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Posted: Fri Jun 15, 2007 6:58 am Subject: NJ PDL help

i have 6 pdl out from the internet and i live in nj can you help with this
ameriloan 250 (225 pd with one due out 6/22 for 75)
tendollar 300 (735 pd with one due out 6/22 for 95)
xpresscash 300 (360.00 with ond due out 6/22 for 90)
loanshop 300 (135 with one due out 6/22 for 45)
loanshop 300 (135 with one due out 6/22 for 45)
cashdirect 300 (198.00 with one due out 6/22 for 66)

Posted: Fri Jun 15, 2007 7:22 am Subject:

I can tell you that payday loans whether storefront or internet are prohibited and illegal in New Jersey. You need to file complaints with your Attorney General's office. In order to take back control you will need to close that account and open a new account (preferrably at a new bank if possible.) Definately get your complaints in to the AG's office.

Posted: Fri Jun 15, 2007 7:39 am Subject:

When you close your bank account, be sure to ask your bank what their policy on ach transaction going through closed account is. Some banks will force open the closed account and allow the transactions to go through. Then instead of owing an illegally operating company money, you owe the legal bank $1000's . . . If your bank does do this, tell them your situation and tell them to put your account on deposit only, and ach block, or a hard hold before they close it. This will stop any pdl's from reopening the account.

Posted: Fri Jun 15, 2007 8:11 am Subject:

This is what i just got back from someone i email about the payday laws in nj.

I researched and found different information and not sure which one's are correct

Thank you for your message. New Jersey does not have a specific law that regulates payday lending like many other states. Instead the state has a criminal usury law that sets the maximum rate of interest that can be charged on loans.

Since NCSL provides assistance to state legislators and their staff in comparing and developing policy options, we are not permitted to offer an interpretation of state or federal laws regarding legal matters of individual citizens. Please consult with a qualified attorney or contact the office of the Attorney General in your state for assistance in applying state and federal laws to your situation.

Sincerely,
Heather Morton
Program Principal
Legislative Information Services
National Conference of State Legislatures
7700 East First Place
Denver, CO 80230

Posted: Fri Jun 15, 2007 8:20 am Subject:

Let me look into this and see what sort of info I can come up with . . . .

Posted: Fri Jun 15, 2007 8:20 am Subject:

thank you

Posted: Fri Jun 15, 2007 8:34 am Subject:

Yes, what is said above is correct. NJ doesn't have laws specifically addressing payday loans, but the law setting the ursury cap is very strong. The cap is at 30%, so any interest charged above that is illegal.

I would say you need to file complaints asap. File them with the NJ dept of Banking, and your AG's office.

Posted: Fri Jun 15, 2007 8:42 am Subject:

how do i figure out the 30% interest

Posted: Fri Jun 15, 2007 8:55 am Subject:

That would be for the year . . .

Lets say the loan is for $200.

You would:

200 x .30 = 60.00

$60 would be the amount of interest they could charge you for the year. But payday loans usually have a length of about 2 weeks.

(200 x .30) x (14/365) = $2.30

You would owe $2.30 for a loan covering a 14 day period.

The formula is as follows:

(loan amount x interest rate) x (loan period/days in year) = amount of interest due

Posted: Fri Jun 15, 2007 10:53 am Subject:

so the one for 250.00 would be 2.87 every 14 day period and the 300.00 would be 3.45 every 14 day period.

so the tendolloarpayday and xpresscash would be done.
ameriloan 250 pd 225 plus 75 out on 6/22 (300 pd on 6/22)
loanshop 300 pd 135 plus 45 out on 6/22 180.00 would be paid leaving about 140.00

cashdirect 300 pd 198 plus 66 out on 6/22 264.00 would be paid leaving about 50.00

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i have 6 pdl out from the internet and i live in nj can you help with this
ameriloan 250 (225 pd with one due out 6/22 for 75)
tendollar 300 (735 pd with one due out 6/22 for 95)
xpresscash 300 (360.00 with ond due out 6/22 for 90)
loanshop 300 (135 with one due out 6/22 for 45)
loanshop 300 (135 with one due out 6/22 for 45)
cashdirect 300 (198.00 with one due out 6/22 for 66)

Posted: Fri Jun 15, 2007 11:09 am Subject:

Yep, that sounds right to me . . . .

Posted: Fri Jun 15, 2007 1:03 pm Subject:

just got off the phone with consumer of banking and they said that the payday loans are illegal in the state of nj

Posted: Fri Jun 15, 2007 1:06 pm Subject:

Yes, for pdl's located in the state of NJ.

Posted: Fri Jun 15, 2007 1:09 pm Subject:

If you call them back and ask them about internet based pdl's that don't have a physical location in NJ, you will get a different answer. Or at least I did when I called them this morning.

Posted: Fri Jun 15, 2007 1:57 pm Subject:

she did seem a little off

just got a call from langhorne debt solution have you heard anything on them

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