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Posted: Thu Jul 05, 2007 4:13 pm Subject: Help!! What next???

I wrote the consumer div. of my AG's office...this is what I got today...I am a little confused as to what the means in reference to do I still have to pay them??? I wrote back and asked him to clarify the interest rate and roll over fees...any ideas??? This makes it sound like everything I learned is wrong??

Loans over the Internet to Indiana residents are enforceable in IN courts if they comply with IN law if they "solicited" you in Indiana. Of course, even if they do not use IN courts, they do have your checking account number to ACH (or they did have it) and they can turn you over to a collection agency. If it is a third party collection agency, you can refuse to deal with them under federal law by notifying the collection agency in writing that you want the debt returned to the original creditor. The original creditor can then take legal action against you, but the harassment of the collection agency would cease.

As of July 1, 2007, if an Internet or out of state lender does "solicit" IN customers in any way, and they then make 25 loans in a year in IN, then they would have to be licensed or the loan can be null and void

Posted: Thu Jul 05, 2007 4:49 pm Subject: morningstarr

morningstarr, now if I'm reading it correctly (and I read it 100 times!) it sounds as though they're saying the ipdl would be enforced by the courts of Indiana IF it was solicited in Indiana (which it was not, they are out of the state of Indiana) IF they comply with Indiana laws (which they are not, which is why you are fighting), and the stuff about the ipdl turning you over to collections, it sounds like they're saying they can't - that you can tell the collection agency to return the debt back to the originator of the loan (who is the illegal ipdl). To me, and I'm certainly no expert, it sounds like they're telling you, yes, the contract would be enforced if it was done in Indiana and by Indiana laws. Which, neither apply. These ipdl's are located outside the state of Indiana and also not complying with Indiana laws. Any input from someone who may be an expert????

Posted: Thu Jul 05, 2007 4:55 pm Subject:

I agree, it appears to me that they are saying to you that only loans solicited in IN are enforceable under IN law. I'm no lawyer, but that's what I take it to mean.

Posted: Thu Jul 05, 2007 5:35 pm Subject:

Then why didn't they just say that?? I told him they were all internet and based in different states. And I asked if the fees were legal and he didn't address that...I wrote back and am hoping he can clarify it better. In the meantime I haven't refiled with the AG cause it sounded like there was nothing they could do to help?? I'm going to die if all 10 of these start collecting at the same time...no way can I handle that!!!

Posted: Thu Jul 05, 2007 5:49 pm Subject:

You need to stay on top of it. If they solicited you in IN, which they did, they entered your state via the internet to conduct business. They are obviously NOT following IN state laws. And these ipdls are NOT licensed, they are not going to take you to court in IN where it will be discovered they DO NOT have a license and ARE NOT obiding by IN state laws. I wouldn't freak out if I were you. Sometimes it takes time to get the matter over with.

Posted: Thu Jul 05, 2007 5:54 pm Subject:

Thanks Hardcore...I am assuming if I don't have the AG's backing there would be nothing I could do except cave and pay. I'll wait awhile and see what happens...

Posted: Thu Jul 05, 2007 7:06 pm Subject:

Morningstarr430,please contact the Indiana dept of Financial Institutions at this link:
http://www.in.gov/dfi/
They are the regulating agency for this type of loan and need to be involved. There is an online complaint link.Give them all the necessary documentation and see what they can do for you.

Posted: Thu Jul 05, 2007 8:37 pm Subject: morningstarr

morningstarr, don't give up! Don't cave and pay! They are illegal! Listen to these people! You can fight this! They are NOT in Indiana, they are NOT complying with Indiana state law. The way it's worded, apparently store front pdl's are legal in Indiana. It sounds like store front pdl law. Not internet pdl. I could be almost positive it doesn't pertain to internet pdl's because they are not legal! I've read a million things on Kentucky pdl law, but nothing pertains specifically to internet pdl's because they are illegal! Do not cave! And don't freak out! Listen to these people. They know.

Posted: Thu Jul 05, 2007 8:39 pm Subject: ps

Oh. And, I've also begun filing with my state Department of Financial Institutions. I figure, what the hell. One more agency to file with. So file with them, also. Fight this. Not telling you what to do........but I don't want to see you paying these people when you are being taken advantage of.

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