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Posted: Mon Nov 05, 2007 8:26 am

So, I've been emailing all the state's DFI's about payday loan laws. I just got this response from Illinois.

When people say you don't have to pay back an illegal loan, I've said that they should check their state laws first.

I thought this was interesting . . . . It's hard to see what this guy is really saying . . .

Posted: Mon Nov 05, 2007 8:36 am

Looks like a typical government response. It certainly does not clarify anything. Did he answer your question Goudah?

Posted: Mon Nov 05, 2007 8:37 am

It sounds to me like he is saying they have to be licensed in the state-but aren't. But then it sounds like he is saying, even though they aren't licensed, you have to pay them back -dos that mean pay them back whatever they ask for- or what you owe??!!

Too confusing for me..karen

Posted: Mon Nov 05, 2007 8:39 am

Yeah, he answered my question, but raised a bunch more!

Posted: Mon Nov 05, 2007 8:40 am

I noticed that too Bossy...That partcular statement could without intrepretation or clarification open a nasty can of worms for the people in IL fighting the pdl's.

Posted: Mon Nov 05, 2007 2:38 pm

Reply:

Barton,

Would that mean you would need to pay them what the contract says? Even if it's at 999% apr? Or would you need to pay them back per the max of IL laws? I'm confused, if they need to be licensed but aren't, and are still charging outrageous amounts, the consumer would still have to pay them what they want?

Thanks!

---------------------------------------------------------------------- ----------

Response:

Basically you would have to pay them what they charged. If you received funds from them. Also, there are no usery laws in the State of Illinois. We have licensed lenders who charge that rate. Yes they need to be paid. My advice to anyone who is involved with internet lenders is to close their account, advise the lender that they are being reported to the Division. In most cases this does little, but closing your account stops the over collection. But it does have an impact on any banking relationship.

Barton Aplebaum
Assistant Supervisor-Consumer Credit
Division of Financial & Professional Regulation
(O)312-814-3350, (F)312-814-5168
Barton.Aplebaum (@) illinois.gov

Posted: Mon Nov 05, 2007 2:40 pm

Frankly, isn't he contradicting himself? Saying you need to pay, but close your account? Then using the term over collection, after saying that there is no such thing as over collection? WTF!!!

I just had to post these emails . . . .

Posted: Mon Nov 05, 2007 3:18 pm

i more confused now than ever. so he is saying that we have to pay back whatever they charge us even though they are not licensed? all because there are no usury laws?

Posted: Mon Nov 05, 2007 3:20 pm

Sounds to me like over collection on the part of the lender would be over payment on the part of the consumer. So is it possible he is saying that it is really unchartered territory and if you can persue the issue as many of us have and win it's ok but if you can't then you have to pay what they ask??

Posted: Mon Nov 05, 2007 3:30 pm

Im surprised. I encountered an entirely different response on the tele when I called for their assistance. Wow!

Posted: Mon Nov 05, 2007 4:11 pm

I know - I've had the same experience as Hvn. I've called them several times and got completely different answers! I'm trying to get things in writing from each state, which is why I'd sent the email. I was just shocked at the response!

My advice to any IL people out there would be to just ignore this thread - Look at it as an interesting read. I think I just got someone on a bad day or something.

Posted: Mon Nov 05, 2007 4:16 pm

Goudah that's possible...I don't know if you remeber when I first started but I could not get a direct answer from anyone here in Indiana...and then you called and got a flat out response that made sense for the first time...so this maybe the same kind of thing.

Posted: Mon Nov 05, 2007 4:22 pm

That's what I'm sure it is . . . . I just posted it because I was so shocked to see this in writing!

Posted: Tue Nov 06, 2007 6:39 am

Thank Goodness for this forum - what is a person to do when their state agencies can't seem to make a commitment to an answer !

Posted: Tue Nov 06, 2007 7:06 am

It sounds to me like a tpyical govenment response. He doesn't want to commit to anything in writing. Maybe he isn't all that sure of what he is saying...like a politition.