Quik Payday vs. Kansas Banking Commissioner

I suppose it is likely that someone beat me to the punch in posting this, but if not here it goes:


kansascity.com/198/story/275886.html

This decision is literally monumental as it appeared before a federal court.

Wow! Thanks for the article! Maybe this will help lead to some better regulations for internet lending. It seems that each day there is more of an uproar about pdls and I am hoping beyond hope that they will become illegal and that an alternative, more consumer friendly method of helping people like myself with bad credit will be created. Until then....

Yay! I've been waiting for this case to end!

This is a really great thing for all states!

I hope that all the other states will follow suit. I have been reading your forum for some time and this is the first time I have commented. I am a person with a graduate degree, great high paying job and so so credit. I got sucked into these bottom feeders and just now I had to ask my parents for help. It was humiliating but I was really worried that if I didnt pay them all off they would ruin my career. I am fortunate to have parents that can help so I feel so bad for others who dont have that option. I am going to click on this site anytime I even think a payday loan would be a good idea. My prayers go out to all of you who are stuggling.

Thank-you Polly for that post!! I struggle from paycheck to paycheck..but thanks to this site I have nearly completed all my obligations to payday loans!
I will never take another one out and will try my best to persude others from doing so! It is nice to know these states are making it harder for predatory lenders to con people like me! Good job Kansas!

Great article Polly!! I am hoping other states follow suit also! ..karen

I just wanted to reiterate that this case was heard and the decision was made in a Federal court, thus it sets a standard for every state. It answers the question that everyone has been asking all along: If a lender is state a lends to a consumer in state b, which respective state laws are applicable? Answer: The state of the consumer. So, if a Nevada lender lends money to a California resident they are bound to follow the laws of California. This decision is literally monumental.

I would agree with Polly to the extent that it's monumental for people that live in California, New York and other states that are aggressively anti-payday loan. But the decision simply said it wasn't unconstitutional for Kansas to try to impose its laws on a Utah lender. (Wish they'd try to impose their laws on the hundred or so internet lenders in Overland Park!!!). But for people that live in states like Minnesota, Louisiana or Pennsylvania the problem remains. Those states say their OWN laws prevent them from taking similar action against most out-of-state lenders. At least the ones that are licensed. So there's still a lot of work to be done at the state level too.

I agree with Freaky Friday . . . Those states that allow out of state companies to lend without holding them to state laws need to change things.

Hello. I have been reading but not really participating in this forum. I too had gotten over my head with payday loans. Recently my parents helped me with a loan. I called Zip Cash today to tell them to take the entire amount out of my account ( to avoid another $150 rip off). They gave me a bunch of reasons why they couldnt do that. I said, ok spell your name, give me your real company name and phone number because the next call I am making is to the California state attorney. I informed the person on the phone that they were loaning illegally and against California regulations. The person on the other end asked me to hold on, came back and miracle on miracle they could in fact withdraw the entire amount without further fees! Had I not been reading all of your wonderful advice I would not have known to do that. You are all incredible people taking the time to help others. I salute all of you! God Bless and Happy Turkey day to all

Does anyone have an updated link for this article? I have a client in KS with 18 Pay-day loans, some at 3000% interest (no typo, three thousand percent)
The link doesn't seem to work anymore...
thx

Also, does anyone know where the burden lies? I know KS has a limit to the number of simultaneous pay-day loans. Who determines this? Does the consumer have to know that they can only have a certain amount of pay-day loans or is that the responsibility of the loan company?

It is a shared responsibility. Most storefront payday loan applications will have an area on it asking if you have any outstanding loans. If you are not honest, the pdl may not know you have other loans. Also, a lot of states now have databases that hold the information, so the pdl can look it up and see if you have other loans.

If you go to the homepage for the newspaper, you can do a search. You do have to register, and pay for the access, but then you can get the article from the archives.

reading this post was a great experience for me..i am surprised to see someone can write more intelligently to this...

Thank you for that, Polly!

I'm a little later posting this (three years after the fact), but I just got turned on to this site!