I've complied a list of all 50 states showing which state's require the company to be licensed by that state, and which one's allow other state's licenses.
** This is just preliminary *** There may be changes to it.
States that require internet based pdl's to be licensed by that state:
Alabama
Alaska
Arizona
California
Colorado
DC
Deleware
Florida
Hawaii
Idaho
Illinois
Indiana
Kansas
Kentucky
Lousiana
Maine
Michigan
Minnesota
Please see THIS LINK for changes in the MN law, updated on 7/7/2009 by Shazzers.
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Mexico
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania (See article on the last page)
South Carolina
South Dakota
Texas
Utah
Washington
Wisconsin - If the online company solicited you
Wyoming
In the above states the internet payday loan company must be licensed by that state and follow that state's laws.
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I don't want to put a qualifier on it. I've done quite a bit of research into it, and there is still a piece missing, and until I find that piece, I'm keeping it how it is.
There is the possibility of a legal internet lender in KY, and if I put KY under illegal, then it's very misleading. Most people don't look at any qualifiers, so it's best to keep it how it is, as most intenet places aren't licensed anyways, so it doesn't really matter.
Internet lenders in themselves are not illegal. It's an issue of licensing.
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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Those are the two list headings above. Kentucky is currently on your first list heading. I just thought Kentucky fit the bill for the second also because of this the state does not license companies not located in that state, but requires a state issued license to lend. There is however a loophole in that if they have a licensed store front here then they could lend here over the net as well. I think it would be wise to note that next to Kentucky no matter which list you leave it on. The reason I think this is because almost all IPDLs can not get licensed here because they don't have a storefront here. You could just put in parentheses next to the state something like (physical storefront required in the state in order to have licensed issued) and leave it on the first list. That would bring it to peoples attention that any IPDL especially the most notorious are illegal in Kentucky because they don't have a store here. I do agree that you should not put it on a list that says all IPDLs are illegal because there is a loophole that would allow IPDLs to operate here if they build one store anywhere in the state or partner with any current PDL.
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But if they are partnered with a storefront then they have a license.
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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In those state's I have listed under "the state does not license companies not located in that state, but requires a state issued license to lend" requires a physical location, not just to be associated with a physical location. They will not license companies not located in that state. KY is different.
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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I am just trying to elaborate on Kentucky IPDL loans based on my understanding. Please don't be upset Goudah. Your work is great and I can see you spent a lot of time researching the different states. It is also possible that my information is not completely accurate since I only had a couple of phone coversations with one state employee of the Office of Finance. I actually made those phone calls around the time Cannr first joined the site to find out for myself and for her if IPDLs were legal here. Since then she has done her own research as you posted.
It is deffintely an issue of licensing like you stated in a previous post. Kentucky has set it up to where it is almost impossible for an IPDL to be licensed here and do business here properly. They require a physical store front and they require a physical check to be signed and held by the storefront. They don't make it simple and just state IPDLs are illegal in Kentucky but they make it very difficult for them to obtain said license and operate legally.
My understanding per the conversations I had with the Office of the Finance is exactly what you just stated above for Kentucky. Kentucky requires a physical location to get a license. They are required to have a storefront they do business out of. They are also required to obtain a physical check to make a loan. They will not license companies if the company is not physically located in the state. The loophole I mentioned was they could potentially set up a physical shop anywhere in Kentucky and then loan to the entire state via the net but they would still be required to get the physical check. I personally think it would be a pain to run the business that way but it is possible I suppose. Without the check or the license the loan was made illegally.
On a side not the partnership thing is just something I threw out there to skirt the law. I don't know if it has occured but what I was suggesting is a company could potentially buy an existing storefront or make it appear like they are doing business out of that storefront and maybe get a license. That is an assumption on my part. I would hope that the Office of Finance would not license more than one PDL per business location but I don't know. Again that internet company would still be required to obtain the physical check via snail mail prior to making a loan and that's assuming the person signing the check does not have to be present when presenting the check to the store front.
In reality it is very unlikely an IPDL would go through any of this hassle including the IPDLs that try to follow the laws so they choose to loan illegally in Kentucky. It is much simpler for them. They calculate the loss as part of their business. The people borrowing money over the net that don't know about the PDL laws far outweigh those that do. With almost zero penalty other than a few refusing to pay the fees based on those laws it only makes sense for them to operate this way. They just lump those guys in with all the others that refuse to pay for other reasons. Until the AG steps in with some criminal prosecutions for loan sharking or making illegal loans, I really don't see much changing here.
I live in Colorado and have a $1,400.00 loan with Zip19.com which is debited in two separate charges of 850.00 each on the 15th and 30th of each month from my checking account. Because of the debits, I always reloan the amount in order to meet my other financial obligations. I have had this nightmare going for over a year. In the state of Colorado if you take out four consective loans the pdl has to offer you a repayment plan to pay the loan off in six installment. Today, I contacted Zip19 and they told me this does not apply to them because they aren't a bank or financial institution. Does anyone have any advice for me? I despearately want to wake up from the horrible nightmare.
Thanks
I HAVE OVERPAID ON A LOAN FROM JVC ARE THEY LICENSED TO LEND IN NEW JERSEY & HOW CAN I GET IN TOUCH WITH THIS COMPANY AS I NEVER RECEIVED ANY RETURN INFORMATION
What are the laws for Florida?? Have one loan with impactcash and qloot. Any help??? qloot has been withdrawing $105 every 2 weeks for months, with NO paydown at all!
Do you go by the state that you are in or what state the PDL is in?
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In Alabama you can search the database of licenses here
http://www.bank.state.al.us/ADPSA_Licenses2.asp
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