All internet payday loans illegal in Kentucky

Starting Jan 1, 2010 all internet payday loans are considered illegal. The Kentucky department of financial institutions does not issue licenses to internet lenders so there is no such thing as a legal online payday loan.

As an added bonus, all loans made prior to 2010 are considered invalid and are not collectable. This would include any fees AND the principle of the loan.

I look at this as more of a class action settlement since kentucky realizes that going after the lenders individually is nearly impossible.

Happy new year.

Thanks for the information! It will help a lot of people from the lovely state of Kentucky

Good to hear the State of Kentucky has taken this action! Yes, as many of the PDL's are actually located in other countries, there's little or nothing Kentucky or any other State/Federal government agency could do as far as legal action against them.

This makes me happy, I hope more states will follow suit.

this also makes me happy.. is there anything online we reference this new law to?

Ky housebill 444

www.kfi.ky.gov/nondepository/hb444.htm

parts 9 and 10 under licensing.

I will put together a step by step guide and form letter on how you should coorespond to them.

I can also say this is a result of complaints to the ky department of financial institutions. A very high percentage of the complaints (95+%) were about online loans.

Ky saw no way to regulate them or limit a residents access to them so they said they are not honoring the debt a resident incurs.

It'll be interesting to see what the internet PDL's have to say about THIS law, won't it? Anyone want to bet they'll say that the State Government of Kentucky doesn't know what it's talking about?

How sweet it is! Many more states will follow suit...just watch

I have tried to explain the laws of KY to my internet payday lenders but I am getting the same responce from them all " You agreed to the loan so you have to abide by our state laws not KY". Is there any truth to this? Also I read I didn't have read that I didn't have to pay them another dime, Is this true?

Just tell them your state law prevails.

That is Correct, if they are not licensed (no online lenders are licensed in ky) then they cannot collect the first dollar from you. And this includes principle.

Kentucky has had the long time opinion that online services operating in kentucky must abide by Kentucky laws.

That doesn't mean the lenders will not try to get their money. Close your account, collect all pieces of communication, send them a letter return reciept requested, and then be prepared to fight when they try to report you to a credit bureau.