I have the following question: does a lender have to be registered in a certain state in order to lend money? How is this entire thing regulated? How can I see if there’s a licence, and most important, how can I check that it’s not fake? You know, I guess simply inspecting a website is not enough for me.
Checking to see whether a payday lender is legit to provide loans to customers in your state is an essential part of the background check that you should conduct before you accept a loan contract.
It is not enough to take the lender’s word for it. Scammers in the payday loan arena may sometimes claim to possess licensing they do not have.
There are two government authorities you can contact to verify whether a payday lender has a license or not.
- The first option is to contact the office of the attorney general for your state.
- The second option is to check with your state’s bank regulator. The Consumer Financial Protection Bureau provides full contact information for all state bank regulators at this page.
Reviewed by: Casey Bond
Date Reviewed: Apr 22, 2019
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