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 Posted: Fri Sep 21, 2007 7:08 am Subject:
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| Quote: | Delaware State Information
Legal Status: Permitted under small loan act or licensing law - Legal
Citation:
Del. Code Ann. tit. 5 § 2227 et seq.; Del. Code. Ann. tit. 5 § 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:
Collection Limits:
Collection Fees:
Criminal Action:
Where to Complain, Get Information:
Regulator: Delaware Office of the State Bank Commissioner
Address: 555 E. Loockerman Street Suite 210 Dover DE 19901
Phone: (302) 739-4235
Fax: (302) 739-3609
Regulatory Contact: , Administrator, Non-Depository Institutions and Compliance |
Emails to and from the banking dept:
From:
Sent: Wednesday, September 19, 2007 10:04 AM
To: Coffman Dawn M (BCO)
Subject: Payday Loan Question
Hello,
Do internet based companies need to be licensed by DE to lend legally in DE? Or can they be licensed in their home state? I have several payday loans and they are all licensed in other states. They say they don't need a DE license. Is that correct?
Thanks!
Response:
From: Hoffecker Carole (BCO)
Sent: Friday, September 21, 2007 4:55 AM
To:
Subject: RE: Payday Loan Question
Dear,
In response to your e-mail, Delaware has a safe harbor of 5 loans in a twelve month period and which is viewed as not conducting business. Therefore, a license would not be required. However, should a lender do more than the five loans a license would be required even if they are an internet based.
I trust this is responsive to your concerns. However, if you have any questions, please feel free to contact me.
Sincerely,
Carole
What does this mean?
If the company does more then 5 loans a year to DE residents, they must be licensed by DE, even if they are internet based.
They can charge whatever they want.
There can only be 4 rollovers.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
Last edited by goudah2424 on Wed Nov 14, 2007 8:09 am |
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goudah2424
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Joined: 31 Oct 2006
Posts: 8007
Debtcc Points: 111631
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Posted: Fri Sep 28, 2007 11:39 am Subject:
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Wow! this is great - how about Illinois (in this format)?
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Debtcc Points: 100
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Posted: Tue Oct 02, 2007 5:55 am Subject:
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If possible; would you list the info on PDL's for the state of South Dakota? Thanks!
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hvn_sent
Joined: 21 Sep 2007
Posts: 226
Debtcc Points: 4432
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Posted: Tue Oct 02, 2007 12:53 pm Subject: Alabama PDL Laws
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Do you have anything on the state of ALabama?
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bama1704
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Debtcc Points: 100
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Posted: Thu Oct 04, 2007 7:17 am Subject:
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| Quote: | South Dakota State Information
Legal Status: Permitted under small loan act or licensing law
Citation:
S.D. Codified Laws § 54-4-36 et seq.
Loan Terms:
Maximum Loan Amount: $500
Loan Term: Not Specified
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
Rollovers Permitted: Four (licensee can renew, rollover or flip loan if debtor pays outstanding fee each time)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: Not Specified
Criminal Action: Not Specified
Where to Complain, Get Information:
Regulator: South Dakota Division of Banking
Address: 217 1/2 West Missouri Avenue Pierre SD 57501
Phone: (605) 773-3421
Fax: (605) 773-5367
Regulatory Contact: , |
Emails to and from the banking dept:
From:
Sent: Tuesday, October 02, 2007 12:02 PM
To: DRR - Special Taxes
-subject: Internet Payday Loan Question
Hello,
I was told that this division may be able to answer my question about internet based payday loan companies. Do internet based payday loan companies need to be licensed by SD to lend legally in SD? Or can they be licensed in their home state as long as they don't have a physical location in SD? I have several payday loans and they are all licensed in other states. They say they don't need a SD license. Is that correct?
Thanks!
Response:
From: Cassie.Branaugh @state.sd.us
Sent: Thursday, October 04, 2007 6:30 AM
To:
Subject: RE: Internet Payday Loan Question
Hello,
I am an examiner with SD Division of Banking. We license and regulate payday loan companies, including those that are internet based. It is the determination of the Division that any company lending to South Dakota residents are subject to our lending laws and must hold a license from the Division.
We would appreciate very much if you would provide us with copies of your loan contracts with any internet lenders as well as any contact information that you have for the lenders (i.e. company name, address, website, telephone, fax, email). We will then determine if they are licensed with us. If not we will contact them and take the steps necessary to get them in compliance with South Dakota Law.
The information can be either emailed, faxed to 605-773-5367 or mailed to the address below. Please feel free to contact me if you have any questions.
Thanks,
Cassie Branaugh
SD Division of Banking
217 1/2 W Missouri Avenue
Pierre, SD 57501
605-773-8454
What does this mean?
Internet based companies must be licensed by South Dakota.
They can charge whatever they want.
They can only rollover the loan 4 times.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
Last edited by goudah2424 on Wed Nov 14, 2007 8:11 am |
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goudah2424
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Joined: 31 Oct 2006
Posts: 8007
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Posted: Wed Oct 24, 2007 7:19 am Subject:
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Other state's will be posted as replies from the DFI's are recieved.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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goudah2424
Moderator
Joined: 31 Oct 2006
Posts: 8007
Debtcc Points: 111631
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Posted: Wed Oct 24, 2007 7:46 am Subject:
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| Quote: | California State Information
Legal Status: Legal
Citation:
Cal. Fin. Code §§ 23000 to 23106
Loan Terms:
Maximum Loan Amount: $300
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: 15% of check
Finance Charge for 14-day $100 loan: $17.65
apr for 14-day $100 loan: 459%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: One
Rollovers Permitted: None (cannot charge fee for extension)
Cooling-off Period: None
Repayment Plan: Voluntary (no fees may be charged in conjunction with payment plan)
Collection Limits:
Collection Fees: $15 NSF fee
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: California Department of Corporations
Address: Financial Services Division, 1515 K Street, Suite 200 Sacramento CA 95814
Phone: (866) 275-2677
Fax:
Regulatory Contact: , |
No Emails, but this is posted on the DFI's website:
WHO IS REQUIRED TO OBTAIN A LICENSE TO ENGAGE IN THE BUSINESS OF DEFERRED DEPOSIT TRANSACTIONS?
Any person that offers, originates or makes a deferred deposit transaction, arranges a deferred deposit for a deferred deposit originator, acts as an agent for a deferred deposit originator, or assists a deferred deposit originator in the origination of a deferred deposit is required to obtain a license from the Department of Corporations
I AM LOCATED IN CALIFORNIA PLANNING TO ENGAGE IN THE BUSINESS OF MAKING DEFERRED DEPOSIT TRANSACTIONS OVER THE INTERNET ONLY TO RESIDENTS IN OTHER STATES. AM I REQUIRED TO OBTAIN A LICENSE FROM THE DEPARTMENT.OF CORPORATIONS UNDER THE CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW?
Yes.
I AM NOT LOCATED IN CALIFORNIA PLANNING TO ENGAGE IN THE BUSINESS OF MAKING DEFERRED DEPOSIT TRANSACTIONS OVER THE INTERNET TO RESIDENTS IN CALIFORNIA AND TO RESIDENTS IN OTHER STATES. AM I REQUIRED TO OBTAIN A LICENSE FROM THE DEPARTMENT OF CORPORATIONS UNDER THE CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW.
Yes.
ARE THERE LIMITATIONS ON A DEFERRED DEPOSIT TRANSACTION?
Yes. The face amount of the customer's personal check or the electronic equivalent of the customer's personal check may not exceed $300 and the fee charged may not be more than 15% of the face amount of the check.
ARE THERE LIMITATIONS ON THE FEES THAT MAY BE CHARGED IN RELATION TO A DEFERRED DEPOSIT TRANSACTION?
Yes. The fee may not exceed 15% of the face amount of the check. A single fee not to exceed $15 may be charged for a returned check. No additional fees may be added for late payments or returned checks.
ARE THERE LIMITATIONS ON THE NUMBER OF DEFERRED DEPOIST TRANSACTIONS A LICENSEE MAY MAKE TO A CUSTOMER IN A 12-MONTH PERIOD?
No. There are no limits on the number of deferred deposit transactions a licensee may make to a customer in a 12-month period. A licensee cannot make a new deferred deposit transaction during the period an earlier deferred deposit transaction is in effect for the same customer and the proceeds of a new deferred deposit transaction may not be used to pay off an existing deferred deposit transaction from the same licensee.
IS A LICENSEE ALLOWED TO MAKE A NEW DEFERRED DEPOSIT TRANSACTION TO A CUSTOMER THAT HAS AN EARLIER DEFERRED DEPOSIT TRANSACTION THAT IS IN EFFECT FROM ANOTHER LOCATION OF THE SAME LICENSEE.
No. Licensees with multiple locations cannot enter into a deferred deposit transaction with a customer during the period an earlier deferred deposit transaction is in effect for the same customer at any of the licensee's locations.
CAN A LICENSEE USE A CUSTOMER'S PERSONAL CHECK OR THE CUSTOMER'S ELECTRONIC EQUIVALENT OF A PERSONAL CHECK RECEIVED FROM A PREVIOUS DEFERRED DEPOSIT TRANSACTION FOR A NEW DEFERRED DEPOSIT TRANSACTION?
No. A licensee is not permitted to accept or use a customer's personal check or a customer's electronic equivalent of a personal check received from a previous deferred deposit transaction for a new deferred deposit transaction.
CAN A LICENSEE ACCEPT COLLATERAL IN CONJUNCTION WITH A DEFERRED DEPOSIT TRANSACTION?
No.
IS A LICENSEE ALLOWED TO MAKE THE DEFERRED DEPOSIT TRANSACTION CONTINGENT ON THE PURCHASE OF OTHER SERVICES OR PRODUCTS?
No.
ARE THERE ANY SPECIAL REQUIREMENTS FOR A LICENSEE THAT MAKES A DEFERRED DEPOSIT TRANSACTION TO A NON-ENGLISH SPEAKING PERSON?
Yes. The written agreement must be written in the same language principally used in the oral discussions or negotiations leading to the execution of the deferred deposit agreement and must be in at least 10-point bold type.
IS A LICENSEE ALLOWED TO EXTEND THE DUE DATE OF AN OUTSTANDING DEFERRED DEPOSIT TRANSACTION OR ALLOW THE CUSTOMER TO MAKE PAYMENTS ON AN OUTSTANDING DEFERRED DEPOSIT TRANSACTION?
Yes, though the licensee is not required to extend the due date or enter into an agreement to allow the customer to make payments on an outstanding deferred deposit transaction.
WHAT ARE THE FEES A LICENSEE MAY CHARGE IN CONNECTION WITH EXTENSIONS AND PAYMENT PLANS GRANTED FOR REPAYMENT OF OUTSTANDING DEFERRED DEPOSIT TRANSACTIONS?
A licensee may allow an extension of time to repay an outstanding deferred deposit transaction or a payment plan, but may not charge any additional fees or charges of any kind in conjunction with the extension or payment plan.
IS A LICENSEE PERMITTED TO DEBIT A BORROWER'S BANK ACCOUNT ELECTRONICALLY USING ACH TRANSFERS ON MULTIPLE DAYS FOR VARYING AMOUNTS TO COLLECT A DELINQUENT ACCOUNT WITHOUT THE BORROWER'S AUTHORIZATION?
No. The agreement or an addendum to the agreement must specify the days and amounts the licensee is authorized to debit the borrower's bank account electronically using ACH transfers to collect delinquent accounts. Any addendums to the agreement authorizing the licensee to debit the borrower's bank account electronically to collect overdue accounts must be in writing signed by the borrower, by fax with the borrower's signature or electronically authorized by the borrower over the Internet. The written agreement should cover the manner in which a customer's check will be deposited and the specific date of deposit. For example, when the licensee elects to deposit a personal chck by electronic means, the written agreement should specify that the licensee electronically deposits the customer's check and the specific date. If the licensee wishes to deposit the check either manually or electronically when there are insufficient funds in the customer's account, the written agreement should also specify the method and date of depositing the check under those circumstances. The written agreement should cover the manner in which a customer's check will be deposited and the specific date of deposit. For example, when the licensee elects to deposit a personal check by electronic means, the written agreement should specify that the licensee electronically deposits the customer's check and the specific date. If the licensee wishes to deposit the check either manually or electronically when there are insufficient funds in the customer's account, the written agreement should also specify the method and date of depositing the check under those circumstances.
CAN A CUSTOMER BE CRIMINALLY PROSECUTED FOR FAILING TO REPAY A DEFERRED DEPOSIT TRANSACTION?
No. A customer cannot be criminally prosecuted or threatened with criminal prosecution to collect a delinquent deferred deposit transaction.
What Does this mean?
Internet based companies must be licensed by CA to lend legally.
Fees may not exceed 15% of the face value of the check.
No Rollovers are allowed.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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goudah2424
Moderator
Joined: 31 Oct 2006
Posts: 8007
Debtcc Points: 111631
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Posted: Wed Oct 24, 2007 7:55 am Subject:
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| Quote: | D.C. State Information
Legal Status: Legal (Applies to check cashers only)
Citation:
D.C. Code Ann. § 26-301 et seq.
Loan Terms:
Maximum Loan Amount: $1000
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: 10% of face amount + fee of $5: $0- $250; $10: $251-$500; $15: $501- $750; $20:$751-$1000
Finance Charge for 14-day $100 loan: $16.10
apr for 14-day $100 loan: 419%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: Not Specified
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: Not Specified
Criminal Action: Not Specified
Where to Complain, Get Information:
Regulator: D.C. Department of Insurance, Securities and Banking
Address: 810 First Street, NE, Suite 701 Washington DC 20002
Phone: (202) 727- 8000
Fax: (202) 535-1197
Regulatory Contact: Howard Amer,, Director, Banking Bureau |
Emails to and from the DFI:
Hello,
Do internet based companies need to be licensed by DC to lend legally in DC? Or can they be licensed in their home state? I have several payday loans and they are all licensed in other states. They say they don't need a DC license. Is that correct?
Thanks!
Reply:
Hello Ms,
The old law required any deferred deposit lender to be physically located in DC. However, these laws were implemented before the internet became an issue. The department has taken the stance in the past that all deferred deposit lenders must be licensed by DC.
New laws have recently been passed specifically addressing the issue of internet lenders. Now, all lenders, regardless of location, must be licensed under the Money Lender Act. This law has just recently taken effect.
Sincerly,
Brian Rouse
Licensing Supervisor, Banking Bureau
Department of Insurance, Securities and Banking
810 First St. NE, suite 701
Washington DC 20002
202-442-7821
What does this mean?
Internet lenders, before and after the new law, must be licensed by DC.
No limits to Rollovers.
Specific amounts can be charged.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
Last edited by goudah2424 on Wed Oct 24, 2007 8:32 am |
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goudah2424
Moderator
Joined: 31 Oct 2006
Posts: 8007
Debtcc Points: 111631
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Posted: Wed Oct 24, 2007 8:30 am Subject:
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| Quote: | Florida State Information
Legal Status: Legal
Citation:
Fl. Stat. Ann. § 560.401 et seq.; Rule 69V-560.901-912
Loan Terms:
Maximum Loan Amount: $500
Loan Term: 7-31 days
Maximum Finance Rate and Fees: 10% + verification fee
Finance Charge for 14-day $100 loan: $15
apr for 14-day $100 loan: 390%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: One
Rollovers Permitted: None (cannot rollover)
Cooling-off Period: 24 hours
Repayment Plan: Yes
Collection Limits:
Collection Fees: All charges imposed on the lender by any financial institution; lender not entitled to treble damages
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Florida Office of Financial Regulation
Address: Division of Securities and Finance, 200 E. Gaines Street Tallahassee FL 32399
Phone: (850) 410-9805
Fax: (850) 410-9748
Regulatory Contact: , |
Emails to and from the DFI:
Hello,
Do internet based payday loan lenders with no physical location in FL need to be licensed by FL to lend legally to FL consumers? I am trying to help a friend with a huge mess. She has several internet payday loans, and they are saying that they only have to be licensed in their state, and that they can follow the laws of their state, not FL's laws. What is correct? Any information would be very much appreciated!
Thanks!
Reply:
She can file a complaint through our website at flofr.com and under 'helpful information' click on file a complaint. Then click on
finance related and you can download the form. Or click on money transmitters and call the 1-800 number. The Office will review her complaint when received. All lenders must be licensed by Florida, regardless of location, however, the current payday loan laws in place do not address internet businesses. The department is currently looking at other laws to apply to them.
She may also wish to contact Legal Aid in her area, to determine what recourse she may have.
If you have further questions, please contact this Office.
Office of Financial Regulation
Pam Henley
Financial Speci alist
(850) 410-9805
What does this mean?
Internet based companies must be licensed by FL.
No Rollovers are allowed.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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goudah2424
Moderator
Joined: 31 Oct 2006
Posts: 8007
Debtcc Points: 111631
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Posted: Wed Oct 24, 2007 8:32 am Subject:
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Thanks Goudah. Glad to see they finally got back to you.
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pybasj
Joined: 08 Aug 2007
Posts: 826
Debtcc Points: 5507
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Posted: Wed Oct 24, 2007 11:45 am Subject:
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| Quote: | Georgia State Information
Legal Status: Prohibited
Citation:
Industrial loan act applies. Ga. Code Ann.§ 7-3-14. Ga. Comp. R. & Regs. r. 80 § 3-1.02(7)
Small Loan Rate Cap
16% per year (10% per year discounted plus fees); 60% per year criminal usury cap
Where to Complain, Get Information:
Regulator: Georgia Office of the Commissioner of Insurance
Address: Industrial Loan Division, Two Martin Luther King, Jr. Drive West Tower, Suite 704 Atlanta GA 30334
Phone: (404) 656-2070
Fax: (404) 657-8542
Regulatory Contact: Frank Ogletree Director |
Emails to and from the DFI:
Hello,
Do internet based companies need to be licensed by GA to lend legally in GA? Or can they be licensed in their home state? I have several payday loans and they are all licensed in other states. They say they don't need a GA license. Is that correct? I see that payday loans are prohibited in GA.
Thanks!
Reply:
Goudah,
Internet lending is illegal in Georgia. The pertinent statute is Title 16, Chapter 17.
The Attorney General’s Office is charged with its authority and the contact person is Amy Burns at 404-656-4103.
Terry Battle
(404) 656-2078
What does this mean?
All payday loans, internet or storefront, are illegal in Georgia.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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goudah2424
Moderator
Joined: 31 Oct 2006
Posts: 8007
Debtcc Points: 111631
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Posted: Tue Oct 30, 2007 9:45 am Subject:
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| Quote: | Missouri State Information
Legal Status: Legal
Citation:
Mo. Stat. Ann. § 408.500 et seq.; Mo. Code Regs. Ann. Tit. 4 § 140-11.010 et seq.
Loan Terms:
Maximum Loan Amount: $500
Loan Term: 14-31 days
Maximum Finance Rate and Fees: Not Specified (No borrower shall be required to pay a total amount of accumulated interest and fees in excess of 75% of the initial loan amount on any single authorized loan for the entire loan term and all authorized renewals. Otherwise, interest is set pursuant to small loan law which provides that parties may set rate by contract.)
Finance Charge for 14-day $100 loan: $75
apr for 14-day $100 loan: 1980%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: Six (borrower must reduce principal amount of loan by 5% or more upon each renewal)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: NSF fee; Collection costs (including court costs and reasonable attorney's fees) Licensee cannot use a series of ACH transactions to collect a single check.
Criminal Action: Prohibited (Unless check returned due to closed account or stop-payment by maker)
Where to Complain, Get Information:
Regulator: Missouri Division of Finance
Address: Consumer Credit Section, P. O. Box 716 301 W. High Street Jefferson City MO 65102
Phone: (573) 751-3242
Fax: (573) 751-9192
Regulatory Contact: Joe Crider,, Supervisor, Consumer Credit |
Emails to and from the DFI:
Sent: Friday, October 19, 2007 4:15 PM
To: Crider, Joe
Subject: Payday Loan Question
Hi Joe,
I'm trying to find an answer to a question regarding internet based payday loan companies. Do internet based payday loan companies need to be licensed by MO to lend legally in MO? Or can they be licensed in their home state as long as they don't have a physical location in MO? I have several payday loans and they are all licensed in other states. They say they don't need a MO license, or to follow the laws of MO. Is that correct?
Thank you!
Reply:
From: Crider, Joe
Sent: Tuesday, October 30, 2007 9:35 AM
To:
Subject: RE: Payday Loan Question
Ms ,
Our interpretation of the law is that these lenders do need to follow the laws of our state. We are introducing legislation in the upcoming session that would be more specific about this requirement. To that end, we have dozens of internet lenders from other states licensed at this point in time.
If you would provide me with the web sites or contact information for these lenders I will advise them of our position in a letter.
Joe Crider
Supervisor of Consumer Credit
State of Missouri
What does this mean?
Internet based companies do need an MO license.
New laws may be coming soon.
Fees and interest can not be more then 75% of total loan amount.
6 rollovers are allowed.
No criminal prosecution for closing your bank account.
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
Last edited by goudah2424 on Wed Nov 14, 2007 8:10 am |
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goudah2424
Moderator
Joined: 31 Oct 2006
Posts: 8007
Debtcc Points: 111631
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Posted: Wed Nov 14, 2007 8:03 am Subject:
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| Quote: | Louisiana State Information
Legal Status: Legal
Citation:
La. Stat. Ann. § 3578.1 et seq.
Loan Terms:
Maximum Loan Amount: $350
Loan Term: 60 days
Maximum Finance Rate and Fees: $5 documentation fee + the greater of 16.75% of check or $45 (After default: months 1-12: 36% per year; months 13 and beyond: 18% per year)
Finance Charge for 14-day $100 loan: $25
apr for 14-day $100 loan: 650%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: None (cannot renew or rollover but licensee may accept partial payment of 25% of amount advanced plus fees and enter into new loan)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: One NSF fee of actual bank charge (if disclosed) + the greater of $25 or 5% of check (if disclosed); Court Costs; Reasonable Attorney's Fees
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Louisiana Office of Financial Institutions
Address: P.O. Box 94095 Baton Rouge LA 70804
Phone: (225) 925-4660
Fax: (225) 925-4548
Regulatory Contact: John J. Braud,, Deputy Chief Examiner |
Email from the DFI and Whitenan:
I emailed John Braud, Deputy Chief Examiner of LA Office of Financial Institutions and asked him, if internet payday lenders(not residing in Louisiana) who lend money to residents of Louisiana, have to be license in Louisiana or do they just have to have a license in any state.
Response:
You probably had difficulty finding information on this issue because activity commonly referred to as "payday lending" is subject to the Louisiana Deferred Presentment and Small Loan Act, LSA R.S. 9:3578.1 et seq. These loans are consumer loans subject to the Louisiana Consumer Credit Law, LSA-R.S 9:3510 et seq.
C. Except, as otherwise provided herein, that following agreements by a consumer are invalid with respect to consumer credit transaction, or modifications thereof, to which this chapter applies;
1. by which the consumer consents to the jurisdiciton of another state.
2. the fix venue
Therefore, the above provisions require that all consumer loans made to Louisiana residents should comply with Louisina laws, but lending licenses are issued to persons with business locations in LA.
John Braud
Cheif Examinor
Office of Financial Institution
Other emails from me to DFI:
Hello,
Do internet based payday loan companies need to be licensed by Louisiana to lend legally in Louisiana? Or can they be licensed in their home state as long as they don't have a physical location in Louisiana?
I have several payday loans and they are all licensed in other states.
They say they don't need a Louisiana license, and looking through the list of licensees I don't see any that are not located in Louisiana. Is that correct?
Thanks!
Response:
Ms. :
Lenders who do not have a physical locations in LA do not qualify for licensure. Those who have licenses are listed on our web site at ofi.louisiana.gov if you would like to do business with one of them.
John J. Braud
Deputy Chief Examiner
LA Office of Financial Institutions
(225) 925-7762
(225) 925-4524 FAX
What does this mean?
Internet companies must comply with LA law.
Internet based lenders with no physical location can't have a license from LA. If they are licensed in another state, and are following LA laws, they are legal.
Specific amounts may be charged.
No rollovers are allowed, however, they can allow you to pay 25% of your principle, and the fee, and then do a new loan.
Some of the emails courtesy of Whitenan. Thanks!
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
Last edited by goudah2424 on Mon Aug 11, 2008 2:15 pm |
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goudah2424
Moderator
Joined: 31 Oct 2006
Posts: 8007
Debtcc Points: 111631
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Posted: Wed Jan 30, 2008 9:31 am Subject:
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| Quote: | Michigan State Information
Legal Status: Legal
Citation:
Mich. Comp. Laws 487.2121 et seq.
Loan Terms:
Maximum Loan Amount: $600
Loan Term: Max: 31 days
Maximum Finance Rate and Fees: 15% of first $100, 14% of second $100, 13% of third $100, 12% of fourth $100, 11% of fifth $100, 11% of sixth $100 + any database verification fee
Finance Charge for 14-day $100 loan: $15
apr for 14-day $100 loan: 390%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: One with licensee or more than one with any other licensee
Rollovers Permitted: None (cannot renew; lender may extend only if it does not charge a fee)
Cooling-off Period:
Repayment Plan: Yes
Collection Limits:
Collection Fees: One $25 returned check charge
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Michigan Office of Financial and Insurance Services
Address: P.O. Box 30220 Lansing MI 48909
Phone: (877) 999-6442
Fax: (517) 335-4978 |
Emails to and from the Banking Dept:
From:
Sent: Wednesday, January 30, 2008 10:13 AM
To: Weigold, Mark W (DLEG)
Subject: Payday loan question
Hello,
Do internet based payday loan lenders with no physical location in Michigan need to be licensed by Michigan to lend legally to Michigan consumers? I am trying to help a friend with a huge mess. She has several internet payday loans, and they are saying that they only have to be licensed in their state, and that they can follow the laws of their state, not Michigan's laws. What is correct?
Thanks!
Response:
From: Weigold, Mark W (DLEG)
Sent: Wednesday, January 30, 2008 8:19 AM
To:
Subject: RE: Payday loan question
In response to your inquiry:
Being internet-based is not an exemption of Michigan statute. The location of the entity providing the payday loan (deferred presentment transaction in Michigan) does not create an exemption either. Based on your representation, a license is required to provide deferred presentment transactions in Michigan. Severe penalties may be incurred if an entity operates in Michigan without the requisite license.
Sincerely,
Mark W. Weigold, Manager
Consumer Finance Section
Office of Financial and Insurance Services
611 W. Ottawa Street
3rd Floor
Lansing, MI 48933
Business: 517/335-2073
Fax: 517/335-1501
What does this mean?
Internet lenders must be licensed by Michigan
Specific rates can be charged
No rollovers are allowed
Thank you to pirho451 for supplying me with this info. I then sent an email to the same place and got the exact same answer, word for word!
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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goudah2424
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Posts: 8007
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Posted: Mon Apr 28, 2008 10:30 am Subject:
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| Quote: | Washington State Information
Legal Status: Legal (Lender must have a small loan endorsement to their check casher license in order to make payday loans)
Citation:
Wash. Rev. Code Ann. § 31.45.010 et seq.
Loan Terms:
Maximum Loan Amount: $700
Loan Term: Max: 45 days
Maximum Finance Rate and Fees: 15%: first $500; 10%: remaining portion of the loan in excess of $500 up to the $700 maximum
Finance Charge for 14-day $100 loan: $15
apr for 14-day $100 loan: 390%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: A company cannot hold a check or checks in an aggregate face amount of more than $700 plus allowable fees from any one borrower at any one time.
Rollovers Permitted: None (cannot repay loan with proceeds of another)
Cooling-off Period:
Repayment Plan: A company and a borrower may voluntarily enter a payment plan at any time. A borrower, however, has a right to convert a small loan to a statutory payment plan after four successive loans and prior to default on the last loan.
Collection Limits:
Collection Fees: $25 NSF fee (one time per instrument); collection costs (excluding attorney's fees, interest and damages)
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Washington Department of Financial Institutions
Address: Division of Consumer Services, PO Box 41200 Olympia WA 98504
Phone: (360) 902-8700
Fax: (360) 725-7827
Regulatory Contact: Chuck Cross,, Director of Consumer Services |
Emails to and from the DFI:
From: James Rogersen [mailto:james.rogersen@yahoo.com]
Sent: Saturday, April 26, 2008 5:08 PM
To: Bortner, Deb (DFI)
Subject: Payday Loan Information
Good Afternoon,
My name is James Rogersen. I have extensive knowledge about some of the internet lenders preying on Washington consumers. I write extensively about them at usapaydayloan.net. My main question, however, is whether or not it is legal for an out of state licensed payday lender to lend to Washington residents without having a Washington license. A response would be greatly appreciated.
Thank You,
James Rogersen
Reply:
Subject: RE: Payday Loan Information
Date: Mon, 28 Apr 2008 08:54:38 -0700
From: "Leslie, Berri L (DFI)" <BLeslie> Add Mobile Alert
To: "James Rogersen" <james>
Good morning,
Thank you for your question. Yes, to lend money to Washington residents an entity, even out of state, must be licensed.
Berri Leslie, Program Manager
Administration and Licensing
Department of Financial Institutions
Division of Consumer Services
(360) 725-7839
(360) 664-2258 (Fax)
What does this mean?
Internet companies must be licensed by WA and follow WA law.
Specific rates may be charged.
No rollovers are allowed.
Unlicensed lenders cannot collect on the loans.
Thanks to James for providing this info
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
Last edited by goudah2424 on Thu Jul 24, 2008 1:55 pm |
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goudah2424
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Joined: 31 Oct 2006
Posts: 8007
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Posted: Tue Jul 15, 2008 7:16 am Subject:
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| Quote: | Virginia State Information
Legal Status: Legal
Citation:
Va. Code Ann. § 6.1-444 et seq.
Loan Terms:
Maximum Loan Amount: $500
Loan Term: Min: 7 days
Maximum Finance Rate and Fees: 15%
Finance Charge for 14-day $100 loan: $15
apr for 14-day $100 loan: 390%
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: None (cannot refinance, renew, or extend)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: $25 NSF fee; Court Costs; Reasonable Attorney's Fees (not to exceed $250)
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Virginia Bureau of Financial Institutions
Address: State Corporation Commission, 1300 East Main Street, Suite 800 Post Office Box 640 Richmond VA 23218
Phone: (804) 371-9657
Fax: (804) 371-9416
Regulatory Contact: Susan E. Hancock,, Deputy Commissioner, Consumer Finance |
My Inquiry:
Hello,
I'm trying to find out if an internet based payday loan company with no physical presence in Virginia needs to be licensed to lend by Virginia. If they don't need to be licensed by Virginia, would they still need to follow Virginia's payday loan laws, or would they need to follow the laws of the state in which they are licensed? Also I have found out several payday lenders I have investigated are completely unlicensed and out of country lenders how shall I proceed?
Thanks!
Their Reply:
Virginia code specifically states the following regarding licensure and Virginia's laws governing payday lenders apply to any entity making a payday loan to a Virginia resident.
§ 6.1-445. License requirement.
A. No person shall engage in the business of making payday loans to any consumer residing in the Commonwealth, whether or not the person has a location in the Commonwealth, except in accordance with the provisions of this chapter and without having first obtained a license under this chapter from the Commission.
B. No person shall engage in the business of arranging or brokering payday loans for any consumer residing in the Commonwealth, whether or not the person has a location in the Commonwealth.
Knowledge of or complaints about such can be filed with the Bureau. A complaint form can be found on the SCC web site at:
http://www.scc.virginia.gov/bfi/complain.aspx
Kenneth J. Schrad
Director, Division of Information Resources
State Corporation Commission
PO Box 1197
Richmond, VA 23218
(804) 371-9211 (fax)
What does this mean?
Internet based companies must be licensed in VA.
No rollovers are allowed.
Specific rates can be charged.
Thanks to Anyaroberts for this info!
_________________
How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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goudah2424
Moderator
Joined: 31 Oct 2006
Posts: 8007
Debtcc Points: 111631
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