are going to do about it.

          • Sarah

            August 11, 2014, pm31 9:46 PM

            Well I went to the bank. And they can’t help me. So at this point I am stuck. But knowing they are illegal is a big help. Any suggestions on how to get the bank to comply and not allow them to take it again?

          • Robert Weed

            August 12, 2014, am31 10:26 AM

            Change banks!

  • Debbie

    August 11, 2014, pm31 4:56 PM

    I made the same mistake in 2010 with Western Sky now going by CashCall. I live in Virginia. I got 1000.00 paid back for over a year and never made a dent in it. Now they are calling and harassing my references. Any suggestions would be of great help. I can;t afford to loose friends or continue with this nightmare..

  • Sarah

    August 12, 2014, pm31 5:57 PM

    Actually I changed banks this morning!! What a huge relief. Thanks!!

  • Sarah

    August 14, 2014, pm31 2:19 PM

    Ok, asking this for a friend in VA: What about Maxlend? They claim to be some type of tribal loan? Should he have to repay those? It stated that you waive all rights or something like that. Any information would be helpful! Thanks again for your awesome blog!!

    • Robert Weed

      August 14, 2014, pm31 3:01 PM


      Right, they all give some excuse as to why they really aren’t illegal. One of the favorite ones is that “paleface law doesn’t reach us on the Indian reservation.” Well, you put yourself in Virginia law if you come to Virginia to try to collect.

      It only takes fifteen seconds of thought to see this Indian tribe argument gets them no where.

      • Sarah

        August 14, 2014, pm31 6:17 PM

        Great, thanks! I will have him contact them in order to stop the money from continuing to come out his account so that he can afford to pay other bills. Thanks again for all of your help!!

  • Paul

    August 20, 2014, pm31 9:56 PM

    the information on this blog is great, thank you so much for sharing. Trying to help a friend out of some illegal payday loans and he recently got this response from CashNet when he revoke his ach authorization and question their legality.

    “As an initial matter, pursuant to Virginia law, CashNetUSA is authorized to provide financial services to residents of Virginia. CashNetUSA provides consumers with an open end line of credit under our Kansas license, pursuant to Kansas Uniform Consumer Credit Code, Chapter 16A. 16A. Further, according to Virginia law, CashNetUSA is not required to obtain a Virginia license because CashNetUSA offers an open-end line of credit and not payday loans. Therefore, CashNetUSA provides financial services to residents of Virginia utilizing our Kansas license, pursuant to Kansas Uniform Consumer Credit Code, Chapter 16A. Our Kansas License number is SL.0000293. ”

    Does that ring true? they do offer payday loans, just not in Virginia.

    • Robert Weed

      August 20, 2014, pm31 10:14 PM


      I wish I knew more than I do. These guys will constantly come up with reasons why they say they are NOT illegal. They are not going to admit to a felony.

      I just searched the General District Court in Fairfax–the largest county by far in Virginia.

      Allied Cash Advance, which is licensed in Virginia, has three pages of people they’ve sued and garnished. CashnetUSA has none. CashnetUSA has never sued anyone in the largest court in Virginia. That tells you all you need to know.

  • Dustin

    August 26, 2014, am31 1:52 AM

    Your information is extremely helpful. So cashnetusa is illegal in Virginia? They keep hounding about my account being in default and they won’t give me their license number or anything. What do you know about spotloan? Should I pay either?

    • Robert Weed

      August 26, 2014, am31 10:13 AM


      I can’t tell you what you should do. I’ve given you all I know about the law. You can figure out what to do from there. Good luck.

    • Shanele

      August 27, 2014, pm31 1:45 PM

      Hi; I have loans with Cashnetusa, Mobiloans, Netcredit, and American Web Loans. All 4 are legal according to the representative from the Department of financial institution. The way she explained it is almost like they’ve “bought” protection against the laws in VA. Nonetheless, I would be prepared to repay them or hire Mr. Weed because the first 2 claim to give you a line of credit, which allows you to keep withdrawing, and inflict any interest rates they want. the last 2 are installment loans, so because you don’t have to pay them back within 2 paydays, they don’t constitute pay day loans. I figured that they advertise as a payday lender, but the lady from DFI says that that advertisement is dependent on the state, so it changes. Either way, I can’t pay back 300% plus for a $500 loan so they’re going to have to prosecute me.

      • Robert Weed

        August 27, 2014, pm31 2:05 PM


        Who or what is the Department of Financial Institutions? Are they just part of the scam.

        • Shanele

          September 3, 2014, am30 2:13 AM

          Lol no disrespect Robert, but you sound like you’re part of the scam. I notice you are willing to offer “advice” to some degree but you aren’t answering the questions directly. And now you’re telling me that you haven’t done your research, which I noticed in the 2013 posts; the DFI is a federal institution that regulates lenders throughout the state, listing them by name alias and all VA offices located throughout the state. They have statutes for lenders and borrowers. You should look into it since this is your area of expertise (so you say). If you don’t want to help these people or be honest, there is no need to fallaciously beat around the bush and imply that they’ve been scammed. Anyone who has a question, call Department of Financial Institutions in Richmond VA and they will answer all the questions according to VA state law, and not northern VA. Don’t get fooled into legal fees when you’re already in debt with loans.

          • Robert Weed

            September 3, 2014, pm30 2:14 PM


            I followed your suggestion. Here’s the link to the Bureau of Financial Institutions, where they list all the payday loans that ARE licensed in Virginia.

            You can look and see if the people you have loans with are on that list. http://www.scc.virginia.gov/bfi/reg_inst/pay.pdf

  • malila

    August 26, 2014, pm31 2:50 PM

    Today Payday to go calls me and tells me they are going to get me for check fraud for a internet loan online in 2008 I’m in Virginia what can I do.

  • dustin

    August 27, 2014, pm31 6:21 PM

    So cashnetusa is not a legal debt?

    • Robert Weed

      August 27, 2014, pm31 8:10 PM


      I think I’ve been as clear as I can be.

  • Jennifer

    August 28, 2014, pm31 3:08 PM

    Can I hire an attorney to only help with the payday loans? I don’t want to declare bankruptcy, but I would like help with negotiating a settlement and stoping any harassing calls to my home, work, and friends? I’m in VA.

    • Robert Weed

      August 28, 2014, pm31 6:41 PM


      Worth a try.

  • Sarah

    September 9, 2014, pm30 2:23 PM

    After hoping that I could not be victim to “online payday lenders”, it seems I have been. After speaking to many people and looking at Virginia Code 6.2-312, it seems CashNet can in fact make loans to people in Virginia, because they are an open line of credit…. 🙁 Now I have to deal with their harassment and collecting a legal debt….just a heads up for those that have dealt with cashnetusa!!!

    • Robert Weed

      September 9, 2014, pm30 5:19 PM


      Here’s the only other thing I can tell you. CashnetUSA has sued NO ONE in the Fairfax, Loudoun and Prince William General District Courts in the last ten years. That may mean everybody pays them in full. Or it may mean they are NOT confident that they can legally set foot in Virginia.

      I can’t say for sure they are illegal. Obviously, since its a felony, they are not about to admit they are illegal. But it tells you something that they don’t come into the courts here and sue people.

  • Robert Weed

    September 9, 2014, pm30 6:19 PM

    Today, September 9, 2014, the Wall Street Journal gave space on their editorial page to a lobbyist for the Indian payday loans. The lobbyist complained that the Feds are cracking down on the banks that provide the money for the Indian tribe paydays loans. He acted like the Indians were somehow being singled out.

    And he forgot the key point, which is those loans are illegal. And it’s clearly in the power of the Federal government to prevent banks from funding illegal enterprises.

    And it’s sad the editors of the WSJ, who should know better, were taken in enough to treat this as Federal interference, when its actually the states and Feds working together to allow the states to enforce their laws.

  • Sarah

    September 9, 2014, pm30 7:43 PM

    I spoke with a lady that is a Principal Financial Analyst at The Virginia Bureau of Financial Institutions and she stated that CashNetUSA isn’t doing anything illegal because under Virginia Code they are allowed to offer a line of credit, is which they do. But the confusing part is that they have to take it out of your bank account on your pay day. Which makes this all very tricky. I don’t know. I am just tired of them not working with me, or offering any information other than “your loan is in default” or “you have a past due amount of” I have tried to get them to budge but they won’t. I sure have learned my lesson!!!

    • Robert Weed

      September 10, 2014, pm30 3:55 PM


      I’m not your lawyer so I can’t say more than I’ve already said.

  • Sarah

    September 9, 2014, pm30 7:48 PM

    In addition your email questioned the legality of CashNetUSA being able to provide financial services to residents of Virginia. CashNetUSA does not provided payday loans to residents of Virginia. CashNetUSA does provides an open end line of credit. At all relevant times, our lending, fees and interest have complied with the applicable laws.

    Please be advised that according to Virginia law, CashNetUSA is not required to obtain a Virginia license because CashNetUSA offers an open-end line of credit and not payday loans. Therefore, CashNetUSA provides financial services to residents of Virginia utilizing our Kansas license, pursuant to Kansas Uniform Consumer Credit Code, Chapter 16A. Our Kansas License number is SL.0000293.

    • Robert Weed

      September 10, 2014, pm30 3:58 PM


      I guess you’ve given me a copy of CashNet’s email to you. OK, there it is. You know what I think; you know what they say. You need to make up your mind what to do, and probably talk to your own lawyer.

  • Sarah

    September 10, 2014, pm30 5:38 PM

    Yes, that’s a copy! Thank you for all of your help!

    • Robert Weed

      September 22, 2014, pm30 10:21 PM


      I’ve done more research on CashnetUSA. Did they offer to let you pay it back at no interest in 25 days? If they didn’t, then it’s illegal for them to charge you more than 12% interest, Under Code of Virginia 6.2-1501. And you don’t have to pay them back, under Code of VA 6.2-1541.

  • Jennifer

    September 14, 2014, pm30 10:44 PM

    If payday loan company is not listed on the above website you posted, then they are considered illegal in VA and can not do anything under VA law to collect a debt, or worse, attempt to prosecute, etc? I have found all information here exceptionally helpful.

    • Robert Weed

      September 15, 2014, am30 10:17 AM


      Glad I could help.

      • Jennifer

        September 29, 2014, pm30 5:42 PM

        I am currently wrapped up in these payday loans and closed my checking account because the interest is 300%! In doing my own research, I have found it is illegal for them to charge more than 36% interest under VA law. I just don’t know how to handle it from here, any suggestions? My biggest concern is credit bureau reporting.

        • Robert Weed

          September 29, 2014, pm30 9:39 PM


          Is this somebody who has an office where you borrowed money in Virginia, or someone you dealt with over the internet?

          • Jennifer

            October 2, 2014, pm31 5:38 PM

            It was over the internet.

          • Robert Weed

            October 2, 2014, pm31 5:45 PM


            I think if an illegal loan hits your credit report, you would want to do a credit report dispute, saying that you don’t owe those people any money because their loan was illegal. And if that doesn’t fix it, you get a credit report lawyer to sue the credit bureaus. You should make a little money on that.

            Usually they don’t hit your credit report, so I haven’t done one of those for any of my clients, but that’s how I plan to handle it.

  • Paula Stuart

    September 16, 2014, pm30 10:13 PM

    Plain Green Loans reported my loan at transunion as a charge off. Transunion has not removed it despite my dispute and a copy of my letter from Roy Cooper’s office. Who do i complain to now? It infuriates me that these illegal lenders are getting away with reporting to credit bureaus.

    • Robert Weed

      September 16, 2014, pm30 10:33 PM


      You need to contact a lawyer in your area who does Fair Credit Reporting law. A good place to look is NACA. http://www.naca.net/find-attorney

  • Paula Stuart

    September 16, 2014, pm30 11:46 PM

    Thank you, i found an attorney. 🙂 i really like your blogs.

    • Robert Weed

      September 17, 2014, pm30 9:00 PM

      Great! Thanks.

  • Amber Perez

    October 13, 2014, pm31 10:21 PM

    Hello. I came across your info too late. I ended up paying a debt collector some money. He said it is for a debt with cash call (the original loan was through western sky) and that they were suing me. I took out a $2500.00 loan a couple of years ago. I was close to paying it off when I found out western sky was illegal. I researched the legal company online and found no info nor could I find my case number they gave me. I’m about to get my bank account details to verify the exact amount I have paid them. Should I cancel my future payments? Also can I sue western sky through tribal courts? I reside in Virginia.

    PS. The debt collector said they are Lennox legal services. The guy I spoke to said his name is Michael Kolakowski.

    • Robert Weed

      October 13, 2014, pm31 11:09 PM


      Well, you just paid money to an illegal debt collector who is collecting on an illegal debt.

      You have no way to sue Western Sky in the tribal courts and they will ignore you if you sue them in Virginia.

      We could sue these Lennox Legal guys, but as you figured out, they don’t have any address where we can send the sheriff. You could try to get the money back through your bank, but if its been more than a few days that’s hopeless, too.

      The question is NOT should you cancel the future payments–that’s pretty obvious. The question is how do you STOP them from taking more money out of your account. (It would be illegal for them to take more money without your permission, but like I said these are illegal debt collectors collecting on an illegal debt. You can expect them to use illegal ways to collect.) You need to have a serious conversation with your bank. You may end up having to set up a new account with a new account number.

  • Ann

    October 30, 2014, pm31 4:17 PM

    Hello Mr.Weed
    First thank you for the information you have given. You have been most helpful. I do have a question, i was foolish and had taken two loans out online the middle of 2013 one was with vip loan and the other was with mobileloans. Due to a illness in the family we need money , this is no excuse for taking out an online loan I know. Money had been taken out of my account numerous times, large amounts with little going to the initial loan amount. I was drowning in the debt the payments were causing then II read your article and close my bank account. Now I have been getting threatening calls saying I am going to be arrested and my family and friends are being harassed. A debt collector called today sounding legit. Global trust management corp. They said since I did not want to cooperate they were turning my case back to the company to let them know I refused to pay. What concerns me is that the lady with this company said she could see through my social security number and where i am working, i feel even more threaten by this then being told i will be arrested should I be concerned with this or is this just another idle threat. She also informed me that when i took the loan out they were legal in Virginia, I nicely told her she was full of bull. Also is there any way to pay back the initial loan amount that I have taken?

    • Robert Weed

      October 31, 2014, pm31 2:14 PM


      Read my blog again. You are dealing with organized crime. Just like the loans are illegal, the lies they are telling you now are illegal. Once you sort that out, I told you where to report them to law enforcement.

  • chris

    December 20, 2014, am31 4:03 AM

    Mr. Weed

    Thank you for this blog. Comments and replies about Western Sky / Cash Call and or Delbert Services caught my eye. Shortly after my divorce I became a full time single parent with two kids. I was struggling to keep it all together and maintaining a roof over our heads and everything else as well. I was desperate and took out a 3k loan with Western Sky. I paid about 7 months of auto draft payments from my bank account paid to Cash Call at $267.00 barely anything was being applied to the principal and was getting nowhere. Now fighting harder to make payments and maintain bills I am slipping deeper in. My bank account at the time has now been closed due to inactivity and insufficient funds. It was most certainly not my intension for this to happen Now I am getting calls from “random” collectors with pretty harsh threats of court and stuff if I don’t pay them. Also they have called a family member that I believe I put down as a reference looking for me. I lived in Virginia at the time of the loan. What are my options.

    • Robert Weed

      December 20, 2014, pm31 8:26 PM


      Your clear option is to stop paying.

      the debt collectors can be sued for violating the Fair Debt Collection Practices Act–but I don’t know if you can find it worthwhile because these guys are essentially underworld and it would be hard to collect.

      It’s also wire fraud, and extortion, and you can complain to the FBI and also the Consumer Finance Protection Bureau. You should at least do that.

      • chris

        December 22, 2014, am31 1:31 AM

        Mr. Weed

        Thank you for your advise. I will do as you have suggested. Still a bit concerned with the phone calls, I am guessing once I file complaint that will stop over time ? I will go to the links above.

        Thank you

  • Reid

    December 30, 2014, pm31 9:28 PM

    Thanks for this advice. I do live in Virginia and received a Line of Credit from CashNet USA. I paid most of it off until I lost my job. I then discovered that this is illegal (funny, they always took out the money on my payday so it sounds like a PayDay Loan to me anyway and advised them of such and reported the matter with the Attorney General’s office. I received all of the scam phone calls and ignored them, until now. They have now placed the account on my credit report. I have sent off a letter for them to validate in the last day, but I wanted to know if I have any other recourse. Thanks again for the information on this and Happy New Year.

    • Robert Weed

      December 31, 2014, pm31 12:06 PM


      Where in Virginia are you? And WHO put it on what credit report?

      I think one of the Virginia lawyers who does credit report law will want to talk with you.

      • Reid

        January 28, 2015, pm31 7:05 PM

        I am in the Richmond area and Enhance Acquisitions put this on my credit report, indicating that it was for a CashNet Loan.

  • Michelle Stern

    September 16, 2015, pm30 1:39 PM

    I received a loan from Moneykey. I got a line of credit. I was unable to pay the remainder of the loan due to financial difficulties. I received a phone call from a Lisa Daniels from NAM and Associates 302-566-5912 stating that she represented MLA Holdings trying to get me to do a payment arrangement before it gets sent to court and they sue me and garnish my wages. I live in Virginia. When I went on Moneykey’s website they have a Certificate of Authority to do Business in Virginia.
    https://www.moneykey.com/licenses/Virginia-state-license.pdf That is the link to the website that they posted it on. Can they sue me and garnish my wages. I looked on the Virginia website that has a list of companies licensed to do business and they are not on there. I’m confused can you please clarify this me?

    • Robert Weed

      September 16, 2015, pm30 3:46 PM

      Michelle. Internet payday loans are illegal in Virginia. Whether this outfit is registered as a corporation in Virginia does not mean what it is doing in Virginia is legal.

      Have you googled the phone number of the debt collector and see what other people say.

      • Michelle

        September 16, 2015, pm30 6:28 PM

        Yes some of them are saying they are a scam. I don’t see the individuals name that called me. But when I look up their website they are located in New York but yet the phone number is a Georgia number and I can’t find anywhere on the internet for MLA Holdings. So even if they have a certificate of authority to do business its still illegal?

      • Robert Weed

        September 18, 2015, am30 4:02 AM


        How can I be more clear?

  • Judy

    February 5, 2016, pm29 5:53 PM

    Any new information in regards to payday loans from cashnet USA? I have been following your blog and the calls stopped for a while now all of a sudden they have started again threatening to dispatch people to my house. I told them they were a crock of crap and file whatever they needed to file…I’m assuming since this is a payday loan from 2012 my SOL is getting close and they feel they need to harass me again but yet nothing has been reported on my credit report in regards to this…I’m not really worried about it other than they are calling my family in SC and I am in VA…just wondering if there have been any new developments

    • Robert Weed

      February 5, 2016, pm29 6:43 PM


      Just adding what they are doing–calling family and threatening you–is obviously illegal. And you should report them to the CFPB and the FBI. These CashNet loans end up with underground debt collectors–far more often than any other loans that I know of. That would be evidence that CashNet is somehow in on the deal. Unlike these other guys, CashNet is at a place where they could be sued.

  • ee

    May 1, 2016, pm31 2:01 PM

    Hello, I am so happy I found your site and that you are in Nova. I took out a loan with CashNet USA a year ago for $700. Every month they automatically withdraw $200 or more. It has been a year since I did the loan, have consistently paid on it and today when I called them to make arrangements to postpone my next payment because I am currently unemployed, suffering with medical issues, they tell me that my account is delinquent by $950 and they can not make arrangements. I was in shock and asked how could this be, they are withdrawing $200 or more every month for the last 10 months. Her trying to justify delinquency with a balance of a lot more than the original loan upset me. I called my bank to stop payments, regardless tried to make arrangements with Cashnet USA. It makes me feel a little better to know I am not the only one who has been scammed.
    Thank you

    • Robert Weed

      May 2, 2016, pm31 1:18 PM


      Glad I could help.

  • ONeika

    June 16, 2016, pm30 5:28 PM

    I read by other Virginia lawyers that netcredit and places like them are still loans that should not be charging more than 12% @at the max 36% because they are not licenced in Virginia to do so. Today I stopped paying on my netcredit account because I have paid them back the principal and 500 dollars extra. So I did not stiff them. When they put bad marks on my credit report I will dispute it.

    • Robert Weed

      June 21, 2016, am30 6:08 AM


      Good luck! People need to fight these sharks.

  • John

    September 9, 2016, am30 3:48 AM

    Cashnetusa in house collections now calls with the legal jargon that It’s an attempt to collect a debt and the call is being recorded. I made them an offer to pay the principle only with no more interest, 299% in VA, which I explained was illegal. They told me because they were an online lender that the state laws didn’t apply. I disagreed and stated the statute to them. They still seem to think it’s all legal. They told me that my account wasn’t authorized for a settlement. When I replied that I acknowledged that there they wouldn’t settle, they said they didn’t say that, but it wasn’t at this time. I have recorded every call with them, I have sent them a Revocation of debit 3 times, 1 via certified mail with receipt of delivery and 2 via email and have had my bank stop the ACHs. 6 days after they received those letters, they still debited my account, but after filing a claim with my bank’s fraud dept, the money was returned. So, now the loan is in default, but I’m okay with that because I want them to take me to court in VA. They keep refusing my offer. Should I let it go to civil court? If they would even try it. They claim they have no idea about the law in VA and also I have it recorded , that they state they do NOT have a office in VA. I also contacted VA’s business bureau and they told me they do not regulate Cashnetusa. Am I right to only owe the principle? I’ve already paid thrice the total amounts borrowed, before learning of their illegality. Thanks you, John Dean

    • Robert Weed

      September 9, 2016, pm30 12:54 PM


      I checked a couple months ago and CashNet had NEVER sued anybody in the three largest counties in Virginia. They do however, put stuff on your credit report, which you will need to dispute.

      • John

        September 10, 2016, pm30 1:27 PM

        Here’s their email after I’ve informed them of the law. It may help others see how they’re operating now and what they’re saying.

        [email protected]
        9:58 AM (3 hours ago)

        to me
        Customer # xxxxxxxx

        We received your email regarding your outstanding balance and are aware of your current situation. I do apologize for the error,
        in the state of Virginia we do not offer pay day loans. At this time you have a Line of Credit with us. A Line of Credit is not a loan; this is a credit line in which you can use at any time. A Line of Credit is legal in the state of Virginia and you can view the information under the rates and terms by logging into your account
        at http://www.cashnetusa.com. You can also view a copy of your contract on the website.

        While we have noted your account, please keep in mind that collection procedures will continue until an acceptable payment arrangement has been made.

        At CashNetUSA, we strive to provide our customers with reasonable and realistic payment terms. Please contact our Collections Team at(888)801-9078 if and when your situation changes so we can continue to work together to resolve this matter.

        If you have any questions or concerns, our collections team is available seven days a week to help answer all of your questions via phone, email or online chat.

        CashNetUSA Collections Department
        Email: [email protected]

        *** Terms and Conditions Apply ***
        Rosalva V

  • John

    September 9, 2016, pm30 4:42 PM

    Thank you Mr. Weed.

  • Courtney

    September 23, 2016, pm30 1:02 PM

    I’m a little confused about one thing. If a lender has a licensed office in Virginia but does payday loans online are you saying that the online lending is a separate office? Does a customer have to get the payday loan in person, at an approved Virginia office then?

    • Robert Weed

      September 24, 2016, am30 11:22 AM

      Don’t have enough info for me to be sure what you are talking about here. In order to be a license payday loan in virignia, you have to have an office in Virginia.

  • Courtney

    September 23, 2016, pm30 1:11 PM

    Sorry I should add that I know someone in Va who is being garnished for their online payday loan – to my knowledge the lender is a company in Va though so I was just curious if this was permissible since they have a physical location (but I guess the company could be a collector, I don’t have all the facts as of yet)

    • Robert Weed

      September 24, 2016, am30 11:23 AM

      Email me a copy of the court papers so we can see what happened. [email protected]

  • Elaine

    October 13, 2016, am31 8:27 AM

    Good morning Mr. Weed,

    Thank you for continuing to respond to your blog post since your initial entry since 2012; I am finding the information useful. I am writing to ask you a few questions about CashCall and the recent decision from the California court backing the Consumer Financial Protection Bureau. I took out a $5,00 loan in 2013 with CashCall to cover medical expenses, and since that time I have paid $18,169 to the company. Since 2013, approximately $60 has been applied to the principal and $18,108 has gone to interest (the interest is 115%). My monthly payment is $486. If I complete all 84 payments, I will end up paying $41,000.

    My questions are the following: 1) Is the CashCall loan considered a payday loan or some other type of internet loan and is it legal in Virginia? (Your responses on the blog indicate that it is not) 2) What is the impact of the California decision on consumers like myself who have received a loan from CashCall (http://www.lexology.com/library/detail.aspx?g=645f4c9b-aeaa-49fd-95cc-6c42bdfba464, http://www.latimes.com/business/la-fi-cfpb-cashcall-20160906-snap-story.html) Virginia is not listed as one of the sixteen states in the suit.

    I have set up my payments so that CashCall collects ACH payments, however I noticed this month the payment was not automatically withdrawn and my loan status page indicates that CashCall is updating its files and is requesting me to confirm/update my banking information. At this point, I feel that I have paid my debt to the organization and then some, and would like to stop my ACH payments. Does the recent ruling in California give others and myself additional legal leverage to negotiate lower payments or stop payments altogether?

    Thank you for your time.

    • Robert Weed

      October 14, 2016, pm31 12:53 PM


      I have not seen the paperwork you signed with CashCall. But I just checked in the two biggest courts in Virginia: Fairfax and VA Beach GDC. Cashcall has never sued anyone in Fairfax or Virginia Beach. That tells me they are not eager to step into a courthouse in Virginia.

      If a lender is trying to collect an illegal interest rate in Virginia, then all you have to pay is the original debt. I do not see any way the interest they are charging you is legal under Virginia law. But I have NOT seen your paperwork.

  • Norrell W Jones Jr

    March 22, 2017, pm31 4:30 PM

    Hello. Does anyone know what can I do to get Netcredit removed from my credit report. They have put something negative on it and every time I dispute it, it never gets removed. I have paid more than the principal back and stopped paying a couple years ago. I just found out that they aren’t licensed in Va so their interest rate is illegal. Am I saying the wrong thing when I dispute it or do I need to talk to a professional? It’s really hurting my credit and I just want it off.

    • Robert Weed

      March 22, 2017, pm31 4:41 PM


      You need to work with a credit report lawyer. One good place to look is here. http://www.consumeradvocates.org/for-consumers. Good luck; keep me posted.

    • Joe Plumber

      December 15, 2017, pm31 7:10 PM

      Contact the Virginia poverty law Center and Kelly & Crandall Law firm…I successfully got these sharks to go away with their help. Now I’m taking the CRA’s to court for not removing the credit hits. Good luck and be patient but persistant!

      • Robert Weed

        December 17, 2017, am31 10:59 AM

        Thanks for that suggestion.

  • Ewing Crowder

    August 24, 2017, pm31 5:08 PM

    When did Virginia make these loans illegal? I received one from Pepper Cash in late 2011/early 2012 (not quire sure of the date). I recently received a collection on it, and that collection is on my credit report.

    The collection company is claiming the collection is legitimate.


    • Robert Weed

      August 26, 2017, am31 9:56 AM


      Of course they are. Where in Virginia are you?

      Besides internet payday loans being illegal, this one is probably barred by the Statute of Limitations, the SOL. (If they leave you alone for five years, they are too late.)

      You may want to set this up as a Fair Credit Reporting violation. If you are in the Richmond area, contact Jason Krumbein. In Tidewater, Len Bennett. If you are in Northern Virginia, email details to me at [email protected]

  • Ron White

    October 9, 2017, pm31 1:11 PM

    Glad to read this article. I had a loan with Plain Green and have paid well in excess of my principle and was continuing to pay but missed a payment. I tried to negotiate a later pay date and they would not work with me. Several months later I began receiving calls threatening legal action from what seems to be a third party debt collector “representing” Plain Green. Most calls are coming from what seems to be local numbers but are masked to give the appearance of being local. I reside in Virginia. What are my rights? What are my options? Thanks!

    • Robert Weed

      October 9, 2017, pm31 1:37 PM

      I have never seen them actually sue somebody in Virginia. So doing nothing may work fine. As I read the law, if they do try to sue you, you only need to prove you paid back more than the principal.

      They people who call and threaten to sue, but don’t, probably violate the Fair Debt Collection Practices Act. Like you I suspect they are not local and may be hard to find. A local lawyer who tried to sue for more than you owe (and I think you ow nothing once you paid back the principal) would be open to being sued under the FDCPA. That’s one reason I think they don’t do it.

  • J.R.Dove

    January 24, 2018, pm31 12:45 PM

    Is cashnet usa legal in va I sent them a email asking where there office was in va and they answered back saying they didn’t have one, I’m think about having my payments stopped but would really like to bring suit to get some of my intrest back

    • Robert Weed

      January 25, 2018, am31 8:30 AM

      JR I can tell you they have never sued anybody in any of the Northern Virginia counties. Whether you can successfully sue them, I don’t know.

  • Cyndi

    February 9, 2018, am28 8:07 AM

    Is Radiant Cash illegal in Virginia? They are a tribal loan company that charged me well over 299% annual interest on an installment loan I took out three years ago. Now, there is a collector by the name of Parker, Fellows, and Smith calling me to collect on it. I can’t find a website or any information listed about the debt collector.

    • Robert Weed

      February 9, 2018, am28 9:10 AM


      Report those underground collectors to Federal law enforcement. https://www.consumerfinance.gov/complaint/.

      • Cyndi

        February 9, 2018, am28 10:31 AM

        Thank you. So, Radiant Cash is illegal in Virginia?

        • Robert Weed

          February 9, 2018, am28 10:47 AM

          I’m NOT your lawyer, so I can’t say more than I’ve told you. You can go to https://eapps.courts.state.va.us/gdcourts/captchaVerification.do?landing=landing the Virignia court system link. Put in your county, and see if they have EVER sued anybody in your county. You can try the nearby counties, too. That will tell you if they think their claim could stand up in court.


    August 25, 2018, pm31 12:43 PM


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