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Posted: Thu Jul 26, 2007 1:11 pm Subject: The PA Attorney General

Just wanted anyone from PA to know...I spoke to the Attorney General's office today, and they informed me that any internet lender is required to adhere to PA lending laws and rate caps (someone can quote the law I'm sure). I have sent out letters to the PDL's stating this law, the amount I legally owe, and the balance that I would owe them according to PA law. I offered to pay up to that amount and no more.

So far, CashNetUSA has agreed to my statement and offered a PIF for the $59 I still owe them. YESSSSSSS!!!! Their response was very quick. B.I.G. Int just responded with some garbage about how I agreed to something by stating my name and date on the phone, so that fight is going to ensue. They are offshore and completely illegal apparently, so I'm not that worried about them.

So anyway, I just wanted to pass along the feedback I received from the AG's office, and that it is the opinion of the AG's office in Pennsylvania that unlicensed iPDL's must adhere to PA's lending laws.

Keep in mind, though, that the PA Department of Banking interprets the law differently - that iPDL lenders are governed by the state in which they are lending from. Goudah thankfully pointed this out to me, at which time I reached out to the AG and received a favorable response.

Take it for what it's worth, and use the information to your advantage. Call your AG's office!

Posted: Thu Jul 26, 2007 1:17 pm Subject:

Question - Unlicensed lenders or licensed lenders? Or both? If they said unlicensed lenders must follow PA laws, then that would follow with what the banking dept says. They are saying that only lenders licensed in another state can legally lend. I hate it when one "branch" of government is saying one thing and another "branch" says another . . . . It would be interesting to see what would happen if there was a lawsuit - Since the banking dept tells any business that they can follow their own laws???

Good job! You arae doing great! I'm glad you are getting the muscle of your AG's office involved!

Posted: Thu Jul 26, 2007 1:21 pm Subject:

And hell, whatever works, use to your advantage!

It's funny, I've called the AG's office in PA like 8 times in the last 7 months, and every time I've called I've gotten a different response to the same question . . . . I've been told to contact the banking dept for that info, been told to contact a private attorney, that the AG's office doesn't give legal advice, etc . . . . No offense to PA, but that state needs to make up it's mind! It would make things a whole lot easier for a whole lot of people!

Posted: Thu Jul 26, 2007 1:42 pm Subject:

Goudah I know your frustration. On a different note Tukki, do not waste your time with BIG. The only way to get anywhere with them is to ignore them and hang up everytime they call. When you pick up the phone and you hear that call center chatter in the background do not say hello. Just hang up. Eventually they will think the number is no good and give up.

Posted: Thu Jul 26, 2007 1:46 pm Subject:

Yeah, I still remember getting a 25 minute long voice mail of just chatter from Route 66 once! Um, duh?!? Can't they hang up a freaking phone! They didn't even leave a message, it was just the background chatter . . . .

Posted: Thu Jul 26, 2007 1:48 pm Subject:

Ha! No kidding goudah! The Banking Dept. told me exactly what you said, that licensed internet lenders are bound to the laws of the state in which they are licensed. The AG directly refuted that, saying that no matter if they are licensed (or especially if they are unlicensed) that by lending to PA residents they are willingly accepting PA's rate cap on small loans, and they must abide by that.

Thanks by the way...this has been a stressful week, but at least I know that I have control over my money. If I can get maybe 3 of these things marked PIF, along w/ the payment plan I set up with Advance America, I'd be really really pleased. My fingers are crossed!

Posted: Thu Jul 26, 2007 1:49 pm Subject:

That sounds like the Voice Mail from Hell.

Posted: Thu Jul 26, 2007 1:49 pm Subject:

Thanks frogpatch, that seems to be the general consensus with everybody on the forum. I figured if I send the letter, maybe by some stoke of luck I could get a good settlement offer and just make them go away. Oh well.

Posted: Thu Jul 26, 2007 1:52 pm Subject:

Goudah - I just realized that in my initial post I should have stated "Lenders not licensed in Pennsylvania" in lieu of "unlicensed lenders."

My apologies.

Posted: Thu Jul 26, 2007 2:21 pm Subject:

Yeah, that was what held me up. This is really great for you!

Did you talk to the AG's office about Advance America? I know they currently have a lawsuit going against them . . . .

Posted: Thu Jul 26, 2007 2:43 pm Subject:

That's great! I haven't even sent a letter to the ag yet.Let me ask my cashnet usa is pretty new but I have had around 5 in the last three years. Do you think they will take all the interest and add it all up to give me a smaller settlement?

Posted: Thu Jul 26, 2007 4:59 pm Subject:

WTG tukkitrocks79!! Thanks for the good news about PA! I've been really discouraged here lately and that really helps me and lifts my spirit again!!!!

Posted: Thu Jul 26, 2007 9:07 pm Subject:

thanks guys. cynthia, I have no idea what CashNetUSA is going to do. I keep reading all of these differing things about them on the forum, that they will have one person call you that's a complete jerk, and then have someone extremely nice call you - a good cop, bad cop game. It was really strange that they offered that up so quickly to me. My guess is that they have run into this before and PA laws held up, so they relented. Also, this is encouraging because supposedly CashNetUSA is one of the only really legit iPDL companies, fully licensed supposedly. If THEY know that PA law trumps their state, then the unlicensed / illegal ones should realize that even quicker!

Posted: Thu Jul 26, 2007 9:11 pm Subject:

Goudah - I did talk to them about Advance America, but didn't get any real response. Once I told the AG Rep that I had already set up a repayment plan, she pretty much moved right on to the next topic. So I didn't get anywhere with that particular payday loan. That's OK though, I have no hostility towards them. All of my dealings with them have been positive - expensive, but positive. If I have to pay ridiculous interest rates to somebody, I would rather it be them than any of these other companies.

Posted: Fri Jul 27, 2007 5:59 am Subject:

I'm very confused. I thought payday lending was prohibited in PA.

Posted: Fri Jul 27, 2007 6:25 am Subject:

"Prohibited" as it reads in the quote from the payday laws sites is kind of misleading. Payday lending is very very restricted within the state.

This was posted in another thread (if someone knows where this comes from, please give them credit for it. I have no idea what site this came from):

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