If I have a payday loan but just found out that they are illegal in my state, am I still responsible for all the interest or just the principle?
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If I have a payday loan but just found out that they are illegal in my state, am I still responsible for all the interest or just the principle?
Asked on August 16, 2014 under Business Law, Arizona
Answers:
Anne Brady / Law Office of Anne Brady
Answered 10 years ago | Contributor
Currently, you are a party in a contract who is responsible to adhere to the terms of the contract. If you do not pay and you are sued for that, which would be a breach of contract claim, you would have the defense that it was an illegal contract and should be void.
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