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Posted: Thu Oct 19, 2006 8:19 pm Subject: Payday loans illegal in PA?

are payday loans illegal in pa??? ihave a loan out with cashnetusa.com and i know i've paid close to what i borrowed but they are insisting i owe them 1300 dollars. what can i do??

Posted: Thu Oct 19, 2006 8:32 pm Subject: payday loan

kimbum06, Payday loans in PA are prohibted from charging triple interest. The cap is 24 percent per year. Figure out if you have paid more than that. Also file a complaint with your state Attorney General. Hope this helps. KYSIDE38

Posted: Fri Oct 20, 2006 6:52 pm Subject:

i got the loan in june and i've paid 650.00 dollars so far. i borrowed 750.00 but not they are saying my balance is 1300. do i have a leg to stand on?? i've offered more than once to set up payment arrangements but they are insisting i pay in full. i know they can send me to collection agency, but they are also saying they can take me to court can they?? and if so what will happen??? thanks

Posted: Fri Oct 20, 2006 6:54 pm Subject:

what state are you in?

Posted: Fri Oct 20, 2006 6:59 pm Subject:

i'm in pa go steelers!!!!!!

Posted: Fri Oct 20, 2006 7:25 pm Subject:

Pdls are illegal in PA, so if this is a storefront it is illegal. But I have learned that in PA if you have taken out an internet pdl and they are licensed in their state then they can lend to you. You might want to get clarification on the law by contacting your AGs office. How much have you paid on this loan? They still have to follow legal interest rate charges.

Posted: Fri Oct 20, 2006 7:25 pm Subject:

You should also file a complaint with your AG's office.

Posted: Fri Oct 20, 2006 7:26 pm Subject:

You guys may want to check out PA laws a little more closely. The state of PA does not allow lenders to be licensed in the state, however, if a PA resident takes a loan over the internet, as long as the lender is licensed in their home state, their states lending laws must be followed. Same goes for storefront. If a PA resident goes to Ohio and takes a loan from a storefront there, then they are bound by the lending laws of the state of Ohio.

Posted: Fri Oct 20, 2006 8:08 pm Subject: payday laws

Rach I sure understand what you are saying. Thats been the big fight here. Internet lenders say you fall under their jurusidiction. In WV the loan originates here. That is state law. Also I am being told that is federal law also. -These people are so crazy they will tell you anything. KYSIDE38

Posted: Fri Oct 20, 2006 8:17 pm Subject:

kyside

I am very familiar with payday lending laws so I am aware that is the case in WV. However, in PA that is not the case since no loans can legally originate within that state. I would hate to see someone follow general advice and end up in trouble with a licensed PDA (credit trouble, not legal trouble...) I agree with your point that a lot of internet lenders are not licensed (even in their home state), but I would hate to see someone take slightly incorrect advice and end up in a jam because they did it with one of the few licensed lenders out there (that is an exaggeration, there are more than just a few)

Posted: Fri Oct 20, 2006 8:20 pm Subject: payday laws

Rach Thanks and now I understand. My case is so different. In my state it is prohibited. I did not mean to give bad advice. Thanks KYSIDE38

Posted: Fri Oct 20, 2006 8:23 pm Subject:

kyside

not bad advice at all, in most cases very true. PDA laws are tricky and vary so much state to state that unless you deal with them all the time, they can be overwhelming.

Posted: Fri Oct 20, 2006 8:29 pm Subject: payday loans

Rach, The only thing I dont get on the Penn. site it says that payday loans are prohibited in PA. The interest cap can not be over 24 percent per year. How can the internet companies get away with this there? It seems like its just like my state? KYSIDE38

Posted: Fri Oct 20, 2006 8:34 pm Subject:

SO 24 PERCENT GAP?? i don't really understand, sorry. i borrowed 750 they are saying i owe almost 1400 isn't that over 24 percent and it's only been since june??? sorry i'm not very up to date on these things.

Posted: Fri Oct 20, 2006 8:36 pm Subject:

I have spoken personally with the PA AG's office regarding this so I am confident that this is correct info. PDA's are prohibited from originating in the state of PA, but the consumer can leave the state to obtain a PDA legally. The PA resident can go to a neighboring state, take out a loan at a storefront and be bound by that states laws/usury limits. Same thing goes for the internet (I am referring to licensed lenders; not PD6/XpressCash/WEstbury/whatever the heck else they go by). Companies like CashnetUSA and Dollar Financial (I think they do web loans now but am not 100% sure of that).

Posted: Fri Oct 20, 2006 8:37 pm Subject:

kimbum

Are you sure your loan is with Cashnet USA or is it with Cashnet500? The 2 companies are very, very different...

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