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What is a legit payday loan company?  

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What is a legitimate payday loan company? I live in Texas and one of the places that loaned me money doesn't really operate as a payday loan company per se. They lend money like any other payday loan company, but they tell you up front that they are not a payday loan company. What they do is the offer you land or tracts of land. When they "loan" you the money, you are expected to pay it back like any other loan company, but you are supposedly an investor in a tract of worthless land that you'll never own. Now based on what I read last night, this is illegal in Texas. Does anyone have anymore information about this? From what I've read, Texas is one of the more liberal states when it comes to payday loan companies, but there are still guidelines to be followed, but offering bogus land and knowing that the borrower will never have a chance to own it is illegal, right? Is this true? How about the other states? Somebody let me know. Thank you.
 

asked Feb 1, 2006 12:40 AM

Anonymous
Best Answer
7
best answer

Every Payday loan company must register their name with the Secretary of State before conducting their business. Based on the nature of business, they get the permission to operate under


  • Sole proprietorship
  • Partnership - general and limited
  • Corporation - C-Corp; S-Corp; Professional,
  • Not-for-Profit; Foreign Corporation
  • Limited Liability Company - LLC


Legal structures, license and taxes are applicable on the business entity before executing business. It is the state bar council that will decide the norms of the business in a particular state.

If the business done by the payday loan company you mentioned is not allowed in your state, you must get more information about the applicable rules from the Secretary of State. You can research for the company that has a legitimate business in your state and make a deal with them.

answered Feb 1, 2006 11:25 AM

8 Answers

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Guest

Based on the information you've prodided I'll dig and see what I can come up with for you. However, do you have the name of the company that is operating under those procedures?

Regards-
Mike

answered Feb 1, 2006 05:26 AM

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Thanks for that info, John. That is good to know and I'm sure it will help so many.

answered Feb 1, 2006 01:43 PM

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Nothing like owning some worthless land...lol

answered Feb 1, 2006 01:54 PM

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it sounds like this is a dodge around payday loan regulations.. you could start by asking the company for their business license, then following up with state licensing agencies

answered Feb 1, 2006 04:28 PM

jj
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As if the payday loan companies weren't shady enough, now there are companies PRETENDING not to be payday loan people when they really are??? Sheesh.....

answered Feb 1, 2006 04:55 PM

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Scary stuff. Those animals will stop at nothing.

answered Feb 1, 2006 08:03 PM

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Wow! They certainly sound dirty!

answered Feb 1, 2006 08:49 PM

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Yes, that's my goal because they supposedly don't accept payment plans. All I'm looking for is a barginning chip. I owe them and intend to pay, but if they're not on the "up & up," I plan to use it to my advantage.

answered Feb 2, 2006 12:58 AM

Anonymous
1 

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