Loan Terms:
Maximum Loan Amount: $500 (not to exceed 15% of borrower's monthly gross income)
Loan Term: Min: 14 days
Maximum Finance Rate and Fees: 15%: $0-$250; 13%: $251-$400; 10%: $401-$500
Finance Charge for 14-day $100 loan: $15
APR for 14-day $100 loan: 390%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: One per lender; Two total
Rollovers Permitted: None (cannot renew, repay, refinance or consolidate)
Cooling-off Period: 7 days after 6 consecutive loans
Repayment Plan: After 6 consecutive loans, lender must impose a 7 day cooling off period or convert to an installment loan payable in more than 4 installments at a rate no greater than 36% APR
Collection Limits:
Collection Fees: One $20 NSF fee; additional charges may apply when check or authorization to debit was used to defraud another
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Indiana Department of Financial Institutions
Address: 30 South Merid ian Street, Suite 300 Indianapolis IN 46204
Phone: (800) 382-4880
Fax:
Regulatory Contact: Mark Tarpey,, Supervisor, Consumer Credit
http://www.in.gov/dfi/
joshua, I should have known I could count on you! You're awesome! Now, can you help with deciphering it for me? Does this mean that internet pdl's are legal? Or just store front in Indiana? And when it says maximum amount is two loans, doesn't that mean store front? Also, (please excuse me for asking so many questions!) it states no rollover/extensions. Which means all these internet pdl's that charge their rollovers/extensions are illegal charges? I'm trying to figure out if an internet pdl can take you to court to get their "fees". If, in fact, internet pdl's are even legal in Indiana. ANY help is so greatly appreciated!
I remember reading on the forums that as of July 1, even the internet ones have to licensed in IN, or they are considered null and void. So if they are unlicensed, they cannot take someone to court because techincally and legally there is nothing for them to collect.
Quote:
NOTICE TO UNLICENSED INDIANA LENDERS WHO ARE SOLICITING
BUSINESS IN INDIANA
Investigation by the Indiana Department of Financial Institutions (“Department”) has
determined that your company is among several unlicensed entities making or offering
consumer loans to residents of Indiana via the internet.
Depending on the type of loan being offered, your company is in violation of IC 24-4.5-
3-502 and/or IC 24-4.5-7-102. These statutes reference consumer loans, and/or Small
Loans (commonly referred to as “Payday Loans”) and require a license issued by this
office in order to make these consumer loans.
During the recently concluded session of the Indiana General Assembly, there was a
change to the statute governing the territorial application of the Indiana Uniform
Consumer Credit Code, including the Indiana Small Loan Act. Effective July 1, 2007, IC
24-4.5-1-201 requires internet lenders to be licensed, and to comply with Indiana law,
when making loans to Indiana residents. Additionally, IC 24-4.5-1-201( reads “If a
creditor has violated the provisions of this article that apply to the authority to make
consumer loans (IC 24-4.5-3-502), the loan is void and the debtor is not obligated to pay
either the principal or loan finance charge, as set forth in IC 24-4.5-5-202.”
You are advised to Cease and Desist the offering of these types of loans to Indiana
residents unless/until you have obtained the proper Indiana loan license. Consumers will
be advised that these loans are not in compliance with Indiana Statutes and that these
loans are considered null and void, and as a result, uncollectible.
joshua, you know I'm beginning to love you! LOL! But what about internet pdl's you have BEFORE July 1? If they are not licensed in the state of Indiana - which they are not - are the contracts enforceable? Of course they're not complying with Indiana law regarding rollovers, etc.... You know the game. However, is it the same, like you only owe what your state law permits? Like a store front pdl? These internet pdl's are claiming outrageous fees and talking about arbitration and court. Now, from what I understand, they can't do that if they're not licensed to conduct business in Indiana??? Because technically the contract was made in THEIR state and of course they go on and on about their state laws. What if they're not licensed in Indiana at all?
Well, I wish the love would continue, but I don't have all the answers! I would think that if they're not licensed in Indiana and the internet pdls were made before July 1, the honorable thing would be pay the principal and let them suck up the rest. They would have to abide by IN rules if their customer is in IN. Someone please correct me if I am wrong though.
joshua, the loves continues! Thank you for posting that, which clarified quite a bit. And, also, I do agree with you regarding internet payday lending. From what I understand, principle amount only should be paid. morningstarr, can you see past the ugly black clouds of threats and lies now??? Love you!
morningstarr - it's getting clearer. You're not as bad off as you thought. Just keep doing what you're doing. You're going in the right direction. And, joshua, you don't need smiley's on your replies, honey! You need BIG HEARTS!!!!!
Posted: Tue Jul 10, 2007 9:11 pm Latest Blog Post : Decision
I guess I just wanted someone to tell me yes...acording to the law they are illegal and you don't have to pay $00000. over the principle to be free of them. Sometimes I feel like this will go on forever if I don't just make arrangements to pay them off...
I would guess that before July 1, 2007, the law was unclear as to whether internet pdl's had to be licensed, although the intent of the previous law was clearly to include them. IN probably did like OR and found that internet pdl's were dificult to prosecute because the laws were unclear regarding them. So they beefed up the laws to specifically include them.
I would say that the intent of the previous law was to cover all payday loans made to IN residents. The fact that IN invesigated several companies proves that they intended the old laws to apply, but found that prosecution would be difficult. They wouldn't have bothered investigating if they didn't think there was a law being broken.
Morningstar - I agree with everyone above. This new law just tightens things up.
OK- Tweety71 here is from Indiana and I would like to know because I have not be in the "known" for a long time here now.......about the loans in IN....I know all of mine are not licensed for our state....My question is I know morally you should pay them back but I dont understand the part in the above post about if they are not licensed then they should be voided? _________________ ~ Tweety~
When I'm good, I'm very good, but when I'm bad, I'm better.
I would think that if they're not licensed in Indiana and the internet pdls were made before July 1, the honorable thing would be pay the principal and let them suck up the rest. They would have to abide by IN rules if their customer is in IN. Someone please correct me if I am wrong though.
