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 Posted: Wed Jun 18, 2008 7:05 am Subject: Kentucky PDL Help |
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I live in Kentucky and I have found out that all internet PDL are illegal in KY, so therefore I need to know where to go next, if this is true. These are a few of the places that I have loans with...
Tremount Financial-300.
Little Loan Shop-200.
Loan Point USA-300.
PayCheckToday-300.
Internet Funding Co./AmeriLoan-300.
My Cash Now-650.
CMG?-300.
Impact Cash USA-300.
ACC?-300.
I have well paid these back to the companies and then some!!! If any can give me advice it will be greatly appreciated!!! I am so embarassed and ashamed...
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amberishmaelcrt
Joined: 18 Jun 2008
Posts: 7
Debtcc Points: 134
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| Posted: Wed Jun 18, 2008 7:08 am Subject: |
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Yes, I beleive it is true, although there may be a loophole somewhere that I haven't found.
| Quote: | Kentucky State Information
Legal Status: Legal (Applies to check cashers only)
Citation:
Kentucky Rev. Stat. Ann. ยง 368.010 et seq.
Loan Terms:
Maximum Loan Amount: $500
Loan Term: 14-60 days
Maximum Finance Rate and Fees: $15 per $100
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: Two ($500 aggregate loans outstanding to all licensees)
Rollovers Permitted: None (cannot renew, rollover, or consolidate)
Cooling-off Period: None
Repayment Plan:
Collection Limits:
Collection Fees: One NSF fee (if disclosed)
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Kentucky Office of Financial Institutions
Address: 1025 Capital Center Drive, Suite 200 Frankfort KY 40601
Phone: (800) 223-2579
Fax: (502) 573-8787
Regulatory Contact: Gary Davis,, Branch Manager |
Emails to and from the banking dept:
To Whom It May Concern:
I have a question regarding internet payday lenders. I have visited the Department of Financial Institutions site and found some information. However, I am still a little confused.
I understand that storefront payday lenders are legal in the state of Kentucky and have printed out the laws applying to them. However, there is nothing regarding internet payday lenders.
I did a search on the site to see if some internet payday lenders were licensed in Kentucky. No results came up for any of them. If the case is that an internet payday lender is not licensed in the state of Kentucky, what then?
Internet payday lenders are claiming they do not have to comply with Kentucky state law. They claim they comply with the law in which they are located.
If they are not licensed in the state of Kentucky to fund loans, are they not in violation of some sort of law?
Any help in this matter would be greatly appreciated. At the very least, it might clear up my confusion.
Thank you so much for your attention in this.
Response:
Internet payday lending is illegal in Kentucky.
Chris Thompson
Compliance Branch Manager
Reply:
I have emailed before regarding internet payday lending and received the reply that internet payday lending is illegal in Kentucky. Thank you for that information.
I now have another question. If an agency is attempting to collect on an internet loan - which was illegally funded - does the collection agency need to be licensed in the state of Kentucky? Is this even a legal debt to collect on?
Thank you for any information you can give.
Response:
I am not sure who if anyone licenses collection agencies. This Office does not consider it a legal debt as the entity was not licensed to do business in Kentucky.
Chris Thompson
Compliance Branch Manager
Reply:
I have viewed our state pay day law and understand that a store front pay day loan company can collect one NSF fee if your check is returned by your financial institution.
However, I have a question. How many times can a pay day loan company run the check through to your financial institution?
I have a pay day loan company that I am working on setting up a repayment plan; however, they keep running the check through my financial institution every week.
I was under the assumption that pay day loan companies may run the check through only once; however, I could be misunderstanding.
Could you please clairfy for me how many times a store front pay day loan company can run your check through your financial institution? I would like to be sure this company is following the law.
Thank you in advance for any answers/advice.
Response:
There is nothing in the check casher statute that prohibits the number of times a pay day loan company can run the check through; however, it is my understanding that banking law on allows a bank to do it only twice.
Chris Thompson
Compliance Branch Manager
What does this mean?
Internet based companies are illegal. They cannot collect on the debt through any means. Kentucky does not license them, and does not allow companies not licensed in KY to lend legally.
Storefronts can charge you 15% of the face value of the check.
Rollovers are not allowed.
A big Thank You! to Cannr for providing this information! 
_________________
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.
Vivek? Where are you my love?
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goudah2424
Moderator
Joined: 31 Oct 2006
Posts: 7935
Debtcc Points: 111173
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| Posted: Wed Jun 18, 2008 7:09 am Subject: |
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Be careful with Tremont. They have a habit of suing people in their state, and then getting default judgements.
If you do recieve a summons for them, please answer it. They can't sue you in their state, and you can get the case thrown out.
_________________
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.
Vivek? Where are you my love?
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goudah2424
Moderator
Joined: 31 Oct 2006
Posts: 7935
Debtcc Points: 111173
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| Posted: Wed Jun 18, 2008 7:10 am Subject: |
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Also, I changed the title of your post to "Kentucky PDL Help" instead of your name . . . . Hope you don't mind, but that way people can tell what the post is about.
_________________
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.
Vivek? Where are you my love?
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goudah2424
Moderator
Joined: 31 Oct 2006
Posts: 7935
Debtcc Points: 111173
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| Posted: Wed Jun 18, 2008 7:54 am Subject: |
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How do I get out from these? Do I write letters, call, or keep on trying to pay them back? They don't ever call me they will occasionally email me but that is it...Thank God! I am just confused on how to handle them... 
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amberishmaelcrt
Joined: 18 Jun 2008
Posts: 7
Debtcc Points: 134
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