Internet's first get-out-of-debt community - 144,000 members

Posted: Fri Apr 11, 2008 8:51 am Subject: PDL in Pennsylvania - Help

After reading this forum for awhile I hope you can help me through my problem.

I live in Pennsylvania and I have a bunch of pdl's which have become overwhelming:

CashNetUSA:
7/7/07 started at $1250 paid $2265.62 then had to reloan
10/1/07 reloaned at $1250 paid $1750
12/5/07 reloaned at $1300 paid $227.50 before calling them and asking for a settlement which was to be 5 payments of $305.50. To date I've paid two months for a total of $611.00, which according to them leaves a balance of $916.50.

All told for the initial $1250.00 borrowed ($3800 considering the reloans) I've paid $4,854.12

PayDayOne - Borrowed $500, $542.50 paid to date - loan taken on 11/20/07

PayCheckToday - Borrowed $400, $360 paid to date -loan taken on 12/5/07

ameriloan - Borrowed $300, $270 paid to date - loan taken on 1/16/08

CashAdvanceNetwork - Borrowed $400, $120 paid to date - loan taken on 2/1/08

UnitedCashLoans - Borrowed $300, $120 paid to date - loan taken on 2/1/08

CashCentral - Borrowed $300, $150 paid to date - loan taken on 2/13

I've already revoked ACH authorization for some and will be closing my bank account in the next few days. I realize I need to pay back all of these people as they did loan me money but with all of the state laws I am confused as to the amount I owe them.

Can anyone offer some advice.

Thanks

Posted: Fri Apr 11, 2008 10:21 am Subject:

Posted: Fri Apr 11, 2008 10:24 am Subject:

Cash Net USA is legal and lending to PA residents under it's Nevada license. The terms of the loan would need to follow Nevada laws.

Payday One is legal and lending to PA residents under it's Deleware license. The terms of the loan would need to follow Deleware laws.

Cash Central is legal and lending to PA residents under it's Utah license. The terms of the loan would need to follow Utah law.

The rest of the companies you have borrowed from don't have any licensing in any US state. This makes the loan illegal. You would only need to pay back principle on them, minus any fees you've already paid.

Posted: Fri Apr 11, 2008 10:26 am Subject:

Nevada law is pretty loose - There's no cap on interest. You would likely owe what Cash Net says you owe.

Deleware law is even worse - You will owe what Payday One says you owe.

Utah law is like Deleware law. You will owe what Cash Central says you owe.

Posted: Fri Apr 11, 2008 10:38 am Subject:

I noticed you stated that you revoked some ACH's and will close your account in a few days. You should close your account ASAP. If payday loan company's know that you have or going to close your account they might go in and take more than their share. I saw that in the last part of the post. blueyes

Posted: Fri Apr 11, 2008 10:44 am Subject:

I found 2 different references to Delaware Law regarding Payday Loans:

The first says:
"The loan limit is $ 500.00 and lender can charge 2% of the loan amount or $4.00 whichever is greater. Lenders cannot make more than 4 rollovers/extensions/renewals. If the customer is not able to pay the loan back within that time, the lender must offer some repayment plan or some other ways to pay the loan. "

The second says:
Delaware State Information

Legal Status: Permitted under small loan act or licensing law - Legal

Citation:
Del. Code Ann. tit. 5 Â§ 2227 et seq.; Del. Code. Ann. tit. 5 Â§ 2744

Loan Terms:
Maximum Loan Amount: $500
Loan Term: Max: 60 days
Maximum Finance Rate and Fees: Not Specified
Finance Charge for 14-day $100 loan: No Limit
apr for 14-day $100 loan: No Limit

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified ($1000 aggregate loans outstanding to all licensees)
Rollovers Permitted: Four (rollovers)
Cooling-off Period:
Repayment Plan:

Since they permitted the loan to exceed 60 days aren't they violating Delaware law?

Posted: Fri Apr 11, 2008 11:06 am Subject:

It would depend . . . . Do they allow you to continually rollover, or after 4 times do they make you pay in full then reloan?

Posted: Fri Apr 11, 2008 11:33 am Subject:

For PayDayOne (actually started as PayDayOK) here is the sequence of events:

11/20/07 - I took out the initial loan of $300
12/3/07 - paid $67.50 interest/fees
12/24/07 - increased loan to $500 (got $155.75 additional so I paid $44.25 in interest/fees
1/2/08 - paid $62.50 in interest/fees
2/1/08 - paid $187.50 in interest/fees
2/29/08 - paid $225.00 in interest/fees

At this point according to them my principal is $450.
I stopped the 3/31/08 payment from going through my account as this along with all of my other pdl's would have meant disaster.

Posted: Fri Apr 11, 2008 11:59 am Subject:

Well, technically, when you took out the increase, that would be considered a new loan.

Also, when did the loan change from Payday OK to Payday One? That could also be considered a new loan at that time . . . .

Posted: Fri Apr 11, 2008 12:03 pm Subject:

It changed from PayDayOK to PayDayOne before my first payment.

Even with the increase in December it's been more than a 60 day term.

Posted: Fri Apr 11, 2008 12:18 pm Subject:

You'd have to speak with the Deleware Dept of Financials, but I've always read that to mean that the original loan term cannot be for more then 60 days . . . . But each time you rollover, that 60 days would reset. I could be wrong though.

sally b · Posted: Wed Apr 16, 2008 12:11 am Subject: ace cash express loan

If you reside in the state of Texas; can you be arrested; and or sued for default on a payday loan? I dfaulted in October 2007, and have since paid all except $640.00 back. I have a disability and have not bee n working fulltime. My deadline I was told is Apr.30, 2008. I don't have it. I also owe two more other loan stores, but have been able to pay the interest only. I'm sick of crying, what will happen to me? I can't get arrested nor afford an attorney HELP!

Posted: Wed Apr 16, 2008 6:23 am Subject:

Internet lending, whether licensed or not, is NOT legal in PA. I'm aware of an email circulated within this forum for quite some time that is believed to confirm that PA acknowledges out of state licenses. The simple fact is that Federal law prohibits the exportation of rates to any non-chartered institution. This is why many PDLs had banking relationships in which banks would take a percentage of the loan to "fund" it. If you are having problems in PA, organize this forum into "class action" status and send a unified letter. I assure you that you will get much more attention that way. You would do well to post "Join Class Action" against "Specific Lender". Whether you do anything or not, forming a unified front and attacking the PDL will accomplish your goal of ending this.

Posted: Wed Apr 16, 2008 6:46 am Subject: ok you.

all right nomorepdls,first if a pdl is licensed anywhere the PA resident must adhere to it.second,all you have done is try to argue with goudah.stop it now!!!!!!!!!show some proof of what you say or know if i see another one of these i will be there to debunk you.another thing,you seem lawsuit happy.pm jcemt for materials on that and quit clamoring for it and do it.

Posted: Wed Apr 16, 2008 6:58 am Subject:

Just an FYI - The information I posted is also posted on the Pennsyvania Dept of Financial's website. You go to Laws and Regulations, Interpretive Letters, Consumer Discount Company Act, and the letter titled "Internet Lending Out of State Company". But hey, I must be confused or something . . . . Just becaues the state run website posts something under Laws and Regulations, doesn't mean that it has to do with their Laws and Regulations!

Also, my information is from the guy that is in charge of regulating these companies from PA. I don't just make it up, and I can back up what I say.

The internet is different - These companies are not going to another state to lend. You are going to the company. That is why the federal law doesn't come into play. They are not exporting their rates, you are going to them. That law does not cover internet activity, and was put in place before the internet became popular.

Debra Strang · Posted: Wed Apr 16, 2008 7:16 am Subject: Cash Advance Network

Can you tell me about these companies? Cash Advance Network and checksmart? I have loans with many others including these 2 and I am trying to get away from all of them. I talked to my bank and they said my account could be forced open for ACH debits and basically I would end up owing the bank more money than what I owe the loan companies. Any suggestions?
Thanks

*Name:
*Email:
*Phone:
*Zip:
*Debt

	* denotes required field

Internet's first get-out-of-debt community - 144,000 members

PDL in Pennsylvania - Help

Members Area

Free Debt Counseling

Ask the community

Also See

Featured Discussions

Featured Articles

Recent Forum Discussions

Recent Blog Post