Washington State Department of Financial Institutions

Consumer Alert:
Magnum Cash Advance

Not Licensed To Do Business In Washington

January 13, 2011

The Washington State Department of Financial Institutions is warning consumers to verify the license of any lending professional they are considering doing business with.

Magnum Cash Advance provides payday loans to consumers.

The company is not licensed by the Washington State of Department of Financial Institutions. The company is not registered to do business in Washington by either the Department of Revenue or the Washington Secretary of State.

If You Feel You're A Victim Of A Loan Scam

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

Because the scammers have access to bank account information and social security numbers, victims should consider themselves victims of identity theft and take appropriate precautions. The Federal Trade Commission has information for victims of identity theft available online at www.ftc.gov.

Payday Loan Debt Collection Laws

Consumers should know that Washington state law prohibits threatening or harassing behavior by individuals attempting to collect a payday loan. Only licensed companies are permitted to make payday loans in Washington.

The federal Fair Debt Collection Practices Act says debt collectors must send consumers a written notice within five days of their first phone call, showing how much the consumer owes and where the debt is from. The law says collectors can not say or even imply that nonpayment is a crime.

They can't call before 8 a.m. or after 9 p.m. Collectors are not allowed to speak to a consumer’s employer about their debt. They are prohibited from harassing or abusing consumers and they must stop calling if the consumer asks them to.

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