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My payday lender claims to be located in another country and therefore does not have to comply with U.S. federal laws that protect consumers. Is that true?

Generally, if you take out a payday loan online as a resident of the United States, the lender with whom you’re doing business must follow U.S. federal laws.

Use caution when doing business with lenders who claim not to have to comply with U.S. laws. If you send your personal information to someone located outside the United States, they might not follow U.S. law with regards to proper storage and protection of your personal information.

Some state laws may also offer protections for state residents. Those protections may include licensing, requiring any lender to follow state law, and other rights.

You can report a lender who claims they do not have to follow the law to your state attorney general and to your state banking regulator. You can also submit a complaint with the CFPB online or by calling (855) 411-CFPB (2372).