DiscountAdvances, MyCashNow, and PaydayMax have stopped accepting new applications. We called the number on their site and were told that they have stopped accepting new applicants because of legal reasons and are working to remedy the situation. They could not give us a date for when they would begin accepting new loans.
We are guessing this decision to stop funding loans is related to the NY Attorney General’s decision to sue another payday lender for offering loans in the State of New York. Here is the NY Attorney General’s press realease.
Many payday lenders operate under tribal law and the belief that they are able to export their tribal laws into other states. DiscountAdvances, MyCashNow, and PaydayMax took it a step further and operated as offshore entities operating under the belief they could export their offshore laws into the US. Many of these tribal lenders and offshore lenders have either stopped accepting new loans or have scaled back on marketing to see the outcome of this lawsuit.
The Payday Hound believes that although this lawsuit is disruptive in the short term it will benefit the industry in the long term as the outcome will help to clarify the laws around payday lending. The Payday Hound believes clear, consistent, and enforceable regulations in the short-term, lending space will help protect you and provide you more choice. See Are Payday Loan Users Stupid for more information regarding our position on regulations in the payday lending space.
In the mean time, the best way to protect yourself is to educate yourself. The Payday Hounds believe the best choice for payday loans are state-licensed lenders. You can review this list of payday lenders to find a state licensed lender.